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CC Fraud (a sad story)
Not sure, bit over my head, how that applies to some of the "other"
sites, say, as opposed to Amazon or Ebay. No doubt a real fun job for
law enforcement. It appears to look, apart from an acceptable
allowance and statistical abstracts for continuing to work within a
present state of embezzlement of funds, e.g. identity theft for having
obtained enough from a CC to illegally proceeded to fraudulently
obtain funds, is that the "end of stick", the short end is pointing at
the merchant. It's the merchants complaining more, besides, than the
banks issuing the cards.
Laws regarding consumer protection still smell sweet, very;- I doubt
even if Trump could squat low enough to change that, given his
reputation, which he has by now pretty well solidified for the man
with the baddest screwball around.
Still, no exactly fun for the consumer, targeted and a victim of
fraud. No less a tough game for the law enforcement types, I'd think.
.. . wiki . .
Credit card companies
To prevent being "charged back" for fraud transactions, merchants can
sign up for services offered by Visa and MasterCard called Verified by
Visa and MasterCard SecureCode, under the umbrella term 3-D Secure.
This requires consumers to add additional information to confirm a
Often enough online merchants do not take adequate measures to protect
their websites from fraud attacks, for example by being blind to
sequencing. In contrast to more automated product transactions, a
clerk overseeing "card present" authorization requests must approve
the customer's removal of the goods from the premises in real time.
Credit card merchant associations, like Visa and MasterCard, receive
profits from transaction fees, charging between 0% and 3.25% of the
purchase price plus a per transaction fee of between 0.00 USD and
40.00 USD. Cash costs more to bank up, so it is worthwhile for
merchants to take cards. Issuers are thus motivated to pursue policies
which increase the money transferred by their systems. Many merchants
believe this pursuit of revenue reduces the incentive for credit card
issuers to adopt procedures to reduce crime, particularly because the
cost of investigating a fraud is usually higher than the cost of just
writing it off. These costs are passed on to the
merchants as "chargebacks". This can result in substantial additional
costs: not only has the merchant been defrauded for the amount of the
transaction, he is also obliged to pay the chargeback fee, and to add
insult to injury the transaction fees still stand..
Additionally, merchants may lose their merchant account if their
percent of chargeback to overall turnover exceeds some value related
to their type of product or service sold.
Merchants have started to request changes in state and federal laws to
protect themselves and their consumers from fraud, but the credit card
industry has opposed many of the requests. In many
cases, merchants have little ability to fight fraud, and must simply
accept a proportion of fraud as a cost of doing business.[citation
Because all card-accepting merchants and card-carrying customers are
bound by civil contract law there are few criminal laws covering the
fraud. Payment transfer associations enact changes to
regulations, and the three partiesâ€” the issuer, the consumer, and the
merchantâ€” are all generally bound to the conditions, by a
self-acceptance term in the contract that it can be changed.[citation
The merchant loses the payment, the fees for processing the payment,
any currency conversion commissions, and the amount of the chargeback
penalty. For obvious reasons, many merchants take steps to avoid
chargebacksâ€”such as not accepting suspicious transactions. This may
spawn collateral damage, where the merchant additionally loses
legitimate sales by incorrectly blocking legitimate transactions. Mail
Order/Telephone Order (MOTO) merchants are implementing Agent-assisted
automation which allows the call center agent to collect the credit
card number and other personally identifiable information without ever
seeing or hearing it. This greatly reduces the probability of
chargebacks and increases the likelihood that fraudulent chargebacks
will be successfully overturned.
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