A huge data breach elsewhere caused a drastic increase in hijacked accounts. This logically means there's been a drastic increase in charge backs. How does that follow? Why does it matter?
Come with me on a magical journey and learn about Payment Processors. There are shady sites where one can purchase "discounted" Mogstation items. You shouldn't use these for many reasons, but two main ones are:
First, that item is getting revoked. Duh. Second, they use compromised accounts to purchase the item codes. The second is the big one. Because the people who have the compromised accounts certainly aren't using their money to buy those codes to pass along. Otherwise they'd be losing money. Instead, they use a saved payment options on the account.
Do ya see where this is going now?
Bad actors purchased gift codes with stolen credit cards, they pss the codes alone for a tidy little profit as "discounted" and then inevitably, the card holder notices. They initiate a rightful charge back.Payment processors DO NOT like charge backs. Especially Fraud. (
ya got that right - Vel ) They're inevitable, so they tolerate *some* charge backs.
But SE just had a HUGE surge in compromised accounts. Which means SE just had HUGE surge in charge backs. Ask anyone who's dealt with a payment processor. They send you a letter from their legal department for that. Because it's a breach of contract. And they will cease to do business with you. "But why can't SE just change payment processors?"
Hahaha... hohoho... hehehe... get ready to be disillusioned kids.
There are basically 3 payment processors. In the world. Anyone else is basically working as a middle man on their behalf. SE is a large enough company to be working with One Of The Big Three directly. Probably Visa? They'd never tell.
They make you sign an NDA that would break your foot if you dropped it. If you get Black listed by ANY of these 3, you're blacklisted by them ALL. This doesn't hold true for smaller payment processors working through them because you're not considered enough of a problem at that level.
But if one of the big 3 don't want you, none of them do.
( Edit: Ive been in that industry, in banking. They don t mess around and you dont want to get on their bad side. Ever - Vel. )