1 – Card Recovery Bulletin 12. In the run-up to the EMV liability shift in the US, fraud experts expected a rise in card-not-present (CNP) fraud. 1 – Late Presentment 13. Cardholder authentication temporarily unavailable - no liability shift available. 12 Truth in Lending Act;13 Visa and MasterCard rules and policies,14 liability shift rules,15 and guidelines. 2 – Declined Authorization10 . As a retailer, you’ve always been more annoyed than worried about fraud: if someone purchased products from your store using a counterfeit or stolen credit card, the only cost to you was the time used to report the fraud. , the MasterCard deadline of Oct. 3 Other Fraud - Card Present Environment; 10. 4. EMV chip cards are much more secure than traditional magnetic stripe cards. 4: Other Fraud-Card Absent Environment:. Consumer Disputes 10 . 1 – Card Recovery Bulletin 11 . Fraud 11. A unique one-time code, generated behind-the-scenes, is needed for the transaction to be approved—a feature that is extremely effective in reducing counterfeit fraud. What the EMV Liability Shift Means for Restaurants. Acquired 10. Fraud 11. EMV Liability Shift Non-Counterfeit Fraud: 10. 3: Other Fraud-Card Present Environment: 10. By the. The EMV liability shift, however, will put acquirers into the consumer-fraud business for the first time in the U. 1 are initiated when a fraudster uses a counterfeit EMV (chip and pin) card and the rightful cardholder claims that they did not initiate the card-present transaction. in the first year. ATM owners will be liable for certain types of. 3 – Other Fraud-Card Present Environment 10 . Transaction Not Recognized-Potential FraudEMV Liability Shift Counterfeit Fraud: 120: 30: 10. What is the EMV Liability Shift?. The cardholder is claiming that they did not authorize or participate in a transaction originated with the EMV terminal. For many ATM owners, there’s a reasonable chance their recent ATM deployments have involved terminals that are EMV. Other Fraud – Card Present Environment. According to the shift, if a business has EMV capabilities and processes payment from an EMV chip card via the magnetic stripe instead, that business would be. 5 – Visa Fraud Monitoring Program 11 . 1 – Card Recovery Bulletin 11 . October 1, 2015 – Counterfeit Card Liability Shift. 10. Fraud 11. , key entry, magnetic stripe, contact chip or contactless chip), the transaction is protected from chargebacks using Reason 10. Next, the authorization chargeback category is related to any transactions occurring without proper authorization. This was known as the liability shift. S. The EMV liability shift is designed to better protect all parties. 1 – EMV Liability Shift Counterfeit Fraud 10 . 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . 2. ATM owners will be liable for certain types of fraudulent or counterfeit. Fraud tools such as. 2: EMV Liability Shift Non-Counterfeit Fraud: The cardholder is claiming that they did not authorise or participate in a transaction that you processed. 1 – EMV Liability Shift Counterfeit Fraud 10 . 1 EMV Liability Shift Counterfeit Fraud Description of Reason Code EMV Liability Shit Counterfeit Fraud Insights from Rules and Regulations A cardholder claims he or she did not participate in the transaction you processed. The immediate impact and benefit on the adoption of EMV technology is the reduction in card fraud resulting from counterfeit or skimming attacks. Train your staff to process and handle card-present transactions properly. Prior to this, banks bore financial responsibility for counterfeit card transactions. The EMV liability shift does not apply to card-not-present transactions and lost and stolen fraud. Visa has also extended through 30 April 2021 the Visa Fraud Monitoring Program for automated fuel dispensers (VFMP-AFD), which identifies U. 5 – Visa Fraud Monitoring Program 11 . EMV Liability Shift: The EMV liability shift is designed to better protect all parties. Processing Errors 13. It seems fairly cut and dry that EMV is the better security technology to protect cardholders, so why had it taken so long for the U. 2. The EMV liability shift is coming. 1: Authorization (11) Card Recovery Bulletin or Exception File: 11. 1, 2015, deadline to switch to EMV. Indeed, under this approach (see the table below), liability for counterfeit fraud on magnetic stripe cards remains with the issuer after October 1, 2015, even if the merchant where the. approach to fraud liability shift is not a mandate. Here’s a guide to avoiding fraud with (and after) the EMV liability shift. 28 April 2016 Updated: 10 May 2016 (Page 97-103) EMV chip technology can provide a more secure alternative to non-chip technology for reducing counterfeit-fraud transactions, and if PIN is used as the cardholder verification method (CVM), lost, stolen, and never-received-issue (NRI. Acquired 10. EMV has an implementation milestone of October 1, 2015 for most retailers and processors to be EMV compliant. 2016, chargebacks for counterfeit fraud for transactions under $25 will be blocked. 1: Authorization (11) Card Recovery Bulletin or Exception File:10. 1. Fraud-related Chargebacks > Questionable Merchant Activity Chapter 3—Single Message System Chargebacks Incorporated the changes announced in “AN 2044—Revised Standards—ATM Chip Liability Shift” that included expanding the domestic and intraregional ATM chip liability shift to include the remaining non-participating countries. If the restaurant doesn’t have a chip card reader to process the transaction, it could be on the hook for the $30. 21. 1 – EMV Liability Shift Counterfeit Fraud 11. As of October 1st 2015, when a merchant accepts a magnetic stripe card that was counterfeited with track data copied from an EMV chip card, and the card is subsequently swiped at a POS device/application that is not EMV chip-enabled, and the transaction is successfully processed, the acquirer/merchant may be liable for the. As a brief reminder, this liability shift means that petrol retailers will now be responsible for incurring the fraud losses on all non-EMV-chip-authenticated transactions initiated by EMV cards at their pumps. 3 Fraud – Card-Present Environment: F29 Card Not Present: UA06 Fraud – Chip and PIN Transaction: 4863 Cardholder Does Not Recognize—Potential Fraud: 10. EMV chip-acceptance infrastructure. And one of two things have occurred: The. EMV liability shift of October 2015 and the chip rollout has been challenging, to say the least. 2 — EMV Liability Shift Non-Counterfeit Fraud. 10. 2 – EMV Liability Shift Transaction Code Non-Counterfeit Fraud 11. 3—Other Fraud—Card-Present Environment, Visa will allow acquirers to provide additional types of compelling evidence for card-present U. Fraud 11. 2 - EMV Liability Shift Non-Counterfeit Fraud: The cardholder claims the transaction you processed was fraudulent because of your EMV terminal. In what is known as the “liability shift,”, on October 1, 2015, the credit card industry changed how banks and processing networks handled certain types of credit card fraud. 10. If the transaction is completed at a contact chip-enabled terminal, regardless of how the card data is captured (i. Processing Errors 13. EMV is one of the most secure forms of payment. Consumer Disputes 10 . 1, 2020. So say, for example, a fraudster buys $30 worth of hot sauce from a restaurant with a counterfeit EMV chip card. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. S. Other factors behind the chargeback surge could be criminals are realizing the window for committing counterfeit fraud is closing, and consumers guilty of friendly fraud, who may be exploiting the confusion around the EMV liability shift to contest legitimate transactions for personal gain, Horwedel said. Consumer Disputes 10. 10. S. Since the Oct. 3DS does not stop fraud, it only passes the liability of the dispute back to the card issuer. Upgrading POS systems to accept chip. 3 – Other Fraud-Card Present Environment 10 . 5: Misrepresentation of the purchased good and/or service: 120* 30: 13. However, Counterfeit fraud When a criminal makes copies of a credit or debit card using illegally or fraudulently obtained data. 5 – Visa Fraud Monitoring Program 11 . 5 – Visa Fraud Monitoring Program 11 . The party that has made investment in EMV deployment is protected from financial liability for card-present counterfeit fraud losses on this date. CNP fraud. S. And one of two things have occurred: The. EMV Liability Shift – Non-Counterfeit Fraud. 1 – EMV Liability Shift Counterfeit Fraud 10 . Processing Errors 13. As a result of the liability-shift mandates, much of the EMV conversation has shifted to debates, such as whether a 30-year-old concept to counter card-present fraud can withstand today’s more. 2 – Incorrect 10. 1 – EMV Liability Shift Counterfeit Fraud 10 . 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . Consumer Disputes 10 . The terminal was not EMV compliant. 1030. 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . For many operators, this will represent a 10x increase in their. The U. The party that has made investment in EMV deployment is protected from financial liability for card-present counterfeit fraud losses on this date. In 2015, Counterfeit fraud-lost and stolen card fraud at retail stores when card is present during a transaction was about $4. Before the deployment of EMV chips, which generate a new authentication code for each transaction, these point-of-sale debit and credit card payments were deemed risky. However, if the merchant has an EMV. However, come October 1, 2015, that is all about to change. 1 – Card Recovery Bulletin 12. Dispute Category 11: Authorization. 70 (1) Card Recovery Bulletin. Businesses that swiped cards with EMV chips rather than “dipping” them in an EMV card reader could now be held liable for fraudulent transactions. Fraud 11. EMV Liability Shift – Non-Counterfeit Fraud. EMV Liability Shift Counterfeit Fraud. After the shift occurs, if a merchant is still using the swipe and signature method, and the customer has a “smart card” (a credit card with the EMV chip technology in it) then the merchant is liable. Some best practices include: If the card has a chip, don't swipe it. EMV Liability Shift: The EMV liability shift is designed to better protect all parties. After the mid‑April 2021 Outdoor EMV liability shift, any convenience store operator that fails to upgrade their dispensers to accept chip transactions will be held responsible for 100% of credit card fraud. EMV requires additional data elements to be included in the authorization message. However, as many other merchants move to secure paymentsHere's a list of all the current Visa reason codes: Chargeback Code. 10. 3 - Other Fraud, Card Present Environment. Consumer Disputes 10 . 2. 2 – Incorrect 10. ATM owners will be liable for certain types of fraudulent or counterfeit. S. Since 2015, most merchants have been responsible for the EMV liability shift. 1 – Card Recovery Bulletin 11 . survey found that 33% of consumers preferred EMV-accepting merchants. ”. Since October 2015, merchants have been liable for counterfeit fraud committed using EMV cards if the merchants had not adopted EMV chip-readable terminals. Fraud Chargeback Codes: 10. 2. 4 – Other Fraud – Card-Absent Environment: 120 days. Processing Errors 13. 3 Fraud – Card-Present Environment: F29 Card Not Present: UA06 Fraud – Chip and PIN Transaction: 4863 Cardholder Does Not Recognize—Potential Fraud: 10. Indeed, under this approach (see the table below), liability for counterfeit fraud on magnetic stripe cards remains with the issuer after October 1, 2015, even if the merchant where the. 5: Fraud (10) Visa Fraud Monitoring Program: 11. Fraud 11. 5 – Visa Fraud Monitoring Program 11 . shifted to merchants, requiring businesses to implement EMV chip technology – or. Workflow. Domestic and Cross-Border Counterfeit EMV Liability Shift for POS Transactions. Before, credit card issuers were primarily responsible for. Authorization 12. 10. 3: Fraud (10) Other Fraud - Card Present Environment: 10. Liability Shift. By far the most obvious perk of EMV, fraud reduction is the biggest payoff. 4 – Other Fraud-Card Absent Environment 10 . Fraudsters are resourceful, though. A counterfeit EMV-chip card was used in a card-present environment. Authorization 12. S. 1 – EMV Liability Shift Counterfeit Fraud 10 . First up is MasterCard Inc. Since the EMV liability shift in October 2015, both chargebacks and fraud loss rates have increased for merchants, particularly from signature-based, card-present transactions RWP 18-10, December 2018 To reduce counterfeit fraud in the card-present environment, the United States started migrating to EMV chip technology in the mid-2010s. 2 - EMV Liability Shift Non-Counterfeit Fraud What caused the dispute? The most common cause of this dispute is that a PIN-preferring chip card was used either at a non-EMV terminal or a chip transaction was initiated without full chip data. Print this page. See moreChanges in payment network rules seek to support the migration to EMV by placing liability for fraud – counterfeit, and in the case of most networks, also lost or. The EMV Deadline. Limiting counterfeit fraud losses as a result of the liability shift is the ONLY compelling reason for some merchants to implement EMV. That year, counterfeit card fraud totaled a value of 97 million Great Britain pounds, equal to about $119 million today. Two years after the rollout of EMV chip cards, one thing is clear: EMV has not signaled the end of fraud. 3: Other Fraud – Card Present Transactions 10. The fraud liability shift is a change in regulations that shifts the financial liabilities of card fraud from the card issuer to the merchant who accepts chip-enabled cards. 4 Other Fraud – Card Absent Environment 93(1) 10. According to Visa , Chip readers at EMV-accepting automatic fuel dispensers immediately protect. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. ” 16 This report addresses only “contact” payments made by swiping or inserting a credit or debit card. S. 11. When EMV first launched, the big four card networks set a deadline for compliance for October 2015, which is when they shifted the liability of fraud from the networks to the merchants. The shift is intended to help parties deal with counterfeit fraud more equally. AFD merchant outlets that generate excessive counterfeit fraud. By upgrading to EMV-compliant equipment, you shift the liability for counterfeit fraud back to the credit card. The remaining 90%—counterfeit fraud—is paid for by banks. Fraud-No Cardholder Authorization. The EMV liability shift “worked” well against in-person fraud. 10. October 15th of 2021 marked the six-year anniversary of EMV implementation in the US, as well as the fraud liability. Counterfeit fraud liability shift. EMV Review EMV, which stands for Europay, MasterCard, and Visa, is a payment card standard that, put simply, is the reason why so many payment cards these days have visible microchips that allows the cards to be inserted into a. 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . 5 – Visa Fraud Monitoring Program 11 . EMV Liability Shift Why you need to read this: Simple. 5: Fraud (10) Visa Fraud Monitoring Program: 11. 2. Fraud 11. S. 1 – EMV Liability Shift Counterfeit Fraud 10 . Fuel merchants should continue their efforts to enable AFD EMV acceptance to mitigate counterfeit fraud and avoid . EMV® is a registered trademark in the U. Previously, liability for counterfeit fraud generally fell to card-issuing financial institutions. ineligible for chargebacks under the U. 1 falls under the “Fraud” category. Acquired 10. One of the ways it does this is. 3 – CBK: Fraudulent Transaction: No Cardholder Authorization. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. 1. The EMV liability shift means that if the counterfeit or stolen card has an EMV chip and the merchant does not have a chip-reading terminal, the acquiring bank will be liable for the fraudulent transactions. 10. Consumer Disputes 10 . S. Fraud 11. Processing Errors 13. 3 (Other Fraud—Card-Present Environment) and 10. Allocation. 2 - EMV Liability Shift Non-Counterfeit Fraud: The cardholder claims the transaction you processed was fraudulent because of your EMV terminal. F30: EMV Counterfeit F31: EMV Lost; EMV Stolen; EMV Non-Received: Card Member Dispute Chargeback Codes: C02: Credit Not ProcessedCome October 2015, this liability will shift depending on the level to which the merchant is EMV compliant. The EMV Liability Shift caused most merchants to upgrade to EMV payment technology, which is much less vulnerable to fraud than traditional magnetic strips. 10. 1 - EMV Liability Shift Counterfeit Fraud: The cardholder claims the transaction you processed was authorised without their knowledge. EMV is newer to the US, while the EMV upgrade is much further along globally. Fraud 11. Below is a list of VISA chargeback codes. Under rules instituted by MasterCard, Visa, American Express and Discover, as of Oct. The main thing to understand about chargeback liability with EMV is that the regulations now spread responsibility more evenly between merchants and card issuers. Learn what EMV chips are, how they work, and what the EMV liability shift means for merchants. 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . Most believe that the liability shift applies to counterfeit fraud on both magnetic stripe and EMV cards, not just EMV cards. The shorthand description is “Chip Liability Shift. 10. As reported in a McLane/ CSP Daily News Flash, Visa is moving its automated fuel dispenser (AFD) EMV activation date from Oct. Chip Liability Shift The issuer may use message reason code 70 when the cardholder disputed an unauthorized transaction performed with an EMV chip card. Chargebacks were created to protect consumers from fraudulent charges. Counterfeit Products: 120* 30: 13. EMV Liability Shift Non- Counterfeit Fraud. 2. Here’s a guide to avoiding fraud with (and after) the EMV liability shift. Processing Errors 13. EMV Liability Shift Counterfeit Fraud: The cardholder claims a counterfeit chip card was used at a POS system where the transaction was not processed as a chip transaction. 1 – EMV Liability Shift Counterfeit Fraud 11. 4 Other Fraud - Card Absent Environment; 10. Issuers take on any counterfeit fraud (where a criminal uses a copy of a card). Consumer Disputes 10 . Fraud 11. approach to fraud liability shift is not a mandate. , American Express (NYSE: AXP) today announced changes to its EMV chargeback policy to help merchants limit their fraud costs as they upgrade their point-of-sale systems. Market Drivers for EMV Counterfeit, Lost and Stolen Fraud Losses ›Currently Issuers are liable for all counterfeit fraud-related losses ›When EMV cards are issued, liability for counterfeit fraud will shift to merchant if the merchant is not EMV enabled ›When used with a PIN, also protects against lost and stolen fraud. In sum, a move meant to improve security may, in the short-term, move fraudulent behavior. A BSFI that has enabled secure EMV technology shall be protected from financial liability arising from losses on counterfeit card fraud. EMV service code must be 2XX or 6XX – if a value of 1XX has been. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. Merchants and acquirers are Visa has been leading the push for EMV adoption by shifting the fraud liability for transactions made without using EMV, with other card networks following suit (American Express, Discover, and MasterCard also moved their deadlines, to April 16, 2021). In rare cases, a skilled fraudster may be able to physically tamper with a card’s EMV chip. 3 Other Fraud – Card Present Environment 10. also have a liability shift scheduled for fuel dispensers. 3 — Other Fraud: Card-Present Environment2015, the party that does not support EMV— which can be either the issuer or the merchant— assumes liability for counterfeit card transactions. Learn how the fraud liability shift affects your. 10. Stay up to date with corporate payments trends and the latest payments industry news by following WEX. 1 EMV Liability Shift 10. 10. They are coming, they will be standard, and the United States is going to have to adjust. 3d secure and chargeback liability shiftsLiability Shift Impact. 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . 2 – Declined. 2 – EMV Liability Shift Non-Counterfeit Fraud 10 . 4 Fraud – Card. 4 – Other Fraud-Card Absent Environment 10 . Consumer Disputes 10 . Processing Errors 13. What Does the Liability Shift Mean to SMBs? 3 • October 1, 2015 is the effective date for the counterfeit, lost and stolen and non-receipt fraud liability shift from issuers to merchants. The EMV liability shift came from card issuers, who wanted to promote the use of EMV chip cards that would better protect their customers from identity theft. The fraud liability shift goes into effect on October 1, 2015. EMV liability shift rules for counterfeit fraud. 5 Visa Fraud Monitoring Program; Authorization issues. Use the correct CVM (Cardholder Verification Method). implemented the so-called “EMV Liability Shift. S. Embed This Graphic So, although many merchants and consumers in the US balked at EMV standardization for global card networks, the need for the measure is obvious. A counterfeit EMV-chip card was used in a card-present environment. 4 – Other Fraud-Card Absent Environment 10 . 10. Authorization 12. 2: EMV Liability Shift Non-Counterfeit Fraud: 120: 30: 10. For the other networks, the fraud liability shifts start taking effect from October 2017. 2 – Declined Authorization 11 . 3 – Other Fraud-Card Present Environment 10 . 10. 2 EMV Liability Shift Non-Counterfeit Fraud: F24 No Card Member Authorization: UA05 Fraud – Chip Counterfeit Transaction: 4849 Questionable Merchant Activity: 10. Merchants. Businesses that swiped cards with EMV chips rather than “dipping” them in an EMV card reader could now be held liable for fraudulent transactions. 81 (2) 12. card-present fraud. 4 – Other Fraud-Card Absent Environment 10 . Unfortunately, most of the. 3 – Other Fraud-Card Present Environment 10 . 5 – Visa Fraud Monitoring Program 11 . Processing Errors 13. Drawing on the example of the UK – where in the 10 years between 2004 (when EMV was first introduced in the UK) and 2014, CNP fraud increased by 120% – something similar was predicted for the US. 2003. After this shift, liability fell to whatever party hadn’t adopted chip card technology. . 15 Share. The liability shift is an effort to accelerate the nationwide switch to EMV (aka chip cards). 4 – Other Fraud-Card Absent Environment 10 . 1 EMV Liability Shift Counterfeit Fraud Description of Reason Code EMV Liability Shit Counterfeit Fraud Insights from Rules and Regulations A cardholder claims he or she did not participate in the transaction you processed. Acquired 10. Visa has seen an increase in cases where a credit was processed prior to the dispute and the issuer did not address why the credit did not resolve the dispute. 5 Visa Fraud Monitoring Program Authorization Reason CodesEMV Liability Shift Counterfeit Fraud: The cardholder is claiming that they did not authorise or participate in a transaction that you processed. Other Fraud – Card-Present EnvironmentTo drive home the point that EMV chip-enabled terminals should be implemented by every merchant who accepts credit cards, the major card brands Visa, Discover, MasterCard and American Express set out a security standard in October 2015 called the EMV liability shift. It does not address"Liability shift" is the term banks and payment processors are calling the Oct. With the new rules, the party that is the cause of a chip transaction not occurring, either the issuer or acquirer, will be held financially responsible for any resulting card-present counterfeit fraud losses. Processing Errors 13. Acquired 10. A counterfeit EMV-chip card was used in a card-present environment. Processing Errors 13. In 2015, Counterfeit fraud-lost and stolen card fraud at retail stores when card is present during a transaction was about $4. Processing Errors 13. 2 EMV Liability Shift Non-Counterfeit Fraud: F24 No Card Member Authorization: UA05 Fraud – Chip Counterfeit Transaction: 4849 Questionable Merchant Activity: 10. These three letters have consumed the payments industry for over half a decade. domestic key-entered transactions processed at non-chip terminals, including: • Evidence of another payment on the same card that was undisputed. 3 – Other Fraud-Card Present Environment 10 . 1 EMV Liability Shift Counterfeit Fraud; 10. Action Required. EMV Liability Shift Counterfeit Transaction Fraud: 10. And one of two things have occurred: The. 10. 1 EMV® Liability Shift Counterfeit Fraud. The cardholder claims the payment activity was fraudulent and blames it on the merchant’s EMV terminal. 2 – Incorrect Transaction Code: 13. The acquirer became. These were absorbed by the banks and now that money is being. Processing Errors 13. 1 – EMV Liability Shift Counterfeit Fraud 10 . Cancelled Recurring. So the liability shift is specific to EMV and counterfeit fraud. 2: Fraud (10) EMV Liability Shift Non-Counterfeit Fraud: 10. Now, the cardholder claims the purchase was unauthorized. 2. 1 – EMV Liability Shift Counterfeit Fraud 10 . A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. EMV Liability Shift – Non-Counterfeit Fraud. In fact, for EMV-ready merchants, counterfeit fraud losses decreased by 87% in March 2019, as compared to September 2015 (the month before the liability shift). Payment Security: EMV chip cut fraud by half in the U. 3 – Other Fraud-Card Present Environment 10 . As a result of the liability-shift mandates, much of the EMV conversation has shifted to debates, such as whether a 30-year-old concept to counter card-present fraud can withstand today’s more. Fraud. of performing an EMV transaction – would now be responsible for any counterfeit fraud occurring during the transaction. 1 – EMV Liability Shift Counterfeit Fraud: 11. Market Drivers for EMV Counterfeit, Lost and Stolen Fraud Losses ›Currently Issuers are liable for all counterfeit fraud-related losses ›When EMV cards are issued, liability for counterfeit fraud will shift to merchant if the merchant is not EMV enabled ›When used with a PIN, also protects against lost and stolen fraud. EMV Adoption Has Been Slow. Beginning July 22, 2016, chargebacks for counterfeit fraud for transactions under $25 will be blocked – meaning issuers will have the liability for this fraud. e. It’s been over a year since the U. • Merchants that do not incorporatedEMV technology will assume financial responsibility for fraudulent transactionseffectiveness in protecting cardholder data and reducing counterfeit, lost and stolen bankcard fraud. 5 – Visa Fraud Monitoring Program 11 . 1. 1 – EMV Liability Shift Counterfeit Fraud 11. This meant that chip-and-PIN. Processing Errors 13. If the transaction is completed at a contact chip-enabled terminal, regardless of how the card data is captured (i. This code indicates a counterfeit card was used to make a purchase from a card-present merchant who didn't scan the card's EMV chip. If the merchant does not authenticate the credit card transaction with a 3D.