Roland Perry wrote:
at 13:38:33 on Mon, 27 Feb 2012, Stephen Sprunk remarked:

If the card company finds in favour of the consumer, I'm sure the
merchant doesn't get paid,

The merchant was _already_ paid, so if the dispute is resolved in favor
of the consumer _and_ the merchant is liable for the fraud, the
merchant's account is charged back.

It's not always a fraud. Chargebacks can arise because an item is "lost
in the mail".

Unless it's FOB, the courier works for the merchant. Delivery is part
of the purchase and title hasn't changed hands until received. Assuming
the buyer himself isn't committing fraud, that's not unreasonable.