Agreed, though the other 3 parties know a lot more about the customer, past disputes, and so on.
Also, the argument applies for any kind of chargeback. Again, the other three parties combined see all transactions and have lots of context. And, if they required things like ip address, shipping address (they only ask for billing), they could really improve fraud detection. But they don't...there is an incentive problem.
This is convenient for merchants to offload fraud prevention to banks by sharing more data, but then this should be a service for which you pay and a section in your privacy policy, so that your customers know which data is shared with the bank and why (I‘d say that would be too much data). Fraud levels are different for different merchants, so bundling this service with core product would be unnecessary tax for those businesses which rarely deal with fraud.
Agreed, though the other 3 parties know a lot more about the customer, past disputes, and so on.
Also, the argument applies for any kind of chargeback. Again, the other three parties combined see all transactions and have lots of context. And, if they required things like ip address, shipping address (they only ask for billing), they could really improve fraud detection. But they don't...there is an incentive problem.