4 ms·
naive question: Why should merchant be worried about this? Isn't it responsibility of CC company to back up the promised credit? If someone unauthorized used so
by sytelus 9y ago
naive question: Why should merchant be worried about this? Isn't it responsibility of CC company to back up the promised credit? If someone unauthorized used someone elses CC then shouldn't CC company swallow that loss?
- detaro 9y agoNo. CC companies protect the customer from fraud, not the vendor, unless you have really good proof the customer isn't right a chargeback means you loose the money and often pay a fee on top. + if you are the source of to many chargebacks, they'll drop you entirely.
- iamwil 9y agoThe credit card company charges really high fees (on the order of tens to hundreds of thousands of dollars if you have any significant volume) if you have more than 1% of all your transactions as chargebacks. The CC company doesn't swallow the loss--it's the merchant that does.