Visa chargeback reason code 10.3, “Other Fraud – Card-Present Environment/Condition,” applies to situations where a cardholder disputes a transaction, claiming it was unauthorized or fraudulent, despite the transaction occurring in a card-present environment. Here are the details:
Causes
- Counterfeit Cards: Fraudsters use cloned cards with legitimate cardholder information.
- Lost or Stolen Cards: Transactions made using lost or stolen cards before the cardholder reports them.
- Compromised Terminals: Skimming devices or other means of capturing card information at the point of sale (POS).
Time Frame for Resolution
- The chargeback must be filed within 120 calendar days from the transaction processing date.
- Merchant/Acquirer has 20 days to dispute the chargeback.
Prevention and Mitigation
Prevention
- EMV Chip Technology: Ensure all POS terminals support EMV chip technology, which is more secure than magnetic stripe transactions.
- Verify Identification: Train staff to request and verify identification for higher-risk transactions.
- Use Fraud Detection Tools: Implement real-time fraud detection tools and monitoring systems to detect and prevent suspicious activities.
- Regular Terminal Checks: Regularly inspect POS terminals for signs of tampering or skimming devices.
- Employee Training: Educate employees on recognizing suspicious behavior and proper transaction processing procedures.
Mitigation
- Maintain Records: Keep thorough records of transactions, including signed receipts, identification checks, and security camera footage.
- Respond Promptly: If a chargeback is filed, gather all relevant documentation and respond promptly with compelling evidence to support the legitimacy of the transaction.
- Work with Issuers: Collaborate with the card issuer to provide additional information that may help resolve the dispute in your favor.
- Dispute Process: Be familiar with the chargeback dispute process and deadlines to ensure timely and effective responses.
