You are not correct. BestBuy is absolutely liable for that $1,000. If they ship the TV to the fraudster, the TV is gone and the $1000 is gone, too.
When the actual owner of the credit card charges back, the $1000 BestBuy received is automatically taken from their account (or subtracted from their next settlement).
FIs do try and predict fraud, but they do a very poor job of it. In the ecommerce space, the merchant is liable for, essentially, all fraud.
When the actual owner of the credit card charges back, the $1000 BestBuy received is automatically taken from their account (or subtracted from their next settlement).
FIs do try and predict fraud, but they do a very poor job of it. In the ecommerce space, the merchant is liable for, essentially, all fraud.