Visa Chargeback Reason Code 62: Counterfeit Transaction

The bank received a written complaint from the customer claiming he did not authorize or participate in the transaction. In other words, the transaction was made with a forged credit card.

Buyer refused any participation or authorization in such transaction and claims his card is misused without his permission.

Most Common Causes

When the Merchant:

• Failed to compare the first four digits of the account number on the front of the card with the digits printed below or above the account number.
• Did not record the digits printed below or above the card on transaction receipt.
• Accepted a chip card, but processed the payment as a retreat transaction, via swipe, key-entry, or did not follow exercisable acceptance mechanics, or paper voucher.
• Received an authority approval without transmitting all expected data.

Evidence Required

• If the transaction was false , accept the chargebacks.
• If the card was swiped and transaction authorized at the point of sell out, provide your acquirer with a copy of the printed sales acknowledgment.
• Cardholder later denies authorization or participation in the Transaction.
• This chargeback may be reversed by providing an imprinted or swiped sales draft signed by the cardholder along with any other information connected to this transaction or proof that a credit came out.

Prevention

• Avoid fallback processing Choice (key-entered transactions, signature and provided card PIN)
• Check for other pointers on the card,Verify that the first four decorate numbers match the printed numbers on the visa card.
• If you key-enter a transaction because the magnetic strip cannot be read, be sure to get an imprint of the front of the card either on a manual sales receipt or sales receipt form, which should be undersigned by the customer.
• If you are suspected of a card or cardholder for any cause, inform your acquirer using the code for suspect or cheat.
• When a cardholder claims to have not authorized certain transactions. To prevent this type of fraud, the merchant should analysis all credit card securities before allowing the transaction to go through.

Common Examples

Linda went shopping with her friends on a long weekend holiday. The next day she checks her account to see how much she spent, but is left startled to see an unknown charge on her account. She contacts the merchant, but the merchant couldn’t help her remember the charge on which she thinks that her card has been forged and therefore files for a chargeback under the Reason Code 62: Counterfeit Transaction.