Founder at a small payment processor. Most of the risk for fraud is shifted to the merchant or payer (small transactions, not reported quickly... terms in the c

Founder at a small payment processor. Most of the risk for fraud is shifted to the merchant or payer (small transactions, not reported quickly... terms in the cardholder agreement). The processor is usually only on the line for refunding fees in the original transaction... there are a few exceptions (i.e. merchant doesn't have money in the bank when the payment is pulled back and heads for the hills). Also, there are many, many fingers in the pie.