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Member #437268

Member Since: May 12, 2013

Country: United States

  • In terms of who pays... Right, the business where the crooks use the stolen card have to eat the charge back. Also, if a particular business gets enough charge backs, then the credit card company will increase the fee the company pays on all their charges. For instance, a small business might have a deal where they pay 2.5% in credit card fees. Then they get a bunch of charge backs from fraudulent credit cards - maybe through no fault of their own - and the credit card company ups their fee to 3%. For a company doing mostly credit card payments you just lost 0.5% of margin; and I think it can get worse. The increased fees across your whole business might be a lot more than the actual fraud. I've always wondered if fraud was actually a money maker for the credit card companies. Does anyone know?

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