[gist]

All true by my experience as a merchant.

But one other thing. Did you ever notice that there is no feedback loop where you can inform the issuer or bank that you have discovered a fraudulent charge? For what we do it's easy to spot a fraud charge. We void (or credit it) and move on (still a big pain of course). But the thing is there is no way to alert the credit card company (manually in some way or even by email) that we have figured out a card is stolen. Otoh, as a card user I've received calls from my bank from time to time when a particular purchase doesn't fit a pattern (and that pattern has never caught any fraud, only purchases that I have made).

[tyingq]

>>Did you ever notice that there is no feedback loop where you can inform the issuer or bank that you have discovered a fraudulent charge?

Great point. I end up just refunding the ones I find. In many cases I can tell 100% it's fraud, but there's nobody to tell.