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> I prefer it. We have good fraud liability laws. If someone steals my card number, it's the bank's problem. We do too. And much cheaper transaction fees. Fra
by hocuspocus 4y ago
> I prefer it. We have good fraud liability laws. If someone steals my card number, it's the bank's problem.
We do too. And much cheaper transaction fees.
Fraud isn't your bank's problem, customers are paying for it.
- kube-system 4y agoFraud rates on credit cards in the US is 10.25 cents per $100 Fraud rates on credit cards in the EU are 3.6 cents per 100 euro The difference is 6.65 cents/100 which is 0.0665% So, it isn't fraud losses that explain the difference in processing rates between the US and EU (numbers from 2019) https://www.ecb.europa.eu/pub/cardfraud/html/ecb.cardfraudreport202110~cac4c418e8.en.html https://www.ecb.europa.eu/pub/cardfraud/html/ecb.cardfraudre... https://nilsonreport.com/upload/content_promo/NilsonReport_Issue1209.pdf https://nilsonreport.com/upload/content_promo/NilsonReport_I...
- hocuspocus 4y agoYou're right, it cannot explain everything, there's a lot more cashback in the US for example, which has to come from the interchange. But the fraud rate doesn't tell us the full picture here, there are indirect costs in dealing with fraud, I'd be more curious about a figure that also estimates externalities. Anyway the European report is very interesting because it shows that ATM and POS fraud is fairly marginal in Europe, which justifies pushing better SCA mechanisms as the most effective way to reduce fraud.