alt Hacker NewsOne other thing to add to the story is that the merchants can’t select what level of security they want from the credit card processor. For example, with authorize.net, you can accept the payment with the address doesn’t matter it doesn’t match.
I guess the real question here is how are they able to steal from you? Were they purchasing gift cards from a merchant with lax security?
It’s one thing to guess a number it’s another thing to get the money out of the system
> merchants can’t select what level of security they want from the credit card processor
That really depends on the processor; many processors do allow merchants specify your acceptance rules in quite deep detail.
There's a bit of a dichotomy in the processor market: on one side you have those that aim to make it simple for their customers and unburden them, while on the other side you have those that expose all the complexities and give intricate controls. The first side won't allow you to specify security requirements, while the second side will give you a hundred options (of course there's also processors positioning them in between). The two sides generally target different customers.