Question


Judy

Does a store suffer any loss if a stolen credit card is used?

I always thought that Visa or Mastercard too 100% full responsibility for the cost. If not, stores would never accept credit cards because of the risk. It's VIsa or MC that takes the hit right? If so, then why oh why must some stores check your id?

1 month ago - 6 answers

Best Answer

Chosen by Asker

Visa and MC take no risk and issue no cards. They are marketing and clearing organizations. The account is actually with a bank. The bank takes the risk if the person goes bust or turns into a deadbeat. The store takes the loss if the card was used fraudulently. The stores accept this risk because they make a lot of profit on credit customers who like the convenience and who might be making an impulse purchase that they wouldn't be making if they had to count out cash. (Don't get me started on check fraud.) The only way to totally avoid the risk of fraud is to say to credit card customers, "Take your business elsewhere."

by Ted

1 month ago

Asker's Rating: 

Other Answers

Checking ID for less paperwork and less trouble getting stolen funds back.

by ELKRIVERSCOTT- 1 month ago

The store can take the hit. They must show the credit was physically presented by the user in order to avoid being backcharged.

by the tax lady- 1 month ago

they take the lost cause they pose to check your check your id

by KISHA- 1 month ago

If the store accepted the card per the terms of their Merchant Agreement they are not held liable for the transaction. In this case VISA or Mastercard would be liable. However, if the merchant accepts the card and did not follow the agreement then VISA or Mastercard would hold the store liable and do a Charge-Back. Now it is actually against the policy of VISA and Mastercard to deny a transaction solely based on a person not showing ID, if the card is signed and the signature matches. And they have no other reason to think that the card is being used fradulently.

by OC1999- 1 month ago

There are three entities involved in a fraudulent credit card transaction. Two of the three are NOT going to suffer the loss. The legitimate credit card holder and the credit card issuer (bank). That leaves the store to suffer the loss. Stores are usually required to post a "bond" of a sort to cover possible fraudulent transactions. If I were to accept credit cards, I would demand and ID from EVERY customer. If the names don't match, no sale. Authorized users on a single account have their own credit card and number.

by Dan B- 1 month ago