Skip to main content

Visa 10.2 - EMV Liability Shift (Non-Counterfeit)

Non-counterfeit card fraud where the chip wasn't read properly. This covers lost, stolen, or never-received cards at terminals with EMV fallback issues.

Overview​

Unlike 10.1 (counterfeit), this code covers genuine cards used fraudulently when the terminal failed to read the chip.

When This Code Applies​

  • Lost or stolen card used at POS
  • Card never received by cardholder (intercepted)
  • Genuine card, unauthorized transaction
  • Chip not read (swipe fallback)

Conditions for Valid Dispute​

Issuer Must Verify​

  1. Card is genuine (not counterfeit)
  2. Cardholder did not authorize transaction
  3. Card has EMV chip
  4. Chip was not read in transaction

Transaction Must Be​

  • Card-present
  • Processed without reading chip
  • At EMV-capable or non-EMV terminal

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date

Liability Shift Rules​

Merchant Liable When​

  • Terminal didn't read chip
  • EMV fallback without proper procedure
  • Staff accepted swipe without chip attempt

Issuer Liable When​

  • Chip was read successfully
  • Proper authentication occurred
  • PIN verified (if PIN-preferring card)

Difference from 10.1​

Aspect10.110.2
Card typeCounterfeitGenuine
Fraud sourceCloned cardLost/stolen card
Key evidenceChip vs swipeChip vs swipe

Representment Options​

1. Chip Was Read​

Evidence required:

  • EMV transaction log
  • Cryptogram data
  • Terminal certification

2. PIN Verified​

Evidence required:

  • PIN entry confirmation
  • Terminal PIN pad log
  • Correct PIN on first attempt

3. Cardholder Present​

Evidence required:

  • CCTV footage
  • ID verification records
  • Signature match

Prevention Strategies​

Transaction Security​

  1. Always use chip - Never accept swipe if chip available
  2. PIN preference - Enable PIN for higher security
  3. ID verification - For high-value transactions

Staff Training​

  1. Chip-first policy - Always attempt chip first
  2. Fallback rules - Document when and why
  3. Suspicious behavior - Decline if customer insists on swipe

Win Rate Expectations​

Defense TypeExpected Win Rate
Chip + PIN verified85-95%
Chip read only70-85%
No chip readUnder 25%

Common Mistakes​

  1. Accepting swipe without chip attempt - Liability shifts immediately
  2. No PIN verification - Lost security layer
  3. Staff override of chip requirement - Creates liability
  4. Missing transaction logs - Can't prove chip was used
  • 10.1 - EMV Liability Shift Counterfeit
  • 10.3 - Other Fraud Card Present
  • 10.4 - Card Not Present Fraud

Next Steps​

Got this chargeback?

  1. Pull terminal logs → Was chip read? Was PIN verified?
  2. Check CCTV footage → Can you identify the cardholder?
  3. Gather evidence → Representment Workflow
  4. Respond within 30 days

Prevent future 10.2 chargebacks:

  1. Always use chip + PIN when available
  2. Enable PIN preference on terminals
  3. Install camera coverage at POS
  4. Review EMV requirements

See Also​