How Visa and Mastercard encourage merchants to do their job!

Get credit card fraud help: For victims of credit card fraud and identity theft, and those that can help.
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Mogul of Pineapples
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How Visa and Mastercard encourage merchants to do their job!

Postby Mogul of Pineapples » Tue Jun 03, 2008 6:15 pm

Yep Visa and Mastercard do try and make merchants be held accountable for fraud. When a customer report a fraudulant charge, if it's found to be accurate and the charge is reversed, that's called a chargeback. Merchants can't have more than 1% of the dollar value of all volume processed by chargebacks. If they have more than 1% the merchant's processing bank starts getting charged fines of $5,000 to $25,000. Those fees are obviousy passed on to the merchant even if it's indirectly. Also if the chargeback ends up being valid the merchant may have to pay a fee of $50 to $75. Yeah I know it's hard to believe but all merchants actually have motivation to check your IDs hahaha
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Cucumber
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Postby Cucumber » Wed Jun 04, 2008 12:48 am

:confused: i didn't know the merchants would have to pay if you made a chargeback. :oooo i feel bad i made one accidentally for the taxi cab because i thought they artificially increased my tip. i was on my was to the hospital and on pain pills so that's how i remembered it at least. then i found the receipt in my jeans pocket later on and that was the amount they charged me on my credit card, i just thought the amount was different. :eek: that means i cost them the $15 for the cab and another $50 for the taxi. i know it was an accident but i feel kinda crappy about that.
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magyar1045
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Postby magyar1045 » Wed Jun 04, 2008 3:12 pm

Most cashiers don't really follow the ID rule, especially if the lines are long.

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Postby Mogul of Pineapples » Thu Jun 05, 2008 11:29 pm

Yeah you're right a lot of places don't check. I know Target never does in LA. You actually insert the card yourself into the read and everything. The cashier never even touches it. Then on the other hand I know Radio Shack has a policy of checking no matter what. I use to live by one so I would walk there often to by little things like batteries. They wouldn't allow purchases when I didn't have my ID. Even for something that was less than $3. I think they should do somewhere in between these two stores. Check ID for bigger purchases but not harass customers and refuse a purchase if they don't have their ID with them and the amount isn't much.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

magyar1045
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Postby magyar1045 » Fri Jun 06, 2008 8:29 am

And at gas pumps uou only insert the card and pull it back out. Some pumps however ask you to enter your zip code.

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Postby fffresh » Sat Jun 07, 2008 1:36 pm

I thought all pumps you swipe your credit card at require the zip code? Everyone I've used does. They should do that too, easy way to help combat fraud. But that's not very helpful if someone stole your wallet with your drivers license since that would have your zip code on it. Or if they stole it from you in your hometown they could probably guess what your zip code is. What the credit card companies should do is set up a pin we have to enter like debit cards do.



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