Table of Contents
What Is The American Express Chargeback Reason Code F31 – EMV Lost / Stolen / Non-Received?
American Express chargeback reason code F31 – EMV Lost / Stolen / Non-Received is used when a cardholder disputes a charge because their EMV chip card was lost, stolen, or never received, leading to unauthorized transactions. If you're a merchant dealing with this chargeback, you'll need to review your records, gather proof of the transaction details, and submit this evidence to American Express. The resolution process usually takes about 40 to 60 days, ensuring a thorough and fair review of the situation.
Common Causes Of American Express' F31 – EMV Lost / Stolen / Non-Received
Lost Cards: The cardholder may have lost their card, and someone else found and used it to make unauthorized purchases.
Stolen Cards: The card was stolen from the cardholder and used fraudulently.
Non-Received Cards: The cardholder never received the card, possibly because it was intercepted in the mail and used by someone else.
Example Scenario of F31 – EMV Lost / Stolen / Non-Received
Imagine you run a high-end electronics store, and a cardholder disputes a charge for an expensive gadget, claiming their EMV card was stolen and they did not authorize the purchase. This leads to a chargeback under reason code F31 – EMV Lost / Stolen / Non-Received.
To handle this, you would review your transaction records, gather evidence such as transaction logs and any security measures used during the transaction, and submit this evidence to American Express. If the transaction was found to be unauthorized, you might need to issue a refund to resolve the dispute.
Resolution Time Frame for American Express Chargeback Reason Code F31 – EMV Lost / Stolen / Non-Received
The resolution time frame for American Express chargeback code F31 – EMV Lost / Stolen / Non-Received typically follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction because their EMV card was lost, stolen, or not received, American Express initiates the chargeback process. This usually happens shortly after the cardholder reports the issue.
Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. American Express generally allows merchants up to 20 days to gather and submit evidence to support their case. This evidence might include transaction logs, sales receipts, delivery confirmation, and any communication with the cardholder.
Review and Decision: After the merchant submits their evidence, American Express reviews the information provided. This review period typically takes around 20-30 days. During this time, American Express assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.
Final Resolution: The entire process, from the initial dispute to the final decision, can take anywhere from 40 to 60 days. If the merchant’s evidence shows that the transaction was legitimate and authorized, the chargeback may be reversed. If the evidence supports the cardholder’s claim that the transaction was made using a lost, stolen, or non-received card, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code F31 – EMV Lost / Stolen / Non-Received
To minimize these disputes, consider these proactive measures:
Enhanced Security Measures: Implement security measures such as requiring CVV codes, using address verification systems (AVS), and implementing 3D Secure for online transactions.
Monitor Transactions: Use transaction monitoring tools to detect and prevent suspicious activities.
Card Delivery Confirmation: Ensure that new cards are delivered securely and require confirmation of receipt from the cardholder.
How to Fix Chargeback Reason Code F31 – EMV Lost / Stolen / Non-Received
If you receive a chargeback under code F31, here’s what you should do:
Review Transaction Details: Verify the details of the disputed transaction, including the method of authorization and any security measures used.
Gather Documentation: Collect all relevant documents that support your case. This might include transaction logs, sales receipts, delivery confirmation, and any communication with the cardholder.
Submit Evidence: Provide this evidence to American Express promptly. Clearly explain the situation and provide documentation showing that the transaction was processed correctly.
Address the Issue: If the transaction was indeed unauthorized, acknowledge the issue and, if necessary, process a refund for the cardholder to resolve the dispute.
