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If a person were to commit fraud they would do it on big, high value transactions. Fraudulently buying a pizza isn't really all that much payoff for our fraudst
by 7steps2much 5y ago
If a person were to commit fraud they would do it on big, high value transactions. Fraudulently buying a pizza isn't really all that much payoff for our fraudsters after all.
They will buy stuff that's expensive. This means that to credit card companies, the bigger the transaction, the more likely that they will have to spend time and effort on fraud investigations etc.
Man hours are expensive though, and as such it is important someone pays for it. And well, that's where the percentage system comes from.
- Ichthypresbyter 5y ago>Fraudulently buying a pizza isn't really all that much payoff for our fraudsters after all. Although they will sometimes do that as a test before making a bigger purchase. When my mother's card was cloned, the first fraudulent purchase was a coffee or sandwich at a railway station in a different city (but one close enough that it was believable she might have been there). Her bank only alerted her the next day when it was used to buy jewelry.
- notahacker 5y agoBut I think the low cost stuff just gets eaten by the parties involved (I once had a stolen card used to make a single $1 payment on iTunes. Refund was as automatic as the new cards and I doubt Apple or the bank cared at all). Not so much when theres $1k at stake and the distinct possibility that the customer, the merchant or both could be lying