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Originally Posted by The Ghost
In my experience the vast majority of fraud isn't from customers. It's from scamming affiliates.  |
Correct!
Quote:
Originally Posted by EukerVoorn
Also, something I really would like to know, if someone does a purchase using his credit card and he goes through the secure code routine, can he still go to his bank after the purchase and claim that he doesn't recognize the credit card charge and demand a chargeback? At banks here in Netherlands that is not possible as far as I know; once you've entered the code on your bank's site the transaction is definitive. How does that work in the rest of the world?
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Chargeback (3D Secure) Liability Shift who qualifies and how?
A few points need to be made regarding chargeback liability shift. Not ALL chargeback reason codes qualify for immediate representment only certain Reason Codes qualify and these vary from Region to Region. The primary codes including MasterCard RC 4837 and 4863 ("Cardholder Not Authorized" and "Cardholder Not Recognized") and VISA's RC 23 and 83 constitute more than 70% of all ecommerce related disputed transactions so the liability shift at minimum protects the largest percentage chargeback risk codes.
There some exceptions to this however, including commercial cards, anonymous prepaid cards, and new channels. Transactions that fall into these categories are not eligible for liability shift with VISA.
Where chargeback liability shift is important is with 'inter-regional' transactions where the merchant resides in one jurisdiction and the cardholder in another. Since most Internet based transactions are global, this is a very important consideration.
This applies also to The Netherlands