I guess we're all going to find out how a privatized monetary system works, at least on the consumer level.
That doesn't make sense. First, general credit cards has been around for 50 years, more limited predecessors for closer to 100 years.
Second, credit cards are decoupled from the monetary system, they are merely vessels for transferring money.
Ignoring the flaws in most current implementations, isn't this the kind of thing 3D-Secure (VBV, SecureCode, etc.) is supposed to reduce?
I helped a friend that runs an IPSP implement it, the spec is so large and convoluted that there's bound to be holes, so the flaws in the implementations are a problem but flaws in the spec are likely to crop up as well.
If that's the case then, holes aside, it makes sense for a merchant to integrate 3DS to reduce chargebacks (not to mention some acquirers charge lower rates for VBV payments, which can help offset PSP fees). But your earlier comment suggested that you were still being stung for chargebacks - I'd be interested to know why.
(and yes, it's a lot of spec for what's essentially 3 XML request/response pairs, but that's the payments industry for you - you'll know what I mean if you've had the joy of ploughing through APACS-70 or its predecessors...)
That goes for almost anything in the credit card world. Witness the way chargebacks due to failed approval policies on the part of the credit card companies are taken out on the merchants, lending policies that are totally irresponsible get taken out on the general public and so on.
Credit card companies are amongst the biggest scum on the planet, unfortunately they are so entrenched now that you can hardly move without them.
Try renting a car or booking an airplane ticket without a credit card.
I've outsourced each and every bit of the handling and processing to third parties, we still get hit with the chargeback penalty.