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Can anyone explain the reason for these attitudes? Is it just because expected fraud rates for that particular industry are higher?
by spohlenz 18y ago
Can anyone explain the reason for these attitudes? Is it just because expected fraud rates for that particular industry are higher?
- mcdowall 18y agoIts not that the fraud rates are high but rather that if an airline or supplier in the chain fails then the credit card company are liable for the refund to the customer. The Risk lies with them. So for example XL Airways going bust earlier this year had a massive impact on the merchant service provider as where products werent sufficiently bonded the liability lay with them. In such a high value turnover industry I can understand the risk element to the credit card company, but you would assume that becoming a member of 3 required bodies with bonding in place would be adequate! Clearly not in 99% of the cases!