10.2 - EMV Liability Shift Non-Counterfeit Fraud
Why did I receive this dispute?
The cardholder has a PIN-preferring chip card, but you didn’t use a chip-reading device to process the transaction or used a chip-reading device that wasn’t PIN compliant. 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 with a PIN-compliant chip-reading device, provide documentation that proves the transaction was processed correctly.
- 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.