10.1 - EMV Liability Shift Counterfeit Fraud


Dispute Code

10.1

Category

Fraud

Workflow

Allocation

DESCRIPTION

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.


TIME LIMIT

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.


FIGHT

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.

PREVENT

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.

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