UA02 – Fraud: Card Not Present Transaction
Why did I receive this chargeback?
You processed a mail order, telephone order, or internet order, and the cardholder claims he or she didn’t participate in the purchase.
How long can the issuer wait to file a chargeback?
The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.
However, the timeline may be extended if the issuer first submitted a retrieval request. If the retrieval request process finishes after the 120 day deadline, the issuer will have an additional 30 days to file a chargeback.
What compelling evidence is needed to respond?
Examples of compelling evidence that you may submit in response to a chargeback with this reason code include:
Proof you submitted the card security code with the authorization request and the issuer authorized the transaction, even if the code was a mismatch or the code wasn’t verified
Proof you used Address Verification Service to validate the cardholder’s identity or proof the service couldn’t be used for an international address
- A valid, legible document that explains the transaction, gives an overview of the goods or services purchased, and includes the authorization code
- Letters, emails, photographs, faxes, or other written communications exchanged with the cardholder
- Receipts, work orders, or other documents signed by the cardholder proving that the cardholder received the goods or services
- A site-to-store pick-up form signed by the cardholder or a copy of the cardholder’s identification
- Proof of delivery or other evidence that the goods or services were delivered according to the cardholder’s wishes
- Confirmation of registration to receive electronic delivery of goods or services
- Digital usage logs with information such as the cardholder’s email, IP address, date and time of download, description of goods downloaded, and other forms of evidence that prove the receipt of downloaded materials on or after the transaction date
- Proof that the chargeback is invalid because it doesn’t adhere to Discover’s requirements
- Proof you have already refunded the transaction and credited the cardholder’s account
How can I avoid this chargeback in the future?
- Always respond to retrieval requests on time and with the required information.
- Consider using fraud detection tools such as card security code (CID) and Address Verification Service (AVS).
- Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting an unauthorized transaction.
- Use a billing descriptor that is easily recognized by the cardholder.
- Always submit an authorization request, no matter the transaction amount.
- Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders.