# Visa 10.2 - EMV Liability Shift (Non-Counterfeit)
Source: https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-2-emv-non-counterfeit

Last updated 24 October 2026.

TL;DR

-   A real card got used by the wrong person, and your terminal didn't read the chip.
-   10.1 is a cloned card and 10.2 is a real one, but the evidence is identical.
-   Cardholder filing window: 120 days. Your response window: 30 days (see your notice).
-   Prove the chip was read and you win. Chip plus PIN and it isn't close.
-   No chip read, no defense. Your terminal logs decide this, not your story.

## 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:** Someone used a **lost, stolen, or never-received card** at your counter and the chip didn't get read. Visa moves the loss to whoever skipped EMV.

**Records that answer it:**

1.  Terminal logs: was the chip read?
2.  PIN records: was a PIN entered?
3.  Camera footage from the counter, if it shows who used the card

**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

-   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 didn't authorize the transaction
3.  Card has an EMV chip
4.  Chip wasn't read in the transaction

### Transaction Must Be

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

| Aspect | 10.1 | 10.2 |
| --- | --- | --- |
| Card type | Counterfeit | Genuine |
| Fraud source | Cloned card | Lost/stolen card |
| Key evidence | Chip vs swipe | Chip 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

## Which defenses hold up

| Defense Type | Relative strength |
| --- | --- |
| Chip + PIN verified | Strongest |
| Chip read only | Weaker |
| No chip read | Weakest |

Track your own [win rate by reason code](https://paymentsandrisk.com/docs/chargebacks/metrics/).

## Common Mistakes

1.  **Swipe without a chip attempt** - Liability shifts immediately
2.  **No PIN verification** - You gave up a layer
3.  **Staff overriding chip prompts** - Creates the liability
4.  **Missing terminal logs** - Can't prove the chip was used

## Related Codes

-   [10.1](https://paymentsandrisk.com/docs/reference/reason-codes/visa/10-1-emv-counterfeit/) - EMV Liability Shift 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

Use the chip every time. If the card has one and your terminal reads it, a swipe is a loss waiting to happen. Turn on PIN preference if your terminals support it. That's the strongest defense this code allows.

Train staff on one rule: chip first, always. If a customer pushes hard for a swipe, that's information. Log every fallback and the reason for it.

## Next Steps

**Prevent future 10.2 chargebacks:**

1.  Chip and PIN whenever the terminal offers it
2.  Put a camera on the POS
3.  [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/) - Lost and stolen card 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