At 23:45 +1000 1/8/13, Paul Brooks wrote: >On 1/08/2013 5:37 PM, Harry McNally wrote: >> I assumed (perhaps incorrectly) that the fast response of PayWave >>meant it was >> not authenticating the transaction in real time. So it's not clear to me how >> the transaction limit will prevent loss (or theft). If the transaction is >> later declined then the merchant has a loss. >No - if the transaction is later declined after the bank terminal >gave the green light >for the customer to walk out with the goods, then the *bank* has the >loss, not the >merchant.
News to me. My understanding is that the bank merely issues a chargeback to the merchant's account. <anecdote> A few years back, I heard some stats that banks don't usually publish. In one particular year, Kiwibank had losses from credit fraud of $1,000. The reason is that all transactions that fail are charged back to merchants. Once in a while, a merchant skips or goes bust first, and the bank actually pays. </anecdote> -- Roger Clarke http://www.rogerclarke.com/ Xamax Consultancy Pty Ltd 78 Sidaway St, Chapman ACT 2611 AUSTRALIA Tel: +61 2 6288 6916 http://about.me/roger.clarke mailto:[email protected] http://www.xamax.com.au/ Visiting Professor in the Faculty of Law University of N.S.W. Visiting Professor in Computer Science Australian National University _______________________________________________ Link mailing list [email protected] http://mailman.anu.edu.au/mailman/listinfo/link
