# Visa 10.1 - EMV Liability Shift (Counterfeit)
Source: https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-1-emv-counterfeit

Last updated 24 October 2026.

TL;DR

-   A counterfeit card ran at your terminal and the chip never got read. Visa moves the loss to whichever side skipped EMV.
-   The case turns on your terminal logs. Proof of a successful chip read wins it outright.
-   Cardholder filing window: 120 days from the transaction date. Your response window: 30 days (see your notice).
-   Two logged chip attempts before any swipe fallback. That's the line between a defense and a certain loss.
-   Non-EMV terminal? No defense exists. Replace the terminal.

## Got this code?

**Your deadline:** The date on your notice wins. Visa's standard response window is 30 days, and your processor can set an earlier one.

**The claim:** A counterfeit card ran at a terminal that didn't read the chip. Visa calls this an **EMV liability shift dispute**, and the side that skipped EMV carries the loss.

**Records that answer it:**

1.  Terminal logs: was the chip read?
2.  Fallback records: did staff try the chip twice before any swipe?
3.  The terminal's EMV certification

**Next:** [Decide whether it's worth fighting](https://paymentsandrisk.com/docs/chargebacks/your-first-chargeback/#should-you-fight-it), then fill in [the response outline](https://paymentsandrisk.com/docs/chargebacks/representment/response-outlines/#didnt-authorize) for this claim and follow the [Representment Workflow](https://paymentsandrisk.com/docs/operations/representment-workflow/).

## When This Code Applies

-   Counterfeit card presented at POS terminal
-   Chip not read (swipe fallback)
-   Terminal isn't EMV-capable
-   Card has a chip, but the chip wasn't used

## Conditions for Valid Dispute

### Issuer Must Verify

1.  Card was counterfeit (verified by issuer)
2.  Card has EMV chip
3.  Chip wasn't used in the transaction
4.  Cardholder didn't authorize it

### Transaction Must Be

-   Card-present (face-to-face)
-   Processed via magnetic stripe when chip was available
-   At a non-EMV or EMV-fallback terminal

## Time Frames

| Scenario | Window |
| --- | --- |
| Cardholder files | 120 days from transaction date |
| You respond | 30 days (see your notice) |

## Liability Shift Rules

### Merchant Liable When

-   Terminal isn't EMV-capable
-   EMV fell back to swipe
-   Technical malfunction prevented chip read

### Issuer Liable When

-   Card doesn't have chip
-   Chip was read successfully
-   Merchant followed proper fallback procedures

## Representment Options

### 1\. Chip Was Read

**Evidence required:**

-   Terminal transaction log showing chip read
-   EMV cryptogram data
-   Terminal EMV certification

### 2\. Card Had No Chip

**Evidence required:**

-   Card imprint (if available)
-   Terminal transaction record
-   Acquirer confirmation of mag-stripe-only card

### 3\. Proper Fallback Procedure

**Evidence required:**

-   Two chip read attempts logged
-   Terminal error logs
-   Fallback was per Visa rules

## Which defenses hold up

| Defense Type | How it holds up |
| --- | --- |
| Chip was read (with proof) | Strongest |
| Proper fallback documented | Weaker |
| No fallback documentation | Rarely wins |

Track your own [win rate by reason code](https://paymentsandrisk.com/docs/chargebacks/metrics/) instead of relying on a general figure.

## Common Mistakes

1.  **Non-EMV terminals** - Automatic liability
2.  **Forcing swipe fallback** - Without attempting chip
3.  **No transaction logs** - Can't prove chip attempt
4.  **Staff training gaps** - Improper fallback handling

## Related Codes

-   [10.2](https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-2-emv-non-counterfeit/) - EMV Liability Shift Non-Counterfeit
-   [10.3](https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-3-fraud-card-present/) - Other Fraud Card Present
-   [10.4](https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-4-fraud-cnp/) - Card Not Present Fraud

## Prevention Strategies

### Terminal Requirements

1.  **EMV-enabled terminals** - All POS must support chip
2.  **Contactless support** - NFC reduces counterfeit risk
3.  **Fallback procedures** - Follow Visa guidelines for chip failures

### Transaction Security

1.  **Never force swipe** - Unless chip genuinely fails
2.  **Two-attempt rule** - Try chip twice before fallback
3.  **Document fallbacks** - Log every fallback reason

## Next Steps

**Prevent future 10.1 chargebacks:**

1.  Put every POS on an EMV-capable terminal
2.  Never force a swipe without two chip attempts
3.  Log every fallback transaction and the reason for it
4.  [Review EMV requirements](https://paymentsandrisk.com/docs/fraud/prevention/emv-contactless/)

* * *

## See Also

-   [EMV & Contactless](https://paymentsandrisk.com/docs/fraud/prevention/emv-contactless/) - Chip and NFC setup
-   [Card-Present Fraud](https://paymentsandrisk.com/docs/fraud/card-present-fraud/) - Counterfeit and skimming patterns
-   [Terminal Security](https://paymentsandrisk.com/docs/fraud/terminal-security/) - Tampering and skimmer checks
-   [Terminal Operations](https://paymentsandrisk.com/docs/operations/terminal-operations/) - Day-to-day POS handling