No. that is not right.
The seller will not get paid, most likely.
Card companies have certain rules the seller must follow, such as did he ask for address, phone number, did he record IP, did he ask for 3 digit secret code...
In most cases, they only get your card # and date. if they use those info to buy things, the sellers will be responsible for 100%. That is why many online retailer are losing money. If they can get 90-95% of the card charge, they are lukcy. I have friends only get paid 70-80%, such as software sales, domain registration, because they are more fraud there.
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I read a lot of report related to this kind of theft via credit cards or debit cards. Usually the card holders don't have to pay for these transactions unless you are sure it was you who made these transactions happened.AND it is not the credit card company pay for the stolen amount of money, it is the Canadian government who gonna pay for it.