Re:With IPO Hopes Fading, Square and Box Face Reality Of Com...
by abcd_f on Saturday May 03, 2014 @07:09AM
(#7690329)
Hmm, fraudulent sellers. So you are basically saying that if someone charges a bunch of customers and then disappears, the chargebacks fall on Square's lap? This doesn't sound right. I'd guess that this is acquiring bank's problem and they hedge against this through their fee structure.
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Re:With IPO Hopes Fading, Square and Box Face Reality Of Com...
by anona on Saturday May 03, 2014 @08:25AM
(#7690509)
Usually the payment processor (square in this case) is responsible for chargeback/fraud costs. The acquiring bank will only end up paying those costs if square goes under and is unable to.
Re:With IPO Hopes Fading, Square and Box Face Reality Of Com...
by abalone on Saturday May 03, 2014 @03:21PM
(#7692044)
Even if it's passed back to square via fees, square's still paying for it. The fact that their gross margin shrank indicates those costs increased. And we know interchange didn't account for it.