(begin rant)
Well...ok. I personally find it more than a little infuriating about VISA/MC when they make so much $ off of cb, yet when - as we did earlier this year - we have a clear case where someone got hold of a database including CVV2 and address, and had the names and addresses of the individuals who were involved, and were not able to deal with VISA to help them catch those crooks. (There was no interest when I called) I got a copy of one statement associated with those people and they hit not just us, but Hustler, Jettis, CCBill, lots of big guys, $20K in charges in two days on one customer's card alone.
SOP for us is to add *any* chargedback transaction - in fact *any* customer who threatens us if we don't manually cancel them instead of using the online form supplied by our processors, pretty much anyone who is causing real trouble including password traders and the like - gets added to our negative database. We even fraud scrub affiliates signing up. Anyone who signs up with a forged or undeliverable e-mail gets auto-voided. We require CVV2 for US customers, AVS, all that. We have our own merchant account and we take this quite seriously.
So when we're doing every single thing practical to avoid fraud, and have even offered assistance to them in tracking down fraud, why should we be subject to judgment based on someone using one of the (honestly) fairly lax IPSP services, illegal content which many of them still process, etc.? The only IPSPs who have offered assistance to us in pulling copyrighted material are CCBill and Verotel. I've e-mailed others who I won't name who did not even respond. One IPSP I could name still owe us money that's a year old.
Give me a tool to fight fraud, I'll use it. Verified by Visa is one such tool supposedly coming out but I've heard reports it will not be available to adult merchants
Give me a way to report all the information I have on fraud, I'll use it.
And, it should not be a legitimate reason for cb that the customer fails to cancel based on clear instructions located on the join page, the main member's page, and the customer service page, in up to ten languages.
Sure, there's some responsibility to bear on online business, but there also needs to be an awareness on VISA/MCs part that online realistically does not have to be more susceptible to fraud than the real world, can't remember the last time I had my ID checked for using my credit card in the real world, and lots of real world merchants also break VISA rules by forcing a minimum amount to charge.
-doug