Originally Posted by Templar
Well I think that when you use your card somewhere they are actually supposed to check your ID and make sure the card is in your name. Then when you sign, they are also supposed to match signatures I think. But a lot of times cashiers are just going through the motions, let people swipe and sign the pad or paper and move on to the next person in line.
So technically, the merchant allowed the bad transaction to occur by not following the correct verification process when the card was presented. I have no idea what the legal repercussions of that failed verification are, but that is my guess as to why the merchant is in trouble.
Exactly my though. I'll add to it though.
The "friend" showed up with a stolen credit card to pay for work done to his car.
Did your friend have the work done in his own name or did he use the name on the credit card.
If he set up the repairs in his own name, then later showed up with a credit card with a completely different name on it, the merchant is as much as fault for accepting it. If this is the case, maybe the merchant has previously turned a blind eye to suspicious cards.