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HElGHTS t1_iuu5rj4 wrote

Reply to comment by ip3p in PSA: Employee at The Ashford stealing credit cards by gamerdudeNYC

Can merchants use insurance to guard against this, or would that just increase the expected value of their losses even more (in exchange for turning a variable cost into a fixed cost)?

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ip3p t1_iuutidl wrote

It's mostly used by larger merchants, but there are services that do essentially that. The services analyze the transaction and will approve/deny it based on fraud risk. Denied transaction they won't cover if a 'chargeback' occurs.

The cost is usually a fixed percentage of the transaction, usually ~1% but can be higher and lower depending on the risk level of the industry.

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