<prompt> Human: As far as I understand, when a particular charge is unauthorized be it through fraud or simple error, the onus of proving the charge was justified is on the merchant in question. To me this is very easily explainable had the the charge been a result of a simple error on the merchants part. What happens however, when the charge was fraudulent? Say someone cloned your credit card and racked up a huge bill that the merchant let go through, the merchant in question would have to refund the charge but they had no idea of any foul play so to speak. Do they simply have to absorb the hit as cost of business or is there a particular way that they deal with the situation in order to mitigate their losses?  <response>: A few merchants purchase chargeback insurance; it can make sense, if youre so small or sell such high-end goods that a handful of chargebacks could devastate you. But in general, merchants will absorb fraudulent charges as a cost of business. 