My Merchant Account Blog

Visa Chargeback Reason Code 62 - Counterfeit Transaction

Wednesday, November 30, 2011

The card issuer received a complaint from the cardholder claiming that he or she did not authorize or participate in the transaction.

Most Common Causes

Counterfeit card was used for a magnetic stripe or chip-initiated transaction that received authorization and the merchant:

• Failed to compare the first four-digits of the embossed account number on the card with the preprinted digits below the embossed number for a card-present transaction.
• Received authorization without transmission of required data.
• Accepted a chip card* containing a Visa or Visa Electron Smart Payment Application or an EMV and VIS-Compliant Plus application, but processed the chip card as a fallback transaction—via magnetic stripe, key-entry, or paper voucher, and did not follow correct acceptance procedures.

Possible Remedy

Card and Transaction Were Valid

If the card was swiped and transaction was authorized at the point-of-sale, provide your acquirer with a copy of the printed sales receipt.

No Remedy

Transaction Was Counterfeit

If the transaction was counterfeit, accept the chargeback.

Preventative Measures

Check Card Security Features

Check all card security features before completing the transaction. In particular, the first four digits of the embossed account number on the card should match the printed four-digit number below the embossed number. If the numbers do not match, make a Code 10 call. You should also check to make sure that the embossed account number on the front of the card is the same as the number that appears on the terminal after you swipe the card. In addition, be sure to look for other signs of counterfeit such as embossed numbers that are blurry or uneven, or ghost images beneath the embossed numbers, indicating they have been changed.

Code 10 Calls

If you are suspicious of a card or cardholder for any reason, make a Code 10 call.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

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