Quote:
Originally Posted by elliso
You are Completely wrong :-)
it seems You are mixing things altogether, 3D Secure payment is the best way to avoid fraud or chargeback, which means when person pay and verifiy his payment. he can t chargeback or ask for refund, due thier policy and rules.
I have a game website under 3d secure payment and am running it for almost 1 year and never have singal chargeback but in porn it s different that is why am seeking 3d secure payment adult paysite.
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Why are you asking this, if you think you know the answer?
I am happy to hear you had no chargebacks for almost a year of that one game website, but this can be just luck - let chargeback be 1%, if you made only 80 sales, that's normal there's no one chargeback yet. I got chargebacks on 3d secure, and anyone else who transacted much enough can confirm 3d secure chargebacks it happen.
Chargebacks are issued with a "reason", there can be several, and 3d secure protects only from "card not present" (CNP) which is basically "it was not me to use the card", but 3d secure do NOT protect for other reasons such as: ok it was me to pay, but site did not provided what promised. User can be liar about this, but banks listen them more likely than merchants. Also there's a difference if card is business or personal, in case you try to fight a chargeback after it happened (you can if it was 3d secure, but not winning always).
For more information, google for "3d secure card not present chargeback" and you'll find lots of forum posts and pages about this topic. I quote some:
"Chargeback will run either its a 3d secure or not, because that is posted by Card Issuer which has no restrictions to do that. 3d secure just increase the security for Merchant Account from Fraud Orders (card not present) but that doesn't restrict from Chargebacks"
"You won't receive a chargeback based on Fraudulent Card use if 3D Verification was in place, but if you as a seller do not fulfill the order or have some customer who wants to play around with you (friendly fraud), they can call the bank up and file for a dispute based on incomplete/non arrival of goods case. You will be charged a penalty no matter what."
"Please also be aware that the use of 3D Secure protects you from fraud-related chargebacks, but it does not remove the requirement for goods and services to be provided as agreed and therefore you can still receive goods and service disputes and you will still need to respond to any requests for information."
Also read about "friendly fraud":
http://en.wikipedia.org/wiki/Chargeback_fraud
"Friendly fraud thrives in the digital products market where it is much easier for fraudsters to succeed. Common targets include pornography and gambling websites. Attempts by the merchant to prove that the consumer received the purchased goods or services are difficult."