Quote:
Originally posted by Kimmykim
There is definitely no proof that doing anything other than pulling out of the business stops fraud, I'll agree with you there trog, in a heartbeat.
The Amex situation was a bit different though, the very nature of their system left them wide open for serious fraud they could not control. Same thing with Paypal's system.
The adult industry is by no means the only culprit, I'll wager (pun intended) that gaming, travel and a couple of other industries take just as much a hit as adult does with chargebacks, if not a bigger one.
The system itself is inherently flawed for use on the internet and the card companies are just as much to blame for teaching consumers how to commit what I'll call 'friendly fraud' at the end of the day as the scammers are for perpetrating their own brand of fraud. You couple that with resellers that will say anything to a consumer in order to collect 40 bucks on a 4 dollar sale and we arrive where we sit right now.
Personally I think the only way that Visa or MC will ever clear it up is to dump it altogether. Every internet system that's a problem. Of course they would then have to admit the sheer size and scope of the problem and face their own roles in it.
So I guess we shall see what happens.
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Well thought out post.
I honestly feel that the visa and mc situation is one where the left hand doens't know what the right hand is doing. They kinda fell into processing for internet transactions by default. I wonder whether mainstream will feel the brunt of visa changes aswell.