A recent thread in a local Facebook buy/sell group got me wondering. I know chargebacks can be readily obtained on “card not present” transactions where, for example, the merchant failed to deliver the goods.
In these instances the liability is primarily on the merchant, though if they failed to make good then their card processing bank would have to pay, followed by the card holder’s bank.
However, what is the situation for a card present transaction? Do the rules of the card schemes require the merchant’s bank to also make good in this case? Or are these transactions non-recourse?
Link to the article which prompted the Facebook discussion:
PK Furniture goes into receivership