Earlier quoted context omitted.
Your last statement is false. A shady merchant never gets to keep the stolen money. The card issuer/bank refunds you immediately because of consumer protection laws. But that charge is immediately charged to the processor. The processor then gets the merchant involved in a dispute process. If the merchant loses the processor charges the merchant. One way they do it is to immediately deduct it from their current proce…
You are incorrect. Chase uses a "provisional credit" system, but for small amounts, this credit often becomes permanent almost instantly. Wells Fargo utilizes an automated system called the Wells Fargo Dispute Manager which is also similar. Technically, it is Self-Insurance. Banks set aside a portion of their interchange revenue (the fees they charge merchants for every swipe) into a "Provision for Credit Losses." Th…
The banks don’t seem to care one bit about and evidence you do provide anyway, I just imagine their dispute system is just “sleep(10 days); return DENIED;”