10.1 - EMV Liability Shift Counterfeit Fraud
Why did I receive this dispute?
The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.
How long can the issuer wait to file a dispute?
The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 120 calendar days.
What compelling evidence is needed to respond?
- If you processed the transaction by reading the chip, provide documentation that proves the card wasn’t counterfeit.
- If the data collected during authorization indicates the card didn’t have a chip, provide documentation that proves the card wasn’t EMV-compliant.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
How can I avoid this dispute in the future?
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Create an electronic or manual imprint for every card-present transaction.