2 ms·

Theory aside, has this ever been a problem in real life for you?

• netcan 16y ago
  It is a huge problem hidden by the fact that we have been getting around it for so long. These are the worst sort of problems to recognize because their cost doesn't manifest directly (merchants steal money) but in various costs incurred to prevent it. - Consumers are picky about who they give their cc to online. They sometimes buy from second best sources due to these concerns. This also favours the established players at the expense of innovation. - Banks/CC companies always favour consumers and always chargeback merchants for alleged fraud. This means merchants are careful who they sell to. They spend resources vetting clients (I had a client that sold phones who called every client to confirm orders - this is not abnormal). They don't sell to marginal customers (the margin is often 'outside the country'). This hurts merchants and consumers. - Banks/CC companies spend lots of resources dealing with & preventing fraud. This manifests in higher processing fees & higher interest rates. This hurts consumers and merchants.