Why do all of the large credit card companies opt to eat the debt of all of the numerous stolen credit cards each year?

It is my understanding that pretty much all credit card companies opt to eat thee debt of stolen credit card purchases. It isn’t just the large companies that do this to our economy. They write off these debts and in doing so, they hurt the credit world and also allow criminals to go free, only to continue committing this crime.

They encourage others to do the same by not prosecuting them. It would cost the credit card companies more in the long run to prosecute them, in court costs and lawyers fees. When my gas credit card was stolen and used multiple times, running up a credit card bill too well over $500.00, my credit card company simply wrote it off and told me if my card was stolen again that they would cancel my credit card.

Instead of punishing the criminal, they threatened to punish me for this crime.

You can rest assured that credit card companies are not serving as charitable institutions when it comes to covering for incidents of fraud or credit card theft. In fact, there are two things going on here: 1. The Federal Trade Commission (FTC) requires that individual liability be limited (based on when the fraud is reported).

If the fraud is reported quickly, the liability is limited to $50 for an individual in the United States. 2. Most credit card companies don’t eat these charges.

They make the merchant eat them. Merchants can sign up for additional services from the credit card processors (such as Verified by Visa or MasterCard SecureCode) that insure them against this loss, but in those cases, the credit card companies are covering this through a form of insurance. Don’t worry – capitalism is alive and well within all the major credit card companies!

If it cost more to collect, than they get back, it is good business not to bother collecting.

In the long run everyone eats the cost of stolen credit card charges. 1. If possible the CC charges back to the merchant.As a result merchants have to raise their prices to make up for the lost revenue.

2. What they can't charge back gets written off against their profits lowering their tax bill.3. The fees charged to customers go up.

The result is higher interest rates and other fees.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.