Fraud
7010 Fraud-Card Present Transaction
Details
This code is used when a cardholder disputes a transaction, asserting that they did not authorize or participate in a card-present transaction. This typically indicates that the physical card was used fraudulently in a face-to-face environment.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
To address a chargeback under reason code 7010:
-
Provide Proof of Authorization: Submit a copy of the transaction receipt, ideally with the cardholder's signature, demonstrating that the transaction was authorized.
-
Surveillance Evidence: If available, provide video footage from the point of sale showing the cardholder present during the transaction.
-
EMV Data: If the transaction was processed using chip technology, include evidence that the EMV chip was read and the transaction was approved.
How to prevent?
To minimize the occurrence of chargebacks under reason code 7010:
-
Implement EMV Compliance: Ensure all point-of-sale terminals are EMV-compliant and encourage customers to use chip transactions over magnetic stripe swipes.
-
Verify Cardholder Identity: Request identification for high-value transactions to confirm the cardholder's identity.
-
Maintain Transaction Records: Keep detailed records of all transactions, including signed receipts and any additional verification steps taken.
-
Monitor for Suspicious Activity: Train staff to recognize and respond to potentially fraudulent behaviors during transactions.