[amyjess]

People who sell physical goods bake the cost of these losses into their pricing. In fact, any large business will have financial analysts whose sole job is to calculate exactly how much they'll need to inflate their prices to make up for losses due to fraud, theft, accidents, and the like. It's kind of like being your own insurer, except the customer pays your premiums.

[scarface74]

But I doubt that I could order $5000 worth of furniture, have it delivered, dispute the charges and then the vendor just shrugs.

But, I’ve never disputed charges outside of obviously being double charged. Most of the time, I’ll speak with vendor.

[amyjess]

Unfortunately, this is exactly what happens with identity theft.

Imagine if someone stole your credit card number, ordered $5000 worth of furniture with it, had it delivered, and then you discovered the unauthorized purchases on your account and disputed the charge. The vendor has no choice but to just eat it.

It's unfortunate, but it happens, and the only way to mitigate it is to raise prices to offset this kind of losses.

[scarface74]

That sucks. I didn’t think about it from the merchants side.