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Visa Chargeback Reason Code 10.3: Other Fraud – Card-Present Environment/Condition

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

  1. Counterfeit Cards: Fraudsters use cloned cards with legitimate cardholder information.
  2. Lost or Stolen Cards: Transactions made using lost or stolen cards before the cardholder reports them.
  3. 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

  1. EMV Chip Technology: Ensure all POS terminals support EMV chip technology, which is more secure than magnetic stripe transactions.
  2. Verify Identification: Train staff to request and verify identification for higher-risk transactions.
  3. Use Fraud Detection Tools: Implement real-time fraud detection tools and monitoring systems to detect and prevent suspicious activities.
  4. Regular Terminal Checks: Regularly inspect POS terminals for signs of tampering or skimming devices.
  5. Employee Training: Educate employees on recognizing suspicious behavior and proper transaction processing procedures.

Mitigation

  1. Maintain Records: Keep thorough records of transactions, including signed receipts, identification checks, and security camera footage.
  2. Respond Promptly: If a chargeback is filed, gather all relevant documentation and respond promptly with compelling evidence to support the legitimacy of the transaction.
  3. Work with Issuers: Collaborate with the card issuer to provide additional information that may help resolve the dispute in your favor.
  4. Dispute Process: Be familiar with the chargeback dispute process and deadlines to ensure timely and effective responses.
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