Kate visits her local jeweller to purchase a necklace. Kate chooses her necklace and then heads to the counter to complete her purchase. Unfortunately Kate does not have her card with her but convinces the teller to manually enter the card details into the terminal. Kate uses her mobile phone to reference card details. The transaction is completed successfully and she leaves the store with the necklace.
A couple of weeks later the store receives a chargeback for the purchase as the card details Kate had provided were stolen. The store is debited for the value of the purchase and is also liable for a chargeback fee. Unfortunately the store has no way to recover the necklace.