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At some point someone is paying for the fraud, and it's not the bank, it's the merchant, that increase slightly the price to account for that, so in the end you
by champtar 6y ago
At some point someone is paying for the fraud, and it's not the bank, it's the merchant, that increase slightly the price to account for that, so in the end you pay for it. Same for cashback.
- abarringer 6y agoI work in the credit card industry. It's more complicated then that. Depending on who has EMV enabled correctly greatly shifts the fraud load. But banks can and do pay a huge part of the fraud which is passed on to consumers in higher interest rates. Merchants pay "cashback" by some definition but it's fungible. If there were no cashback that money would go directly to the banks and the end user would have lower interest rates.
- champtar 6y agoWhat I mean is it's like every insurance, they estimate the risk and collect enough money to pay for this.