Maybe I'm naïve, but The type of person that does this seems like the type of person that would do this regularly. That is to say: files a large number of chargebacks, with similar reasons, likely facing merchant disputes with evidence.
It really seems like there should be some heuristics applied to the consumer: if some significant percent of transactions (either number or dollar amount) are charge-backs, something is probably wrong that warrants closer investigation.
Someone filing one chargeback per every thousand or more transactions is not trying to scam anyone. Someone who charges-back 50% or more of the transactions they make at online clothing merchants, on the other hand, definitely is.
I wonder if there's just no incentive for the card issuers to do this?
I agree, I wonder if those doing the frequent and fraudulent charge backs are paying 1000s in credit card interest yearly, and are actually good customers for the banks.
It really seems like there should be some heuristics applied to the consumer: if some significant percent of transactions (either number or dollar amount) are charge-backs, something is probably wrong that warrants closer investigation.
Someone filing one chargeback per every thousand or more transactions is not trying to scam anyone. Someone who charges-back 50% or more of the transactions they make at online clothing merchants, on the other hand, definitely is.
I wonder if there's just no incentive for the card issuers to do this?