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On a tangent: why does the wrong way cost less money than the right way? Is this a form of price fixing by the credit card companies? I'd imagine Visa could off
by invisible 12y ago
On a tangent: why does the wrong way cost less money than the right way? Is this a form of price fixing by the credit card companies? I'd imagine Visa could offer these at less money (or free) than MC but it sounds like that's not the case.
- steveklabnik 12y agoI don't have an enormous amount of insight into this, but what I can tell you is that in this industry, pricing is all about risk. The reason unreferenced refunds are cheap is because you're exploiting a loophole in the API, basically. The reason they don't like it is that it messes with fraud calculations, which messes with risk. The 'right way' is basically a new product, in my understanding and so, like any product, they charge what the market will bear.