Credit Card Fraud

Credit card fraud comes with the territory. As the merchant you are the piggy in the middle. Consumers like credit cards for ease of use and if there is any dispute (goods don't turn up, not as advertised, whatever) they can cancel the order. In the United States customers' liability is set to the first $50 by federal law; in the United Kingdom it's zero. However, if you take an order, the card number is correct and all other verification is followed, and the customers default for whatever reason, you pay. If you are selling hardware where you might be running at a 10 percent margin, you'll need to make 10 new transactions to make good that loss. Luckily for software producers, the margins are higher so you only need to cover your internal costs, but that's not the point.

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