Due to the fact that all Masterpass payments are authenticated with either a Bank Card PIN (AMT) or a One Time PIN (3D Secure), that means that all Masterpass payments offer non-repudiation and liability shifts towards the Issuing Bank. 

This means that the merchant is not liable for fraud on Masterpass transactions.

The only time a dispute may be honored on a Masterpass transaction is for two chargeback reason codes:

  1. Goods not received

  2. Goods not as described