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Visa 10.4 - Card Absent Environment (Fraud)

This is Visa's primary fraud code for e-commerce and card-not-present transactions.

Overview​

Used when a cardholder claims they did not authorize a transaction that occurred in a card-not-present environment (online, phone, mail order).

When This Code Applies​

  • Cardholder denies making online purchase
  • Card credentials used without authorization
  • Account takeover resulting in CNP fraud
  • Stolen card used for online purchase
  • Family/friendly fraud (cardholder claims unauthorized)

Conditions for Valid Dispute​

Issuer Must Verify​

  1. Cardholder did not authorize the transaction
  2. Cardholder did not receive benefit from transaction
  3. Transaction occurred in card-absent environment
  4. Within time frame limits

Transaction Must Be​

  • E-commerce
  • Mail order/telephone order (MOTO)
  • Recurring without proper authentication

Time Frames​

ScenarioDispute Window
Standard120 days from transaction date
With delivery120 days from delivery date (or expected delivery)
Digital goods120 days from transaction date

Liability Shift with 3D Secure​

Full Liability Shift (Issuer Liable)​

When transaction is fully authenticated:

  • Visa Secure (3DS 2.0) - Challenge flow completed
  • ECI = 05 (fully authenticated)
  • Cryptogram present and valid

Partial/No Liability Shift (Merchant Liable)​

ScenarioECIMerchant Liability
Authentication attempted, issuer unavailable06Reduced
Authentication failed07Full
No authentication attempted07Full
3DS not supportedN/AFull

Compelling Evidence 3.0 (CE 3.0)​

Visa's enhanced compelling evidence program for repeat customers.

CE 3.0 Requirements​

To qualify for CE 3.0 representment:

  1. Two prior undisputed transactions with same payment credentials
  2. At least 120 days before disputed transaction
  3. Matching data elements (at least two of four):
    • IP address
    • Device ID/fingerprint
    • Shipping address
    • User account ID

CE 3.0 Process​

CE 3.0 Benefits​

  • Pre-arbitration liability protection
  • Higher win rates
  • Faster resolution

Standard Representment Options​

1. Transaction Was Authorized​

Evidence required:

  • Cardholder correspondence acknowledging purchase
  • Order confirmation sent to cardholder email
  • IP/device match to prior purchases
  • Signed delivery confirmation

2. 3D Secure Authentication​

Evidence required:

  • ECI value showing authentication
  • Cryptogram/CAVV
  • Authentication timestamp
  • 3DS transaction ID

3. AVS/CVV Verification​

Evidence required:

  • AVS match (full or partial)
  • CVV2 match
  • Delivery to verified address

4. Delivery Confirmation​

Evidence required:

  • Carrier tracking showing delivered
  • Signature confirmation
  • Delivery address matches billing
  • Photo proof of delivery (if available)

5. Digital Goods Access​

Evidence required:

  • IP address at time of download/access
  • Access logs showing usage
  • Account login after purchase
  • Download confirmation

6. Prior Transaction History​

Evidence required:

  • Previous undisputed purchases
  • Same email/phone/device
  • Established customer relationship

Representment Time Frames​

StageWindow
Initial response30 days from chargeback
Pre-arbitration30 days from representment
Arbitration45 days from pre-arb

Prevention Strategies​

Authentication​

  1. Implement 3D Secure 2.0 - Liability shift protection
  2. Use frictionless flow - Better conversion with protection
  3. Challenge high-risk - Step up when signals indicate risk

Verification​

  1. AVS checking - Verify billing address
  2. CVV2 required - Always collect
  3. Email verification - Confirm customer email
  4. Phone verification - For high-risk orders

Evidence Collection​

  1. Log everything - IP, device, timestamps
  2. Keep communications - Emails, chats, calls
  3. Delivery confirmation - Tracking + signature
  4. Account history - Document relationship

Fraud Screening​

  1. Real-time scoring - ML-based fraud detection
  2. Velocity checks - Unusual patterns
  3. Device fingerprinting - Track devices
  4. Behavioral analysis - Navigation patterns

Win Rate Expectations​

Defense TypeExpected Win Rate
3DS authenticated (ECI 05)80-95%
CE 3.0 qualifying70-85%
AVS match + delivery proof40-60%
Standard evidence25-40%
No evidenceUnder 15%

Common Mistakes​

  1. Not implementing 3DS - Missing liability shift
  2. No delivery confirmation - Can't prove receipt
  3. Missing logs - No IP/device records
  4. Slow response - Missing 30-day window
  5. Weak evidence - Insufficient documentation
  • 10.3 - Other Fraud Card Present
  • 10.5 - VFMP

Next Steps​

Got this chargeback?

  1. Check if 3DS was used → If ECI 05, you have strong defense
  2. Check CE 3.0 eligibility → Prior undisputed transactions from same customer?
  3. Gather evidence → Representment Workflow
  4. Respond within 30 days

Prevent future 10.4 chargebacks:

  1. Implement 3D Secure for liability shift
  2. Set up dispute alerts to refund before chargeback

See Also​