How secure is fully automated CC processing?

I've been looking at various automation tools and I'm wondering if full automation is a good thing or if it could leave me with hundreds of dollars of fraudulent charges. To me it seems, that somebody with a fraudulent credit card could do an incredible amount of damage with a system like phpmanager where once a CC is approved an account is automatically created. It's even worse with domain names since they are non-refundable.

Do CC processors like 2checkout, Authorize.net take responsibility for transactions they approve which later turn out to be fraudulent or does the merchant? I'm thinking it should look something like this:

Customer makes CC transaction -> CC processor approves -> automation script -> creates service/product

I guess the question comes down to giving customers instant gratification vs. own security/liability.

Do most people use full automation or somekind of semi-automation? I'm interested to know what others have done in this situation. When I look at the popularity of phpManager, I assume a significant percentage must use full automation.

Greatful for any advice

 

 

 

 

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