Quote:
Originally posted by psyko514
Why are you the first and last line of defense? Because you're the one doing business with the customer. Visa is only a mode of payment, like cash.
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Not like cash. At least with cash the customer needs to come in face to face, have their receipt and return the goods. I miss cash.
Quote:
Originally posted by psyko514
If you own a store and you accept a credit card from a chinese dude who's card says Juan Sanchez, you're responsible for the charge when the real Juan Sanchez claims it as fraud. Same thing if you don't match the signature on the slip to the one on the back of the card. The simplest way to commit fraud is go into a store, buy some clothes, and sign the slip with a completely diff. signature than the one on the back of the card or your application. The majority of merchants hand you back the card right after they swipe without checking the signature.
Obviously, Visa/MC can't do anything to protect against that and it's the merchant's responsibility to do the fraud screening.
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Nobody disputes this. However, brick & mortar shops at least have this line of defense. They have an oportunity to protect themselves by obtaining signatures.
Quote:
Originally posted by psyko514
How can you prevent it online? Make CVV2 checks mandatory. Sure, some billers ask for CVV2, but they don't check to see if it's valid. Do CVV2 checks and make sure they're actually confirmed, and chargeback rates will drop.[/B]
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I'm not that confident in the CVV2 system. For one thing, it won't matter if the person does charge back... we still don't have a signature. For another, this information is being submitted directly to merchants and so the info has potential to get out. It can also get out if someone's card is stolen.
The only real solution I can see is some type of IPIN (or, similarly, Verified by Visa). Of course, the banks will have to honor the fact that an IPIN (or password) was used during the purchase and not simply honor the chargeback because a signature wasn't obtained. It sounds like Canada has a healthier outlook on the whole situation in general. In America, speaking for myself anyway, the banks have NOT exactly come across as the merchant's friend. Sometimes it feels like we're supposed to lick their collective asses clean for allowing us to conduct business and give them a cut... and this is why I give them the 3-finger salute.
Cal: Requiring a signature for small-ticket items also puts a burdon on the consumer. This has serious potential for hurting sales and causing delivery-related problems (compared to leaving the item like regular mail) all of which has to be weighed against how many chargebacks it may be preventing. Like, how many people are going to arrange their whole day to be somewhere just so they can sign for an X-rated movie?
And, yes, "I'm the real Emmit Smith".
(hmm... that commercial aired like 1-2 years ago... how come I still haven't been notified of any opportunities to implement this system on our site? Is it a Visa USA policy to air commercials for promotions 2 to 3 years before they're available?)