The cardholder claims they didn’t participate in the transaction, and the merchant didn’t get an electronic or physical imprint of the card (card-present environment).
Cause
The merchant processed the transaction erroneously or didn’t obtain the correct cardholder information.
The merchant processed a transaction on an account not linked to a valid card.
A cardholder’s family member used the cardholder’s card without their permission.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 20 days to respond to the claim in dispute.
Steps to Prevention
Make a manual and electronic imprint for each card-present transaction.
Enter transaction data manually as a last resort.
Make manual imprints of cards when you complete key-entered transactions.
Use cardholder verification methods, including PINs and signatures.
Clearly differentiate between card-present and card-not-present transactions by noting mail, phone, and internet orders.
