How Visa and Mastercard encourage merchants to do their job! - Credit Card Forum

Mogul of Pineapples · 06-03-2008, 03:15 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

Cucumber · 06-03-2008, 09:48 PM

i didn't know the merchants would have to pay if you made a chargeback.

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.

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.

magyar1045 · 06-04-2008, 12:12 PM

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

Mogul of Pineapples · 06-05-2008, 08:29 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.

magyar1045 · 06-06-2008, 05:29 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.

fffresh · 06-07-2008, 10:36 AM

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.

06-03-2008, 03:15 PM	#1
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 279	How Visa and Mastercard encourage merchants to do their job! 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 Last edited by Mogul of Pineapples : 06-03-2008 at 03:18 PM.

06-05-2008, 08:29 PM	#4
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 279	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. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

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06-03-2008, 09:48 PM	#2
Cucumber Centurion Member Join Date: Apr 2008 Location: The beach of Zuma Posts: 146	i didn't know the merchants would have to pay if you made a chargeback. 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. 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.

06-04-2008, 12:12 PM	#3
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 109	Most cashiers don't really follow the ID rule, especially if the lines are long.

06-06-2008, 05:29 AM	#5
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 109	And at gas pumps uou only insert the card and pull it back out. Some pumps however ask you to enter your zip code.

06-07-2008, 10:36 AM	#6
fffresh Centurion Member Join Date: Apr 2008 Location: the edge of the world Posts: 227	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.