- Joined
- Jun 23, 2014
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That does not make sense.
Suppose my credit card number is stolen by "A. Romanian Scammer". A. Romanian Scammer submits an order to Schiit and has you deliver it to Bucharest instead of my billing address in California.
When I find out my card is stolen, I report it to my bank. Of course, Visa Processor is going to return the money to my card. But if I report the transacation as not being done by me, why would they charge the merchant ??
Banks don't like taking hits, if they pay you back and pay the merchant they're out the cash but their customer is happy, if they pay you back and don't pay the merchant they lose nothing and have kept their customer happy. For credit processors keeping the consumer happy is more important than keeping a business happy since only the former has such a broad choice when picking a bank to use. Businesses can't just bounce between banks for credit processing as easily as a customer can, in that way banks can get away with a lot more.