Many credit and debit cards boast zero fraud liability but there are fundamental differences in the legal obligations of issuers to cover fraud losses between credit cards and debit cards. Additionally, zero fraud liability may only apply to signature-based debit transactions for certain card brands – so using your debit card with the PIN at the point-of-sale may change your fraud liability rights.
All too often employees with easy access to the business’ or customer’s financial information take advantage of lax monitoring and security procedures. Here we profile several cases of individuals who took advantage of their employer, friend or neighbor’s lack of checks and balances.
Requiring customers to provide the card security code (CSC, CVV, CVV2, CID) at checkout will reduce fraud attempts, but can also cause a decline in sales conversion. Adding this step to the checkout process has shown to cause a nominal reduction in sales conversion, but how severe are the consequences?