[HN Gopher] The underground world of credit card network exploit...
       ___________________________________________________________________
        
       The underground world of credit card network exploitation
        
       Author : pimpl
       Score  : 347 points
       Date   : 2023-08-02 15:05 UTC (7 hours ago)
        
 (HTM) web link (chargebackstop.com)
 (TXT) w3m dump (chargebackstop.com)
        
       | tamimio wrote:
       | Credit cards payments are exactly just like SMS 2FA, both are
       | insecure by design and served the purpose before the internet,
       | trying to shove old tech into new one and expecting it to work
       | well is just naive. Instead of spending time and resources by big
       | corporations to create such "web environment integrity", how
       | about creating a better more secure, fraudulent proof system
       | instead?
        
       | kareemc wrote:
       | In my experience, Stripe used to be a lot better at catching this
       | stuff - but I've noticed it's seem to have been getting worse and
       | worse.
       | 
       | Has Stripe Radar improvements slowed down or have fraudsters
       | gotten better?
        
       | bze12 wrote:
       | Some advice I got a while ago about detecting fraud through
       | stripe is you should probably train your own fraud detection
       | model if you're serious about limiting it and have enough volume.
       | Even something like a simple logistic classifier would work.
       | Stripe radar isn't tuned to the specifics of your business, and
       | there are other signals you can account for (like which products
       | they're buying, how long it takes them to buy after opening your
       | site, etc). Custom Radar rules work to an extent.
       | 
       | I get that a lot of indie businesses probably don't have the
       | resources/want to do this, so there are solutions you can buy,
       | but they're expensive and mostly targeted at high volume
       | merchants anyway. Maybe stripe launches a fine-tunable radar
       | product someday?
        
       | codedokode wrote:
       | It is ridiculous that you can simply enter somebody's card number
       | and buy something without confirming a purchase via SMS code.
        
       | nickdothutton wrote:
       | I've always found it incredible that US banks often require only
       | the card number to perform a transaction. All those "card
       | generators" I used to see uploaded to BBS in the late 80s and
       | early 90s make sense.
        
         | deathanatos wrote:
         | That part of the article was news to me. Like, why do I have to
         | deal with CVVs, expiration dates, zip codes, (not to mention
         | the resulting work from the fallout from the fraud) ... if it
         | doesn't even matter? How many person years of human life per
         | year could pursue something ... worthwhile ... if we checked
         | the CVV?
        
           | zaroth wrote:
           | I don't understand not checking CVV and Expiration Date at
           | all...
           | 
           | But for the other info, they could be carding for prepaid
           | cards which have no name, address, or ZIP code to verify
           | against?
        
             | deathanatos wrote:
             | Do prepaids not have ZIPs? So many things demand this info
             | (heck, even some gas pumps...) ... what do people enter at
             | those prompts?
             | 
             | (I left out name; I assume name isn't matched against,
             | given how fuzzy of a field it is. Most sites don't even
             | prompt for the information accurately enough to make a
             | match anyways.)
        
           | cesarb wrote:
           | It makes sense to me that zip codes don't matter (or might be
           | a weak signal), since some countries might not have postal
           | codes, or might have a different postal code format. But I
           | agree with you that it doesn't make sense to not check the
           | CVV and expiration date; both are printed directly in the
           | card, and should match exactly (unlike the card owner name,
           | which is also printed in the card, but the user might type it
           | differently, for instance typing in full their middle name
           | when it's abbreviated in the card).
        
         | jaywalk wrote:
         | I recently discovered, after almost a year, that I had put the
         | wrong expiration date of a new card into my password manager.
         | It was the correct year but the wrong month. Not a _single_
         | transaction had failed with the wrong expiration date.
        
       | zitterbewegung wrote:
       | Candyjapan has a good write up on mitigating this
       | https://www.candyjapan.com/behind-the-scenes/how-i-got-credi...
        
         | pimpl wrote:
         | Really interesting, thanks for sharing!
        
       | pard68 wrote:
       | Worked as the catch-all systems/CI/infrastructure/software
       | engineer for an ecommerce company last year. This sort of stuff
       | was so common. I'd spend at least one day a week trying to
       | determine the newest pattern and prevent it. They were using our
       | system to validate credit cards.
       | 
       | Eventually I stopped more or less all attacks on our
       | cart/checkout. But the requests were still coming. Eventually
       | while trolling logs for an unrelated PHP problem one of the
       | software engineers mentioned there was a huge amount of traffic
       | hitting our page to save a payment for later. The platform would
       | issue a $1.00 charge to verify that the CC was real and they'd
       | moved to using that to "churn" cards.
       | 
       | These CC thieves are very resourceful.
        
       | bigbacaloa wrote:
       | As an end _user_ of banks in both the US and EU, the banks in the
       | US seem way, way behind technically and in terms of online
       | usability. Both less secure and more cumbersome to use.
        
       | xyst wrote:
       | Yet another reason why the credit card industry needs to go.
       | Security protocols non-existent or haven't been upgraded since
       | the turn of the 21st century. The amount of middleman abuses is
       | innumerable as well. The costs of dealing with these nuisances is
       | passed on to the merchant (via higher transaction fees, charge
       | back fees, ...), and inevitably passed on to the consumer.
       | 
       | Let's not forget that the CC industry encourages the worst
       | spending habits for consumers thus perpetuating the never ending
       | cycle of slaves to debt.
        
       | nerdawson wrote:
       | Why does the US seem so far behind when it comes to banking?
       | 
       | - Chip and PIN has been in the UK since 2004 and mandatory since
       | 2006. It wasn't until a decade later that the US caught up.
       | 
       | - Faster Payments allow for instant bank transfers (usually)
       | between any bank account for free. Receiving transfers from
       | clients in US (even with a US Wise bank account) was always a
       | nightmare.
       | 
       | - Since the EU introduced Strong Customer Authentication, most
       | new payments have to be authorised in your mobile banking app or
       | by some other means of 2FA.
       | 
       | - Even before SCA, you'd have to get the Postcode (often digits
       | that mattered) and CVV correct at the very least.
       | 
       | These measures seem like a way of banks shifting the
       | responsibility for fraud onto the customer. In either case
       | though, it's the customer who loses out. In a culture that
       | accepts widespread card fraud, costs increase to offset it.
        
         | tlogan wrote:
         | In my view, the U.S. is leading the way in this area.
         | 
         | Europe seems to be shifting the burden of fraud prevention onto
         | customers with methods like SMS notifications and pins. In
         | contrast, in the U.S., banks and businesses are primarily
         | responsible for dealing with fraud.
        
           | dahwolf wrote:
           | I'm sorry but using strong authentication to make my payment
           | is not a burden, it's a bloody feature.
           | 
           | Here's how much of a "burden" that is: you hold your ATM card
           | next to the terminal. Done. Paid. Every once in a while
           | (based on a configurable max per week) it will prompt for a
           | PIN. Which you enter in 5 secs. That would be 1 in 10
           | payments.
           | 
           | Online payment: scan payment QR with phone, which takes me to
           | my banking app. Authentication is FaceID, TouchID or PIN.
           | Then you click "Yes". Done.
           | 
           | Both methods are highly secure, require no or minimal input
           | and are extremely fast.
        
           | mndgs wrote:
           | Oh, please. You're grossly misinformed. If anything, US is
           | lagging lightyears behind Europe in terms of fighting fraud
           | and fighting card schemes, which are stripping everyone
           | equally in US, banks and customers alike.
           | 
           | PSD2 directive intruduced a lot of novelties, which no one at
           | the time had (and very few do, not even US). For instance,
           | specific to this situation - remote payments above 30 eur
           | must be SCA (strong customer authentication, similar to 2FA,
           | but more elaborate) verified (small value exception from PSD2
           | RTS). Also, banks must have both real time and post-time
           | transaction monitoring in place, i.e. they must have systems
           | to detect and prevent such fraudulent attemtps. There
           | literally tens if not hundreds of fraud fighting measures in
           | PSD2, which all banks (both acquirer and issuer) must come
           | mply with. I could go on and on (not the place and format).
           | 
           | Frankly, it's utterly unbelievable that this kind of thing
           | could happen without anyone (either acquirer or issuer)
           | intervenining. Not what could (should) happen here in Europe.
        
           | daveoc64 wrote:
           | It's more the case that US Consumers are indirectly funding
           | crime by banks turning a blind eye to fraud.
        
             | tlogan wrote:
             | It's curious that the same product isn't cheaper in Europe
             | compared to the U.S., despite Europeans not funding fraud.
             | I can't help but wonder where those extra savings go.
        
               | ArnoVW wrote:
               | Products are more expensive in Europe because we have (on
               | average) ~20% sales tax. And because the _general_ tax
               | pressure is higher because we have more state services.
               | 
               | In terms of PPP someone should look it up (on mobile)
        
           | i_am_jl wrote:
           | On the other hand, the EU caps credit card fees at 0.5% by
           | law while in the US merchants will pay 3 times that at a
           | minimum.
           | 
           | I suspect that in the US CC processors are incentivized to
           | increase their processing fees to cover the cost of fraud
           | instead of building features to prevent it because they can
           | and it's easier than building features. Businesses are
           | incentivized to increase prices to cover the cost of fraud
           | (and CC processing costs) since processors offer such poor
           | tooling to prevent it.
           | 
           | In the US the burden of fraud prevention is squarely on the
           | honest consumer's wallet.
        
           | Dma54rhs wrote:
           | It's not leading the way technically but for the end consumer
           | it might be better. If I get charged unfairly my bank will
           | tell me to go to the police. Americans can easily just refuse
           | it.
        
             | toyg wrote:
             | Not if you use a credit card; a quick call to Visa/MC/Amex
             | will get your money back instantly in Europe too.
             | 
             | The main difference is that, in Europe, _debit_ cards are
             | often used in the same way as a CC - except they are just a
             | direct pipe to one 's bank, and once the money comes down
             | the pipe there is no easy way to push it back up.
        
         | mnw21cam wrote:
         | Chip and PIN isn't mandatory in the UK - it's just the default.
         | My debit card is not Chip and PIN, because I asked the bank
         | very nicely.
         | 
         | The problem isn't the Chip and PIN itself, although it has been
         | implemented less securely than it could be. The problem, as you
         | point out, is that the liability for fraud has been shifted in
         | law to the card holder, and that is what I objected to. See
         | https://www.chipandspin.co.uk/ for more.
        
         | 0xbadcafebee wrote:
         | > These measures seem like a way of banks shifting the
         | responsibility for fraud onto the customer.
         | 
         | Onto the vendor, not the customer. The customer can chargeback
         | anything instantly, and the vendor is on the hook for the
         | fraud.
         | 
         | It's intentional, so the banks and payment processors can make
         | more profits. By making it easier for customers to chargeback,
         | they incentivize customers to buy more stuff, by getting the
         | customer to feel more comfortable charging everywhere. Charging
         | more stuff makes payment processors more money.
        
         | mistrial9 wrote:
         | > US seem so far behind when it comes to banking
         | 
         | "ahead" and "behind" halt thinking, and turn the entire topic
         | into some kind of number-line position. It is not. This is
         | complex and actors on both sides of the Atlantic are playing in
         | bad faith to exploit changes. Second you ignore the roles
         | involved. Mid-20s person with steady job is a smaller and
         | smaller part of the system-in-fact, for many reasons. Some
         | people say that working 20-somethings are abused and
         | disenfranchised, including in the EU and elsewhere.
        
         | np- wrote:
         | > In a culture that accepts widespread card fraud, costs
         | increase to offset it.
         | 
         | Maybe, maybe not, but this is a very simplistic way of looking
         | at it. If credit card fraud is responsible for X% of total
         | charges, they can spend effort to deal with it, OR they can
         | simply not deal with it and keeping the transactions going
         | while eating the cost, they may be able to serve Y% more
         | customers where Y > X and thus end up with more profit in the
         | long run.
         | 
         | This works for a lot of businesses in America because the sheer
         | scale is massive (take McDonalds for example, they would
         | probably be better off processing their lunch rush quickly due
         | to the margins they are making rather than take even 1 second
         | to verify there is no fraud). This may not work in Europe, but
         | IMO you're missing an entire dimension when analyzing the true
         | costs.
         | 
         | If the fraud/benefit scale ever tipped away from favoring the
         | companies, I think we would see all these major fraud
         | prevention mechanisms kick in almost immediately in the US.
        
         | ActivePattern wrote:
         | As a Canadian, it does feel like stepping out of a time machine
         | when you pay at restaurants in the USA. Instead of using a
         | terminal at the table to pay yourself, you need to give the
         | server your card and wait for them to manually process it
         | somewhere. Maybe things have progressed in recent years. But we
         | haven't done it that way in Canada since the early 2000's.
        
           | danudey wrote:
           | I was visiting Seattle (from Vancouver) a few years ago, and
           | they didn't want me to use my chip card as a chip card
           | because if they did then I couldn't tip. What the heck is
           | that all about?
           | 
           | Also, we're _still_ hearing stories about merchants in the US
           | starting to accept Apple Pay, whereas it worked fine in
           | almost every retailer in Canada the day it was available -
           | even though it wasn 't available in Canada for a long time,
           | American visitors (or Canadians with American credit cards)
           | could use Apple Pay on launch day at any retailer that
           | supported tap-to-pay, which was easily most of them.
        
             | bmicraft wrote:
             | > What the heck is that all about?
             | 
             | Tax fraud? I've never seen a card reader in a restaurant
             | (here in europe) where they couldn't either enter a
             | completely arbitrary amount to pay, or add a tip.
        
             | kasey_junk wrote:
             | It was probably an issue with that particular merchants
             | POS. Merchants have very little incentive to update their
             | POS systems so technology changes are very hard to get
             | rolled out. Especially for smaller merchants which many
             | restaurants are.
             | 
             | It's a network effect thing. Because tap to pay wasn't
             | supported by the POS vendors US consumers did not get much
             | improvement in experience because of it, so there wasn't
             | demand from merchants. With Apple Pay there is a huge
             | improvement for consumers (not having to carry the credit
             | card) it has finally forced merchants and their supporting
             | POS vendors to support it.
             | 
             | Between that and the disruption in the POS market the iPad
             | (and similar devices) brought, POS vendors have had to
             | become more flexible.
        
             | tptacek wrote:
             | That's not a thing. Americans universally pay for
             | restaurant meals on cards.
        
           | wpietri wrote:
           | Things have definitely changed here recently. At least in San
           | Francisco, at-table terminals are now the norm in sit-down
           | restaurants. Staff generally use the same device for order-
           | taking and payment.
        
             | baby_souffle wrote:
             | > Things have definitely changed here recently. At least in
             | San Francisco, at-table terminals are now the norm in sit-
             | down restaurants. Staff generally use the same device for
             | order-taking and payment.
             | 
             | I used to work in PoS industry.
             | 
             | This tech is new-ish to the US but not to the rest of the
             | first-world. 15 years ago, paying with a CC @ the table was
             | common in Europe, but the terminal could ONLY do payments.
             | The devices that have been rolling out to the US are more
             | like android tablets in that they can run the order taking
             | half of it, too. Selling hardware to a restaurant is tricky
             | and "oh, no, this only allows you to move the payment
             | portion to the table; staff still have to go to central
             | spot to find a table that can accommodate guests and place
             | their order" was basically a non-starter. The sales pitch
             | is a lot easier now that everything can be done table-side.
        
               | wpietri wrote:
               | For sure. "Bring the card to the device" and "bring the
               | device to the card" seem about equivalent to me in
               | convenience unless the device is something that the
               | waitstaff is going to carry all the time anyhow.
        
           | pests wrote:
           | I've started to see more and more servers using a mobile POS
           | with built in credit reader and receipt printer. They hand it
           | to you for tip and signature and you don't have to hand your
           | card to anyone.
        
             | tlogan wrote:
             | Definetly not a better experience for all consumers. Or
             | waiter.
             | 
             | I do know that some restaurant owners are removing these
             | things. They do not want to look like Olive Garden :)
             | 
             | But it really depends on a restaurant: is it high end, type
             | of food / drinks, it is a date place, etc.
             | 
             | Majority of restaurant is all about experience and event
             | payment system should match that experience.
        
               | sigwinch28 wrote:
               | > Majority of restaurant is all about experience and
               | event payment system should match that experience.
               | 
               | I'm in the UK. I go to many high-end restaurants,
               | cocktail bars, etc. Portable card terminals are
               | essentially universal in these places. The fact it's the
               | same everywhere is a feature, not a bug.
               | 
               | It's quick. Your card never leaves your sight. No pen is
               | required. Payments up to PS100 can be done using
               | contactless on a physical card. Even higher amounts with
               | smartphones/smart watches. Tipping is often integrated
               | into the terminal where tipping is common. It's rare to
               | have to put the card into the terminal.
               | 
               | I don't think it detracts from the experience. On the
               | contrary, I think it streamlines the bit between being
               | finished and wanting to leave:
               | 
               | "Please can I have the bill and a card machine, please".
        
             | WirelessGigabit wrote:
             | But now they get to see how much you're tipping them! Like
             | they literally have to wait while you punch it in,
             | increasing the social pressure to make up for a broken
             | system.
             | 
             | I don't go to restaurants anymore. Too much pressure.
        
               | DiggyJohnson wrote:
               | Respectfully, this seems like social anxiety or
               | hyperbole. You don't go to restaurants because of the
               | stress of the cultural norm of tipping? Seems more
               | accurate to say you don't like eating out in general or
               | because of the price of eating out once you factor in a
               | tip...
        
         | creeble wrote:
         | None of these comments seem relevant to TFA, which is
         | specifically about card-not-present fraud.
         | 
         | Chip and PIN doesn't work for internet payment.
         | 
         | Bank transfers don't work well internationally.
         | 
         | It is trivial to turn on AVS (address verification) and CVV,
         | but it can result in more declined-yet-legitimate transactions.
         | Sometimes that outweighs the fraud risk that these catch.
         | 
         | The responsibility for fraud is pushed to the merchant, not the
         | customer. Yes, customers pay higher prices because merchant
         | fraud gets passed on eventually, but only in the sense that
         | _all_ fraud costs get passed on to consumers eventually.
        
           | pas wrote:
           | Lack of initial (mobile app push notification based)
           | verification for saving the card data is the issue, no?
        
         | DarkGauss wrote:
         | We still do not use chip-and-pin on credit cards in the US. We
         | use chip-and-signature for most credit cards. I'm not saying
         | there aren't credit cards with chip-and-PIN, there are a some.
         | 
         | We do use chip-and-PIN on most debit cards, but even that can
         | be bypassed on 99% of terminals to fall back to chip-and-
         | signature.
        
         | ggregoire wrote:
         | What's super interesting to me, lot of countries that you would
         | expect to be behind the US on that topic actually have state-
         | of-the-art banking techs. Even the EU is behind some of the
         | stuff I've seen in LATAM.
        
           | mndgs wrote:
           | Please, name an example. Particularly, EU being behind LATAM.
           | As an expert, I'm honestly interested.
        
         | arjvik wrote:
         | We have 3D Secure, but it's almost never implemented on sites!
        
           | _puk wrote:
           | Define "We".
           | 
           | With a UK card pretty much any transaction I do online
           | requires me to Auth it in app.
           | 
           | I even found I had to do it recently for things like car
           | hire, and those websites are generally just wrappers around
           | local company searches (though higher sums overall).
        
         | BaseballPhysics wrote:
         | A massively diverse and deregulated banking sector.
         | 
         | The US has literally _thousands_ of small regional banks across
         | 50 fairly independent states.
         | 
         | Rolling out major new technologies in that environment is far
         | far harder.
        
           | cubefox wrote:
           | The number of banks in the US seems perfectly normal. Germany
           | has ~1500 for 80 million inhabitants, the US has ~4800 for
           | 300 million.
        
             | toomuchtodo wrote:
             | https://www.npr.org/2023/05/16/1176513695/does-the-u-s-
             | have-...
             | 
             | https://www.marketplace.org/2023/05/05/heres-why-the-u-s-
             | has...
        
             | TrackerFF wrote:
             | If Germany is anything like the Scandinavian countries,
             | those banks will just be branches of a handful of different
             | banks.
             | 
             | We really don't have any microbanks that need to roll out
             | their own tech for everything - most are just part of the
             | larger banks, and get all the infrastructure provided for
             | them.
        
             | tptacek wrote:
             | The US is 50 related but different regulatory regimes, not
             | 1.
        
               | cubefox wrote:
               | Germany also has states, although they aren't as
               | independent as US states. In an case the EU is much less
               | unified than the US.
        
             | BaseballPhysics wrote:
             | First, compared to the rest of the EU, Germany is a weird
             | outlier with the number of banks they have (which, by the
             | way, has been declining steadily for 15 years).
             | 
             | Setting that aside, you missed the "deregulated" part.
             | 
             | As I understand it (and I grant my understanding is pretty
             | cursory) Germany has a much stronger central regulating
             | body, and is subject to overall EU regulations as well.
             | 
             | The US has multiple regional banking authorities and a ton
             | of responsibility is delegated to the states, and in
             | general government intervention is seen as a last resort.
             | 
             | So it's both structural and cultural.
        
               | cubefox wrote:
               | > First, compared to the rest of the EU, Germany is a
               | weird outlier with the number of banks they have (which,
               | by the way, has been declining steadily for 15 years).
               | 
               | Still, the absolute number itself seems to be not really
               | the issue here. (I assume the number of US banks has
               | similarly declined in the US, as fusions reduce cost.)
               | 
               | > Setting that aside, you missed the "deregulated" part.
               | 
               | Yeah, that part I don't object to.
        
               | [deleted]
        
               | asmor wrote:
               | And also, a lot of german banks are actually federated
               | with centralized IT departments (like Finanz Informatik)
               | providing the entire bank as "blueprint". Yes, even if
               | they aren't called Volksbank or Sparkasse. For instance,
               | if you get an EC/GiroCard from DKB, the letter is
               | suspiciously typeset in Sparkasse's corporate font.
        
       | Scoundreller wrote:
       | > We learnt that 15% of the successful fraudulent charges
       | resulted in chargebacks.
       | 
       | I Hope the other 85% are just recent transactions that haven't
       | been scrutinized yet.
       | 
       | Or did the fraudsters target a bank with high net worth clients
       | that don't scrutinize smaller billings???
       | 
       | I can see a lot of people not really scrutinizing a random
       | Spotify transaction or something. Especially vendors that let you
       | store multiple cards and then you don't always keep it straight
       | which transaction went to which card anyway.
        
       | mrguyorama wrote:
       | Stripe is god awful at fraud prevention and it's intentional.
       | They are explicitly outsourcing the cost of risk management to
       | their clients. It's obscene. I work in the credit card fraud
       | prevention field, and I'm not even that good at my job, but our
       | team of like 3.5 people easily built and maintained a system that
       | prevents this exact kind of carding attack.
       | 
       | The primary way for a business to prevent carding attacks is to
       | just be slightly more annoying to attack than the next guy. As
       | far as I can tell, Stripe is happy to be the easiest large
       | network to attack because they outsource the pain and cost of any
       | attack to you, their users. They could easily, and for very
       | little cost, prevent this from hurting you.
       | 
       | Stripe is choosing to let you suffer to save a few bucks.
        
         | KRAKRISMOTT wrote:
         | They want to nickel and dime you and make you pay for Radar.
         | It's the exact same strategy with Stripe Taxes and their
         | terrible currency conversions. Provide no service up front and
         | eventually you realize your stripe transaction hits two digit
         | percentage of your overall price.
        
       | thierryzoller wrote:
       | What strikes me is the comment on 3DS challenges that passed. By
       | law in Europe, once 3DS challenge is completed the Bank owns the
       | risk and cost of the chargeback NOT the Online Shop. Can someone
       | tell me how this is implemented in common processors ? Any
       | experience?
        
       | paxys wrote:
       | If you are a foreign company accepting payments from the USA, you
       | should simply expect this as a cost of doing business.
       | 
       | Credit card fraud here is socialized. The end consumer is never
       | liable, and so we don't bother with chip and pin, 2FA, 3D secure
       | or whatever else. If we notice a suspicious transaction we simply
       | tap a button in the bank's app and the charge is reversed in
       | minutes.
       | 
       | Banks and payments processors are themselves incentivized to push
       | through transactions as quickly and easily as possible so people
       | spend more (yay consumerism!), and like the author said you
       | mostly don't even need to input the right expiry date, billing
       | address or zip code.
       | 
       | The drawback of course is that all of the liability is pushed on
       | to the business, and so they have to raise prices for everyone to
       | make up for it.
        
         | skybrian wrote:
         | I expect it's path-dependent legacy practices more than
         | anything else. Credit cards were invented in the US, so the
         | tech is old and upgrades take a long time.
         | 
         | For manual payments, UPI in India sounds pretty great.
         | Apparently the customer approves each payment on their phone
         | before it goes through?
        
         | delusional wrote:
         | Your causality chain doesn't track for me. Here in Denmark we
         | have the same consumer protections, the ability to do
         | chargebacks and the (government funded) guarantee that the
         | consumer does not lose any money if their bank account is
         | drained. Yet we still have very strong protections at the time
         | of purchase with mandatory chip-and-pin as well as 3D secure
         | (which replaced Verified by Visa).
         | 
         | I don't really think there's a rational reason for why you
         | don't have better card security in the US. You just seemingly
         | don't want it.
        
           | tobi1449 wrote:
           | My guess is the difference lies in the fact that the EU
           | limits credit card fees to something around 0.5% That means
           | the CC companies can't offload the financial burden of this
           | onto the vendors (and they in turn onto their customers),
           | which leads to them having an actual incentive to improve
           | security.
        
             | dheera wrote:
             | > That means the CC companies can't offload the financial
             | burden of this
             | 
             | Most CC company (CCC) revenue comes from charging the poor
             | people who can't pay their bills ("interest"). Merchant
             | fees are only a small portion of revenue for most cards
             | [1]. In the case of Discover for example it's less than 10%
             | of their revenue, and in the case of Amex it's less than
             | 33%. Other cards fall in-between.
             | 
             | [1] https://www.valuepenguin.com/how-do-credit-card-
             | companies-ma...
        
               | trompetenaccoun wrote:
               | Your link explains that the issuing banks charge
               | interest, not the credit card companies - which are
               | merely the payment processors. I don't know all of the
               | companies listed, it's possible that some are two in one
               | and have their own bank as well. Some payment processors
               | are partly owned by major banks too. But take the largest
               | CC company, Visa: They don't extend credit at all, they
               | don't even issue their own cards iirc. All their profit
               | comes from fees, because the fees are too damn high(tm).
               | 
               | They've successfully convinced the public of the opposite
               | though. It's a very common misconception that only
               | "suckers" who buy on credit pay for it and that everyone
               | else is getting a free service as long as they pay off
               | their cards in time. In reality everyone pays because the
               | merchants have to pay those fees and they pass the cost
               | on to the consumer.
        
               | dheera wrote:
               | I used CC companies loosely as in {issuing banks + credit
               | card companies} and their collective profit model.
               | 
               | > In reality everyone pays
               | 
               | Not really, credit card companies give you cash back if
               | you pay on time, which is percentage-wise similar to
               | merchant fees.
        
               | Sebguer wrote:
               | There's a recurring myth, very prevalent in the US, that
               | credit card companies would prefer people who pay off
               | their bills every month as cheap margin versus being
               | predatory. It's bizarre, and as you've pointed out,
               | completely unsupported by how they actually make their
               | money.
        
             | Jon_Lowtek wrote:
             | The incentive for payment providers to improve their
             | security is a regulation called PSD2 which directly
             | requires strong customer authentication.
        
         | trompetenaccoun wrote:
         | And that is in addition to the outrageous fees CC companies
         | charge merchants. In the US it's typically around 2% of the
         | transaction! The EU caps it at 0.3% maximum, which still seems
         | like a lot when you consider how much money they move. That's
         | another cost that gets socialized and passed on to the consumer
         | of course, even shoppers who pay cash have to pay for this
         | through higher prices.
         | 
         | People should know btw that with 3D secure the card owner can
         | be held liable for fraudulent charges, because some banks have
         | that in their terms for 3D secure. With phone 2FA all that
         | needs to happen is you have your phone and wallet stolen. I've
         | seen cases in the news where people lost thousands.
        
           | carlosjobim wrote:
           | > The EU caps it at 0.3% maximum
           | 
           | That's completely untrue. Most European businesses pay much
           | more than that.
        
             | pas wrote:
             | You're mixing up total cost of processing the card (which
             | is what Stripe and other gateways charge) with the Visa/MC
             | rent.
             | 
             | https://ec.europa.eu/commission/presscorner/detail/fr/MEMO_
             | 1...
             | 
             | "Therefore, the Regulation caps interchange fees for
             | consumer debit cards to 0.2 % and consumer credit cards to
             | 0.3 % of the value of the transaction."
        
           | toomuchtodo wrote:
           | > With phone 2FA all that needs to happen is you have your
           | phone and wallet stolen.
           | 
           | Are device passcode and app biometrics insufficient security
           | measures in the event of device theft?
        
             | joncrocks wrote:
             | If you have your phone set to wake-up/show notifications on
             | new messages, and your bank simply sends an SMS code as
             | verification, then the thief can just read the message(s)
             | when they come in and input them.
        
               | dkjaudyeqooe wrote:
               | You have the option to hide the actual message, at least
               | on Android.
        
               | l__l wrote:
               | Last I checked this was opt-in on Android; it's been
               | default on iOS since I think 2017ish?
        
             | J_Shelby_J wrote:
             | If they have your device pin code and your device, they
             | have control of your entire digital life.
             | 
             | We've never been more vulnerable to petty crime.
        
           | treadmill wrote:
           | Wild idea: What if secure digital payment was a public
           | service.
        
             | cubefox wrote:
             | FedNow:
             | 
             | https://www.federalreserve.gov/newsevents/pressreleases/oth
             | e...
             | 
             | Unfortunately not many banks support it yet.
        
               | Brystephor wrote:
               | I think "secure" is the key part that's missing here.
               | There's no incentive for a consumer to use a payment
               | method such as this when paying with a bank. The reason
               | is that credit cards come with consumer protection that
               | this just doesn't offer.
        
               | cubefox wrote:
               | I don't think customer protection is necessary unless you
               | are dealing with unusually small or shady companies. I
               | live in Germany and do not own a credit card, they are
               | uncommon here. Mostly we pay per bank transfer or debit
               | card. Even with the possibility of fraud, this is
               | probably significantly cheaper in expectation than paying
               | a 2% credit card fee each time just to have the
               | possibility of chargeback.
        
         | notyourwork wrote:
         | I'm not sure how much extra I pay but the hassle free peace of
         | mind I have seems worth it.
        
           | vladms wrote:
           | "Hassle free peace of mind" meaning you do not need to
           | remember a 4 digit code (or clicking "yes" in a phone app),
           | while you need to check your credit card transaction list
           | regularly to reject fraudulent transactions?
           | 
           | I find the effort of remembering the 4 digit code/having the
           | phone much smaller than the alternative ...
        
             | Invictus0 wrote:
             | I think OP is talking about never being liable for fraud
        
             | acdha wrote:
             | I've never had a card stolen where either of those would
             | have helped - they're stopgaps trying to avoid upgrading
             | the banking system to use public-key encryption with reuse
             | protection.
             | 
             | A couple of times, merchants with my card on file were
             | compromised. The thief could make charges because the
             | merchant had to be able to as well. What would have stopped
             | that would have been having a way to restrict a charge to a
             | particular merchant so the attacker couldn't have been able
             | to get the money out.
             | 
             | Once, my supermarket had skimmers. A code wouldn't have
             | been effective unless you were very good at spotting where
             | the thieves planted cameras, too. An active MFA prompt
             | would help against attacks at a substantially later time
             | but it'd have to include the merchant name in an
             | unspoofable form to prevent real-time attacks so I wouldn't
             | be asked to approve charges from SAFEWAY_, and that old-
             | fashioned style of MFA is painful: it'd always make
             | checkout slower and you'd have some fraction of people who
             | don't have phones with them or just ran out of battery.
             | 
             | What completely solved this problem for me was the modern
             | tap systems (ApplePay). It requires more smarts on the
             | client but means that I have to approve each transaction
             | and the value the card reader gets can't be used anywhere
             | else.
        
             | notyourwork wrote:
             | I think you misunderstood me. Peace of mind is in not
             | having to worry about fraud being my responsibility to
             | fight or dispute. I can call CC company or through mobile
             | app, flag transaction, get my money back and never spend
             | another minute on the issue.
        
           | fsociety wrote:
           | The last link the in the chain of payment processors pay for
           | it.
        
         | delfinom wrote:
         | Hah, I found the focus on American banks funny because, the one
         | telegram photo said to use the address of Paris France.
         | 
         | Let me tell you, on two different organizations I am part of, I
         | have ran in the last 2 years, both got hit by automated credit
         | card checking bots using French banks and alot of those cards
         | succeeded.
         | 
         | (Of course there's a whole story about how both these orgs have
         | resisted my previous warnings about hardening the payment
         | sites...one of them even was still using Magento 1)
         | 
         | Anecdotal but meh, the real problem is credit cards are just as
         | much as kludged relics as ACH that nobody wants to really fix
         | meaningfully
        
           | topato wrote:
           | Was it at least one of the hardened forks of Magento 1?!
        
         | xyst wrote:
         | Americans (yes both Canadians and people from the states) are
         | shielded from the chaos that happens to process a single
         | transaction. They only see the paltry rewards in the form of
         | 1-2 (maybe 5) cents per dollar charged, which is translated
         | into "points" (1 cent == 100 points is what I have seen with
         | some "premium" cards) and makes it seem worthwhile.
         | 
         | What they don't see is: the 3-5% or more markup of goods across
         | the board (doesn't matter if you pay cash or card, especially
         | for big box stores), the number of charge backs and the costs
         | of dealing with it, fraudulent charges, poor security (places
         | still accept mag stripe in the states), innumerable numbers of
         | middleman to process transactions (bank fees, issuing card
         | fees, network fees, premium card fees, ...)
         | 
         | It's fucking chaos. I hate it.
         | 
         | With FedNow, I am hoping that will change. Eliminate all of
         | these middleman that are siphoning funds from people across the
         | board. Eliminate the parasites. Eliminate the waste.
        
       | edwinwee wrote:
       | (Edwin from Stripe here.) Worth noting this is copypasta from an
       | older post from a month ago
       | (https://piotrmierzejewski.com/p/card-networks-exploitation).
       | We've fixed most of these issues since then. This type of card
       | testing has dwindled--Radar should now be catching these types of
       | attacks.
       | 
       | On the chargeback point--we hate chargebacks too and we want to
       | limit them as much as possible (we're actually working on a few
       | things over here that we think will help with this). The banks
       | levy chargeback fees (in varying amounts) and an average of them
       | show in the form of a $20 fee--it's not a Stripe-specific fee and
       | we don't profit from chargebacks.
       | 
       | We've just finished company planning for the rest of the year and
       | reducing this type of fraud is a top priority. So if you think
       | you're seeing something similar, please email me at
       | edwin@stripe.com.
        
       | Faaak wrote:
       | Isn't this solved with 3-D Secure ? Many websites (at least in
       | the EU) implement it and if mandatory, it's impossible to buy
       | something without 2FA (either by SMS, phone app, ...)
        
         | swarnie wrote:
         | We're talking about an industry who proudly announced instant
         | bank to bank payments last week like 2003 has just arrived in
         | the colonises.
         | 
         | Don't expect speed or creativity in the US banking sector.
        
         | dahwolf wrote:
         | Enabling 3-D secure on all transactions leads to lower
         | conversion rates, therefore typically a hybrid model is used
         | where its enabled/disabled per transaction whether it is needed
         | based on a risk score.
        
         | alsodumb wrote:
         | That's not the case in US.
         | 
         | It's kinda funny, but the only time Chase and Amex credit cards
         | asked me for 2FA (I didn't even know they had 2FA) was when I
         | used them to purchase some things in Indian website through
         | local payment provider (Razorpay).
        
           | lotsofpulp wrote:
           | I have seen it multiple times at BestBuy.com and
           | HomeDepot.com, and probably others.
        
         | bonzini wrote:
         | "banks (usually American ones) will happily accept transactions
         | that have incorrect full name, invalid CVV / CVC, wrong
         | expiration date, only partial billing address provided, with
         | incorrect ZIP code. All of the above is still not enough to
         | trigger a 3D secure authorisation"
         | 
         | The solution indeed is to write manual rules to trigger 3D
         | secure.
        
           | radicality wrote:
           | Even more funny is that in USA, the actual amount charged to
           | the card is mutable. Take for example when you go to a
           | restaurant and give your card, it's charged, and then you
           | write out with a pen a tip amount, which at some future point
           | gets added on to your charge.
        
             | Detrytus wrote:
             | But there are laws about that: you authorize tip with your
             | signature, if they charge you more than you authorized,
             | they can get in trouble. Don't see the issue here.
        
           | zer0x4d wrote:
           | The author is wrong about this.
           | 
           | Banks don't choose to accept incorrect name, invalid CVC,
           | invalid exp date or wrong billing address. It's up to the
           | user (in this case him) to enable CVC Check and AVS in his
           | payment processor to fail payments that don't pass this
           | check. It's also up to him/Stripe to implement 3D secure and
           | trigger it.
           | 
           | https://stripe.com/docs/disputes/prevention/verification#cvc.
           | ..
        
             | zaroth wrote:
             | From your link;
             | 
             | "Radar includes a rule to block any payments that fail the
             | CVC verification check, which you can enable or disable
             | within the Dashboard ( _this doesn't affect payments where
             | the CVC check couldn't be performed_ )."
             | 
             | Also;
             | 
             | "...Support for both types of AVS checks varies by country
             | and card issuer (for example, certain countries don't use a
             | postal code or some card issuers don't support street
             | address verification)"
             | 
             | So it appears there are cases where these checks can be
             | enabled on your Dashboard, but skipped by Stripe or not
             | actually performed by the issuer, I'm thinking like for
             | prepaid cards?
        
           | selimthegrim wrote:
           | I've seen verified by visa triggered a few times for online
           | purchases
        
             | __MatrixMan__ wrote:
             | ... Which is hell if you're in a country where your sim
             | card doesn't work and your bank requires sms 2fa.
        
               | orangepurple wrote:
               | My US bank requires SMS 2FA and SMS works for free
               | because I am connected to Wifi. I have VoWiFi enabled. My
               | US phone plan is with a budget carrier I only pay $15 a
               | month for voice, sms, and data.
        
               | alexvoda wrote:
               | Then it's a good thing that many banks in the EU now have
               | 3DSecure validation through the phone app instead of SMS
        
               | Detrytus wrote:
               | What if you lose your phone? In my country banks only
               | allow you to use one phone for mobile authorization, so
               | you can't even have a backup phone. I really wish
               | 3DSecure was optional so I can turn it of when going to
               | foreign vacation.
        
               | pas wrote:
               | On a vacation I have my card (and can use PIN auth), the
               | issue is usually online transactions ("card not present",
               | ie. vPOS transactions).
        
       | appplication wrote:
       | What was most surprising about this is not the fact that there is
       | a group of people exploiting Stripe's payments, but that the
       | author had ChatGPT write a script to automatically handle
       | payments processing, specifically for chargebacks. And based on
       | the context in the article, the author sounds like they lacked
       | the technical skill to write or validate these scripts
       | themselves.
       | 
       | This author is jumping out of the frying pan and into the fire.
       | ChatGPT is cool and all, but the fact that they're trusting it to
       | write critical code for handling their customers money speaks
       | volumes. They're incredulous at how they feel Stripe violated
       | their trust in it to manage fraud, but then go ahead and blindly
       | place it in another technology they don't understand. The problem
       | isn't Stripe (though, yes, they should fix this), it's the fact
       | that they are just giving away trust and hoping for the best.
        
         | systems_glitch wrote:
         | Same initial reaction when I read that part :/ Let's see what
         | the next level of voodoo programming looks like...
        
         | flutas wrote:
         | > the author had ChatGPT write a script to automatically handle
         | payments processing, specifically for chargebacks
         | 
         | Feels like a mischaracterization tbh.
         | 
         | He had it make a script to go through and accept the
         | chargebacks for these accounts, not handle payment processing
         | or do anything to the chargebacks other than click "accept"
         | essentially.
         | 
         | > And based on the context in the article, the author sounds
         | like they lacked the technical skill to write or validate these
         | scripts themselves.
         | 
         | I also don't really get where you're getting that from.
         | 
         | The author even said
         | 
         | > I reviewed all of the scripts carefully, and also never
         | shared any customer data, IDs, or API keys. I think I saved at
         | least a couple hours compared to hand-rolling these tools
         | manually!
        
           | appplication wrote:
           | ChatGPT is not capable of writing production quality code.
           | Many (most) companies have internal policies against
           | deploying any code written by an LLM. The point isn't to slow
           | devs down, but to mitigate risk. This is _especially_
           | important in the customer /payments stack. This is not the
           | right place to "save a couple hours". Maybe if this was for
           | some one-off offline analysis, sure.
           | 
           | The fact that it works is insufficient proof that it was the
           | right thing to do. Building a habit of relying on LLM
           | generated code is an inherently risky practice, and ChatGPT
           | will literally warn you against trusting its outputs. Sure,
           | it lets you growth hack your way through sort term problems,
           | but in the long term I'm not convinced this is responsible
           | decision making at the current levels of LLM technology.
           | 
           | Or maybe I'm just a Luddite, stuck in my old ways.
        
             | pengaru wrote:
             | It's terrible, but not far removed from what's been already
             | happening with "developers" copying and pasting
             | StackOverflow comments into a text editor and making
             | uninformed compiler-error-guided-edits until it runs then
             | done!
             | 
             | The root of the problem here is people making production
             | stuff who don't know wtf they're doing. If they turn to SO
             | posts, LLMs, or "developers" on fiverr/upwork doing the
             | same thing, is there really much of a difference? LLMs seem
             | to mostly be tightening the loop of horror that's already
             | been happening.
             | 
             | Same downward trajectory, increased velocity.
        
               | libraryatnight wrote:
               | Just seems like programming will be joining the ranks of
               | most tools. There will always be craftsmen, there will
               | always be professionals, and then there will be the guy
               | bolting together ice chests and garbage disposals to make
               | margarita mixers on his patio or the kid with a duct tape
               | exhaust rig on his Honda Civic.
               | 
               | I guess, to your point, it's only trouble if the
               | margarita mixer guy is put in charge of something that
               | matters? :D
               | 
               | (might be a bad example, I've known some fine engineers
               | and mechanics that are absolutely margarita mixer guy,
               | but hopefully my point is taken lol)
        
               | pixl97 wrote:
               | >Just seems like programming will be joining
               | 
               | I'd love to know about the nirvana you've been in up till
               | now, because working around code from numerous large
               | companies the vast majority of it is the crappest ass
               | crap straight from the crapper with no redeeming
               | qualities, and it has been this way forever. I'm not
               | saying their isn't good parts, there are general core
               | routines that sheer need for them to be performant and
               | non-data corrupting forced some Sr engineer to fix them.
        
             | kredd wrote:
             | Frankly speaking, probably the latter. I've been using
             | Copilot for over a year now, and obviously it makes stupid
             | mistakes, but it sped up my general coding speed. Now, I
             | don't have much experience (maybe around 10ish years of
             | programming professionally) in comparison to greybeards,
             | but it works. Haven't used ChatGPT much, but as long as the
             | user understands its shortcomings and reviews/refines its
             | outputs, it's fine.
             | 
             | People who write code also make mistakes, yet we don't
             | consider it "inherently risky practice". We just review
             | others' code, tweak it, make it more appropriate for prod
             | and voila. Same thing applies here.
        
               | dylan604 wrote:
               | >but as long as the user understands its shortcomings and
               | reviews/refines its outputs, it's fine.
               | 
               | nice caveat doing a heckuvallot of heavy lifting. i
               | understand that we're talking about coders and sort have
               | this inferred impression that coders will have this
               | understanding, but...that's an awfully broad brush you've
               | used to paint over the simple fact that most people using
               | LLMs (in general) are not understanding this.
        
               | MetaWhirledPeas wrote:
               | > the simple fact that most people using LLMs (in
               | general) are not understanding this
               | 
               | How do you know most people using LLMs are not
               | understanding this?
        
               | dylan604 wrote:
               | Because ChatGPT has been opened to the public
        
               | inopinatus wrote:
               | PHP also lowered the bar to programming, and we got over
               | the consequences of that. Eventually.
        
               | inopinatus wrote:
               | forty years behind the keyboard or elbow-deep in a rack,
               | beard not actually grey yet, but still, yes; those who do
               | not adapt will be left behind.
        
             | mrdatawolf wrote:
             | My current suggestion is to consider it the work of a just
             | on-boarded intern. It will save you some time but you still
             | need to walk thru the code to make sure it will work as
             | intended.
        
               | TechBro8615 wrote:
               | First, it's worth noting the code in the blog post is not
               | "production code," but rather one-off or periodically
               | used scripts for accelerating manual business processes,
               | with results that are easy to manually check.
               | 
               | But in regards to production code, I agree. When code is
               | committed to a codebase, a human should review it.
               | Assuming you trust your review process, it shouldn't
               | matter whether the code submitted for review was written
               | by a human or a language model. If it does make a
               | difference, then your review process is already broken.
               | It should catch bad code regardless of whether it was
               | created by human or machine.
               | 
               | It's still worth knowing the source of commits, but only
               | for context in understanding how it was generated. You
               | know humans are likely to make certain classes of error,
               | and you can learn to watch out for the blind spots of
               | your teammates, just like you can learn the
               | idiosyncrasies and weak points of GPT generated code.
               | 
               | Personally, I don't think we're quite at "ask GPT to
               | commit directly to the repo," but we're getting close.
               | The constant refrain of "try GPT-4" has become a trope,
               | but the difference is immediately noticeable. Whereas
               | GPT-3.5 will make a mistake or two in every 50 line file,
               | GPT-4 is capable of producing fully correct code that you
               | can immediately run successfully. At the moment it works
               | best for isolated prompts like "create a component to do
               | X," or "write a script to do Y," but if you can provide
               | it with the interface to call an external function, then
               | suddenly that isolated code is just another part of an
               | existing system.
               | 
               | As tooling improves for working collaboratively with
               | large language models and providing them with realtime
               | contextual feedback of code correctness (especially for
               | statically analyzeble or type-checked languages), they
               | will become increasingly indispensable to the workflow of
               | productive developers. If you haven't used co-pilot yet,
               | I encourage you to try it for at least a month. You'll
               | develop an intuition for what it's capable of and will
               | eventually wonder how you ever coded without it. Also
               | make sure to try prompting GPT-4 to create functions,
               | components or scripts. The results are truly surprising
               | and exciting.
        
               | bbarnett wrote:
               | My experience has been it's faster to write code
               | yourself, than via a just on boarded intern + review +
               | fixes.
        
               | climb_stealth wrote:
               | Yes, but part of that time is an investment into the
               | intern's professional development. Everyone started there
               | at some point.
               | 
               | It can be hard to remember though when there are
               | unrealistic deadlines and helping someone inexperienced
               | to do the work is twice the effort.
        
               | [deleted]
        
               | i_am_jl wrote:
               | The time savings isn't down to quality, the difference is
               | that an LLM does in seconds what an intern does in hours
               | or days.
        
             | AussieWog93 wrote:
             | I've used ChatGPT (GPT-4) to write production code.
             | 
             | As long as you keep the scope small ("Write some example
             | code that calls $API in Python", "Make it asynchronous; so
             | I can queue up n calls and execute them in parallel"), it
             | generates perfectly good code that is easy to understand
             | too.
        
             | Pxtl wrote:
             | Realistically chatgpt isn't writing the financial code.
             | Stripe did that already. Chatgpt is just reading snippets
             | of Stripe's API examples for you and applying the code for
             | a common use-case.
        
             | inopinatus wrote:
             | The latter, I'd have to suggest. GPT-4 generates code that
             | is slightly better than the average junior programmer,
             | which is to say, it is often confidently incorrect and
             | needs review before committing, but either option remains a
             | net productivity gain than no assistant at all.
             | 
             | "Your job will not be taken by an AI. Your job will be
             | taken by someone assisted by an AI."
             | 
             | The process touched on in the article, with thorough review
             | before commit by a human with in-depth experience of the
             | language and APIs and the domain in question, is exactly
             | how AI-generated code should be incorporated into a
             | workflow. The earlier slander against the author's
             | technical ability seems misguided and unsupportable.
        
             | linuxftw wrote:
             | I use ChatGPT to write code for work constantly. The
             | quality is quite high, it saves me lots of time, on the
             | order of hours typically.
             | 
             | If a company prevents me from using ChatGPT, I will use it
             | clandestinely unless they offer an equivalent. There's no
             | going back.
        
               | fxleach wrote:
               | This is outright false. I have used ChatGPT many times
               | over the last couple months and I have caught it give me
               | un-working code, unfinished code, and terribly buggy
               | code. When you point this out it will say Oh sorry about
               | that here is an updated version, and I've caught it give
               | another bug, and another after that. If you are telling
               | me the quality of code that ChatGPT gives you is high
               | then it pains me to say but you must not provide high
               | quality code yourself.
        
               | brookst wrote:
               | Have you ever hired a junior dev? How is their quality?
               | Does that mean we should never use junior devs?
               | 
               | The problem with chatGPT usage is not imperfect code. The
               | problem, when there is one, is not treating its code the
               | way one would treat a human's.
        
               | rimunroe wrote:
               | > Does that mean we should never use junior devs?
               | 
               | No, because junior devs usually improve over time.
               | 
               | I've tried Copilot and a few other AI codegen tools.
               | Aside from producing overall low quality/nonworking code,
               | the only times they seem to get better long-term are when
               | a new update to the model comes out.
        
               | linuxftw wrote:
               | copilot is straight trash compared to ChatGPT 4. It's not
               | even a contest.
        
               | rimunroe wrote:
               | I should have been clear but ChatGPT was one of the
               | "other AI codegen tools" I mentioned, especially as it's
               | the one I used most recently. I tried it for a month or
               | so but then canceled my subscription. I got some use out
               | of it for answering questions for friends who were
               | learning CS for the first time in languages I didn't
               | know, but I didn't get much else from it which felt like
               | it was high enough quality that it really saved me time
               | or effort.
               | 
               | Edit:
               | 
               | And to contrast with junior developers: I find pairing
               | with them something that makes me not only help me figure
               | out the requirements of the things we're working on--
               | which admittedly ChatGPT does do, but I think that's
               | mostly by virtue of rubber ducking--but it helps me
               | figure out approaches I wouldn't have thought of before,
               | or encourages me to write more maintainable code by
               | seeing when another person's eyes start glazing over.
        
               | conductr wrote:
               | When you used google previous to chatgpt, did you force
               | yourself to only allow yourself to use the "I'm feeling
               | lucky" way of search along with having to use the result
               | as your unadjusted production code. Did you never modify
               | the code you came across?
               | 
               | Of course not, that's ridiculous. You probably searched,
               | read a few stackoverflow comments, found a relevant
               | GitHub repo, a library for python/language of choice, and
               | probably also a SAAS offering solely focused on the 3
               | lines of code you need. You quickly parsed all that and
               | decided to modify some code in one of the SO comments for
               | your needs. Next time, you looked passed half the junk
               | and went straight to the first SO result and was able to
               | tweak and use the result. The next time, it didn't help
               | but did help you write some inspired custom code for the
               | problem, at least you knew what not to try.
               | 
               | My point being ai is useful. It's not meant to be first
               | result is final answer type solution, if that's how you
               | use it you will have issues.
        
               | rokizero wrote:
               | How can you say that something is outright false if there
               | is not fact/claim you can disprove. You're responding to
               | someone you don't know and have no idea what they are
               | working on.
               | 
               | I'm (not OP!) a cloud engineer but also work on a lot of
               | FE (React) code for internal tools. ChatGPT has saved me
               | countless hours (literally tens a month) writing super
               | simple code that I am able to easily write up myself but
               | typing it out just takes time. After month of using it I
               | find myself still quite excited whenever cGPT saved me
               | another hour. We also use Retool, but I find myself
               | writing code 'myself' more often since cGPT launched.
               | 
               | No, I wouldn't just copy paste production code handling
               | PII, but prototyping or developing simple tools is sooooo
               | much faster, for me.
        
               | linuxftw wrote:
               | Sure, it doesn't nail it 100% on the first prompt 100% of
               | the time. Sometimes it takes a few prompts. It's no big
               | deal. If you can't get it to write effective code, either
               | you're working in a very niche area, or you haven't
               | figured out how to use it properly.
        
               | runnerup wrote:
               | Another reason someone can't get it to write effective
               | code is if they don't know how to code or aren't a very
               | good programmer.
               | 
               | I use it a ton. Most of the time it's very helpful,
               | sometimes I can't get it to write effective code. If the
               | code it outputs doesn't meet my standards, I just don't
               | use it. But I know what I'm looking for, and when ChatGPT
               | generates it, if not only saves me a shitload of time,
               | but more importantly it saves me a ton of mental energy
               | that I can spend elsewhere. The biggest thing for me is
               | that using ChatGPT helps my brain do fewer "context
               | switches" between focus on high level business logic and
               | low level implementation logic. By staying "high level"
               | I'm able to accomplish more each day because I don't get
               | lost in the sauce as often.
               | 
               | I often have to "upgrade" the code myself with tests,
               | better comments, modify the data structures a bit.
               | Sometimes I tell ChatGPT to do this, sometimes I do it
               | myself. But it's been very helpful overall.
               | 
               | The big takeaway is that your output will only be as good
               | as your own programming skill, regardless if you use
               | ChatGPT or write it yourself.
        
               | linuxftw wrote:
               | I concur. It's just like any other tool, it's only as
               | good as the person using it. I just can't understand the
               | resistance of people in this field. I was a naysayer on a
               | number of things like Docker when it first came out
               | because it didn't solve any of my problems at the time.
               | Then, k8s came out and Docker was a pivotal part of that
               | solution, and k8s solves many problems.
               | 
               | ChatGPT writing code so you don't have to, I just can't
               | conceptualize how that's not an instant win for just
               | about everyone.
        
               | Vicinity9635 wrote:
               | Is it 'outright false'? The code it creates is can only
               | as good as the prompt. It's just GIGO all over again...
               | 
               | I got it to write _exactly_ the test I wanted for a
               | snippet of code on the third prompt attempt by specifying
               | exactly the two specific technologies I wanted it to use
               | and one keyword that describes an idiom that I needed. It
               | would have been _slightly_ faster than doing it myself.
               | 
               | Technically it was test code, not production code, but
               | had it been my code rather than just some code I was
               | looking at I would have committed the test code it wrote
               | to the repo with zero reservations.
        
         | TechBro8615 wrote:
         | This guy is operating a profitable business, creating value for
         | customers, shipping features, and openly publishing details and
         | learnings about the threats he mitigated. He used ChatGPT to
         | generate scripts to help him throughout this process. I don't
         | know if he's non-technical or if he just wanted to save some
         | time, but frankly he should be commended for his hustle and
         | get-shit-done attitude. These scripts were not determining life
         | or death, or even making business critical decisions - they
         | were filtering bulk data and making his life easier by
         | producing results that are easily manually checkable, but save
         | tons of time either coding the scripts or hiring a programmer
         | to write them.
         | 
         | To me it reads like a great example of where ChatGPT is most
         | useful: as a force multiplier for time-constrained
         | entrepreneurs who have a specific goal and need specialized
         | knowledge for short periods of time (e.g. to write a script).
         | It's now basically free and instant to produce what would
         | previously require a multi-week process of sourcing, hiring and
         | communicating with contractors to write a script that leads to
         | the same end result.
         | 
         | The kneejerk reaction to call this "surprising" or
         | irresponsible, while understandable, gives major "get off my
         | lawn" energy. This is the future and as coders we should
         | support the increased self-sufficiency of non-technical people.
         | If you want to adapt to the change then maybe think about how
         | to improve the process for entrepreneurs of asking ChatGPT to
         | write a script.
        
         | hn_throwaway_99 wrote:
         | I don't know why I see this type of invalid speculation so
         | often. The author already responded that they reviewed the
         | script and didn't post any sensitive data, so won't add more to
         | that.
         | 
         | I'd just state that tons of us use ChatGPT effectively and
         | never blindly trust the outputs - for me ChatGPT is a starting
         | point, not the final product. We're not all so daft as that
         | lawyer who cut and pasted hallucinated case references into a
         | legal brief without verifying them first.
        
           | pimpl wrote:
           | 100% agreed, this is how I always treat it and working on the
           | problem from the article was not an exception from this rule.
           | I share minimum input, and never trust the output blindly.
           | 
           | It gets 50-60% of work done, and a really good basis for me
           | to work on it. Especially when working with one-off, end-to-
           | end relatively short scripts.
        
             | hn_throwaway_99 wrote:
             | This has been my primary use case as well (usually for
             | writing some scripts or where I need to solve an
             | operational task quickly), and ChatGPT has saved me a ton
             | of time with those tasks.
        
         | chankstein38 wrote:
         | They really wanted us to know they used ChatGPT too. It felt
         | unnecessary how often they mentioned "I got ChatGPT to write a
         | script that did this" like.. ok?
        
         | headsupftw wrote:
         | What are you even talking about? Read the blog post one more
         | time, please.
        
         | wpietri wrote:
         | I'm a huge LLM skeptic, but I'd disagree with you here.
         | 
         | I think using ChatGPT to write long-lived code for a serious
         | application is a bad idea. But I think it's fine for somebody
         | knowledgeable to use it for throwaway and first-draft stuff in
         | areas that aren't their daily work.
         | 
         | Here's the author in question: [edit: wrong Piotr Mierzejewski
         | in tech, see below]
         | 
         | He looks perfectly competent to me to evaluate the effects of
         | some one-shot scripting code, so I think "giving away trust and
         | hoping for the best" is a wild exaggeration of what actually
         | went on.
        
           | pimpl wrote:
           | Appreciate the comment! Just a quick note that this is my LI
           | profile: https://www.linkedin.com/in/pmierzejewski/
        
             | wpietri wrote:
             | Oops! Thanks for the correction. And even more able to
             | evaluate the code.
        
         | itscodingtime wrote:
         | I find it odd Chatgpt was mentioned at all. It was almost like
         | an advertisement.
         | 
         | I have read post linked here similar to this one, but I can't
         | recall another instance in which the author abruptly said they
         | relied on stackoverflow to code something unless the content
         | was a meta commentary on coding and debugging itself.
        
           | pimpl wrote:
           | Author here. My intention was to show that you can use it to
           | help you get going quickly for a very practical, one-off, and
           | self-contained use cases. As I mentioned in other comments
           | already, I did not trust it blindly and did not share any
           | sensitive data with it. Definitely not an ad!
        
           | TechBro8615 wrote:
           | I can empathize with the author. The first time you write
           | some code collaboratively with GPT and it actually works, you
           | feel a burning need to shout about it. Because it's one of
           | those moments where something "clicks" and you suddenly feel
           | like you've discovered fire. Once you figure out how to work
           | with them, it makes you excited for the future and you can
           | clearly see where LLMs will fit permanently into your
           | toolbelt. They're far from perfect now, and sometimes the
           | time savings is a wash - you get instant specialized
           | expertise that can produce code like a senior engineer, but
           | you need to goad and coax it like it's a high maintenance
           | intern. But the thinking power expended is still somehow
           | lower - it's a new way of working with technology and
           | deferring some of the grueling parts to the machine. This
           | becomes especially obvious when the code requirements depend
           | on an esoteric API or conventions that you'd normally need to
           | spend time researching and manually enumerating.
        
         | pimpl wrote:
         | Article author here. I carefully reviewed and tested the
         | ChatGPT scripts before executing them. It helped me save a lot
         | of time manually writing these scripts!
         | 
         | I wouldn't say I lack technical expertise in this area, I'm
         | just trying to use my time as efficiently as possible.
        
           | appplication wrote:
           | Glad to see you active here in the comments. Apologies if my
           | comment comes off harshly, my intent is not to tear you down.
           | I think there is a lot of gray space when it comes to using
           | LLMs for generating code. Your usage here is certainly
           | interesting, and I appreciate the additional context and
           | discussion you've been providing.
        
             | pimpl wrote:
             | No worries at all! I agree that there's probably lots of
             | people blindly copying and running code from LLMs without
             | any reflection. Just like it often happened with
             | StackOverflow snippets before ChatGPT (to the point it
             | became a meme). I'm definitely not one of them.
        
           | BaseballPhysics wrote:
           | Genuinely curious: How much time would you say you saved
           | prompting for and then carefully reviewing and testing those
           | scripts for bugs, versus writing them yourself?
           | 
           | And for context what's the average line count we're talking
           | about here? Tens of lines? Hundreds?
        
             | pimpl wrote:
             | I'd estimate it that it saved me a couple of hours tops.
             | They were simple, self-contained scripts with at most 150
             | LOC.
        
               | BaseballPhysics wrote:
               | Interesting! Thanks for the insight!
        
         | kykeonaut wrote:
         | > I created a restricted key in Stripe with lowest possible
         | permissions, and prompted ChatGPT to create a script to accept
         | the chargebacks.
         | 
         | From my understanding, it also seems that the author submitted
         | a Stripe API key alongside the prompt to create the scripts.
         | This is pretty much a big security no no regardless of the
         | permissions of the key.
        
           | pimpl wrote:
           | Author here. GPT only got minimal context it needed to run
           | the prompt. No customer data, no IDs, definitely no API keys
           | were passed as a prompt.
        
             | kykeonaut wrote:
             | Ahhh ok, that sounds much more logical. I got the wrong
             | impression :)
        
       | freed0mdox wrote:
       | Usually these transactions are automated with the checkers. Some
       | are as simple as a PHP script replaying a request, some are more
       | sophisticated that use residential proxies, some are parts of
       | huge enterprises like try2check. If you have a list of IPs, you
       | can scan them for 80/443 open and sometimes catch simple checkers
       | in action.
        
       | 90K_MRR_Hacker wrote:
       | I've been using a platform called Chargeblast.io and it's been
       | doing wonders; literally saved my business from closing down. I
       | haven't found another platform like it - best price, best value
        
       | myself248 wrote:
       | Why does the US still accept hand-typed cards?
       | 
       | My friend had a USB smartcard reader in like 2001. He'd dip his
       | AmEx to perform a transaction on his PC. It's twenty years later
       | and the industry still hasn't caught up?
       | 
       | What's different about Europe that they seem to have figured this
       | out decades ago?
        
         | chpatrick wrote:
         | I've lived in Europe my whole life and I've never made an
         | online payment with a card reader (even though my ThinkPad has
         | one), or know anyone who has.
        
           | TacticalCoder wrote:
           | But you do use 2FA when paying with your credit card online.
           | What kind of 2FA does the bank providing your credit card
           | mandate you to use?
        
             | aliceryhl wrote:
             | In Denmark, there's a national system for authentication
             | used for government sites and banks. I have a small device
             | with a single button on it that shows a 6-digit code when
             | you press it. I enter that code along with a password any
             | time I make a purchase online.
             | 
             | (There's also an app that most people use. But I like the
             | hardware thingy better.)
        
             | LelouBil wrote:
             | For me (in France) it's the bank app's 2FA or sms 2FA if
             | not available.
        
             | chpatrick wrote:
             | My bank's app.
        
           | [deleted]
        
         | [deleted]
        
         | platelminto wrote:
         | As someone whose lived in multiple European countries since I
         | was born, I also don't understand this comment. I don't know
         | anyone who uses these smartcard readers at home. I don't think
         | it's common at all.
        
           | TacticalCoder wrote:
           | > As someone whose lived in multiple European countries since
           | I was born, I also don't understand this comment. I don't
           | know anyone who uses these smartcard readers at home. I don't
           | think it's common at all.
           | 
           | Which EU countries? Bank card readers are super common in .nl
           | (ING for sure) and .be (just about every single bank there)
           | for example.
           | 
           | Nowadays banks often allow to use either that or, say, an app
           | on your phone or a dedicated physical token. For example you
           | can confirm transactions you make on your computer by
           | unlocking an app and confirming with your fingerprint from
           | your smartphone. But that's semi- recent. Before that kind of
           | 2FA became a thing, it was all done with card readers.
           | 
           | Some countries still live in the past like, I shit you not,
           | Societe Generale in France still has a "2FA" where it shows
           | digits randomly on the screen and you have to click you PIN
           | (some people still have an account like that): that is
           | however quite pathetic and not the norm.
           | 
           | If I want to buy anything online using any one of my credit
           | card, I must put it in a physical reader and reply correctly
           | to a challenge/response.
           | 
           | These readers are different from the electronic ID card
           | readers, which are also used in many EU countries (for
           | example to fill my taxes online).
        
         | deevolution wrote:
         | Probably helps maintain dollar hedgemony by allowing a wider
         | swath of the global population (criminals, poor people) to use
         | the system unencumbered.
        
           | gjvc wrote:
           | "hegemony" n. leadership or dominance, especially by one
           | state or social group over others.
           | 
           | "Hedgemony" is a war game focused on connecting policy and
           | strategy. https://www.usmcu.edu/Outreach/Marine-Corps-
           | University-Press...
        
         | mnd999 wrote:
         | We do get `Verified by Visa` or Amex SafeKey on most
         | transactions though.
        
         | somewhereoutth wrote:
         | Europe is better organized, simply. People are tightly crammed
         | together compared to the US, and historically were fighting
         | each other for 'living space' instead of progressively
         | occupying almost a whole continent. Things just have to work
         | better - and by and large they do.
        
         | [deleted]
        
         | xyst wrote:
         | In the United States, there is minimal incentive to do so. It
         | took many years to transition away from magnetic stripe cards
         | to pin+chip. IIRC, the regulators kept pushing back the date
         | for banks to re-issue pin+chip cards and for merchants to begin
         | accepting them. I think it was only when the processors began
         | to threaten merchants with 100% liability for fraudulent
         | transactions processed with mag stripe is when it started to
         | hit critical mass (2015-2016?).
        
         | criddell wrote:
         | If the cost of preventing fraud exceeds potential losses from
         | fraud, maybe it makes more sense to let the fraud go through.
        
         | mattnewton wrote:
         | If you don't you significantly increase the friction in using
         | your service and will lose business to those who do accept the
         | hand typed card where the user doesn't have to adopt new
         | hardware or software.
         | 
         | Everyone would need to mandate the security feature while have
         | a short term incentive to not.
        
         | Veserv wrote:
         | Because the banks and vendors are liable for unauthorized
         | charges in the US [1], not the user. The banks/vendors handle
         | the fraud in aggregate on the backend. They could roll out
         | fraud prevention at the end-user level, but they choose not to;
         | which means it is probably not worth it for the issuer relative
         | to the extra user convenience (and extra charges).
         | 
         | In contrast, in many places in Europe the user is responsible
         | for unauthorized charges. Regular people care a great deal
         | about not being wrongfully charged as that is almost always
         | proportionally worse, so they demand robust end-user protection
         | so they will not be wrongfully charged.
         | 
         | This is kind of a case of, "everybody would drive safer if
         | instead of a airbag you had a bunch of knives that shoot out
         | and kill you if you get in a crash".
         | 
         | [1]
         | https://www.law.cornell.edu/wex/fair_credit_billing_act_(fcb...
        
           | lotsofpulp wrote:
           | Not even banks, only vendors are responsible if they do not
           | upgrade their POS systems since sometime in the late 2010s I
           | think.
           | 
           | See EMV fraud liability shift.
           | 
           | https://www.mastercard.us/content/dam/mccom/en-
           | us/documents/...
        
         | Detrytus wrote:
         | Fuck smartcard readers. Also: fuck 3d secure. The nice thing
         | about old, "insecure" card payments was: I just needed to
         | memorize my credit card number, expiry date and CCV and I could
         | pay online for everything. No need to always carry a phone for
         | SMS/app authentication.
        
         | mschuster91 wrote:
         | > What's different about Europe that they seem to have figured
         | this out decades ago?
         | 
         | Our governments actually care about monopolies and security.
         | The PSD2 directive was an utter pain to deal with, but at least
         | it stopped a lot of common scams and thefts in its tracks, and
         | it forced banks and other payment actors to open up their
         | system.
        
           | TacticalCoder wrote:
           | > The PSD2 directive was an utter pain to deal with, but at
           | least it stopped a lot of common scams and thefts in its
           | tracks
           | 
           | Inded. More specifically SCA (Strong Customer Authentication)
           | which is required by PSD2. VISA says the "SYH" (Something You
           | Have) is either _" a mobile phone, a card reader or other
           | device evidenced by a one-time passcode"_.
           | 
           | Note however that I cannot log nowadays to any of my bank in
           | the EU without having a big banner saying something like
           | (paraphrasing): _" WARNING: scammers are trying to steal your
           | funds. Neither the bank nor the police nor anyone else shall
           | ask you your PIN or to confirm anything on your card
           | reader."_
           | 
           | Basically: life is harder for scammers so they try to trick
           | (mostly old) people into validating transactions over the
           | phone.
        
         | paxys wrote:
         | Not sure I understand. Does everyone outside the US have a card
         | reader attached to their PC and phone?
        
           | gpvos wrote:
           | No. Until I read the comment above, I had no idea that that
           | even was something people actually use to make payments from
           | home.
        
           | jon-wood wrote:
           | They're less common in the UK now mobile apps have taken
           | over, but in the early 2000s banks would issue a standalone
           | device to every customer. When making payments via online
           | banking you'd put your card in the device, hit a button, and
           | give it a code that the online banking page provided. The
           | device then did some magic via the chip on your card to
           | provide a code that you'd give back to the online banking
           | site to validate that you were in possession of your card.
           | 
           | Some banks may have used this for 3D Secure during online
           | card payments as well, but I've never encountered one.
           | Validation for that in my case evolved from setting a
           | password on my account, which they'd ask for some characters
           | from, to tokens sent via SMS to my registered phone number,
           | to a push notification from my bank followed by FaceID to
           | authorise payment.
           | 
           | In person Chip & PIN, and more recently contactless, is
           | ubiquitous. Magstripe payments are so rare I have to
           | explicitly enable them in my bank's app for the card, and
           | it'll turn itself off again 7 days later. I never encountered
           | chip & signature until going to the US, where everyone in the
           | group I was with looked at it like some sort of joke (and
           | indeed it is, because there's no signature recorded against
           | my card for validation).
        
           | drdaeman wrote:
           | I have never ever seen an online payment processor that was
           | capable of using a card reader to perform a transaction from
           | a webpage (on a non-specialized device). I don't think there
           | is even any established standard for using a smartcard from a
           | website. WebUSB/WebNFC may work (although browsers have
           | blacklists of vendor IDs to disallow access to e.g. Yubikeys,
           | so at least some smartcards may not be accessible this way),
           | but that's all experimental and questionable stuff.
           | 
           | It might've been possible someone had something like that in
           | ol' good '00s with ActiveX, but that must've been surely an
           | exception (and a security nightmare).
        
             | dahwolf wrote:
             | A card reader is a stand-alone device and has nothing to do
             | with any web tech.
             | 
             | You put your ATM card in the device, enter your PIN code,
             | and then the device has a tiny camera that scans the QR
             | code on the web page. Next, you can see the transaction
             | details on the device and confirm. It will then output a
             | signing code which you enter on the web page.
             | 
             | It is what was commonly used in some EU countries before we
             | switched to mobile banking apps. Most banks still supply
             | them for when you do very large online transactions.
        
           | fireflash38 wrote:
           | Most people have an NFC reader at least built into their
           | phone.
        
           | TacticalCoder wrote:
           | Not everyone and it's not necessarily connected to the PC.
           | Some card readers are, some aren't.
           | 
           | And there are two things that are not to be confused:
           | electronic ID card readers (used for stuff like VAT tax
           | filings, income tax filings, etc.) and debit/credit card
           | readers (which may or may not be connected to the PC) used as
           | 2FA (with a challenge/response). The ones that aren't
           | connected to the PC generate a number which you then enter to
           | confirm you login/order.
           | 
           | Many banks in the EU enforce at least one type of 2FA. The
           | shittiest, most pathetic ones, still do it by SMS (but it's
           | still 2FA and still better than nothing). Others use a card
           | reader (in which you literally plug your bank card, which
           | signs orders / challenge/response style and never leak the
           | card's secret). Other give a physical RSA-like token with
           | codes changing every _x_ second. Others allow the use of an
           | app on a smartphone to confirm transactions.
           | 
           | When I log to at least one of my bank I've got a _list_
           | asking me which type of 2FA I 'll use to log in and confirm
           | payments. Card readers (two different types) are on the list.
           | 
           | I use that to log in, confirm wire transfer and buy stocks
           | too.
        
         | __MatrixMan__ wrote:
         | The rest of the world has to put up with the US banking system
         | because when all you have is an overfunded military, everything
         | looks like a target.
         | 
         | That logic doesn't quite translate internally, so it's
         | important to maintain the perception that the banking system is
         | all that stands between the little people and a hungry mob of
         | scammers. If the scam problem were demonstrably easy to solve
         | at the POS, it would be harder to justify the merchant fees and
         | other bank-related overreach.
        
         | snarf21 wrote:
         | It is just lobbying preventing good policy. If we moved to chip
         | + pin, we'd get rid of almost 100% of CC fraud. But retailers
         | don't want the friction so instead the consumer pays for the
         | fraud instead.
        
           | pxx wrote:
           | Why do you think this requires a government mandate? What
           | evidence do you have of counter-lobbying as opposed to simple
           | consumer and retailer preference?
        
       | alberth wrote:
       | Off topic: Why don't more non-European merchants use 3DS?
       | 
       | Entirely classes of liability and fraud is shifted to the issuer
       | and no longer on the merchant.
        
       | jon_adler wrote:
       | I imagine that the fraud rate in Europe is lower since the
       | introduction of PSD2. This legislation required a combination of
       | 2-factor authentication (3DS2) and transaction analysis to
       | achieve low overall fraud rates.
        
       | thedangler wrote:
       | I worked at a company who's server was hacked and they stole the
       | API keys and did carding on it from the server. Paypal tried to
       | tell us we owned them $100,000.00 in fees. We were only running
       | $4500.00 payments at most 5 times a day for course registrations.
       | The hacker ran auths on random CC number for $1 every second.
       | 
       | We didn't have to pay the fees for carding but they don't care.
       | 
       | They do not care because they make money off fraud.
       | 
       | We had settings stating we only have orders between $2500 and
       | $6000. But they do not check auths lol
       | 
       | Crazy.
       | 
       | This was back around 2010 and stripe was not available in Canada
       | at the time.
        
       | mndgs wrote:
       | The contents of the article do not match with the title. Article
       | is how they experienced and fought chargebacks. Simple, nothing
       | spectacular.
       | 
       | Stop whining, have the US adopt PSD2 (SCA in particular) and your
       | problems will go (most of them)..
        
       | chasebank wrote:
       | Re: Chargeback fees - Visa acquired a company called Verifi a few
       | years back. Their new products are Rapid Dispute Resolution (RDR)
       | and Order Insight. RDR effectively lets you automatically refund
       | a transaction before it gets turned into a chargeback and Visa
       | charges a $4 fee (Assuming your MCC code is not high risk). Order
       | insight lets you provide certain data about a questioned charge
       | immediately and if the customer has had 3 previous charges with
       | you, a chargeback CANNOT be issued.
       | 
       | It was a really easy decision for our business based on win rate,
       | avg order size and chargeback fees. Plus now we don't have to
       | constantly worry about Visa's or the merchant bank's 1%
       | chargeback rule. This only applies to Visa charges but it
       | represented about 50% of our total volume.
       | 
       | One last note - Visa is basically taking away a massive revenue
       | source for the processors. If your processor is TSYS, they are
       | trying to charge a RDR fee of $10.
        
         | pimpl wrote:
         | Article author here. Really valuable stuff, thanks for sharing!
         | 
         | Do you handle this for Mastercard in any way? I've heard of
         | Ethoca (they are really good at SEO), it seems quite similar to
         | Verifi.
        
           | chasebank wrote:
           | Ya, for Mastercard we use their Ethoca network. They are much
           | more expensive, like $25 per resolved charge but now our
           | chargeback rate is near 0% for Visa / MC and get incredible
           | rates on the front end from such clean processing. Plus we
           | never have to worry about chargebacks threatening our
           | merchant account again.
        
             | spetteruti wrote:
             | What do you do for Amex/Discover?
        
               | chasebank wrote:
               | Just standard cb dispute process. We outsource this.
        
               | codermike1 wrote:
               | [dead]
        
             | kareemc wrote:
             | [dead]
        
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