Replying to Avatar An Capone 🌗

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?
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utxo the webmaster 🧑‍💻 2y ago

Yup. I suffer as the merchant, the theif, the bank and the card profit

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The Fockin’ Fury 2y ago

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 🐄 💩

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An Capone 🌗 2y ago

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?

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The Fockin’ Fury 2y ago

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.