Originally Posted by
WHBM
This is difficult to understand. Merchant Card Acquirers know that even in the event of a failure, not everybody makes a Chargeback claim. It's not as if refunds are automatic, there's a convoluted process to go through. So 100% holding is over the top. There's a comparable scheme in the UK for train fare refunds in the event the train is cancelled/late more than a certain amount. Apparently claims run at about 10-15% of those entitled.
The railway claims include a range of options depending on how late the train is. For many tickets a slightly late train might only entitle the passenger a refund of a few pounds so most won’t bother. Likewise, if a train is cancelled there will probably be another one within an hour, so many people won’t bother claiming, or may not even know about the scheme. An airline collapse is a different matter. Someone stranded in San Francisco for example cannot just hop onto another plane. Most people would contact their credit card company I would think and certainly many more than 15%