A TC40 data claim occurs when a customer makes a fraud claim against a merchant. The issuer generates a claim, then transmits it to the merchantâs acquirer, as well as to the card networks like Visa and Mastercard, as a means of noting all reported fraud incidents tied to the merchant. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud claim against their business. In addition, the TC40 data report will contain internal communication data shared between banks and credit card companies.

What data is included in a TC40 report?

A standard TC40 data claim report includes a few key elements. These include: merchant identification information, the banking information attached to both the cardholder and the merchant, and transaction details (where the transaction took place, items purchased, etc.).

Can merchants view TC40 data?

Maybe, but it isnât likely. Merchants will not typically be notified when an issuer generates a TC40 claim. You can request a report from your acquirer, but neither your acquirer nor your processor is required to share TC40 reports with you. TC40 reports are often massive files, which can make them difficult to transmit and review. Also, the report will contain descriptor items (for internal use by banks and card networks), which can be confusing.

Do TC40 reports bear consequences for merchants?

Depending on the frequency and severity of the fraud claims levied against that merchant, banks may decide to warn the merchant of their impending high-risk status or simply eliminate that merchantâs ability to process payments at all. Unlike chargeback notifications, banks and card networks are not required to share any of this information with you, the merchant. Odds are that you might not be aware that youâre at risk of losing your payment privileges until itâs already too late.

Does TC40 data help prevent chargebacks?

Not really. Also, to be clear, TC40 chargebacks donât exist, and TC40 data doesnât really have an effect on chargebacks one way or the other. TC40s are sometimes misinterpreted as a way to proactively prevent chargebacks. But, as we outlined above, theyâre cumbersome and usually inaccessible, and are not a reliable chargeback indicator. Also, while TC40 data claims are usually released within a few days after a fraud report, they donât stop chargebacks from being filed.