Reason Code 10.4 - Other Fraud, Card-Absent Environment
Why did I receive this dispute?
The cardholder claims a card-not-present transaction 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 requested CVV2 during the checkout process but received a response that the issuer doesn’t participate in CVV2, provide documentation with the authorization response codes.
- If the cardholder was authenticated with Visa Secure (formerly Verified by Visa) and you requested the CVV2 during checkout, provide documentation that proves the cardholder’s identity was verified.
- If you received a CVV2 code that indicated the shopper’s response didn’t match what the issuer had on file but the issuer still approved the transaction, provide documentation that proves authorization was granted.
- If the issuer doesn’t participate in Address Verification Service (AVS), provide documentation that proves you attempted to validate information provided during checkout.
- If the transaction includes a card-present transaction and a subsequent key-entered transaction, provide documentation that proves all transactions took place during the same stay, trip, or rental period and a valid imprint for the first card-present transaction.
- 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.
If you can otherwise dispute the cardholder’s claim, include documents that support your argument:
- A signed order form for mail or phone orders.
- Documents that prove the IP address, email address, physical address, and telephone number had been used in a previous, undisputed purchase
- Documents that prove the cardholder previously made one or more undisputed purchases of the same merchandise or services
- Documents that prove the same device and card associated with the dispute were used in a previous, undisputed purchase
- Documents that prove the purchase was made by a member of the cardholder’s household or family
- Photographs or emails that prove a link between the person receiving the merchandise or services and the cardholder
- Photographs or emails that prove the cardholder is in possession of the merchandise or using the services
- Cardholder signature on a pick-up form or photocopy of the cardholder’s ID to prove the cardholder collected merchandise at the merchant’s location after a card-absent transaction
- Documents that prove delivery and time of delivery for items sent to the same physical address that yielded a Y or M match with AVS (signature confirmation is not required)
- Proof the shopper’s profile had been accessed and successfully verified by the merchant before the purchase was made.
- Documents that prove the cardholder accessed the merchant’s website on or after the transaction date
- Documents that prove the cardholder was working for the company at the address where merchandise was delivered at the time of the delivery
Check compelling evidence options for specific types of goods or services:
- Documents that record pertinent information for recurring transactions including all of the following:
- A legally-binding contract between the cardholder and merchant
- Proof the cardholder has used the merchandise or service
- Proof of a previously non-disputed purchase
- Documents that record pertinent information about the sale of digital goods, including a written description of the merchandise or services downloaded and the date and time of download. Documentation must also include two or more of the following:
- Shopper’s IP address and the device’s geographical location at the date and time of purchase
- Device identification number and name of device if available
- Shopper’s name and email address
- Documents that record pertinent information about a transaction for passenger transportation including proof the service was provided. Documentation must also include one or more of the following:
- Proof the ticket was received at the cardholder’s billing address,
- Proof the ticket or boarding pass was scanned at the gate
- Proof that frequent flyer miles were earned or redeemed as part of the transaction
- Proof the cardholder made additional purchases tied to the original transaction, such as seat upgrades, extra baggage, on-board purchases, etc.
- Documents that record pertinent information about a T&E transaction including proof the service was provided. Documentation must also include one or more of the following:
- Proof that loyalty program rewards were earned or redeemed as part of the transaction
- Proof the cardholder made additional purchases tied to the original transaction (such as service upgrades) and didn’t dispute them
- Documents that prove the initial purchase made to create a wallet included Visa Secure (formerly Verified by Visa) but subsequent transactions from the wallet that did not include Visa Secure contained all the other wallet-related transaction data
- Documents that list the name provided on the purchased itinerary on the flight manifest for a departed flight
How can I avoid this dispute in the future?
- Consider using all the tools available to you—including Visa Secure, card security code (CVV2), 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 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.