> > The way CCs are going at the moment I believe there is a wide open niche
> > just begging to be filled. CC fraud may only be 3% world wide but 90%
of
> > that 3% is internet fraud
The 3% figure came from a report from a credit card company. American
Express from their report of 2000 into Credit Cards. Irregardless of that
I think that most MMs will agree that cc fraud is or was highly prevalent in
our gold economy. This was the prime cause for very few MMs now accepting
CCs any more.
> BUT with the many fraud screening tools available (AVS, negative
databases,
> sophisticated AI screening) and with good & careful customer support, most
> merchants can stay within reasonable chargeback ratios.
> I would say that over 90% of today's B-to-C e-commerce is made of "card
not
> present" Credit Card transactions. Given that a 2.5% chargeback ratio will
> get a high level of scrutiny from the merchant banks, and that anything
over
> 5% chargebacks is probably the death of your merchant account (VISA/MC USA
> is much stricter than in the rest of the world), there would not be many
> merchants left processing if fraud were higher than 3% on average...
> >If someone would offer them a secure transactional
> > medium whith no charge backs they would grab it with both arms.
Yes Credit cards CAN be beefed up to be smart cards, even to the point of
fingerprints and Iris Prints.But this is a question of economics, How much
are the banks prepared to spend at at what point will they spend it to
upgrade the security of CCs. The answer is that point which it affects
their profit and the return to the shareholders. This technology is
available and has been so for some time and I must say that Australia is
always one of the first to employ new technology when it arrives, on line
transactions are an example. Yes outside of the US there is some smart
card technology in use. In Australia it is used in cable boxes, so, unlike
the US, you cannot 'acquire' illegal cable tv as the signal is scrambled
and you need a smart card initialed from the main office in order to
unscramble it.
Banks will not offer a no chargeback service until they can be assured
that there can never be a chargeback. They will only offer a system
guaranteed to benifit them
As such I still believe David, that the cost of doing business with credit
cards, from a merchant point of view, is increasing and an alternative such
as the gold economy offers a more secure transactional medium with less
possibility of fraud and a more economical cost basis.. the costs will not
reduce for the benefit of the merchant. The merchant HAS to have a
transactional medium. The costs will be reduce when it is in the interest
of the bank.
The merchant, using the gold economy however, is not dependent on bank
issued technology or bank facilities to the same degree. The idea of using
the gold economy is to move away from the paper currency and back to the
gold backed economy. I believe that is what this discussion is really
about. It seems to me that promoting the globalist view, as had been
couched in many ways over the past few days, does not help the gold economy
flying in the face of what I call capitalised socialism (I can explain that
term but it is not for this discussion baord - this is about the gold
economy).
Merchants are not interested in globalisation, or how much better for the
banks this or that system it. Merchants are only interested in an
economical system that is secure and has no or little chargebacks and which
is speedy enough to service their customers.
Arguing in favour of the banks will not encourage merchants to use the gold
economy as a transactional medium.
Arguing in favour of the the gold economy may do
Kind regards,
Michael Moore
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