What is successful liability shift for enrolled card is required?

A successful liability shift for an enrolled card means that in the event of fraudulent transactions on the card, the liability for losses shifts from the issuer (bank) to the merchant. This shift occurs when the merchant has adopted new payment technologies that comply with the EMV (Europay, Mastercard, and Visa) standard.

EMV technology is designed to make it harder for fraudsters to counterfeit cards and use them for unauthorized transactions. Gradually, many countries are transitioning to EMV technology, both for credit and debit cards. When an issuer provides an EMV-enabled card, they will also provide a token that will benefit the cardholders. Merely entering a token instead of account details will make card transactions more secure.

Generally, the liability for any fraudulent transaction falls on the issuer or bank that they can verify as fraudulent if the merchant or acquiring bank has not adopted EMV technology. But, if they have switched to EMV, the merchant or acquiring bank will be held accountable for the fraudulent transaction. Changing the liability for fraud from the issuer to the merchant or acquiring bank is known as a "Liability Shift."