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5 - Banks do not make money from a chargeback. Chargebacks cost an average of $25 to each bank involved in the dispute (the credit card issuer and the merchant's acquirer). Not only are there mandatory fees implemented by Visa Intl and Visa USA/Canada/Whoever, there are also paperwork costs and the cost of employees time. Also, the majority of banks will write-off charges less than $15-$25, which comes from their pocket. And sometimes, if the chargeback drags on for too long (ie errors on the acquirer's or issuer's part), they whole transaction is written off by the issuer.
I got to tell you I was thinking about this and I dont believe it . I think if the cc companies didnt make money from charge backs. They wouldnt happen, they would of come up with a digital signature everyone could use to protect themselves along time ago. Like the verified by visa cant be used on adult sites if they are making no money on chargebacks and adult websites are charge back heaven. Adult websites would of been the first to use Verified by Visa and it would of been manditory for them to use it. This is based on if it was such a loss for them, good business would say protect yourself but they are not doing that so they are making money on cb's. lol
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