Rapper-turned-reality TV star Soulja Boy might end up owing credit card companies $175,000 after he was scammed in a hoverboard chargeback scheme.
Soulja Boy hopped on the Hoverboard craze hoping to make a quick profit this Christmas season. The Atlanta rapper sold hoverboards for $1,500 each on his online store Souljaboard.com (the store now redirects to his blog).
The rapper used Stripe to process his online payments. Problems began on Dec. 7 when SB noticed he had a negative balance of $175,000 due to chargebacks.
Chargebacks occur when consumers purchase products then dispute the charges and keep the merchandise, leaving the merchant owing the CC companies.
Soulja Boy wrote a desperate email to Stripe asking for help.
"I need help all the payments are fraud,” Soulja Boy wrote in an email to Stripe. “And it sent my account to negative because they all say they weren’t authorized. please help in any way you can thanks. I don’t want to have to pay all this money because of frauds is there any way to reverse these payments and get my account to Good standing."
According to AJC.com, 75% of all hoverboard purchases result in chargebacks.