How Visa and Mastercard encourage merchants to do their job!

**Mogul of Pineapples** · 4:18 pm

Yep Visa and Mastercard do try and make merchants be held accountable for fraud. When a customer report a fraudulant charge, if it's found to be accurate and the charge is reversed, that's called a chargeback. Merchants can't have more than 1% of the dollar value of all volume processed by chargebacks. If they have more than 1% the merchant's processing bank starts getting charged fines of $5,000 to $25,000. Those fees are obviousy passed on to the merchant even if it's indirectly. Also if the chargeback ends up being valid the merchant may have to pay a fee of $50 to $75. Yeah I know it's hard to believe but all merchants actually have motivation to check your IDs hahaha

**Cucumber** · Jun 3, 08, 10:48 pm

i didn't know the merchants would have to pay if you made a chargeback.

i feel bad i made one accidentally for the taxi cab because i thought they artificially increased my tip. i was on my was to the hospital and on pain pills so that's how i remembered it at least. then i found the receipt in my jeans pocket later on and that was the amount they charged me on my credit card, i just thought the amount was different.

that means i cost them the $15 for the cab and another $50 for the taxi. i know it was an accident but i feel kinda crappy about that.

**magyar1045** · Jun 4, 08, 1:12 pm

Most cashiers don't really follow the ID rule, especially if the lines are long.

**Mogul of Pineapples** · Jun 5, 08, 9:29 pm

Yeah you're right a lot of places don't check. I know Target never does in LA. You actually insert the card yourself into the read and everything. The cashier never even touches it. Then on the other hand I know Radio Shack has a policy of checking no matter what. I use to live by one so I would walk there often to by little things like batteries. They wouldn't allow purchases when I didn't have my ID. Even for something that was less than $3. I think they should do somewhere in between these two stores. Check ID for bigger purchases but not harass customers and refuse a purchase if they don't have their ID with them and the amount isn't much.

**magyar1045** · Jun 6, 08, 6:29 am

And at gas pumps uou only insert the card and pull it back out. Some pumps however ask you to enter your zip code.

**fffresh** · Jun 7, 08, 11:36 am

I thought all pumps you swipe your credit card at require the zip code? Everyone I've used does. They should do that too, easy way to help combat fraud. But that's not very helpful if someone stole your wallet with your drivers license since that would have your zip code on it. Or if they stole it from you in your hometown they could probably guess what your zip code is. What the credit card companies should do is set up a pin we have to enter like debit cards do.

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How Visa and Mastercard encourage merchants to do their job!