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Again the merchant is required to do the CREDIT COMPANY'S job of fraud screening? It costs extra to send things registered mail, FedEx, etc. Why are we the first and last line of defense against cardholders?
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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.
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.
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.