Shifting liability for online credit card fraud
I’m looking for ways to protect my business from the financial impact of "card-not-present" fraud. My current processor doesn't offer much protection against chargebacks. Is there a specific protocol I should be using to ensure that the bank, rather than my shop, is responsible for verified fraudulent transactions?
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To protect yourself from liability, you definitely need to be using 3D Secure protocols. You can find more information on how this works at https://www.fenige.com/solutions/3d-secure When a transaction is authenticated through this system, the liability for fraud typically shifts from the merchant to the card issuer. It’s a crucial safety net for any online business. Implementing a modern version of this protocol ensures you're protected against bad actors without making your checkout feel like an interrogation for your regular buyers.