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by abalone
2928 days ago
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> But the issuer is still worried about fraudulent charges initiated by the merchant 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... |
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Yes, they definitely are. Trust me on this one.