Reason Code UA06 — Fraud – Chip & PIN Transaction

You've received a chargeback from Discover, identified by the reason code “UA06.” It's important to understand what this code means, how it impacts your operations, and the best practices for safeguarding your financial transactions.

In this guide, we will explore the significance of Discover's UA06 chargeback reason code. We'll provide straightforward guidance on identifying the underlying problem and offer effective solutions to resolve it.

What is Discover Reason Code UA06?

Discover chargeback reason code UA01 is “Fraud – Chip & PIN Transaction.” It’s used when a counterfeit or stolen card is used to make a purchase at an EMV chip-enabled terminal.

In simple terms, it means that the cardholder says a card-present transaction was conducted without their knowledge, authorization, or consent. The transaction involved a chip card that defaults to requesting a PIN, but the transaction happened at a point-of-sale device that either allowed the PIN option to be skipped or wasn't set up to verify a PIN at all.

What Caused This Dispute?

An issuer can request a chargeback using reason code UA06 if the chip payment device requires PIN entry, and no PIN is entered because the point-of-sale device lacks PIN capability at the time of purchase.

A ticket retrieval request is not required to file a reason code UA06 chargeback. But, the issuers has the option to submit a retrieval request, then switch to a UA06 chargeback if needed.

Discover specifies that reason code UA06 is not applicable in any of the following scenarios:

• The transaction occurred using a chip card with a PIN entered at a terminal that supports PIN verification.
• A fallback transaction was processed, as shown in the authorization request.
• The authorization request included a PIN entry bypass.
• The card was not physically present during the transaction.
• The chip card transaction wasn't executed with a contact chip payment device.
• The transaction was a cash advance at an ATM.
• An ATM allowed a card transaction to proceed without requiring a PIN.

How to Respond to Discover Reason Code UA06 Chargebacks

If you believe a chargeback is unwarranted, you have the right to contest it through a process known as chargeback representment.

This involves carefully gathering documentation to prove the original transaction was legitimate. Your evidence must be specific to the corresponding reason code, though.

It’s important to act fast; you typically have only 20 days to submit your documentation. And, this period may be even shorter, according to your payment processor's regulations.

Once your representment package is prepared, it is sent to Discover for evaluation. They will then decide whether to reverse the chargeback or uphold it.

Learn more about representment

Acceptable Evidence for Discover Reason Code UA06 Responses

Like we alluded to above, Discover is not just going to take your word for it. If you want to submit a response, you’ll need evidence.

You need documentation proving that the transaction in question was not fraudulent. For reason code UA06, acceptable evidence can include:

• A signed purchase agreement or contract showing the cardholder authorized the transaction.
• A copy of the receipt showing the transaction was EMV-validated.
• A transaction log from the point-of-sale system indicating EMV chip usage.
• A copy of the authorization response code confirming the use of an EMV-certified terminal.
• Configuration reports showing the terminal was EMV-enabled at the time of purchase.
• A signed customer receipt that specifies the transaction was processed through an EMV chip reader.
• Relevant screenshots or printouts from the payment processor verifying EMV compliance.

Don't forget: Justifying your case in Discover’s eyes is gonna demand precise evidence. We suggest you keep these practical suggestions in mind while preparing your representment package:

• Make sure all your records are easily understandable and crisp
• Simplify the verification process by emphasizing or noting down crucial details on the documents
• Carefully label and classify each document submitted as part of your response
• Include a brief note or summary explaining the evidence against the reason code
• Steer clear from the inclusion of nonessential or redundant documents

How to Prevent Discover Reason Code UA06 Chargebacks

Submitting a response to an invalid chargeback is good. But, it’s even better if you can prevent that chargeback from happening in the first place.

So, how do you do that? Well... you submit transactions on time, of course.

Alright, fine. If you’re looking for something a little more prescriptive, here are some steps you can take to avoid late presentation chargebacks in the future:

At Chargebacks911®, we understand the complexity of managing multiple responsibilities at once.

Balancing client satisfaction, service efficiency, and chargeback prevention is challenging. Insufficient expertise or inadequate systems can harm your reputation and lead to significant issues. Therefore, it's essential to proactively prevent chargebacks.

Feeling overwhelmed by the demands chargeback management? Chargebacks911 is at the forefront of chargeback prevention and representment, ready to provide a free ROI analysis today.