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Visa 10.2 - EMV Liability Shift (Non-Counterfeit)

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

ScenarioWindow
Cardholder files120 days from transaction date
You respond30 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​

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

Which defenses hold up​

Defense TypeRelative strength
Chip + PIN verifiedStrongest
Chip read onlyWeaker
No chip readWeakest

Track your own win rate by reason code.

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
  • 10.1 - EMV Liability Shift Counterfeit
  • 10.3 - Other Fraud Card Present
  • 10.4 - 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

See Also​

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