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Comment by ClumsyPilot | Hacker News Reader

The risk is 0.001%, and it brings in 30% (or whatever) more business. This has nothing to do with trust, it's a simple equation.

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You're comparing apples and oranges. This is not a risk, revenue, or trust discussion. The discussion was that credit card payments are not guaranteed due to chargebacks. This is a truism and has nothing to do with the percentatge of chargebacks that occur.

This is exactly correct, and the parent's suggestion that the risk of chargebacks is something like 0.001% is WAAAAY off. Like, by orders of magnitude off. Any business that processes credit card transactions at scale, card present or card not present, is going to have a whole department of people who all they do all day long is deal with chargebacks.

It does seem like there are some people here who think they know how credit cards work but actually have no idea.

Not all businesses that use credit cards are in the broken US system. It's not a widespread problem everywhere.

According to Merchant Risk Council survey data[1], in 2021, friendly fraud in Europe was 1.3% (of transactions), 1.6% in Latin America, and 1.5% in APAC. In North America it was only 1.0%. So, it's actually a smaller problem in the US than in Europe and other global markets.

Further, "Annual Ecommerce Revenue Spent to Manage Payment Fraud" was 9% in Europe, 12% in Latin America, and 15% in APAC. It was only 5% in North America.

[1]: https://merchantriskcouncil.org/resource-center/surveys/2021...

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