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Old 02-02-2006, 07:09 AM  
vicki
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Join Date: Feb 2002
Location: Deep in the heart o' Texas
Posts: 1,478
Actually there is a solution on the horizon, its called VBV(verified by Visa) or the MC equivalent 3DSecure(securecode). Its a zero liability system where the vendors have NO worry of a fraudulent chargebacks.

Although there hasn't been much discussion in the US or on the boards about it .. its already commonly used in many European countries. Its growing in popularity worldwide as Acquiring banks, merchants and end users begin to understand its qualities.

The customers/users are being educated to use this to prevent identity theft as well as shop online securely.

Merchants will begin to understand these authenticated transactions may not be charged back if the cardholder alleges they did not make or authorize the purchase - meaning .. NO LIABILITY for you

Many banks, processors (especially non US) and gateways have already been using this system for years and its continually spreading.

Think about it folks, if there is no liability, no worry of chargebacks ... what will change with reserves? The answer is, there will be no need for them - at least at the present popularity. Heck I contract with several banks that already offer no reserve for VbV or 3DS transactions

times are changing
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