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The vendor already eats that risk though, right? Chargeback fees cover the credit card company against that risk. The problem from the credit card companies'

The vendor already eats that risk though, right? Chargeback fees cover the credit card company against that risk. The problem from the credit card companies' point of view is that "I got caught by my wife" isn't a valid chargeback reason, so the vendor can dispute the chargeback, have every incentive to do so, and that's not a fight Visa want to get into.

hailwren 5y ago
Of course the reason given isn't "I got caught by my wife", it's "I don't know how that charge got there, it must be ... fraud". Payment processors are required to maintain a certain chargeback rate with the card companies and so that risk gets passed on to the merchants. This is all exceedingly well documented and a Google search away if you'd like to learn the inner workings of it.