Quote:
Originally posted by Lily
How does the bank "suffer in fraud cases"? Last time I checked, the merchant is the one who pays. Not only is the money taken from the merchant and given back to the customer but the merchant pays pretty steep processing fees for each charge back and risks losing their merchant account. I don't see how that effects the customer's bank in any way.
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The merchant only pays when the bank can prove that the merchant could have prevented the transaction.
If someone steals your card and forges your signature on a receipt, your bank will pay for the fraud.
However, if your card says Mary Smith on it and a chinese male forges your signature, the merchant will pay for the fraud.