Where do bank companies get the money disputed from unauthorized credit card transactions? Do they pay it from their own pockets or chase the persons behind the transaction?

Question

Where do bank companies get the money disputed from unauthorized credit card transactions? Do they pay it from their own pockets or chase the persons behind the transaction?

In: Other

Answer 1

Usually the merchant doesn’t get paid for the transaction. Especially if it is a card not present transaction (online or phone) or signed credit card. It’s harder to dispute a chip and pin transaction and claim it was somebody else.