Personally I think our risk should be covered by their fraud detection. We pay extra per transaction to have THEIR fraud checking system run against all orders. I think if THEIR fraud checking passes then we shouldnt be out anything for a chargeback for fraud.
Sadly what the bank has told us is that we should charge an extra 10% across the board for all orders to cover our losses due to chargebacks. And what's worse is that most police departments really dont care to follow up on credit card fraud.
I'm sure there will eventually be some sort of class action suit one day.