alt Hacker NewsThe card networks are never on the hook for fraudulent transactions (nor for any other type of chargeback for that matter). If anything, it's the merchant's payment service provider/card acquirer that absorbs the loss if the merchant can't pay.
The card networks are never on the hook for fraudulent transactions (nor for any other type of chargeback for that matter). If anything, it's the merchant's payment service provider/card acquirer that absorbs the loss if the merchant can't pay.
True until the acquiring (merchant side) bank is insolvent. Then the network pays. Source: worked at Visa for years.
It's why it's so hard to become an acquiring bank on the network.