Comment by 55555
2 months ago
I am in Thailand. Fraud is a much smaller issue because it’s a push-based system. You cannot withdrawal from someone else’s account just by knowing the number, unlike with credit cards.
2 months ago
I am in Thailand. Fraud is a much smaller issue because it’s a push-based system. You cannot withdrawal from someone else’s account just by knowing the number, unlike with credit cards.
What about fighting charges? In the US, if I flag a charge on my credit card it's immediately cancelled and they deal with it.
How does that work?
They way it works I don't receive a charge like you do with visa, the merchant presents a code, you scan it when your bank app and then the bank app asks if you want to send # of money to [merchant name], if you don't want to pay it then you don't approve the transfer in your app on your phone.
However after the fact there's less options, I've never gone through
Bundling consumer protection with the payment system was always a bad idea. Payments need to be instantaneous and free.
The returns/refunds can be handled offline by a mutually agreed facilitator that does not have a monopoly on the payment system. You can also have a legal mandate that all internet purchase, for example, should employ such a service, that charges a market fee and is then liable for making fair decisions.
5 replies →
That's not really what I asked.
What happens if a fraudulent charge happens?
1 reply →
In the Netherlands, possibly more of Europe, you can do a chargeback ("storneren") on automated deductions, which can be used in the case of conflicts, e.g. a company withdrawing money from your account even though you cancelled a subscription.
It does not work as seamlessly as CC w.r.t chargebacks.
What a lot of folks do is they pay for most purchases with UPI but try and ensure there is some kind of "undo" button somewhere for large purchases. If I am making a purchase on a shady website, or making a large purchase, I will pay using CC so that I can chargeback and the CC company will deal with it. However, even if I am buying a laptop or whatever on Amazon, I know that amazon will deal with returns and stuff properly, so I would just UPI it. There is also the matter of credit card offers and points and what not. If there is a good discount then CC is used.
Not well is my guess. You best treat it as a cash equivalent, because it's a push method.
What happens when it's so easy and people start abusing this system?
May be related: Discover refused a charge back from when Walmart sold me invisibly unusable food in a sealed container and was creating bureaucratic hoops to return it. They told me that they blanket deny all charge backs for food.