Reason Code UA05: Fraud/Chip Counterfeit Transaction

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 couldn’t detect the fraud. As a result, they claim the transaction was unauthorized.

• The merchant’s card processor unit didn’t send complete chip data.
• The merchant didn’t use a chip-reading terminal.

• 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.

The card issuer gets 30 extra days to file a chargeback if they submitted a retrieval request which was completed after the 120 days.