Reason Code 81: Fraudulent Transaction – Card Present Environment
The bank received an order receipt where an important information is missing, which indicates a fraud. Situation where either order receipt does not contain cardholder’s signature or clear print of the face of the credit card. Situation where cardholder neither permits to charge nor participates in the transaction.
Most Common Causes
- The merchant did not swipe the card by a magnetic-stripe reader neither inserted the card into a chip terminal.
- The merchant did not take a manual print of the account information on face of the card on order receipt for a key-entered transaction.
- The merchant processed the transaction without the approval of both PIN and/or cardholder’s signature.
- Completed a card-present transaction without obtaining the cardholder’s name and signature on the order receipt.
- For a card present transaction and one or more key entered transaction,provide valid imprint and cardholder’s signature or PIN. Provide evidence that all transactions happened during the same stay, period or trip.
- If the account information was taken from the card’s magnetic strip, , merchant should send authorization record to the issuer as proof that the card’s magnetic strip was read. Also, provide a copy of the order receipt with cardholder’s signature.
- If the account number was manually printed on the order receipt, provide a copy of the it with cardholder’s signature in order to reverse the chargeback.
- If the account number did not match the magnetic strip or obtained manually, accept the chargeback.
- If the cardholder’s signature is not there on order receipt for a card-present transaction, accept the chargeback.
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- Linda goes shopping shopping with her friends. She makes a stop at an ice cream place where she offers to buy ice cream for all the friends. The cashier charges her with the amount but forgets to take her signature on the receipt, also, Linda refuses the copy of the receipt. After a few days she completely forgets that she treated all her friends and is shocked on seeing such a big amount on her bank statement from an ice cream place. So—she decides to dispute the amount under the Reason Code 81: Fraudulent Transaction- Card Present Environment.
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