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Banks don’t really eat the loss, instead they ensure all their services have enough of a markup to cover the cost of fraud. All consumers collectively pay for
by jonathanlydall 5mo ago
Banks don’t really eat the loss, instead they ensure all their services have enough of a markup to cover the cost of fraud.
All consumers collectively pay for all the fraud, it’s just that we don’t tend to realize it as it’s not a specific line item on any of our bills, instead we all pay just a little more than we should for everything we buy.
- throawayonthe 5mo agoyes, obviously all of the bank's money comes from consumers. what other scenario do you see where a bank(etc) "eats the loss" but the money somehow comes from somewhere else
- jonathanlydall 5mo agoWhile it may be obvious to you that your fees include covering all the banks losses to fraud, I think that most people assume the bank makes less profit or something due to such incidents, when the truth is they just raise their prices to maintain profits.
- SkiFire13 5mo agoI don't see the difference between the two TBH.
- themafia 5mo agoIf the rate of fraud reduced bonus payments to executives.