Quote:
Originally posted by psyko514
Visa does not make a cent in chargebacks. it costs the issuing bank $25 to do a chargeback, plus the labor of the employee taking care of the file, plus the paperwork.
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Where does the $30 chargeback fee (paid by merchants) ultimately go then?
You seems to say here it does not go to:
1) Visa
2) Issuing Bank (they pay $25 too?)
We know it doesn't go to the mechant, they pay it:
3) Merchant
... nor to the consumer:
4) Card Holder
Which leaves the acquiring bank:
5) Acquiring Bank
Are you suggesting that the acquiring banks make money here or the $30 chargeback fee merchants pay goes entirely to the issuing bank (which covers their $25)? That would still leave a $5 profit for someone... if we're to believe they have $50/hr employees handling 30 minutes of paperwork. I can't see the paperwork taking more than 15 minutes personally, especially for these small-ticket items, but perhaps there's more to it than the 1 to 3 pages I'm sent.
