Reason code

Visa reason code 10.1 applies when a counterfeit card is used at a merchant location that is not EMV chip-enabled. Due to the EMV liability shift, if a magnetic stripe card is swiped instead of read via chip—and the card is later found to be counterfeit—the merchant may be held financially responsible for the transaction.

This dispute type typically involves in-person purchases where chip card functionality was available but not used. Merchants with outdated or non-compliant point-of-sale systems are at higher risk for these chargebacks.

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If the transaction was not counterfeit or the terminal was EMV-compliant, provide supporting evidence:

• Submit terminal logs showing the chip was read or an approved fallback was used
  
  
• Include signed receipts or video footage, if available, confirming the cardholder’s presence
  
  

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Avoid liability by upgrading and properly using EMV-compliant equipment:

• Ensure all POS devices support chip transactions and are regularly tested
  
  
• Train staff to recognize chip cards and follow proper EMV processing procedures
  
  

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