> Hi Chris,
> 
> I am curious to know how this would work in this case.  Lets assume
> someone purchased $100 worth of LiveVoip service using his Bank of
> America Visa card (and did not get a chance to use the service).  So now
> LiveVoip is bankrupt and lets assume the owners fled with the money they
> made so the bank accounts are cleaned out.  If the person now calls Bank
> of America to dispute the charge, then who loses the $100 in this case?
> Visa, Bank of America, or the consumer?


The acquiring bank that gave livevoip the merchant account loses the
money.  A merchant account is really just a line of credit in a way. 
The acquiring bank is responsible to the creditor (the issuing banks
who give you your credit card) just like any other loan they make.

That's it in a nutshell.

Chris
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