The terms of the sale, the merchants’ policies, and legal regulations define whether the payment will be reimbursed totally or partially or if products will be redelivered.
What determines the liabilities
The payment conditions, such as whether the payment was verified using 3D Secure, will determine who is liable: the issuer or the merchant when a chargeback is due to payment fraud. Below we describe who is liable in case of chargeback.
Two liability scenarios
In most situations, the issuer takes the loss. The only reason why a merchant would be liable for online purchases is that it does not process payments to the most secure standard, e.g., by disabling 3D Secure for online payments—which is the merchant’s choice.
However, if 3D Secure helps secure payment, there are some reasons, notably economical, why merchants disable it. The loss in conversion and the lower checkout velocity are two of these reasons.
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