What Does Visa Chargeback Reason Code 81 Mean?
Visa chargeback reason code 81, called “Fraud – Card-Present Environment,” shows up when a cardholder claims their card was used fraudulently at your store. This means the card was supposedly present during the transaction, but the cardholder says they didn’t authorize it. Here’s why this happens and how you can prevent it:
Why Code 81: Fraud – Card-Present Environment Happens
- Stolen or Fake Card: The card used was stolen or a fake.
- Merchant Mistakes: You didn’t follow proper procedures when processing the card.
- Cloned Card: Someone cloned the card’s magnetic stripe or chip.
How to Prevent or Mitigate Code 81: Fraud – Card-Present Environment
- Use EMV Chip Technology: Make sure your payment terminals can read chip cards, which are more secure.
- Train Your Staff: Teach your staff how to spot and handle fraudulent transactions, check IDs, and verify card security features.
- Secure Your POS System: Keep your point-of-sale systems up to date to protect against fraud.
- Check Card Features: Always verify card security features like holograms, signatures, and CVV codes.
- Monitor Transactions: Use advanced systems to monitor and flag suspicious activities.
- Require Signature or PIN: When possible, ask for both a signature and a PIN to add an extra layer of security.
- Encourage Vigilance: Encourage employees to be alert and report anything suspicious.
How to Handle Chargebacks
- Keep Good Records: Save all transaction records, receipts, signed slips, and security checks.
- Respond Quickly: If you get a chargeback, gather all relevant documents and respond promptly to dispute the claim.
- Communicate with Customers: Sometimes, a direct conversation with the customer can resolve misunderstandings and prevent chargebacks.
- Use Chargeback Alerts: Sign up for services that notify you of potential chargebacks so you can address issues early.
