Comments on: Visa Pushes More Fraud Toward E-commerce http://www.merchant911.org/blog/index.php/2009/04/02/visa-pushes-more-fraud-toward-e-commerce/ Comments on credit card fraud from the E-Commerce Merchant point of view by Tom Mahoney, Founder and Director of Merchant911.org Fri, 13 Jan 2012 06:40:43 +0000 hourly 1 http://wordpress.org/?v= By: Tom http://www.merchant911.org/blog/index.php/2009/04/02/visa-pushes-more-fraud-toward-e-commerce/comment-page-1/#comment-1946 Tom Fri, 10 Apr 2009 15:46:30 +0000 http://www.merchant911.org/blog/?p=280#comment-1946 @Doug That's a good point. Either way you look at it, there's a good revenue stream in chargebacks. I don't have current numbers, but back in 2000 when I was doing the initial research to start Merchant911, the payment industry's own numbers revealed a USD $550 million in chargeback fees alone. They don't publish those numbers any more. @Doug

That’s a good point. Either way you look at it, there’s a good revenue stream in chargebacks. I don’t have current numbers, but back in 2000 when I was doing the initial research to start Merchant911, the payment industry’s own numbers revealed a USD $550 million in chargeback fees alone. They don’t publish those numbers any more.

]]> By: Doug http://www.merchant911.org/blog/index.php/2009/04/02/visa-pushes-more-fraud-toward-e-commerce/comment-page-1/#comment-1945 Doug Fri, 10 Apr 2009 15:32:47 +0000 http://www.merchant911.org/blog/?p=280#comment-1945 They don't charge "Fines" to merchants who are victims of fraud and chargebacks, they charge "FEES". That way if the chargeback is reversed, the FEE stands, since, after all, it was a service provided to the merchant! Also, if a reversed chargeback is reinstated, well, another fee is assessed. You gotta give 'em their due: the banks know how to make money, as long as they stay out of mortgage backed securities. They don’t charge “Fines” to merchants who are victims of fraud and chargebacks, they charge “FEES”. That way if the chargeback is reversed, the FEE stands, since, after all, it was a service provided to the merchant! Also, if a reversed chargeback is reinstated, well, another fee is assessed. You gotta give ‘em their due: the banks know how to make money, as long as they stay out of mortgage backed securities.

]]> By: Chris B http://www.merchant911.org/blog/index.php/2009/04/02/visa-pushes-more-fraud-toward-e-commerce/comment-page-1/#comment-1942 Chris B Thu, 09 Apr 2009 21:38:06 +0000 http://www.merchant911.org/blog/?p=280#comment-1942 Tom, I agree,fraud prevention efforts are necessary, but they should also be aimed at protecting all those involved (ie: brick and mortar stores, e-commerce merchants, and card holders). As you said so well, I don't see the credit card companies (I see this word as more accurate than associations, as these companies are profit driven entities, not some sort of non-profit organization.)changing too many profit generating operandi. That would dip into the profit margins too deeply. I also don't see these companies finding any better ROI than they do from the excessive fees, penalties, fines, and rate hikes (all of which are documented online, television, and printed news), no, what I see is they will continue to find new layers of generating revenue in the existing customer base, and the merchants that deal with them. Sad to say, as long as lobbyists remain on capital hill, and politicians get paid, we will see no real assistance for e-commerce against credit card fraud. Tom, I agree,fraud prevention efforts are necessary, but they should also be aimed at protecting all those involved (ie: brick and mortar stores, e-commerce merchants, and card holders). As you said so well, I don’t see the credit card companies (I see this word as more accurate than associations, as these companies are profit driven entities, not some sort of non-profit organization.)changing too many profit generating operandi. That would dip into the profit margins too deeply. I also don’t see these companies finding any better ROI than they do from the excessive fees, penalties, fines, and rate hikes (all of which are documented online, television, and printed news), no, what I see is they will continue to find new layers of generating revenue in the existing customer base, and the merchants that deal with them. Sad to say, as long as lobbyists remain on capital hill, and politicians get paid, we will see no real assistance for e-commerce against credit card fraud.

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