F31 – EMV Lost/Stolen/Non-Received
Why did I receive this chargeback?
You processed a transaction but the cardholder denies participating in it because the card was lost, stolen, or never received. The fraud wasn’t detected because either the POS was not chip-and-PIN enabled or the transaction was manually keyed.
Note: This reason code should not be used for contactless transactions, digital wallet payments, or charges that qualify for the “No PIN” program.
What compelling evidence is needed to respond?
Your chargeback response must include at least one of the following items:
- If the purchase was a card-not-present transaction, provide proof the dispute is invalid.
- If your POS processed the chip card correctly, provide proof that the transaction was validated with a PIN.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
How can I avoid this chargeback in the future?
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Make sure you differentiate between card-not-present and card-present transactions during clearing by noting internet, phone, or mail orders.