Chargeback Reason Code 62: Counterfeit Transaction

Chargeback Reason Code 62 occurs when the card issuer receives a written complaint from the cardholder claiming that he or she was in possession of the card on the date of transaction and that he or she did not authorize or participate in the transaction. The most common causes for Reason Code 62 chargebacks are that the merchants fail to compare the first four-digits of the embossed account number on the card with the pre-printed digits below the embossed number for a card-present transaction or that they receive authorization without transmission of the entire magnetic stripe. Merchant Actions.

• Back-Office Staff Actions. If the card was swiped and transaction authorized at the point of sale, you should provide your merchant bank with a copy of the printed sales receipt. If the transaction was fraudulent, you should accept the chargeback.
• Point-of-Sale Staff Actions. Point-of-sale personnel should check all card security features before completing the transaction. In particular, the first four digits of the embossed account number on the card should match the printed four-digit number below the embossed number. If the numbers do not match, you should make a Code 10 call. You should also look for other signs of counterfeit, such as embossed numbers that are blurry or uneven, or ghost images beneath the embossed numbers, indicating that they have been tampered with. If you key-enter a transaction because the magnetic stripe cannot be read, you should make an imprint of the front of the card either on the printed sales receipt or a manual sales receipt form, which should be signed by the customer.