From: John Pettitt <jpp@software.net (John Pettitt)>
Date: Fri, 17 Nov 1995 04:56:22 +0800
To: "Vladimir Z. Nuri" <ac@hawk.twinds.com>
Subject: Re: credit card conventional wisdom
Message-ID: <199511161930.LAA20815@software.net>
MIME-Version: 1.0
Content-Type: text/plain


At 10:48 AM 11/16/95 -0800, Vladimir Z. Nuri wrote:
>
        ... about credit card liability

Hmmm, a few words about credit card liabilty.

The situation now is that in a "card not present" transaction the merchant is
liable for the fraud.  This means that *a lot* of internet based stores are 
getting eaten alive by fraud.  The big issue right now is not cards being
stolen from the telco switch (yes it's a risk but can anybody cite it
happening?).
The issue is authentication of the card user.  We have a significant
investment in 
AI / credit scoring code to defeat the wannabe crackers.  This goes way beyond
mod 10 checks and address verification.

[ as an aside I've put two people in jail this year for card fraud ]

John
John Pettitt, jpp@software.net
VP Engineering, CyberSource Corporation, 415 473 3065