What happens to fraud liability shift under Visa Fraud Monitoring Program 3DS?

What happens to fraud liability shift under Visa Fraud Monitoring Program 3DS?

• A. Fraud liability shift on domestic 3DS transactions is lost until the merchant fully exits the program.
• B. Fraud liability shift is unaffected.
• C. Fraud liability shifts to the merchant only outside 3DS transactions.
• D. Fraud liability shift becomes permanent after the program.

Answer: (A)

The main idea here is how Visa’s Fraud Monitoring Program (VFMP) changes who bears the cost when fraud happens on 3D Secure transactions. When a merchant is enrolled in VFMP, the usual liability shift that would normally let the card issuer absorb fraud losses on domestic 3DS transactions is paused. In practical terms, while the merchant remains in the program, fraud on domestic 3DS-authenticated transactions isn’t shifted away from the merchant to the issuer; the merchant bears the liability instead. This state isn’t permanent—once the merchant fully exits the VFMP, the standard liability-shift rules resume for future transactions.

The main idea here is how Visa’s Fraud Monitoring Program (VFMP) changes who bears the cost when fraud happens on 3D Secure transactions. When a merchant is enrolled in VFMP, the usual liability shift that would normally let the card issuer absorb fraud losses on domestic 3DS transactions is paused. In practical terms, while the merchant remains in the program, fraud on domestic 3DS-authenticated transactions isn’t shifted away from the merchant to the issuer; the merchant bears the liability instead. This state isn’t permanent—once the merchant fully exits the VFMP, the standard liability-shift rules resume for future transactions.