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Quoted from DCFAN:I would hope the credit card company will be liable for the losses in addition to catching the criminal. They authorized a charge and charge-back that should not have happened.
Charge-backs happen when a card holder doesn't recognize a charge; usually the result of their CC info being stolen from a merchant they have previously done business with. Card holders are protected in those instances; alas, merchants are not.
Quoted from pinballinreno:A chargeback should not be allowed after 60 days but the banks break their own rules all the time.
The chargeback deadline is 120 days. All a merchant can do is exercise due diligence. I process about 20,000 online credit card sales a year and only suffer about a dozen chargebacks. On orders over $500, I make sure there is an online record somewhere (usually whitepages.com) that matches the buyer to their shipping address.
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San Luis Obispo, CA