I mean I am entirely unfamiliar with the concept. We rarely use credit cards where I am from and most of our payments are done via debit cards (or cash) and our regular payments are usually done via a repeat pay order with a specific code.
From what I could gather this is related to subscribing to a service with a credit (or possibly a debit) card and then having a dispute over whether may the service provider continue to charge you or not.
Is my assessment correct?
If so it doesn't surprise me. From what I know. the american payment environment is quite ridiculous to pretty much all europeans (and I'd suspect elsewhere too) I mean giving your card to a waitress who takes it out of your sight, pqper checks, actually signing something when you pay with a card etc. It's just wild.
They are all 100% stolen credit cards being used on my website.
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Let me check if I understand it correctly.
A guy with a stolen credit card uses a merchant who uses your service to order some goods. The stolen credit card gets charged and money is successfully transferred to your account. You then send an equivalent amount in btc to the merchants wallet. Then you are being hit with a dispute due to the card being stolen and you having to foot the bill for the CC thief who walks away with the goods that you in essence paid for?
Did I get it right?
Except that it wasn’t stolen
🍌
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Yup. I suffer as the merchant, the theif, the bank and the card profit
Yeah this is exactly how people abuse my company too. Stolen credit cards used to take out subscriptions. The resulting bogus accounts with a stolen subscription are then sold off for pennies on the dollar. It’s a numbers game for these scammers but any money they make is pure profit. When the cardholder catches on, they charge back. Then we get the blame for not knowing that the transaction was fraudulent. Absolute 🐄 💩
Do you have an idea how companies like Amazon or Apple (or you know any other big corps deal with this? I doubt they just foot the bill. Do they get some kind of an insurance? Is there a possible legal action perhaps?
It’s just considered a cost of doing business as far as I’m aware. In fact if the percent of transactions that are charged back against the merchant become too high, they are liable to be blocked by payment processors as too risky to process payments for. Which is wild, because again, it’s the merchant that foots the bill for all this.
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