Yup, merchants don't just end up paying for the actual credit card fraud via chargebacks, they often lose tons of money on fraudulent chargebacks. In those cases the merchant will win the dispute and get the money they were owed, but will be out various non refundable fees ($20 per instance with the last dozen accounts I've worked with).
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Yup, merchants don't just end up paying for the actual credit card fraud via chargebacks, they often lose tons of money on fraudulent chargebacks. In those cases the merchant will win the dispute and get the money they were owed, but will be out various non refundable fees ($20 per instance with the last dozen accounts I've worked with).
If you're lucky and a bunch of fraud cases happen in a month of low turnover you could even lose your merchant account.
Not to mention you're usually out the actual merchandise as well.