Quote:
Originally posted by ThunderBalls
PROFITING OFF FRAUD?
Ishman said he specializes in Internet crime and filed the lawsuit after the three merchants approached him.
The suit also claims credit card firms and issuing banks actually profit from fraud because of revenue from chargeback fees. Ishman estimated $383 million in chargeback fees was collected from merchants in 2001, based on his estimate that 1.4 percent of all card-not-present transactions that year were fraudulent. In comparison, however, Visa has said that in 2001, only one-quarter of one percent of online transactions were fraudulent.
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I've been saying all along that they profit from chargeback fees.
What's interesting however is Visa claiming 1/4 of one percent of online transactions were fraudulent -- what percentage of those were adult oriented? If the percentage is SO low, why are they being so anal about their 1% threshhold?