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For fraud disputes, Decisionly retrieves authorization data from the card network after you file a case to determine if chargeback rights exist. For background on how authentication methods affect liability, see What Are Disputes?.

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How Fraud Liability Works

When you file a fraud case, Decisionly automatically checks authorization data in the background. If any of the conditions below are detected, the case cannot be filed because the card network will deny the chargeback.

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Fraud Liability Checks

Decisionly checks network authorization data for the conditions below. The exact set of checks depends on the card network.

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Mastercard

  • 3D Secure Authenticated — Merchant attempted or completed 3DS authentication.
  • Tokenized Transaction — Transaction used a network token (e.g. via a mobile wallet).
  • Face-to-Face Card Read — Card was physically read at an attended terminal (magnetic stripe, chip, or contactless).
  • EMV Liability Shift — Chip card was not read properly at a chip-capable terminal for a lost, stolen, or not-received card.
  • ATM Transaction — Transaction occurred at an ATM.
  • PIN Verified — Cardholder entered a PIN that was verified by the issuer.
  • CAT Level 1 — Cat Level 1 transaction.
  • CAT Level 3 — Cat Level 3 transaction.
  • Automated Fuel Dispenser — Purchase at a chip enabled unattended fuel pump.
  • Consumer Presented QR Code — Cardholder presented a QR code to the merchant.
  • CVV Check Failed — CVV was checked and failed on a mail order, phone order, or e-commerce transaction.
  • Cash Back Transaction — Purchase included cash back at the point of sale.
  • 35 Fraud Chargebacks — Card already has 35 or more fraud chargebacks filed against it.

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Visa

  • 3D Secure Authenticated — Merchant attempted or completed 3DS authentication.
  • Card-Present Chip Read — Chip card was successfully read at the terminal.
  • Contactless Transaction — Card was tapped or a mobile wallet was used at a contactless terminal.
  • Tokenized Transaction — Transaction used a network token (e.g. via a mobile wallet).
  • VEPS Transaction — Small-value (USD $25 or less) card-present chip or contactless purchase with no cardholder verification.
  • Automated Fuel Dispenser — Purchase at a chip enabled unattended fuel pump.
  • Consumer Presented QR Code — Cardholder presented a QR code to the merchant.
  • ATM Transaction — Transaction occurred at an ATM.
  • PIN Verified — Cardholder entered a PIN that was verified by the issuer.
  • CVV Check Failed (Card-Present) — CVV was checked and failed on a card-present transaction.
  • CVV Check Failed (MOTO/E-commerce) — CVV was checked and failed on a mail order, phone order, or e-commerce transaction.
  • AVS Unavailable (MOTO/E-commerce) — AVS result was not returned on a mail order, phone order, or e-commerce transaction.
  • 35 Fraud Chargebacks — Card already has 35 or more fraud chargebacks filed within the last 120 days.

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American Express

  • 3D Secure Authenticated — Merchant attempted or completed 3DS authentication.
  • Chip Liability Shift — Chip card was not read at a chip-capable terminal for a lost, stolen, or not-received card.
  • Card-Present Transaction — Card was physically presented at the point of sale.
  • Tokenized Transaction — Transaction used a network token (e.g. via a mobile wallet).
  • Prior Fraud Chargebacks — Cardholder already has 2 or more prior fraud chargebacks filed before this transaction.
When any of these conditions are present, liability for the fraud shifts from the merchant to the issuer. This doesn’t mean the cardholder’s fraud claim is invalid - it means you cannot hold the merchant liable for the transaction. The issuer may still need to reimburse the cardholder, but cannot recover funds from the merchant via chargeback.

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Workflow Rules

You can configure workflow rules to control how fraud cases are handled based on the liability result. The workflow rule to set up is Issuer has Liability. This rule determines whether the issuer is liable for the fraud based on network data. You could use this rule to accept liability or flag for review when the issuer is liable.