Even with 3dsv1 the liability doesn't always shift to the issuing bank. For example, I believe it is Mastercard NA(Might be Visa NA) that doesn't allow any 3ds liability shift for high risk merchants.
Source: Worked at payment processor in high risk processing +$1B in volume
1. It tries to gather more data points about the customer environment (i. e. browser and screen details). I think the goal is to provide more signals that the bank can use to decide low/high risk transactions. This likely feeds into...
2. Some transactions can be passed through in a "frictionless" manner. Instead of getting the "please log into your bank this is not phishing trust us" interstitial, it requires no interaction.
If most of the time, customers are sitting int eh 'frictionless" universe, then they won't hit too many situations that encourage cart abandonment.
Depending on the region, only a small fraction of payments are enrolled in the framework to do that validation / challenge anyway, it’s been expensive to adopt and a lot of card acceptors are still nervous about abandoned carts and lost revenue.
Aaaand that’s not to mention good old fashioned stolen cards, counterfeiting and at the other end, full-scale identity takeovers. Many security features are still bypassable by using the legacy system that should have been supplanted by now. It is a constantly-evolving (and frustrating) field.
Specifically, BNY Mellon, acting in an intermediary role between OnlyFans' banks and creators' banks, allegedly blocked all payouts to creators.
The problem is.. it is not exactly standardized as each bank does their own thing thanks to BSA rules.
There are some customers in the industry who run silly numbers like +10% and do "Mid burning" with different banks.
The highest CBs tended to be the "online dating space" or "find X nearby hookup" kind of sites.
If you've got any other questions feel free to ask.
Source: Worked at payment processor in high risk processing +$1B in volume
I expect the CB ratio to be 0.7% if they're aggressive with not leaving money on the table and refund anything that looks like it'll give them bad press. If they're they're trying to keep it as low as possible I've seen the ability to operate at 0.3%.
CCBill & Epoch when I want to shift high risk liability. Rocketgate for everything else. Getting the processor is the easy part, finding an acquirer and getting a mid is much harder.
I have no advice on how to find an acquirer/getting a mid for high risk it is very much networking and knowing people club.
