Reason code

Visa reason code 10.3 is used when a cardholder reports unauthorized use of their card in a card-present transaction. This means the physical card was used at the merchant’s location, but the cardholder claims they did not authorize the charge. Unlike EMV liability shift cases, this reason code applies regardless of whether EMV technology was used.

Disputes under this reason code often occur when a card is stolen and used quickly before it’s reported, or when someone makes a purchase without the cardholder’s knowledge (e.g., a family member or friend). If the merchant can show cardholder verification was completed, they may be able to challenge the chargeback.

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If the transaction was valid and authorized, provide documentation confirming cardholder involvement:

• Submit signed receipts, EMV chip-read confirmation, or terminal logs showing the card was present and processed properly

• If applicable, include video footage or other verification supporting in-person authorization

Protect against fraud in card-present environments with strong authorization practices:

• Use EMV-enabled terminals and avoid manual entry or fallback unless necessary
  
  
• Train staff to verify cardholder identity and detect suspicious behavior

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