TABLE OF CONTENTS
- How does liability shift work?
- Transactions eligible for the liability shift
- Transactions not eligible for the liability shift
How does liability shift work?
Liability shift switches responsibility for fraudulent chargeback from merchant to the card issuer bank for transactions with successful 3DS authorisation.
Worth mentioning that it will be quite troublesome for a cardholder to have a positive solution to fraudulent disputes where 3DS took place.
Transactions eligible for the liability shift
- Customer Initiated Transactions (CIT) 3DS authorised transactions;
- One-click CIT payments;
- Frictionless payments
- Apple Pay payments for American Express, Discover, JCB, Mastercard, but not VISA.
Transactions not eligible for the liability shift
- Merchant Initiated Transactions (MIT) recurrent transactions, where 1st payment was not 3DS authorised;
- Dealings without 3DS authorisation.