With this change, qualifying Google Pay Visa transactions done with a device token will benefit from this liability shift.
Overview
Google Pay has announced the general availability of liability shift for eligible Visa device token transactions globally. This means that for qualifying transactions, the responsibility for fraudulent losses shifts from merchants to issuing banks, enhancing security for both parties.
What You'll Learn
1
How to identify if a Google Pay transaction qualifies for liability shift
2
Why liability shift is beneficial for merchants using Google Pay
3
How to enroll in liability shift for Google Pay transactions
Prerequisites & Requirements
- Understanding of payment processing and device tokens
- Access to Google Pay & Wallet console(optional)
Key Questions Answered
What is liability shift in Google Pay transactions?
Liability shift refers to the transfer of responsibility for losses from fraudulent transactions from the merchant to the issuing bank. This is applicable to eligible Google Pay Visa transactions using device tokens, enhancing security for merchants.
How can merchants check if their transactions qualify for liability shift?
Merchants can check if their Visa transactions qualify for liability shift by looking for an eciIndicator value of 05 in the payment method token. This value indicates that the liability has shifted to the issuing bank.
What are the requirements for a Google Pay transaction to qualify for liability shift?
To qualify for liability shift, Google Pay transactions must include specific API parameters such as totalPrice and totalPriceStatus. Additionally, the transaction must not have a totalPrice of 0 or use hard-coded amounts.
What types of merchants are ineligible for liability shift in the US?
Certain Merchant Category Codes (MCC) in the US are excluded from liability shift eligibility. Merchants should verify their MCC to determine if they qualify for this benefit.
Technologies & Tools
Payment Processing
Google Pay
Used for facilitating secure transactions and enabling liability shift for eligible Visa device tokens.
Key Actionable Insights
1Merchants should ensure they are using the correct eciIndicator value to benefit from liability shift.By confirming that their transactions carry an eciIndicator value of 05, merchants can effectively transfer liability for fraudulent transactions to the issuing bank, reducing their financial risk.
2Enroll in the Google Pay liability shift program to enhance transaction security.Merchants can opt-in through the Google Pay & Wallet console, which is essential for those who want to take advantage of the liability shift benefits, especially in regions outside Europe.
3Regularly check transaction reports provided by Payment Service Providers (PSPs) for liability shift eligibility.This practice helps merchants stay informed about their transaction statuses and ensures they are maximizing their security measures against fraud.
Common Pitfalls
1
Failing to include required API parameters can lead to ineligibility for liability shift.
Merchants must ensure that parameters like totalPrice and totalPriceStatus are included in their transaction requests. Omitting these can result in declined liability shift benefits.
2
Using hard-coded totalPrice values can disqualify transactions from liability shift.
Transactions that have a totalPrice of 0 or a fixed amount, regardless of the actual charge, will not qualify for liability shift, leading to potential financial losses for merchants.
Related Concepts
Payment Processing
Device Tokens
Fraud Prevention
Merchant Category Codes