Re:Fake books sold on Amazon could be used for money laundering
by derefr on Saturday April 28, 2018 @04:09PM
(#16949213)
Shrinkage isn’t the problem; being locked out of using a payment processor because of your shrinkage (which you’re eating) is the problem. Ever asked a small retailer how they feel about chargebacks? I’ll give you a hint: it’s not that they care one whit about losing money on the individual transactions.
It used to be that your storefront getting robbed—because that’s essentially what this is—was a temporary setback. As long as you had also made enough profit to afford to restock, and had taken appropriate precautions to deposit your revenue in the bank regularly, such losses cold be considered just a cost of “doing business in a bad neighbourhood.”
Nowadays, though, a business that might regularly get robbed—digitally—is untenable, because even if you want to restock and continue on, and even if your business is profitable enough to always be able to afford to eat such losses, your payment processors will still “fire” you as a customer. (Or see the “neighbourhood” you’re in and never take you on as a customer at all.)
It used to be that your storefront getting robbed—because that’s essentially what this is—was a temporary setback. As long as you had also made enough profit to afford to restock, and had taken appropriate precautions to deposit your revenue in the bank regularly, such losses cold be considered just a cost of “doing business in a bad neighbourhood.”
Nowadays, though, a business that might regularly get robbed—digitally—is untenable, because even if you want to restock and continue on, and even if your business is profitable enough to always be able to afford to eat such losses, your payment processors will still “fire” you as a customer. (Or see the “neighbourhood” you’re in and never take you on as a customer at all.)