Fraud
10.2 EMV Liability Shift – Non-Counterfeit Fraud
Details
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.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
If EMV-compliant processes were followed or the transaction was not fraudulent, submit evidence to support your case:
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Provide terminal logs showing EMV chip interaction or legitimate fallback procedures
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Include signed receipts or customer verification data if available
How to prevent?
Prevent non-counterfeit fraud liability by fully utilizing EMV technology:
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Make sure all terminals are EMV-capable and staff are trained to avoid fallback unless necessary
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Monitor terminal activity and regularly update payment software for security compliance