how come credit card bills can be refunded, i.e if you get scammed the credit card company can reverse the transaction but a bank transaction cannot be reversed?

Question

how come credit card bills can be refunded, i.e if you get scammed the credit card company can reverse the transaction but a bank transaction cannot be reversed?

In: 154

Answer 1

Credit card transaction make a profit. Reversing fraudulent charges is an expected cost of doing business.

Many bank transactions make no money at all and may even cost the bank money. They don’t have a way to build in fraud into that equation so they are very hesitant to take the loss on behalf of the customer.

For banks, this is not a hard and fast rule. It is just the most likely outcome.

I do know someone who had their saving account cleaned out when someone stole their account information and the bank recognized it as fraud and did return all the money after an investigation.