> Credit card transactions take far less, and they deal in legitimate risk (chargebacks, stolen cards, fraud, etc). Actually the merchant takes practically ALL

> Credit card transactions take far less, and they deal in legitimate risk (chargebacks, stolen cards, fraud, etc). Actually the merchant takes practically ALL the risk and the credit company has relatively little. If a stolen card is used or fraud is perpetrated, typically the merchant takes the hit depending on the type and scope of the fraud. If there is a chargeback, that money is held indefinitely until there is a resolution, but the merchant needs to dispute and prove that the product or service was rendered without any uncertainty, and much of the time the card company will favor the cardholder. On top of that, the credit card processor will charge you the merchant a hefty chargeback fee regardless of resolution (as I recall, though they may reverse it if the decision ruled in your favor). Most of the time it's not worth the effort to dispute smaller chargebacks for smaller amounts. It's fair amount of work that just may not be worth fighting. If your business is deemed in any way high risk, your merchant fees can be as high as 30% or more, but those are unusual edge cases. When dealing with consumers directly that's the inherent risk and overhead.