Credit card companies are incentivized to allow fraud to run rampant on their networks because they collect revenue on every disputed charge.
And merchants are stuck paying them because there is a duopoly and no viable alternatives.
Until they discover #Bitcoin, that is.
đź’Ż
Facts.
Reward the customers with incentives so they force merchants to accept them. Charge the crap out of customers if they pay 1 minute late, and reap the cut from the merchant and charge them back if there is a dispute. Pretty much as predatory as you can get.
Oh I’m totally stealing this post 🔥
It’s a bit more complicated. I think of “credit card companies” as Visa, Mastercard, Amex, etc. I don’t believe they are receiving any part of the chargeback fees assessed by credit card processors (like Stripe, Braintree, etc).
Credit card processors charge these fees but also have significant administrative overhead to process the paperwork from the customers bank, the processors bank, and the merchants response (if provided). There can be two additional back and forth rounds as well. I’m sure they profit from these fees but keep in mind they do provide substantial discounts to their larger customers.
tl;dr: fraud is probably a net negative for all participants
