Originally Posted by
joshwex90
Yet every merchant I know says they have been on the hook for every chargeback (and I'm not referring to someone who disputed because they were unhappy with the merchandise or felt they were overcharged, etc. - I'm specifically talking about people who claim they never made the charge or it was fake cards, etc.). If so, then what exactly is the liability shift changing?
This is an interesting question. If merchants see the chargeback it means the bank has decided the merchant should be responsible. Most merchants have no clue their real fraud levels because banks never send them chargebacks for stuff they acknowledge they have no chargeback rights for. Remember the merchant is responsible for ensuring they followed acceptance procedures properly and thus can be held accountable for most fraud - rarely would a counterfeit card look right. The problem is the bank can't prove what the counterfeit looked like lol. Merchants can also fight chargebacks but that often costs them more than accepting it. Thus this switch helps everyone. Remind me never to eat at that Mermaid's Garden place lol.