How Credit Card Fraud Sunk One Bitcoin Exchange

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One of the biggest problems for bitcoin exchanges and their customers is often making the exchange quick and easy. Exchanges like Canadian firm Virtex made the decision a long time ago not to accept credit cards. Their biggest concern? Fraud, in the form of chargebacks.

In a credit card chargeback, a credit-card paying customer asks the issuing bank (the bank that gave them the card) to reverse a transaction made with a merchant.

This can happen for a variety of legitimate reasons. A merchant may not have delivered the promised goods or service, or it may have been faulty. In some cases, a card may have been stolen and used without the owner’s consent.

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