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What is liability shift?

If you have 3D secure (3DS) authentication enabled, you are no longer liable for certain fraudulent chargebacks when a cardholder denies they made the purchase. MasterCard SecureCode, Verified by Visa, American Express SafeKey and JCB J/Secure are all 3DS cardholder authentication schemes which help the card issuer authenticate the identity of their cardholder when making an online purchase. If authentication is completed, any liability for any subsequent fraud-related chargeback on that transaction shifts from you to the card issuer.

Cardholder authentication schemes are applicable to Internet transactions only and do not cover MOTO orders or recurring payments as the customer can't enter their authentication details.

When will I be covered?

 

  Scenario

MPI Response

Is the transaction eligible for liability shift?

Result

3D Secure

Issuer participating

Fully authenticated

PARes = Y

Yes

Cardholder authenticated

Attempted authentication

PARes = A

Yes

Authentication offered but not used

Authentication failed

PARes = N

No

Authentication Failed

Authentication error

PARes = U, VERes = U

No

Ecommerce

Issuer not participating

VERes = N

Yes

Authentication offered but not used

Not 3D Secure

Not applicable

No

Ecommerce

 

Restrictions to our authentication service

 

Installation or Service type

Reason

Corporate Gateway Call Centre (MOTO)

The cardholder isn't able to enter their authentication details.

Recurring Payments (PayAsOrder)

Except for the first transaction (or if a cardholder changes their card details and makes an immediate payment), the cardholder isn't present to enter their authentication details.

C - level, S - level or A - level service

On these service levels you're using your own acquirer, and so you may need to contact them to enable the service. Service levels are explained in the payment process.