[jpalomaki]

They can reduce their risk by doing this. For online retailer there is always risks in accepting card payments. (Not saying this is a good idea, just trying to find reasons).

[kjbflsudfb]

Whose risk is reduced? The retailer or the bank? Certainly not the cardholder.

[464192002d7fe1c]

The retailer and only the retailer.

It probably reduces fraud chargebacks to nearly 0.