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Visa 10.3 - Other Fraud (Card Present)

TL;DR
  • The chip got read and fraud happened anyway. That's what 10.3 covers, everything 10.1 and 10.2 miss.
  • Chip plus PIN plus a checked ID wins it. A signature on its own usually doesn't.
  • Cardholder filing window: 120 days from the transaction. Yours: 30 days to respond.
  • CCTV decides most of these. No camera at the POS, no case.

The catch-all card-present fraud code. It covers staff collusion, PIN bypass, a tampered terminal, and any chip-read transaction the cardholder still denies.

When This Code Applies​

  • Fraud despite chip being read
  • PIN bypass fraud
  • Collusion scenarios
  • Fraudulent application for card
  • Card manipulation at terminal

Conditions for Valid Dispute​

Issuer Must Verify​

  1. Cardholder didn't authorize it
  2. Transaction was card-present
  3. It doesn't qualify for 10.1 or 10.2

Transaction Must Be​

  • Card-present (face-to-face)
  • At a physical terminal
  • Not EMV liability shift eligible

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date

When This Code Is Used (vs 10.1/10.2)​

ScenarioCode
Counterfeit card, no chip used10.1
Genuine card stolen, no chip used10.2
Chip used, fraud still claimed10.3
Fraudster manipulated terminal10.3
Staff collusion10.3

Representment Options​

1. Cardholder Authorized​

Evidence required:

  • Signature on receipt
  • PIN verification
  • CCTV showing cardholder
  • Photo ID matched

2. Chip + PIN Used​

Evidence required:

  • EMV transaction record
  • PIN verification log
  • Correct PIN on first attempt
  • No fallback to signature

3. Transaction Benefited Cardholder​

Evidence required:

  • Delivery to cardholder address
  • Cardholder pick-up verified
  • Prior relationship/purchases

Prevention Strategies​

Staff Procedures​

  1. ID verification - Check ID on high-value transactions
  2. Match signatures - Compare to card signature
  3. Watch for nervous behavior - If it doesn't feel right, decline
  4. Multiple card attempts - Red flag for fraud

Terminal Security​

  1. PIN preference enabled - Require PIN over signature
  2. Camera coverage - Record all transactions
  3. Tamper detection - Check terminals regularly

Win Rate Expectations​

Defense TypeExpected Win Rate
Chip + PIN + ID verified75-90%
CCTV showing cardholder60-80%
Signature only30-50%
No additional proofUnder 20%

Common Mistakes​

  1. No CCTV coverage - Can't prove who transacted
  2. PIN bypass enabled - You're throwing away the security benefit
  3. ID check not performed - Especially on high-value
  4. Missing signature receipts - No authorization proof
  • 10.1 - EMV Liability Shift Counterfeit
  • 10.2 - EMV Liability Shift Non-Counterfeit
  • 10.4 - Card Not Present Fraud

Next Steps​

Got this chargeback?

  1. Pull CCTV footage → Can you prove cardholder was present?
  2. Check for chip + PIN → Was transaction authenticated?
  3. Look for ID verification → Did staff check ID?
  4. Respond within 30 days → Representment Workflow

Prevent future 10.3 chargebacks:

  1. Enable PIN preference on all terminals
  2. Install camera coverage at all POS locations
  3. Train staff to check ID on high-value transactions
  4. Review card-present fraud prevention

See Also​

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