5 ms·

What kind of fraud is there to suck up at the merchant part of the transaction? Isn't it so that if the merchant doesn't deliver, they don't get paid?

• gambiting 12y ago
  In the EU, merchants have to pay for swipe card fraud. Let's say you buy something with a swipe card, scribble a signature on the receipt, then ring your bank few hours later saying that there is a transaction you don't recognize. Then your bank requests the receipt from the merchant, the signatures don't match = you get reimbursed full amount, the merchant has no money and no goods - because in EU it is the merchant's responsibility to check if the signatures match. If they don't, they didn't do their job properly, therefore they have to pay. This is the reason why pretty much nobody accepts swipe cards in EU anymore - there's very few places which even have swipe terminals, it's all chip and pin. The couple times when my chip didn't work, the cashier had to key in the number of the card manually, because she didn't have a swipe terminal at the till.