Chargeback Reason Code 62: Counterfeit Transaction
In general, the Visa reason codes are pretty easy to understand. The titles aptly describe what went wrong with the transaction. However, some aren’t as self-explanatory as others. Visa chargeback reason code 62 is one situation where the explanation might not be totally clear.
Visa Chargeback Reason Code 62 Explained
Cardholders can file a counterfeit transaction chargeback if they didn’t participate in the transaction. This reason code applies to card-present (or face-to-face) transactions.
Unlike card-not-present fraud where the criminal only has to access the credit card number, a counterfeit transaction requires an actual card to swipe. The fraudster will alter the account information on a card to facilitate this counterfeit transaction. Sometimes, hackers acquire credit card information and then manufacture their own replica card with the stolen data.
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Common Causes for Counterfeit Transaction Chargebacks
There are only two reasons why a counterfeit transaction chargeback would come about:
- The merchant failed to notice signs the card had been tampered with.
- The merchant received authorization for the transaction, but the approval wasn’t based on all the required information.
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Disputing Reason Code 62 Chargebacks
- If the card was swiped and the transaction authorized, send a copy of the sales receipt to the acquiring bank.
- If the merchant received authorization for the transaction but it was based on insufficient data, accept the chargeback.
- If the card had been tampered with and a counterfeit transaction did occur, accept the chargeback.
Preventing Visa Chargeback Reason Code 62
Chargeback management is two-fold. If there aren’t many representment options, prevention is especially important.
Here are some ways to help prevent Visa chargeback reason code 62.
- Avoid the credit card processing fallback options whenever possible. For example, a chip-and-PIN EMV card should not be swiped or key entered unless absolutely necessary.
- Always make a manual imprint for key entered transactions.
- Make sure the authorization is based on all the essential transaction information.
- Always check the credit card account information. The first four embossed digits of the credit card number should match the four digits printed below.
- Check to see if the embossed account number matches what appears on the terminal after swiping or dipping the card.
- Blurry or uneven account numbers could mean the card has been tampered with.
- Watch the shopper’s behavior. If the shopper is acting suspicious, it might be a sign there is something inappropriate happening.
- Carefully monitor self-checkout kiosks. These are prime opportunities for fraudsters to commit counterfeit transactions if employees aren’t checking card security features.
- Train employees to on how to perform a code 10 authorization request. A phone call, with yes-no questions, will help the employee detect potential fraud safely.
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Determined fraudsters are everywhere. By constantly being on the lookout for suspicious behavior and implementing business best practices, merchants can avoid a lot of unnecessary profit loss.