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Visa 10.1 - EMV Liability Shift (Counterfeit)

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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, then fill in the response outline for this claim and follow the 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​

ScenarioWindow
Cardholder files120 days from transaction date
You respond30 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 TypeHow it holds up
Chip was read (with proof)Strongest
Proper fallback documentedWeaker
No fallback documentationRarely wins

Track your own win rate by reason code 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
  • 10.2 - EMV Liability Shift Non-Counterfeit
  • 10.3 - Other Fraud Card Present
  • 10.4 - 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

See Also​

Something wrong on this page? Email matt at paymentsandrisk.com and say what needs fixing.