The cardholder claims they didn’t authorize the transaction because they don’t have the card. Or that the merchant processed the transaction without getting the cardholder’s PIN.
Cause
A fraudster used a stolen card at a terminal with no PIN entry.
A fraudster convinces the merchant to let them bypass the PIN entry.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 45 days to respond to the claim in dispute.
Steps to Prevention
Merchants should:
Upgrade terminals to EMV-compliant terminals.
Obtain verification, including biometrics, signature, PIN, or token.
Create a manual or electronic imprint of each card-present transaction.
Insist that every chip card should be inserted or tapped instead of swiped.
