Re: [uk-netmarketing] Re: Offline Verification of Credit Cards

[Ben Thompson]

Its one of those days. Top poster without trying:-


On Sat, Feb 10, 2001 at 01:39:54PM -0000, Silas Denyer wrote:

> How does the 3-digit "verification code" figure into this (the number

> printed only on the signature strip)? Do the UK acquirers actually support

> verification based on this information?


The 3-digits have nothing to do with non-customer present transactions. If someone was asking for that bit of information personally I'd run a mile from that site. The check is there to allow shops to check that the card is an original as they check the signature (as to its worth your guess is as good as mine).

 

> Where does the cardholder's liability for the security of his/her card

> factor in the 3 months to report stolen card / 6 months to initiate

> chargebacks? This suggests that the cardholder is not liable for charges

> made using the stolen card if they have not noticed its loss?


No, its:-


6 months to report dubious transaction to the bank.

3 months for the chain of banks to pass the chargeback from the original cardholders bank back to the merchant.


Remember this is designed to cover the banks backside not the merchants and with customer not present transactions all the risk is taken by the merchant. If a chargeback occurs the merchant has no choice but to pay the money back (heck banks are usually kind enough take the money automatically).


Of course the later the compliant arrives the less likely something is to be done about it but considering the amount of work required to check whether a chargeback is valid many banks would just pass the chargeback back to the merchant.


Ben

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Ben Thompson

babyhippo.com


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