The cardholder claims the transaction was fraudulent and that the merchant didn’t follow the correct authentication procedures or the merchant didn’t obtain their signature.
Cause
The merchant didn't acquire transaction authorization or signature during the transaction.
The card imprint doesn't have the necessary security features and isn't legible.
The transaction documents, including the receipt, are illegible.
Response
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
Always use an EMV-compatible payment terminal.
Each transaction should include cardholder identity verification methods like a signature.
