Reason code

Visa reason code 10.2 is used when a legitimate, non-counterfeit card is used fraudulently at a terminal that was not EMV chip-enabled. Even though the card is genuine, if the merchant's system failed to read the chip—or defaulted to magnetic stripe—the transaction is considered high-risk and the merchant may be liable under EMV liability shift rules.

This reason code typically applies to situations where fraud occurs in card-present environments and the merchant failed to use EMV-compliant equipment or procedures. Liability falls on the party using less secure technology.

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If EMV-compliant processes were followed or the transaction was not fraudulent, submit evidence to support your case:

• Provide terminal logs showing EMV chip interaction or legitimate fallback procedures
  
  
• Include signed receipts or customer verification data if available

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Prevent non-counterfeit fraud liability by fully utilizing EMV technology:

• Make sure all terminals are EMV-capable and staff are trained to avoid fallback unless necessary
  
  
• Monitor terminal activity and regularly update payment software for security compliance
  
  

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