Nonsense. I own a small toy store and I can assure you that the banks don’t swallow any of the costs of fraud, it’s always the store that does. Half the time the customer just doesn’t remember the charge and, instead of asking the store about it (I don’t remember this, what did I buy?) they just automatically file a dispute with the bank. The bank takes the money from me and gives it back to the customer, dings me with a “chargeback fee” of $20 and that’s it. The bank doesn’t lose a penny.
Maybe it’s different for someone like Amazon or Target with lots of lawyers, but for small businesses it is we who swallow the cost of fraud.
Yikes! Thanks for letting us know.
I am only a consumer and not a busineess owner, so I haven’t seen how the entire process works.
When I disputed a fradulent charge, I just dumped it into the hands of the bank. They credited out the fradulent charge. And I thought the bank got stuck with the costs.
I had no idea the banks can make the stores/vendors pay for the fraud. And make money by charging the “chargeback fee.”
That sucks!
That’s why Visa/MC/Disc/Amex require that you keep your card receipts for 18 months. The value is in the signature - if someone claims fraud you can dispute.