LifeinAsia - 10:12 pm on Mar 16, 2010 (gmt 0)
If I buy something and it isn't sent then a chargback is in order and the cc companies take the hit not the consumer.
Nope- the CC companies pass the hit onto the merchant.
As you have pointed out, they have no incentive to fix things since they aren't taking any hits.
About the only time I can see them taking a hit is if the merchant has closed his bank account and disappeared before the charge back hits. (And in those cases, I wonder if the consumer would get a nice little note saying he couldn't be refunded because the merchant is no longer in business.)