Comment Re:They Authorised The Charge (Score 1) 173
If the company closes up shop and disappears then their credit card processor "eats" the chargebacks. But they also grab all the so called "legit" charges. The processor is also getting a much larger percent transaction fee, supposedly to cover the higher chance of fraud for online transactions. So if the company actually skips town the processor is the one that grabs any other transactions to pay off the chargebacks and keeps the rest of the money themselves.
Credit card processing is a dirty dirty business