Convenience V Security
This appears to be another case where security is sacrificed for the sake of making the transaction more convenient to the buyer.
Our bank-issued card machine allows us to use a lower level of security (such as no address details) where the card is not present, but it is made very clear that we, rather than the bank, would be taking on the financial risk if the transaction proves fraudulent.
Presumably some of the major retailers (or their insurers) can absorb this risk - or have better deals with their bank.
Biting the hand that feeds IT
