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Change in individuals cred card liability due to fraud?

duhmel 678 965 October 9, 2015 at 01:29 AM
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The credit card agreement has always said that individuals are liable for no more than $50if fraud occurs. The $50 has always been waived by the companies. Now with the companies passing on fraud responsibility to merchants that haven't installed chip readers, I wonder if the $50 fee will be waived since merchants, not the CC companies will be the ones on the hook for the fraud charges. Just wondering????

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Joined Jun 2005
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#2
The agreement you have is with the CC company any side deal they make should not change your agreement, willing to bet the merchant is 100% responsible for a bad charge.
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#3
Quote from komondor View Post :
The agreement you have is with the CC company any side deal they make should not change your agreement, willing to bet the merchant is 100% responsible for a bad charge.
I wouldn't make that bet. There was never an agreement that the CC companies would eat that $50. That was always a courtesy. They have deep pockets. I don't think mom and pop grocery store on the corner scraping by will be as courteous.

In fact, being so easy to report and get your money back form a fraudulent charge has always been a courtesy from the CC companies. I would expect that many local merchants will fight tooth and nail that you prove it was a fraudulent charge.
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#4
you don't get the point the CC companies are just not going to pay the places for the bad credit card purchases. Like i said my contract is, with Chase not Best Buy over my purchase, that is why you can contest a charge and win.
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#5
Quote from komondor View Post :
you don't get the point the CC companies are just not going to pay the places for the bad credit card purchases. Like i said my contract is, with Chase not Best Buy over my purchase, that is why you can contest a charge and win.
Contesting a charge is much different than fraud. In the former you are alledging that the store did not provide the product in service that you contracted for. The CC researches and if they agree they initiate a chargeback and the store is dinged for the payment amount.

Fraud is different in that you claim that you did not make the purchase. Federal law and the CC contract provides for a maximum of $50 loss for the consumer (per item or per fraud?). In the past the Credit card companies assumed the responsibility for the loss and waived the $50 as a good faith gesture. However, the Companies have announced that as of Oct 1, they are no longer taking responsibility for the loss if the retailer has not installed a chip reading cash register. The loss is now the responsibility of the retailer. The consumer is still not responsible for any charges above $50 but now the retailer is responsible for the rest. The retailer also may not desire to waive the $50 'deductible' that the CC have done in the past. In addition, if a number of charges are fraudulently made before the discovery, it appears that the consumer may be responsible for $50 per charge. Mom and Pop stores will likely fight the fraud claim so this could turn into a major pissing contest
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Quote from komondor View Post :
you don't get the point the CC companies are just not going to pay the places for the bad credit card purchases. Like i said my contract is, with Chase not Best Buy over my purchase, that is why you can contest a charge and win.
1) Contesting a charge is completely different from fraudulent use.
2) You don't win a thing.

Contesting a charge is exactly the same as stopping payment on a check. Do that enough times and what are you guilty of? Writing bad checks. What happens with credit cards is similar. Just because you stopped payment, doesn't mean the debt is still not owed. A company can, many will, sell your debt to a collections agency. In fact, many small business courses teach people to sell their chargebacks to collections to mitigate losses. Then you'll have a big huge black mark on your credit history and end up owing even more money. Even if you payoff the debt, there's no obligation for a company to remove the blackmark from your credit history. So you aren't winning. You are just opening up a huge can of worms. That's why I tell people that a chargeback is the very very very last thing you do, instead of the first.

http://consumerist.com/2010/08/23...on-agency/
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