From: Archibald 
Newsgroups: alt.uk.law uk.legal uk.finance
Subject: Re: A new Nigerian scam
Date: 24 Jun 2004 10:33:08 -0500

John Bishop wrote:

> I don't understand how a credit card company can ask for the money back from
> the retailer?

A fundamental part of any contract with an acquirer is the ability for
the acquirer to make a "chargeback" when a transaction is challenged or
for many other reasons.

> If you get a large value transaction, and authorise it with
> the card company in accordance with their procedures, the issue of the card
> being stolen or cloned is the banks.

Irrelevant, because in practice it will inevitably lead to a
"chargeback" being made.

> A stolen card will show up instantly, a
> cloned card is not the retailers responsibility.

Irrelevant. The chargeback mechanism effectively transfers most of the
risk back to the retailer. Many web-based vendors have to wait 28 days
before they get paid anyway further transfering risk.

> How can the CC company ask for the money back?

As above.

Archie