Visa Chargeback Reason Code
Visa Reason Code 10.1: EMV Liability Shift Counterfeit Fraud
Category FraudBy Payment Defender Editorial TeamUpdated July 17, 2026Last reviewed July 17, 2026
What Visa Reason Code 10.1 Means
Visa reason code 10.1 applies when a counterfeit card was used in a card-present environment and the transaction was processed in a way that shifted fraud liability to the merchant or acquirer under Visa's EMV chip liability rules.
Why This Chargeback Happens
This dispute commonly occurs when a counterfeit chip card is presented at a terminal that was not chip-enabled, or when a chip transaction was not completed as a full EMV read and fallback to magnetic-stripe processing was used without proper handling.
What the Cardholder or Issuer Is Claiming
The issuer claims the transaction was made with a counterfeit card and that the point-of-sale environment did not meet Visa's chip acceptance requirements, so liability rests with the acquiring side.
What Merchants Should Review
Review the terminal's EMV capability, the entry mode captured in the authorization message, whether a full chip read occurred, and whether the transaction fell back to magnetic stripe. Confirm that chip data was transmitted when the card and terminal both supported it.
Recommended Chargeback Evidence
- Authorization records showing the terminal entry mode and chip read status
- Documentation that the terminal was EMV chip-enabled at the time of the transaction
- Terminal configuration or certification records
- Any evidence the chip was read and cryptogram data was transmitted
How to Prevent Similar Disputes
Counterfeit liability disputes may be reduced by deploying and maintaining EMV chip-capable terminals, ensuring chip transactions complete as full EMV reads, and limiting improper magnetic-stripe fallback where a chip is present.
Important Limitations
This page is educational and reflects common industry usage. Visa dispute rules, timelines, and evidence requirements change over time and vary by dispute condition. Merchants should confirm current requirements with their acquirer or processor before responding to any dispute.
Relevant Payment Defender Products
AlertBridge™
AlertBridge™ may help merchants intercept fraud disputes as alerts before they become chargebacks.
Explore AlertBridge™
Related Reason Codes
Sources and Review Information
- Visa: Visa Merchant Dispute Management Guidelines
- Visa: Visa Core Rules and Visa Product and Service Rules
Last reviewed July 17, 2026
Chargeback rules, evidence requirements, and response options may vary by card network, region, processor, and dispute circumstances.