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Discover Reason Code UA05 Fraud/Chip Counterfeit Transaction

Disputeโ€‹

Discover

Card Issuer Name

UA05

Reason Code

Fraud

Category

Claim

The cardholder claims their chip card was counterfeited, and the merchant processed a transaction with the counterfeit card on a non-EMV-compliant POS terminal that couldnโ€™t detect the fraud. As a result, they claim the transaction was unauthorized.

Cause

  • The merchantโ€™s card processor unit didnโ€™t send complete chip data.
  • The merchant didnโ€™t use a chip-reading terminal.

Response

Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 30 days to respond to the claim in dispute.

Steps to Prevention

  • Upgrade to EMV-compliant terminals.
  • Always get approval for every transaction.
  • Respond to all retrieval requests with relevant information and on time.
  • Employ correct CVM (cardholder verification methods) like PIN and signatures.
  • Make manual and electronic imprints of card-present transactions.
Justt

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Justt

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