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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[edit] 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 transaction. 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.[36][37] 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.[citation needed] 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.[citation needed]. 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.[citation needed] 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 needed] Because all card-accepting merchants and card-carrying customers are bound by civil contract law there are few criminal laws covering the fraud.[citation needed] Payment transfer associations enact changes to regulations, and the three parties— the issuer, the consumer, and the merchant— are all generally bound to the conditions, by a self-acceptance term in the contract that it can be changed.[citation needed] Merchants[edit] 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 chargebacks—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.[9] |
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