My sister and her husband run a website that accepts donations. They can take payment through Visa and Paypall.
Some enterprising credit card thief has found that if they try to donate $5 to my sister’s website, they have an easy way to find out if the credit card is still valid. If the card has been blocked, they get a notice back saying that the donation can’t be processed. So this person sends my sister a handful of donations at a time. Some go through, some don’t. Probably the numbers from the cards that go through then get sold to others. Most of the time, the cards that go through get reported as stolen, and the charges reversed. No biggie. My sister doesn’t want stolen money. But then she gets billed $25 for allowing fraudulent sales to go through. $25 for each transaction. WTF?? Visa does nothing. NOT A THING.
So now my sister has to go through a list of all donations, and try to find these transations and get them reversed, before the cards get reported as stolen, or she gets billed. She has tried notifying Visa when she sees them, in the hopes that Visa would be proactive. No go. Visa does nothing. NOT A THING.
Let’s take a look at this business model. Visa issues credit to someone, maybe charging an annual fee, definately charging interest on unpaid balances. Visa charges the merchants a percentage of all transations. Visa charges the merchants (like it’s their fault?) for any fraudulant transations. Any disputed charges, Visa bills the merchant for them. This would be the same credit card company that has been making it easier and easier for people to get way to much credit.
So Visa, just what the hell do you see as your responsibility in this cycle? Just to send bills? Why didn’t I think of all of this first. I could have been filthy rich.