Subject: Re: As a Retailer, Who do you Report Card Fraud To?
From: Ronald Raygun 
Date: Fri, 20 Jul 2007 16:11:05 GMT
Bytes: 2212
Newsgroups: uk.politics.misc uk.finance alt.politics.british

Thored wrote:

> On Fri, 20 Jul 2007 12:52:27 +0100, "Mel Rowing"
>  wrote:
>>
>>Every issuer has a fraud prevention unit. They monitor transactions and
>>should contact you if there is anything dodgy.
> 
> The problem a trader has AIUI is the cardholder can get a refund but
> the trader loses the item sent *and* the money

You make it sound like a double loss, but the arithmetic doesn't
work like that.  He only loses the cost to him of the item (plus
P&P, card fee, and the cost of dealing with the problem).

You can't say he loses the money, since he did in fact get it before
losing it again, so this is neutral.  Apart from incidental costs,
the net loss to a trader is just the cost to him (i.e. pre-markup)
of the item.