Dispute Condition Code
Why did I get this dispute?
The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant, rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.
How long can the issuer wait to file this dispute?
The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 120 calendar days.
What do I need to fight this dispute?
- If you processed the transaction by reading the chip, provide documentation that proves the card wasn’t counterfeit.
- If the data collected during authorization indicates the card didn’t have a chip, provide documentation that proves the card wasn’t EMV-compliant.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
How can I avoid this dispute in the future?
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Create an electronic or manual imprint for every card-present transaction.