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Hmm, fraudulent sellers. So you are basically saying that if someone charges a bunch of customers and then disappears, the chargebacks fall on Square's lap? Thi
by abcd_f 12y ago
Hmm, fraudulent sellers. So you are basically saying that if someone charges a bunch of customers and then disappears, the chargebacks fall on Square's lap? This doesn't sound right. I'd guess that this is acquiring bank's problem and they hedge against this through their fee structure.
- anona 12y agoUsually the payment processor (square in this case) is responsible for chargeback/fraud costs. The acquiring bank will only end up paying those costs if square goes under and is unable to.
- abalone 12y agoEven if it's passed back to square via fees, square's still paying for it. The fact that their gross margin shrank indicates those costs increased. And we know interchange didn't account for it.