Why it happens
- The terminal was not chip-enabled, so a copied stripe card went through.
- A chip card was swiped or keyed in after a chip read failed (fallback).
- Card details were skimmed and written onto a fake card.
Visa10.1Fraud
EMV Liability Shift Counterfeit Fraud
The cardholder says they did not make an in-person purchase, and the card used was a counterfeit copy of a chip card. The merchant is liable because the payment was read from the magnetic stripe or keyed in instead of the chip, usually on a terminal that could not read chips.
What to send to fight it
- Terminal records showing the transaction was read from the chip.
- Proof the terminal was chip-capable at the time of the sale.
- The authorization record showing how the card data was entered.
- Proof the cardholder already received a refund or a reversal for this charge.
How to prevent it
- Use chip-capable (EMV) terminals at every point of sale.
- Train staff not to swipe or key in a chip card unless the terminal requires it.
- Keep terminal software and certification up to date.
Summaries written by NoChurn from the networks’ public rules and processor documentation. Networks update their rules and deadlines depend on your processor: check its documentation before you respond.
Other Visa codes
- 10.2EMV Liability Shift Non-Counterfeit Fraud
- 10.3Other Fraud – Card-Present Environment
- 10.4Other Fraud – Card-Absent Environment
- 10.5Visa Monitoring Programs
- 11.2Declined Authorization
- 11.3No Authorization/Late Presentment
- 12.2Incorrect Transaction Code
- 12.3Incorrect Currency
- 12.4Incorrect Account Number
- 12.5Incorrect Amount
- 12.6.1Duplicate Processing
- 12.6.2Paid by Other Means
- 12.7Invalid Data
- 13.1Merchandise/Services Not Received
- 13.2Cancelled Recurring Transaction
- 13.3Not as Described or Defective Merchandise/Services
- 13.4Counterfeit Merchandise
- 13.5Misrepresentation
- 13.6Credit Not Processed
- 13.7Cancelled Merchandise/Services
- 13.8Original Credit Transaction Not Accepted
- 13.9Non-Receipt of Cash or Load Transaction Value
Sources (3)
- Visa Core Rules and Visa Product and Service Rules (24 October 2026) · checked 2026-11-09
- Visa Dispute Management Guide for Merchants · checked 2026-11-09
- Visa, Evolution of Compelling Evidence: FAQs (October 2022) · checked 2026-11-09
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