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What Is The Discover Chargeback Reason Code UA02 – Fraud: Card Not Present Transaction?
Discover chargeback reason code UA02 – Fraud: Card Not Present Transaction is used when a cardholder disputes a transaction because they believe their card was used fraudulently in a remote setting, like online or over the phone. This typically happens when someone steals the card details and makes unauthorized purchases. If you're a merchant facing this chargeback, you'll need to review the transaction, gather proof like order confirmations and delivery info, and submit this evidence to Discover. The whole process usually takes about 60 to 90 days to resolve, ensuring a fair review of the situation.
Common Causes Of Discovers' UA02 – Fraud: Card Not Present Transaction
Stolen Card Information: The cardholder’s details might have been stolen through phishing, data breaches, or other means and then used for unauthorized purchases online or over the phone.
Unauthorized Transactions: Someone other than the cardholder might have used the card details without permission, leading to disputed charges.
Example Scenario of UA02 – Fraud: Card Not Present Transaction
Imagine you run an online electronics store, and a customer places a large order using their credit card. Later, the cardholder disputes the charge, claiming they never made the purchase. Discover initiates a chargeback under reason code UA02 – Fraud: Card Not Present Transaction.
To handle this, you would review the transaction details, gather order confirmation emails, shipping information, and any fraud prevention measures you took (like requiring a CVV code or using an address verification system). Submit this evidence to Discover to show the transaction was legitimate.
Resolution Time Frame for Discover Chargeback Reason Code UA02 – Fraud: Card Not Present Transaction
The resolution time frame for Discover chargeback code UA02 – Fraud: Card Not Present Transaction generally follows a structured process. Here’s an outline of the typical timeline:
Chargeback Filing: When a cardholder disputes a transaction due to suspected fraud in a card-not-present environment, Discover 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. Discover generally allows merchants up to 30 days to gather and submit evidence to support their case. This evidence might include order confirmations, email correspondences, delivery tracking information, and any fraud prevention measures taken during the transaction.
Review and Decision: After the merchant submits their evidence, Discover reviews the information provided. This review period typically takes around 30-45 days. During this time, Discover 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 60 to 90 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 of fraud, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code UA02 – Fraud: Card Not Present Transaction
To minimize these disputes, consider these proactive measures:
Use Secure Payment Gateways: Ensure that your payment processing systems are secure and compliant with industry standards.
Fraud Detection Tools: Utilize fraud detection tools that can help identify suspicious transactions before they are processed.
Customer Verification: Implement additional verification steps for high-risk transactions, such as contacting the customer directly or requiring additional authentication.
How to Fix Chargeback Reason Code UA02 – Fraud: Card Not Present Transaction
If you receive a chargeback under code UA02, here’s what you should do:
Review Transaction Details: Look into the specifics of the disputed transaction, including the date, time, IP address, and shipping address if applicable. Check for any red flags that might indicate fraud.
Gather Documentation: Collect all relevant documents that can help prove the legitimacy of the transaction. This might include order confirmations, email correspondences, delivery tracking information, and any fraud prevention measures taken during the transaction (like CVV verification or 3D Secure).
Submit Evidence: Provide this evidence to Discover promptly. Clearly explain the situation and provide documentation showing that the transaction was legitimate and authorized by the cardholder.
Strengthen Fraud Prevention: Review and enhance your fraud prevention measures. This includes using advanced fraud detection tools, verifying customer details, and implementing security features like two-factor authentication.
