Visa ecommerce transactions authenticated with Apple Pay tokens may benefit from liability shift

From October 14, 2022, Visa reclassified cardholder-initiated Apple Pay Credential On File token transactions. Due to low levels of fraud that have previously been seen on these transactions, they may now be processed as ECI 05 and benefit from upgraded liability shift if:

• The cardholder and merchant are in the AP, CEMEA, Europe and LAC regions
• The Token Authentication Verification Value (TAVV) is included in the
  authorization request from the acquirer and successfully validated by the Visa
  Token Service (VTS)
• It is a Cardholder-Initiated Transaction (CIT) using token type 01 - COF
• The token provider is Apple Inc (the ecommerce transaction has been made via Apple Pay)

However, this does not guarantee that liability shift will be applied. In some cases, liability shift may not occur where:

• The card`s issuer Access Control Server downgrades an authentication result, based on risk data
• The scheme downgrades the authentication result if data validation fails due to invalid authentication processing, scheme internal rules or issuer decision
• Additionally, if low fraud rates are not maintained, Visa will engage the Token Requestor-Token Service Provider with a response that can suspend its ECI 05 classification, allowing issuers to dispute the transactions in question

Checkout.com has updated our platform to apply the ECI upgrade and associated liability shift for Apple Pay transactions in these regions and this is already active.

Please see our Docs for more information on ECIs and when liability shift applies

Our docs on how to submit network tokens are also available here