5 ms·
The incentives of the bank is to cut fraud. Fraudulent transactions will eventually cost the bank (when they would have to reverse/reimburse it and eat the los
by chii 5mo ago
The incentives of the bank is to cut fraud.
Fraudulent transactions will eventually cost the bank (when they would have to reverse/reimburse it and eat the loss). A denied transaction only results in an angry customer who will quickly forget after they complained - so the customer bears the brunt of the externalized cost.
Therefore, the bank's incentive is to err on the side of more caution, and deny transactions when finding false positives.
- kikimora 5mo agoWhen someone disputes a charge and wins banks charge processor and the original merchant. The bank won’t loose a penny, merchant will.
- crmd 5mo agoSpend retention is by far the highest priority. This is why they overnight fedex replacement cards. The worst scenario for a credit card issuer is when a customer, for whatever reason, starts using another bank’s card in their wallet as their daily driver.