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Most consumers use credit cards to make purchases on the Internet because it gives them a sense of security unlike other forms payment. If the consumer?¦s credit card is used fraudulently, the consumer usually is not responsible for the charges if he or she followed the company?¦s reporting procedures.
While the above process protects consumers, e-retailers must deal with additional issues like chargebacks. A credit card company will refuse to pay if a transaction is found to be fraudulent. An online retailer has to absorb these chargeback costs; tradition brick and mortar companies do not. The traditional company usually has a signed transactional receipt...
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