Credit card fraud, goods now on ebay!

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foobies said:

Your post is incorrect. Using 3D secure does not mean a chargeback cannot be initiated by a cardholder.

I think you guys are missing the point here. Yes you may be able to open a chargeback for 'item not as described' even with 3D secure as per previous post, but you can not open an 'unauthorized payment' chargeback if you have passed 3D secure. That is the whole point of having 3D secure and what it was designed for.

Nearly all credit card fraud is done with stolen credit cards, card numbers that are traded on the internet between fraudsters on the dark net etc. but they will not have the 3D secure passcode unless the card holder is stupid enough to give it away.

So if a fraudster comes to your website to palace an order, when 3D secure pops up he can not go any further as he will not have the passcode.

So what I am saying is if you have 3D enabled on your website the fraudsters will not be able to place an order in the first place. hence no chargback 2 months down the line.

The second scenario is that the genuine card holder places an order on your website and he is a dishonest little bugger and tries his luck opening a chargback with his bank on his own card, but if he went through 3D secure he can only do it based on item not as described and needs to jump through several hoops for this process, its not the same as 'unauthorized payment'. From experience running eCommerce sites this is not very common form of card fraud.