At 03:42 PM 5/15/2002 +0000, major bosco wrote: >Even when the Card issuing Bank AUTHENTICATES the user -- the Chargeback >rate is only reduced by 50% !! Just goes to show how weak/ soft Credit >Cards are.
Why is this surprising? Chargebacks aren't only used in cases where the buyer's card has been stolen or misappropriated .. they're also used where the buyer believes that the seller has not performed their end of the bargain, and hence is not entitled to payment, so it doesn't seem so remarkable that authenticating the buyer fails to eliminate that risk. And, yes, sure, moving to a "harder" payment scheme reduces or eliminates that risk to the merchant .. by shifting it to the buyer, which changes the ratio of successful to unsuccessful transactions .. not only by reducing the number of unsuccessful ones, but by also reducing the successful ones, because buyers don't always trust sellers, and don't like bearing all of the risk of transaction failure. (not that I've got an easy answer ..) -- Greg Broiles -- [EMAIL PROTECTED] -- PGP 0x26E4488c or 0x94245961 --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
