Visa Chargeback Reason Code 81 - Fraudulent Transaction – Card Present Environment

The bank received an order receipt where an important information is missing, which indicates a fraud. A situation where either order receipt does not contain cardholder’s signature or clear print of the face of the credit card. Situation where cardholder neither permits to charge nor participates in the transaction.

Most Common Causes

• The merchant did not swipe the card by a magnetic-stripe reader neither inserted the card into a chip terminal.
• The merchant did not take a manual print of the account information on face of the card on order receipt for a key-entered transaction.
• The merchant processed the transaction without the approval of both PIN and/or cardholder’s signature.
• Completed a card-present transaction without obtaining the cardholder’s name and signature on the order receipt.

Evidence Required

• For a card present transaction and one or more key entered a transaction,provide valid imprint and cardholder’s signature or PIN. Provide evidence that all transactions happened during the same stay, period or trip.
• If the account information was taken from the card’s magnetic strip,, the merchant should send authorization record to the issuer as proof that the card’s magnetic strip was read. Also, provide a copy of the order receipt with cardholder’s signature.
• If the account number did not match the magnetic strip or obtained manually, accept the chargeback.
• If the account number was manually printed on the order receipt, provide a copy of the it with cardholder’s signature in order to reverse the chargeback.
• If the cardholder’s signature is not there on order receipt for a card-present transaction, accept the chargeback.

Prevention:

• The transaction should meet the criteria for Card Verification Value 2 (CVV2) as an Imprint.
• The field sales staff should have manual imprinters or electronic terminals that can read the card’s magnetic strip, if merchandise is sent or services delivered to the customer’s place.
• If the merchant is receiving a huge volume of chargebacks of this Reason Code, there is a potential of ongoing fraud. Merchant must checkpoint of sale terminals and the staff’s involvement in such activities.
• The merchant should always keep records of the credit card account information on the order receipt by swiping the card through terminal to get the account information from the magnetic strip.
• If the merchant uses a manual printer, make sure the information on the face of the credit card is matched with other transaction information to prove the card was present at the time of order. Get more information visit website – www.chargebackexpertz.com