In Radar's 3D Secure rules, whose liability is shifted when authentication occurs?

In Radar's 3D Secure rules, whose liability is shifted when authentication occurs?

• A. Merchant
• B. Card network
• C. Customer
• D. Issuer

Answer: (D)

When 3D Secure authentication happens, the risk of fraudulent charges shifts to the card issuer. The authentication step proves the cardholder’s identity, so the card-issuing bank bears liability for fraud on that transaction, not the merchant. This is why completing 3DS often protects the merchant from fraud-related chargebacks and aligns with how SCA and card-network rules allocate risk. If authentication isn’t performed or fails, the liability may stay with the party that didn’t meet the requirement.

When 3D Secure authentication happens, the risk of fraudulent charges shifts to the card issuer. The authentication step proves the cardholder’s identity, so the card-issuing bank bears liability for fraud on that transaction, not the merchant. This is why completing 3DS often protects the merchant from fraud-related chargebacks and aligns with how SCA and card-network rules allocate risk. If authentication isn’t performed or fails, the liability may stay with the party that didn’t meet the requirement.