On 27-Feb-12 16:31, R J Cardy wrote:
"Stephen Sprunk" wrote in message ...
Wrong. The dispute and chargeback procedures involving the issuing
bank, the card network, the card processor and the merchant are all
identical regardless of what class of payment card is used.

Possibly a simplification - A dispute may not result in a chargeback,
e.g. I contact my card issuer and dispute a £12 transaction. As this
transaction is below the Visa/MCI chargeback limit my Issuer swallows
the charge. (This assumes Issuer and Acquirer are not the same).

In the US, the customer is responsible for the first USD50 of each
fraudulent transaction, though some issuing banks _choose_ to refund
that as well. That's where merchants' "floor" of USD50 comes from: they
will get that much even from fraudulent transactions, as long as they're
not determined to be complicit in the fraud. If they are, their
processor will indeed charge them back.

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