Most credit cards and banks cover for unauthorized losses, which BTC does not have this insurance.
But they pass this cost of fraud onto the consumer, effectively raising the price of everything you buy. BTC insurance could become a fairly large industry.
Citation please? People here say that a lot but I've never seen any proof that fraud is a line in COGS
I assume the merchants are subsidising that in the fees they pay.
Mainly is the " interchange fee" the Visa and MC and AMex, Disc pays to the middle merchant banks to promote their cards,which includes interest 2-3% and per transaction fees.
Yes merchants pay a cc fee. But any proof they pass this onto consumer? I think they just eat it in their margin. I know my business did
The intermediary bank and association pays for it.
But the "interchange" association will reimburse some of the loss to the final merchant if they used rules like i.d. verification and physical swipe of transaction them from the buyer, online sales are much higher risk than physical location, therefore the higher interest and swipe charges for online merchants.