Fraud

In online payment terms, fraud generally refers to fraud against the merchant as the cardholder is generally protected from loss. Fraud against the merchant generally comprises of a fraudster using valid but illegally obtained credit card details to obtain goods or services from the merchant. The merchant commits to the transaction in good faith and releases the goods or carries out the service. At some stage after that the genuine card holder checks their credit card statement and notices the fraudulent transaction. They will contact their card issuer and query the transaction, which will more than likely end up with a chargeback for the merchant and a reimbursement for the card holder.