On 27-Feb-12 02:15, Roland Perry wrote:
In message , at 17:39:57 on Sun, 26 Feb
2012, Stephen Sprunk remarked:
If the charge isn't paid, the merchant isn't paid.

Wrong. If the charge is accepted by the issuing bank, the merchant
gets paid by their processor, period.

What if there's a later chargeback?

Chargebacks are debited from the merchant's account with the card
processor. If the merchant's account is closed with a negative balance
(eg. due to excessive chargebacks), the debt is collected through the
usual channels.

Note that failure of the consumer to pay their credit card bill does
_not_ result in a chargeback, contrary to Adam's ridiculous claims.

Indeed, as long as the failure to pay was "because I have no money",
rather than "because I dispute the charge".

When a customer disputes a credit card or charge card transaction, it is
removed from their bill until the matter is resolved, so it doesn't fit
the usual definition of "unpaid".

Also, in most cases, the customer won't discover transactions they need
to dispute until they get their bill--days or weeks after the releveant
merchants have already been paid.

(Debit card transactions are _not_ removed immediately in the event of a
dispute, which is a significant difference.)

S

--
Stephen Sprunk "God does not play dice." --Albert Einstein
CCIE #3723 "God is an inveterate gambler, and He throws the
K5SSS dice at every possible opportunity." --Stephen Hawking