-1

I'm using US credit cards outside of US. If I get scammed, I file a dispute and get my money back. Filing the dispute takes less than a minute. I didn't measure it but this happened like 1% to 5% of the time in last 3 years. I get scammed more because I'm a foreigner.

Anyone knows who is paying for my disputes? I was assuming that the seller is paying for it. Is that wrong?

If my bank is paying for it, eventually they'd close my account, I suppose? I'm frugal (don't spend too much) and I'm always overseas. I also don't invest using banks. So my profit-cost might be in the negative for them. I don't know tho..

1
  • 1
    What are you doing with your card? I use my card outside the US 100s of times each year and fraud is extremely rare. Maybe once every 3 years or so
    – Hilmar
    Dec 3, 2022 at 15:53

2 Answers 2

3

I assume there are two costs you are asking about:

  1. The money you got back from the seller
  2. The time and money your credit card spends resolving the matter.

The seller pays #1, if the credit card can collect from them. Maybe they can, maybe they cannot.

#2 is a cost of business for the credit card. They budget for such expenditures, so ultimately it is paid for by whoever is providing the issuer with revenue: merchants paying access fees, card holders paying interest, etc.

2
  • 1
    actually #2 is covered by the dispute fees. Sometimes issuers would charge a fee for unjustified disputes, and the processors most definitely charge sellers fees for justified disputes.
    – littleadv
    Dec 2, 2022 at 21:16
  • I wondered about that. I'll pretend I included that in "etc." :)
    – chepner
    Dec 2, 2022 at 21:22
1

I was assuming that the seller is paying for it. Is that wrong?

No, most times it would be the seller. If a seller has too many charge-backs (disputes) filed against them, their processor would drop them. In rare cases where the processor cannot charge back to the seller a dispute that they found justified by the network rules they'd have to pay it themselves. Very rarely the issuing bank would cover the costs of the dispute.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .