Reason Code UA02: Fraud/Card-Not-Present Environment

The cardholder claims that they did not participate in or authorize a card-not-present transaction. It could be a telephone, mail or internet order.

• The merchant didn’t seek an authorization request before completing the transaction.
• The merchant makes several attempts on a declined card or tries to circumvent, override or force a declined authorization request.
• A fraudster completed a transaction using stolen account or payment credentials.
• Friendly fraud. For example, the customer completed the transaction and forgot that they did so.

• Always obtain authorization before completing a transaction, regardless of the transaction amount.
• Stop a transaction if the card is declined.
• Request for an alternative method of payment.
• Use accurate and easily recognizable billing descriptors.
• Train your staff to make clear differentiations between card-present and card-not-present transactions.
• Use fraud detection tools like AVS (Address Verification Service) and CID (card identification codes).

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