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by chimeracoder
2937 days ago
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> Wells Fargo is worried about the risk that nomocrypto will fail to pay back the card. The credit card issuers are not particularly worried about fraudulent "merchant" charges. Yes, they are different risks. But the issuer is still worried about fraudulent charges initiated by the merchant, in addition to the risk that nomocrypto will fail to pay off the balance. |
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Are they though? Generally the risk of merchant fraud is borne by that merchant's processor. There is some overhead for the issuer in processing chargebacks, but if this were an issue then we'd expect to see many other types of fraud-prone online merchants being banned.
It seems clear that this is an extension of the common prohibitions on using credit cards for gambling.[1] But I should add that it's not that they're worried about failure to repay. That risk is generally controlled by credit limits. It's the fraudulent chargebacks that cardholders initiate when they lose their money.
[1] https://www.creditcards.com/credit-card-news/10-things-credi...