"Stephen Sprunk" wrote in message ...

On 27-Feb-12 16:31, R J Cardy wrote:
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.

Thank you for the local view. Visa/MCI are international clubs and their
rules have varying types of floor limits amongst them the merchant floor
limit you quote and the chargeback limit that I quoted. In the case that I
quoted the merchant would get paid and as the amount is below the chargeback
limit I would get refunded. Handling chargebacks, which involving obtaining
'paperwork' from the merchant to resolve the dispute costs money and in some
cases it is cheaper to refund hence the VISA/MCI chargeback limits

Richard