Visa Chargeback Reason Code 10.4: Other Fraud – Card-Absent Environment

What is Reason Code 10.4: Other Fraud – Card-Absent Environment?

Visa chargeback reason code 10.4 is for when someone disputes a transaction as fraud, and the cardholder wasn’t there in person. This usually happens with online, phone, or mail-order purchases.

Why Does Reason Code 10.4 Happen?

1. Stolen Card Info: Someone steals the cardholder’s information and uses it without them knowing.
2. Data Breaches: Hackers get access to card info from a merchant’s database.
3. Phishing Scams: Cardholders accidentally give their info to scammers through fake websites or emails.
4. Weak Security: The transaction process doesn’t have strong security checks.

How long does reason code 10.4 take to resolve?

• Cardholder Dispute: The cardholder has 120 days from the transaction date to file a dispute.
• Issuer Investigation: The card issuer investigates and may start a chargeback.
• Merchant Response: The merchant usually has about 30 days to respond with evidence.
• Final Decision: The card issuer decides based on the evidence.

How to prevent and deal with code 10.4: Other Fraud – Card-Absent Environment?

1. Better Authentication:
   • Use strong customer authentication (like 3D Secure 2.0).
   • Implement multi-factor authentication (MFA) to verify the cardholder’s identity.
2. Tokenization:
   • Replace card details with a token during transactions to reduce breach risks.
3. Fraud Detection Tools:
   • Use tools that spot and flag suspicious activities.
   • Implement machine learning to improve fraud detection.
4. Address Verification Service (AVS):
   • Match the billing address given by the cardholder with the one on file.
5. Card Security Code (CVV):
   • Always require the CVV for card-not-present transactions.
6. Regular Monitoring and Audits:
   • Regularly audit and monitor transactions for vulnerabilities.
   • Keep security systems and software up to date.
7. Customer Education:
   • Teach customers about safe online shopping and how to spot phishing scams.
8. Chargeback Representment:
   • Be ready to respond to chargebacks with strong evidence, like proof of delivery and customer communication.