What does Visa chargeback reason code 62, "Counterfeit Transaction" mean?
Visa chargeback reason code 62, "Counterfeit Transaction," is used when a cardholder claims that a transaction was made using a counterfeit card. This means the transaction was processed with a card that has been fraudulently altered or cloned.
Table of Contents
Causes of Code 62: Counterfeit Transaction
- Card Data Compromise: Sensitive cardholder information is stolen, often through skimming devices or data breaches.
- Skimming Devices: Devices placed on card readers capture card information during legitimate transactions.
- Data Breaches: Hackers gain unauthorized access to cardholder data from merchant databases or payment processors.
- Weak Security Measures: Insufficient security practices, such as not using EMV (chip) technology, can make it easier for fraudsters to counterfeit cards.
Prevention and Mitigation of Code 62: Counterfeit Transaction
- Upgrade to EMV (Chip) Technology: Ensure that your point-of-sale (POS) systems support EMV chip cards, as these are more secure than magnetic stripe cards.
- Implement Tokenization: Use tokenization to replace sensitive card information with a unique identifier (token) that cannot be used outside the specific transaction context.
- Use Encryption: Encrypt cardholder data during transmission and storage to protect it from unauthorized access.
- Regularly Update Software: Keep your payment systems and software updated with the latest security patches and updates.
- Monitor Transactions: Use advanced fraud detection and prevention tools to monitor transactions for suspicious activity.
- Educate Staff: Train your employees to recognize and respond to signs of card fraud, such as unusual customer behavior or tampered card readers.
- Secure POS Terminals: Regularly inspect POS terminals for signs of tampering and ensure they are in secure locations.
- Conduct Security Audits: Regularly audit your systems and processes to identify and address potential vulnerabilities.
How to Respond to a Chargeback
- Gather Evidence: Collect all transaction documentation, such as sales receipts, shipping confirmations, and any communication with the cardholder.
- Submit Compelling Evidence: Provide evidence to prove the legitimacy of the transaction, including any security measures taken during the transaction.
- Review Chargeback Trends: Analyze chargeback data to identify patterns and address underlying issues in your transaction processes.
- Enhance Customer Verification: Implement additional customer verification steps, such as requiring CVV codes or using 3D Secure authentication.
