Visa Reason Code 10.2: EMV Non-Counterfeit Fraud

What Visa reason code 10.2 means

Reason code 10.2 is the second of Visa’s two EMV liability shift fraud codes. Where 10.1 covers counterfeit cards, 10.2 covers genuine cards in the wrong hands: lost, stolen, or never received by the cardholder.

The dispute is valid when the card was a PIN-preferring chip card and the transaction took place at a terminal that wasn’t PIN-capable, or where the chip wasn’t used at all. The logic is the same as 10.1. A PIN would most likely have stopped a thief, and the merchant’s equipment didn’t ask for one, so the merchant carries the loss.

10.2 runs through Visa’s allocation workflow. Your acquirer either accepts the liability or contests it through pre-arbitration. There is no separate merchant “dispute response” step as there is in the collaboration codes.

Ecommerce note: 10.2 is card-present only. Online merchants receive stolen-card claims as 10.4. Seeing a 10.2 means the transaction came through a physical terminal.

Common causes

• Terminals that read chips but can’t accept a PIN (common in markets that historically relied on signatures)
• Chip readers bypassed in favor of a swipe
• Unattended terminals configured without PIN entry
• Busy checkout lines where staff override prompts to speed things up

Evidence that wins a 10.2 dispute

As with 10.1, the outcome is decided mostly by transaction data, not by a written rebuttal.

1. Proof the chip was read and the PIN verified: authorization data showing chip entry mode and online or offline PIN as the cardholder verification method.
2. Proof the card was not PIN-preferring, if the issuer’s claim depends on it.
3. Terminal capability records showing the device was EMV and PIN-capable at the time.
4. The transaction receipt matching the disputed amount, date and terminal.

Identity evidence (CCTV, a signed receipt) generally does not override the liability shift if the terminal couldn’t verify the PIN. Ask your acquirer before investing time in it.

How to prevent 10.2 chargebacks

• Deploy terminals that support both chip and PIN, and keep PIN prompts enabled.
• Don’t let staff bypass the chip reader. A swipe on a chip card is the most common route into this code.
• Review unattended terminal settings with your processor.
• For high-value in-person sales, check ID if your local rules allow it.

Should you fight or accept?

Fight only when the data shows the chip was read and a PIN was verified, which means the liability shift should not have applied.

Accept in most other cases. If the terminal couldn’t take a PIN, the rules put the loss on the merchant regardless of how carefully staff handled the sale. Treat a run of 10.2s as an equipment problem: the fix is a terminal upgrade, not better rebuttal letters.

For an overview of every Visa fraud code, see our Visa chargeback reason codes guide.