Wrong again. The MERCHANT is the one that gets held liable for all fraudulent transactions - banks get off scot-free. Why do you think adoption of 3DS is so damn slow? Because as soon as a merchant attempts 3DS validation, then the bank becomes liable for fraudulent transactions.
I think it's slow because of tablet and phone games, plus not much marketing from Nintendo in this country.
Didn't know it could check for fraud though, could be used as a selling point
Haha, 3DS is 3DSecure. I'm guessing (um, hoping ) that you knew that though!