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Question About Credit Card Processing and Credit Card Payment...

Discussion in 'Business & Tax Advice' started by LOL-Blaster, Nov 6, 2012.

  1. LOL-Blaster

    LOL-Blaster Regular Member

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    Let's say someone stole my credit card and make physical purchases at a store.
    I find out about it and report the transaction as unauthorized.

    So who lose money? Me, the store or the credit card company?
     
  2. Zapdos

    Zapdos Power Member

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    The store who the item was bought from has the money removed.
    The merchant provider will charge them (the store) a fee (usually $20-$50) and may close their account for high chargebacks or increased fees.
    The credit card company will charge the merchant the $20-$50 fee for investigation. They also need to have a written report available within 5-7 business days depending on who (visa, mc, dino)
    You get the money back. You also will likely need to sign an affidavit that you were not the one who used the card and if you were, then you'll be taken to court and sued into oblivion as well as go to jail for fraud.

    So:

    Store: -$
    Merchant provider: -+$ (depends on if they add to the fee)
    CC comapny: +$
    You: +$
     
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    Last edited: Nov 6, 2012
  3. unclemike

    unclemike BANNED BANNED

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    The party that is really at a loss is the store. Especially if the products cannot be returned.
     
  4. GauravJ

    GauravJ Power Member

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    Yes Every thing said is true but saying on my own experience,
    As a cardholder you will be initially charged with the billed amount and if your claim founds acceptable one and you were not found to be negligent then only you can expect amount to be refunded and all this involves lots of fees for court, advocate etc besides mental tension etc