Hacker News new | ask | show | jobs
by nohat00 1732 days ago
This is exactly correct, and the parent's suggestion that the risk of chargebacks is something like 0.001% is WAAAAY off. Like, by orders of magnitude off. Any business that processes credit card transactions at scale, card present or card not present, is going to have a whole department of people who all they do all day long is deal with chargebacks.

It does seem like there are some people here who think they know how credit cards work but actually have no idea.
1 comments
Dah00n 1732 days ago
Not all businesses that use credit cards are in the broken US system. It's not a widespread problem everywhere.
link
nohat00 1731 days ago
According to Merchant Risk Council survey data[1], in 2021, friendly fraud in Europe was 1.3% (of transactions), 1.6% in Latin America, and 1.5% in APAC. In North America it was only 1.0%. So, it's actually a smaller problem in the US than in Europe and other global markets.

Further, "Annual Ecommerce Revenue Spent to Manage Payment Fraud" was 9% in Europe, 12% in Latin America, and 15% in APAC. It was only 5% in North America.

[1]: https://merchantriskcouncil.org/resource-center/surveys/2021...

link