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I think they're counting the loss of the merchandise. So a chargeback for a $10,000 TV would be like losing $10,000 plus whatever the cost of the TV was for the
by ceol 14y ago
I think they're counting the loss of the merchandise. So a chargeback for a $10,000 TV would be like losing $10,000 plus whatever the cost of the TV was for the store.
- kelnos 14y agoBut it's not. Getting paid $10k and giving it back is net zero.
- bwooce 14y agoNot when you could have sold the TV for $10K. This is the shoplifting issue; the shop loses both the product and the potential profit on the product. It gets a bit existential e.g. can you lose what you never really had? But even if you fall on the NO side of that, the cost of re-obtaining a product is not zero.
- icebraining 14y agoThe cost of re-obtaining the product is $7k, which were already accounted for. Marginal administrative costs are negligible.
- rmc 14y agoBut the merchant is still down a TV. Those things aren't free.
- kelnos 14y agoSure. I objected to the assertion that the merchant lost $17k, which is a gross exaggeration.
- ceol 14y agoLike everyone else said, it's not exactly that. It's like getting paid $10k in exchange for a TV, then giving it back but not getting the TV back in return.