Concerning the fraud by adult sites, online auctions are by far the most fraudulent activity on the net today. Here is a source, but this is not the only source, they were several.
http://www.fraud.org/2002intstats.htm
It's also 2 years old, but I don't think it has changed that much. They are stating 90% of the online fraud is done through auctions.
The reason I'm bring this up is, think about it. What are they doing on that side of the market in order to curb it. Have you seen them make a statement like "If you own a ebay store your CB rate can be no higher than 1%"
Why is this? In business your first concern is to find out where you are losing money and fix it, but Visa and Mastercard are more worried about the "assocation" with the adult industry rather than where they are really losing money..... things that make you go hmmmmm. Sorry don't mean to hijake or thread or anything, but I never looked up the numbers until just now and realized that it is not adult sites that is the biggest contibutor to online fraud.