EMV Liability Shift Counterfeit Fraud, Condition 10.1

Your card processor has notified you that a cardholder is disputing a transaction that you processed.

A cardholder is claiming that they did not authorize or participate in a transaction that you processed.  The cardholder’s bank determined all of the following things occurred:

  • The transaction was completed with a counterfeit card in a card-present environment,
  • The card is a chip card, and
  • Either of these things occurred:
    • The transaction did not take place at a chip-reading device.
    • The transaction was chip-initiated and, if the transaction was authorized online, your card processor did not transmit the full chip data to Visa in the authorization request.

The cardholder has a chip card, but the transaction did not take place at a chip terminal or was not chip read.

The transaction took place at a chip terminal

Provide documentation to support that the transaction was chip read and evidence that the full chip data was transmitted.

You agree the transaction did not take place at a chip terminal.

Accept the dispute.

You have already processed a credit or reversal for the transaction.

Provide documentation of the credit or reversal; include the amount and the date it was processed. 

The cardholder no longer disputes the transaction.

Provide a letter or email from the cardholder stating that they no longer dispute the transaction. 

How to avoid this dispute in the future

  • Make sure your terminal is EMV-compliant and the correct Cardholder Verification Method (CVM) was obtained. For example: signature, PIN, etc.
  • Obtain an imprint (either electronic or manual) for every card present transaction.
  • Train your staff on the proper procedures for handling terminal issues

For more information, please see Dispute Management Guidelines for Visa Merchants.

Acquirer’s approach or timelines may be different and you should adhere with your current Acquirer’s process. Not all disputes apply to every country/region, please check with your acquirer for further information.