11 ms·
The dirty little secret is that banks make money off online Card Not Present fraud. They take back the money from the merchant and charge a $35 fee. In-person
by magoon 10y ago
The dirty little secret is that banks make money off online Card Not Present fraud. They take back the money from the merchant and charge a $35 fee.
In-person fraud is much lower, so this transition to chip readers is just increasing their bottom line by 1) sticking it to retail merchants who don't upgrade their systems; and, 2) making money off required system upgrades.
- dfcowell 10y agoMerchants can mitigate that risk by requiring use of a bank operated verification system like Verified by Visa or Mastercard SecurePay or the Amex one which escapes my memory right now. You set a password on the card via your internet banking which is required for card-not-present transactions.