From: "Count Zero" 
Newsgroups: uk.finance
Subject: Re: PIN fraud
Date: Mon, 19 Apr 2004 16:20:34 +0200
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"Tim"  schrieb im Newsbeitrag
news:c60dvn$aqg$1@sparta.btinternet.com...
> "Count Zero" wrote
> > In Germany ... chargebacks possible
> > without reason ... and is issued to anyone.
>
> Where's the protection for the poor merchants?
>
> If all thieves (eg "anyone") can get hold of the cards, and make
> transactions, then ("without reason") have a chargeback - aren't the
> merchants paranoid of fraud??

Anyone does not mean you can just step into a bank and get a card. Whenever
you open an accound your id is verified.

Let's assume i've bought something in a shop and paid with signiture and
then chargeback the money. My bank will then give the shop my address an the
shop will then send me a letter and ask me to transfer the money to them. If
I don't do so they will sue me. Therefore no one does this normally. Apart
from that the shop won't accept my card any longer. If the card was stolen
the shop woundn't get its money.

For smaller shops there is an alternative: They may ask me to enter my PIN
and check this online. Then no chargeback is possiblen, even if the card was
stolen. For this service the bank charge a commission of 0.3%. Therefore the
larger shops prefere signiture where no commission is charged.