I work for TD Visa customer service. The Visa section of the bank.
When a TD Visa cardholder wishes to chargeback a transaction, they call me.
When I see a single charge of less then $25, I write it off.
The issuing bank does not get a cut of the fee. In fact, a chargeback costs the issuing bank an average of $25 (when you factor in things like employee salary, paperwork, potential loss of clientele, etc) which is why we write off charges less than $25.
On top of that, if the acquirer brings the charge to arbitration, the issuer could end up paying upwards of $500.
For the record, I have nothing but respect for you and what you've done in the industry. I push your programs. But if you doubt that I work for Visa, I'll make you the same offer I made Kimmykim when I first joined GFY: Feel free to call me tomorrow @ 1-800-9TD-VISA. Ask for Matthew at extension 23141. I'll be replacing a supervisor from 4pm to 12am EST.
Quote:
Originally posted by fantasyman
If you work for Visa then you know that the banks, not Visa, generate chargebacks.
Chargebacks happen when the consumer calls their bank, not Visa. They say, I don't know what thess charges are, this is usually someone's wife or a guy who is trying to stay out of a divorce by denying he entered an Adult Site. When the bank looks up the charge, they say, you have another charge for $2.95, we should remove that from your bill as well, this generates two chargebacks.
Also, if you work for Visa you know that the bank who issues a chargeback gets about 80% of the chargeback fee. This is definitely incentiving the wrong entity.
I have been involved in credit card processing since 1986, in 1986 it was credit card processing for audiotext lines, in those days there was no such thing as a chargeback fee, or fines. The bank learned these bullsh-t billing practices from third party processors and they have taken it to new heights nowadays!
Ha ha, you're really funny 
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