Not quite, they make the merchant write it off. And if someone brings too many disputes, they investigate.
(The small fraud problem is one reason I think micro payments can't happen: you can't investigate sub-cent fraud, but if someone can automate it they can steal a lot.)
(The small fraud problem is one reason I think micro payments can't happen: you can't investigate sub-cent fraud, but if someone can automate it they can steal a lot.)