I come from a country where most people don’t have a credit card.
I cannot wrap my head around [this](https://m.youtube.com/watch?v=vmh3_nSR1jU) documentary.
Now I get that credit card fraud *is* a big problem.
But if all you need is the card number to order stuff, and card numbers are so easy to come by as shown in the documentary, then why is not every single criminal in the US running a credit card fraud operation?
It seems super easy and low risk. Get a burner device, order stuff from public wifi, and don’t be stupid about the delivery locations.
In: 548
tldr; businesses and payment processors pay for fraud, not banks or customers.
Odd i didn’t see any responses talk about chargebacks and who is liable as the answer.
When fraud happens on a card, the card holder can file a charge back (or dispute) with the card issuing bank. The way credit cards work is that a dispute is paid for by the merchant with whom the transaction was made. In cases of fraud, most card holders win these disputes. If a merchant has so many disputes that they go bankrupt – the payment processor they use is held accountable. Payment processors have very advanced machine learning algos used to detect card fraud and merchant fraud[1]
[1] Merchant fraud is when a bad actor signs up to process payments and either uses stolen cards to cash out or never fulfills orders.
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