Liability Shift

As mentioned, if a chargeback is raised by the consumer for fraudulent activity in an ecomm environment then the liability of the chargeback will be reviewed to understand who owns the liability.

Liability shift can happen when certain actions take place during authentication process with the cardholder. The below table will help highlight where liability sits and possible actions for you to consider:

Enrollment Status	Authentication Status	Liability	Advised Action
Directory Server Unavailable	Not Authenticated	Merchant	TBC
U - Unavailable	Not Authenticated	Merchant	No liability shift; merchant decision to proceed to authorisation, scheme charge will apply.
N - Not Enrolled	Visa DS will stand-in if ACS indicates card not enrolled	Card Issuer	Proceed to Card Auth with 3DS data.
Y - Enrolled	Authentication Successful	Card Issuer	Proceed to Authorisation with 3DS data
Y - Enrolled	N - Authentication failed, not authenticated, transaction denied	Merchant	No liability shift; do not proceed with the transaction.
Y - Enrolled	A - Authentication attempted (DS stand-in for ACS	Card Issuer	Proceed to Authorisation with 3DS data.
Y - Enrolled	U - Authentication could not be performed by DS or ACS	Merchant	No liability shift; merchant decision to proceed to authorisation; scheme charge will apply.
Y - Enrolled	R - Authentication rejected	Merchant	No liability shift; do not proceed with the transaction.
Directory Server Unavailable	Not Authenticated	Merchant	TBC
U - Unavailable	Not Authenticated	Merchant	No liability shift; merchant decision to proceed to authorisation; scheme charge will apply.
N - Not Enrolled	Mastercard DS will stand-in if ACS indicates card is not enrolled	Card Issuer	Proceed to Card Auth with 3DS data
Y - Enrolled	Y - Authorisation Successful	Card Issuer	Proceed to Card Auth with 3DS data
Y - Enrolled	A - Authentication attempted (DS stand-in for ACS	Card Issuer	Proceed to Card Auth with 3DS data
Y - Enrolled	U - Authentication could not be performed by DS or ACS	Merchant	No liability shift; merchant decision to proceed to authorisation; scheme charge will apply.
Y - Enrolled	N - Authentication failed, not authenticated, transaction denied	Merchant	No liability shift; do not proceed with the transaction.

This table is a guide to expected liability shift outcomes only. Merchants should ensure they review the card scheme and industry regulations regularly to ensure they are up to date with current requirements.