As someone who worked in card processing systems writing backend software – we got to know the rules quite well.
Basically, any credit card customer can dispute any transaction and initiate a chargeback.
The burden of proof is then upon the merchant to prove that they took adequate steps to verify the identity of the cardholder :
PHYSICALLY ONSITE
– signature on slip
– pin authorised pos transaction
ONLINE / MAIL ORDER
– cvv typed from back of card (etc).
– correct cardholder name and address details.
In practice, the acquiring bank who signed the merchant usually refunds to the cardholder bank and slaps the merchant for the cost of the transaction.
A merchant that has a higher % of disputed transactions also has to pay a higher % fee for authorisation to cover the extra costs.
The shorter answer seems to be yes – most merchants simply wear the costs with out fighting it …
And I guess especially if it’s a casino / poker room / bookmaker and a US domiciled card … as it’s difficult to go “all legal” on the cardholder.
:sarcasm: