I'm confused. If I give my card to company A, but somehow along the line someone gets the details and uses it buy something at company B. And there was no way to link it to company A. How is company A having any risk whatsover?
I believe it's company B, the one who accepted a fraudulent order the one at risk. The company I have no relationship whatsover. My only risk is to check if I have charges I didn't make.
company A to you is company B to someone else. The point is that the risk is not to the bank but to merchants.
For any given transaction the company does not know if they're "company A" and you're a genuine customer, or if they're "company B" being defrauded out of product with stolen details, so all merchants are taking on risk.
I believe it's company B, the one who accepted a fraudulent order the one at risk. The company I have no relationship whatsover. My only risk is to check if I have charges I didn't make.