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Originally posted by Joesho
but the banks have no choice but to protect their customers, and things like redirection, fraud, and unauthorized billing hmmm and lets say something like those dialers...gave them no choice.... do you think any mainstream companies have this problem..... yep but I bet if you look deeper it is only the ones that scam their customers as well.......
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Banks dont care about thier customers and neither does Visa. Its all about money. People dont matter to them - money does.
Visa loves fraud. They make millions anually from it. There is the chargeback fee and then they charge the discount rate twice. Trust me, I know what I am talking about - I used to work for a major third party billing provider and I learned all the games they pull.
If Visa and MC wanted to, they could stamp out fraud just like that. But why would they stamp out something that generates millions of dollars in revenue every year for them? Thier processor agreements put the responsibility for stopping fraud on merchants and they provide few tools to do so and the ones they do provide are ineffective or easily circumvented.
Visa and Mastercard both run cardmills. They give credit cards to people who have no money, no cedit and no responsibility. If you can sign your name and lie, they'll give you a credit card. And when you screw up, they'll take them away and then you can get a "secured" card. I was 12 when I got my first Visa from Providian. By 14, I had over $10,000 in total combined credit limits between several cards - all Visas and Mastercards. I didnt have a job at the time and all the income information on my applications was completly made up. But they still gave them to me. People like that are very likely to charge back ('friendly fraud') than your 40 year old who makes $45K a year running the 3rd shift at a machine shop.
You can bet your tush if Visa ate every chargeback they'd be much more concerned. But they don't. Instead, they work to make customers belive that they do eat the cost of fraud so they can justify thier ridclious intrest rates.
Credit cards are the biggest scam going in America. And they have everyone hooked - merchants, customers and banks. Its a good idea for everyone to work to find ways to make your business not dependant on credit cards. Offer other payment options and be prepared to switch to them if needed.
Everyone wins except the merchant and the customer. What a great deal for the banks!