mykidssherpa

So, people seem to think if they put payment on a credit card and the company goes backrupt they are protected.

Is that true on your good old standard VISA (say, not a gold or platnium card)?

If someplace goes backrupt, it is not like VISA is going to be paid either, so it doesn't seem like it is in VISA's interest to protect cardholders from a bankrupcy, unless you are one of their prized platnium or high level clients.

Anyone have any insight?

Intrepid1

You are protected for non-delivery of services. Don't shed ANY tears about the bank/CC issuer..they get their cut (3-5%) from the merchant before the merchant gets any money.

Neopolitan

Intrepid, you're a little behind the times. Most businesses I know of (merchants) get a rate more like 1.5%.
But you are right about the card company getting their money first.

Yes, mykidsherpa, you are protected even if you have the "lowest" on the totem pole type card.

abram

Four days before we were scheduled to leave on a cruise, the cruise line went belly up. We wrote to Visa, and within a month, we had all our money back.

Visa told us that the cruise line had to post a billion dollar bond to do business in the US, and Visa just went in and yanked the money out.

luv2cthings

mykidsherpa, you already have the answer about whether the standard CC cards are protected. I just thought I'd add that the reason for this is that the protection isn't offered by Visa (or MasterCard, etc.) or the issuing bank out of the goodness of their heart, but is mandated by U.S. law and covers all credit cards.

razzledazzle

The FTC (Federal Trade Commission)
regulates the law known as the Fair
Credit Billing Act-you can google
it for specifics.

R5