May 06, 2009 A reader who works in the chargeback section of a major credit card company has just about had enough with people tossing around 'chargeback! As the solution to every customer service.
How Much Protection Does 3-D Secure Offer?
- Performing a chargeback is like stealing, or, like claiming that the online casino itself is stealing. When you perform a chargeback, you are essentially telling the credit card company that you’ve identified a company with malicious behavior. The credit card company takes your side, since you’re their client, and they cancel the payment.
- Review of Chargeback online casino. Response: Unfortunately, it is not a good reason because if you had won, oceans online casino I am sure you would have collected chargeback online casino your earnings I think charging back would be a very bad idea - only use this as a last resort, or if you want to stop playing online casinos completely. In an online casino environment, the user may create.
Are you using Verified by Visa during your checkout process? What about Mastercard SecureCode? If not, you may be passing up some invaluable fraud protections offered by 3-D Secure technology.
Verified by Visa and SecureCode are the two companies’ branded deployments of 3-D Secure technology. The tool prompts customers to enter a unique identification code during checkout. Some merchants decline to use it, worrying it will increase friction and shopping cart abandonment. However, the technology offers some incredible advantages.
What is 3-D Secure?
3-D Secure is an XML-based protocol, designed to help block fraudulent card use online. Although using the same basic technology, the tool goes by different names depending on the card scheme:
| SafeKey
| J/Secure
To use any of these fraud prevention tools, you simply need to contact your merchant processor and ask for permission. You’ll need to install a plug-in, but the process is fairly painless.
3-D Secure technology works like an online PIN code. The issuing bank asks cardholders to register their card with VbV, SecureCode, or other program, depending on the brand of the card. When they do so, the cardholder creates a unique personal identification number.
Later, at checkout with a participating merchant, the 3-D Secure tool prompts customers to enter their unique code. During this process, the cardholder is temporarily redirected away from the site, to a separate domain operated by the card scheme, to provide their credentials. Once the issuing bank validates the personal code, the shopper will be allowed to continue with the checkout. In theory, only cardholders will know the code. Fraudsters shouldn’t know this number and, therefore, won’t be able to complete the transaction.
Benefits of 3-D Secure Outweigh Costs
Let’s be clear up front: yes, this creates friction in the transaction process. For many sellers, the idea of adding extra steps to checkout is simply not worth the potential reward. However, VbV and SecureCode are highly-effective fraud deterrents. They make it much more difficult for criminals to complete fraudulent transactions.
Even beyond that, though, the tool offers another incredible benefit: a fraud liability shift.
Sellers are not liable for fraudulent purchases conducted involving VbV. As long as you manage to authenticate your customer using Verified by Visa, or attempt to authenticate but the customer is not enrolled in the program, liability for fraudulent activity shifts to the issuer. It’s the same as EMV chip technology for card-present merchants, in that if you use VbV during checkout, and a fraudster manages to pull-off an attack, none of the losses come out of your pocket.
You enjoy similar protections with SecureCode as well. Page 248 of the Mastercard Chargeback Guide released in May 2018 specifies that, if you use 3-D Secure during a transaction, that sale is not eligible for a chargeback involving any of the following reason codes:
- 4837—No Cardholder Authorization
- 4849—Questionable Merchant Activity
- 4863—Cardholder Does Not Recognize—Potential Fraud
Even with other reason codes, SecureCode could still be admissible as compelling evidence.
No More Chargeback Liability?
Remember: when something sounds too good to be true…it usually is.
Clearly, 3-D Secure could impact billions of dollars in chargebacks filed every year due to alleged criminal fraud. That’s not to say you should hinge all your fraud prevention on one tool, though. If you fail to keep up with fraud prevention best practices, you could still be held liable for fraudulent activity.
Exceptions to the Rules
Of course, there are other stipulations involved. As mentioned above, you may still be liable for dispute involving Mastercard chargeback reason codes not specified above.
As for Visa, some merchants are not liable for the protection offered by the liability shift due to their merchant category code, or MCC.
Your MCC is a code assigned by Visa based on a general description of your business model, and the range of products you carry. All merchants who offer travel services are grouped together under the same four-digit code, and all merchants who sell products based on a telemarketing business model share an MCC. This allows Visa to identify groups of merchants based on their industry.
This may seem insignificant at first glance, but your MCC can impact whether you’re protected from fraud liability. Even if you, the merchant, deploy Verified by Visa, you can still be found liable for disputes if you operate under any of the following MCCs and are located in the US:
- MCC 4829— Wire Transfer Money Orders
- MCC 5967— Direct Marketing: Inbound Teleservices Merchant
- MCC 6051— Non-Financial Institutions: Foreign Currency, Money Orders [not Wire Transfer], Stored Value Card / Load, and Travelers Cheques
- MCC 6540— Non-Financial Institutions: Stored Value Card Purchase / Load
- MCC 7801— Government Licensed Online Casinos (Online Gambling)
- MCC 7802— Government-Licensed Horse / Dog Racing
- MCC 7995— Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks
Why Single Out These Product Categories?
MCCs 4829, 5967, and 6051 have been ineligible for protection for years. Prior to April 2018, transactions involving any of those three MCCs were ineligible for protection against fraud involving chargeback reason codes 75 (Transaction Not Recognized) and 83 (Fraud: Card-Absent Environment).
In April 2018, though, Visa added MCCs 6540, 7801, 7802, and 7995, alongside their Visa Claims Resolution initiative. The company did this because businesses operating in these verticals are considered “high-risk” in nature.
The point of this designation isn’t to judge or to punish merchants for their products or business model. This doesn’t necessarily reflect on individual businesses. Being designated as a high-risk merchant refers specifically to the relative risk of your customers filing chargebacks, based on average incidents experienced by other businesses in the same vertical.
Basically, Visa anticipates more fraud incidents and more unrecognized transactions in these product and service categories. Thus, they anticipate more chargebacks.
Beyond VCR: Surveying the Impact of Visa Claims Resolution
We asked a wide range of merchants about the effects they are seeing from Visa's VCR initiative. Download your copy of our report to see what our research uncovered.
Free DownloadStill Value, Regardless of Liability
Of course, with or without chargeback liability protection, taking advantage of 3-D Secure technology is still a good idea. As discussed above, it’s an opt-in process, so the friction added at checkout is negligible, but the protection provided is roughly the same as an in-store PIN purchase.
Plus, coming in April 2019, current 3-D Secure rules will extend to 3-D Secure 2.0 technology on Visa transactions. After April 12, Visa offers merchants full chargeback protection if they deploy Verified by Visa using 3-D Secure 2.0 technology. All other card schemes will make a similar move in due time.
Bank Of America Mastercard Online
The new generation of 3-D Secure utilizes rich data transmission during transactions, enabling the technology to offer:
- App-based, mobile purchases
- More dynamic, informed, and faster risk-based decisioning
- More options for authentication beyond passcode
- Seamless checkout integration
3-D Secure 2.0 directly addresses a few key complaints about the original tool. Namely, with 3-D Secure 2.0, the customer doesn’t need to enter their passcode upfront. 3-D Secure uses risk-based decisioning to classify a transaction as high- or low-risk. With a high-risk sale, the transaction bounces back, prompting the customer to enter their code for authorization.
This change addresses the most common objection to 3-D Secure tools (that they increase friction). Even then, it’s still not perfect.
Part of a Larger Strategy
3-D Secure offers valuable insurance for some transactions, plus strong protections against fraud for all. You can’t rely on it alone to insulate yourself against chargebacks, though.
As mentioned before, chargeback liability is contingent on you abiding by best practices. This includes using multiple recommended fraud tools, which can include (just to name a few):
- Fraud scoring
- CVV verification
- Geolocation
Also, while 3-D Secure is effective against criminal fraud, there’s no guarantee it will work against friendly fraud. For example, if a customer experiences buyer’s remorse, then files a chargeback in response claiming the item never arrived or was not as described, 3-D Secure won’t really help.
For true chargeback protection, only a specialized chargeback management provider will do the trick. These experts will help you separate chargebacks by their source—criminal fraud, friendly fraud, and merchant error—then deploy the solution you need to see long-term chargeback reduction and revenue recovery.
Want to learn more? Click below to speak with one of our chargeback experts today.
Online casinos along with the other service providers involved offer certain facilities to the players. If the players use these facilities in the true spirit then the entire system runs like a well-oiled machine and everyone benefits. However if the players abuse the facilities given then everyone suffers.One common abuse that is most reported by online casinos is players informing credit card companies that they did not make the transactions depositing funds in online casinos and therefore their account should be credited or 'charged back'. Credit cards offer credit to their users. The users can pay online or offline using the credit cards without any money being paid. The credit card company then pays the vendor and charges the credit card user in a consolidated monthly statement. Players use their credit cards to fund online casino accounts. The credit card company clears the funds to the online casino and the player starts wagering. When the player receives the statement from the credit card company he denies having sanctioned the payment and demands a charge back.
This forces the credit card company and the online casino to carry out an investigation. Such investigations are an unnecessary cost to these organizations and hence are not appreciated. Pending investigation the credit card company may hold the actual transfer of funds to the online casino. The online casino will definitely prevent the customer from using its services. And the player cannot hope to get away with this. The transactions are made through secure channels that prevent abuse. Also the details of the transaction are recorded and archived and hence can be retrieved for investigation. The security processes in place are so strong that not only the exact date and time of the transaction is known but also the IP address of the computer from which the transaction was carried out. Hence due investigation will prove that the player made the transaction. Only a lot of people would have spent time and effort and unnecessary cost would have been incurred.
Both the online casinos and credit card companies consider illegitimate charging back as fraud and the consequences for the player are disastrous. The credit card company will cancel the card and therefore the player will not be able to use it for other purposes as well. In addition the credit card company will pursue all means at its disposal to recover the dues. The online casino will eject the player and block him from participating again. And if the player is under the impression that there are other credit card providers and other online casinos then he is mistaken. Both online casinos and credit card providers share information about fraudulent clients so the player may find his other memberships being blocked as well and his applications elsewhere will be turned down. Hence gamble responsibly and do not try to recoup losses using fraudulent means because you will be caught and be worse off than before.
Comments
Add CommentI myself am an affiliate in the gaming industry online. I make my money promoting various online casinos, sportsbooks, bingo and poker rooms. I have to agree with phizzle here. Especially on the ethics part. I for one am someone who makes their living off of this industry and every time there is a charge back that's issued with one of the players that I've brought into a casino I get screwed. I get screwed in that any monies that they've played though will eventually be withdrawn from my account balance thus making it far more volatile to be in this industry. It was much better when NETeller and Paypal were still viable options and pushed more heavily by online casinos in the US as charge backs were far more difficult with these banking options. Unfortunately you can charge back like Arnold does say but lots of people do get screwed as a result. I agree to in that it's no different then purchasing some kind of good and calling the credit card company telling them that you didn't in fact make the transaction when you did. In both cases you're lying to the credit card company and that in itself is unethical.
Come on, no one has been burnt by charging back. There is no harm in trying. The worst case scenario is that your credit card company refuses the chargeback, which is actually quite unlikely. Remember, when you use a credit card, it is not the customer who is making the transaction, it is the credit card company. So if the credit card company rules in your favor, then the vendor CANNOT go after you directly. The credit card company has already determined it is fraud, and the only way a vendor can collect is to go after the credit card company directly. There is ABSOLUTELY no legal standing to go after the customer directly. This is why people use credit cards. Now, let me see a online casino or third party vendor sue VISA or AMEX for not processing their funds. Yeh, good luck. Once again, the consequences of chargebacks are not that the vendor can come after you. They simply cannot. It is that your own credit card company may brand you 'high risk' if you do a lot of chargebacks, but that is only if you do a lot. And you get kicked off your site and get on some kind of blacklist. But once again, there are hundreds/thousands of sites that all want your business, so this is not a big deal. Fraudsters who charge back routinely playing the big back -- cash in / lose -- chargeback may have some trouble doing this continuously with their own credit card company as they may start to wonder what the hell you are doing. But each individual charge can be charged back. Eventually though, the credit card company may reduce your credit limit, increase your rates, or cancel you, but they will always process your chargebacks, as in reality, the chargebacks are legitimate as you did not receive random internet purchases as it states you did. And don't play the ethics game. It is not ethical to accept US players in the first place.
Um, Andrew is 100% correct. Chargebacks can be done routinely. Almost always, it falls in favor of the customer. This is primarily because the vendor does not want to expose themselves once a chargeback inquiry takes place, and doesn't have much to stand on anyway. They just write it off and move on. However, there are consequences of chargebacks for the customer -- they can get kicked off site (who cares, there are hundreds of others), they can get blacklisted (once again, there are hundreds so you can always find one that will accept your business), or their credit card company can start getting suspicious and cancel you if you have too many chargebacks (it takes effort for them to investigate each one, and they wont appreciate lots of them). However, if you lost a lot of money and don't play online regularly, then it probably is in your best interest to chargeback if you lost. Or you can bet big and see if you win and otherwise charge back, but once again this can't be done continuously. But it is all factored in. The online casinos aren't really 'losing' anything if you charge back, just a few minutes on their software. So they will happily take credit cards all day from US players knowing that chargebacks will occur periodically, since by not taking US credit cards they will lose out. They try (on this site) to scare you from charging back, but if you are on this site and are thinking about it, then go for it. I have charged back $5000 from various cards and have won every time. I still can get on plenty of sites so I am not sure what this mythical blacklist is anyway. Go for it...
To be honest 'Andrew' who commented below is _NOT_ correct and you should not take his advice. He's obviously never charged back and gotten into problems for doing so. Whenever you sign something that indicates a commitment you're obligated to that commitment. If you do want to get away with chargebacks just make sure you never sign any documents required by the casino and their fax-back due diligence progress. Furthermore it's just not ethical even in the event that you could get away with it. Consider the fact that you purchase any good and just because you feel like it you decide to screw over the merchant if every one was to do this for all other industries gambling included it would create havoc.
You are wrong with most of this. Chargebacks are usually in the favor of the customer, especially since online casinos are illegal in the US and have to use third parties to bill. Most of the time, you will have your money refunded. The credit card WILL NOT be cancelled. You may be blacklisted, however, from that and other online sites. This is a big problem in the industry -- folks who sign up, bet big, collect their winnings if they win and chargeback their deposit if they lose. But there isn't much the casino can do about it, it is just factored in to their overall budget. Chargebacks are perfectly legal and acceptable to players since the casino is illegally funneling money through third party vendors, which is deceiptful in their own right. The only way to stop this is for sites to not accept credit cards, but they don't want to do that since that would hurt business. So now that we found the secret, chargeback as much as you can until you get blacklisted or win!
I've done it in the past but only when I didn't realize that the charges were legitimate. When I tried playing at the casino that I normally play at they locked my account because of the charge back which was obviously within their right to do 100% but the fact is that it caused a lot of problems for me by charging back. If you're going to do it be absolutely certain that you're not in the wrong about it.
It's dishonest to charge back transactions if in fact you're the one that made them. I don't think it's right when people do this. I know that I for one would only charge back something if in fact I didn't make such charges that appeared on my credit card statement.
I'm with you all it's a big mistake to charge back legitimate transactions on your credit card. Also something to keep in mind is that it will and does affect your credit rating so it's really not worth it!
I'm in agreement with everyone on this subject as well. I beleive that charging back is only worth it if in fact you didn't make the charge that you're seeing come though on your credit card. It's always wise to inspect the charge before contacting your bank and requesting that they issue the charge back.
If you charge back you will be blacklisted by online casinos. Also if the payment processing companies that online casino providers are the same as some of those that process transactions for online bingo companies, poker rooms and other forms of online gambling you may find that you won't be able to play any of those either. So just be aware that there are repercussions with charging back.
Chargeback Mastercard Online Casino Login
I too don't think that charging back is a good idea if the transactions that are showing up on your monthly statement are in fact legitimate transactions. It doesn't to anyone any good. You might thing you're doing yourself a favor by getting some money back this way but in the end it's more damaging to charge back transactions then it's worth.
From what I understand individual casinos along with software providers and also many of the payments companies that online casinos work with hold blacklists of players that have charged back. Unless you legitimately didn't make transactions that you're seeing on your credit card bill should you charge back otherwise I just don't think it's worth the implications that follow.
Yeah agreed issuing charge backs is not something you really want to do and something that you want to avoid as much as possible if you can. I think that if you do decide to charge back transactions you know you've made at an online casino you should be prepared to encounter issues if you play again in the future especially if you're name is logged on the software provider level.
I fully agree with this tip charging back is not worth it. Not only does it make you look bad to the credit card companies but it's also a problems that you'll encounter after doing this and your ability to continue playing. These negative database that online casinos store that contain information about all those who've charged back are being used more and more from what I understand so avoid doing it all together unless you never want to play at an online casino, poker room, sportsbook or bingo room again.