Quote:
Originally posted by psyko514
Keep in mind I work for a Canadian bank and Visa Canada has different policies/procedures from Visa USA. I can assure you that issuing banks don't make money on chargebacks. We're encouraged to avoid them as much as possible.
The writing-off of smaller charges is still common practice at a lot of banks, Canadian or American. Do a test if you doubt that. Post a $5 charge and a $50 charge on your account. Dispute both. You'll see the $5 charge credited in less than a week. The $50 charge will take a few more weeks.
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Tell that to Larry Fox from McDermott, Will and Emery
I have already seen chargebacks on small amounts, so there is no reason for me to test that.
Since you admit Visa Canada has different policies than Visa Domestic, how are you sure American banks don't do this, I am very sure. Furthermore, American banks encourage chargebacks on Adult Sites because they make money on them.
We had a merchant account once, many moons ago, that was under a computer hardware category, it had no chargebacks. The bank uncovered the account and reclassified it, chargebacks flew in and we had to terminate the account. Domestic banks handle consumer complaints very differently when an accout is identified as a high risk, adult paysite account. So unless you have first hand knowledge of High Risk, Domestic, Adult merchant accounts don't assure anything about same.
Also, not trying to knock your job, but why do you think they would tell you they make money on chargebacks when all you do is customer service. There would be no reason for a bank to let any employee know they make money on chargebacks unles it was a high official at the bank. This information came to us directly from Visa thru Larry Fox.