Reason Code UA05Fraud/Chip Counterfeit Transaction

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Card Issuer


Reason Code





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.


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.


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

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