Network
VisaCode
10.1Response window
30 calendar daysWin difficulty
HardDispute type
FraudVisa 10.1 — EMV Liability Shift (Counterfeit Fraud): What It Is and How to Respond
Note: 10.1 is a card-present dispute. Pure e-commerce merchants (no physical locations) will not receive this code.
Visa 10.1 is filed when a counterfeit chip card was used at a card-present terminal that wasn't EMV-enabled. A counterfeit card is a fraudulent copy of a real card, created by copying the magnetic stripe data. EMV chip cards are designed to be difficult to counterfeit — the chip generates a unique code for each transaction that can't be replicated from the magnetic stripe data. When a merchant terminal can read the chip, the counterfeit is detected. When it can't, the counterfeit succeeds and liability shifts to the merchant.
The Visa EMV liability shift means: if your terminal is EMV-capable and reads the chip, the fraud liability stays with the card issuer (it's their card that was counterfeited). If your terminal is not EMV-capable and processes the chip card as a magnetic stripe swipe, the liability shifts entirely to you. This policy has been in effect since 2015 in the US.
Common reasons you received this dispute
- 1Your terminal is magnetic stripe-only and cannot read chip cards
- 2Your terminal is EMV-capable but was in fallback mode (chip read failed, processed as swipe)
- 3A counterfeit chip card was created that bypasses your terminal's chip verification
- 4Your terminal's EMV configuration was inactive or misconfigured
Can you win this dispute?
Fight this dispute if...
- ✓Your terminal was EMV-enabled and successfully read the chip — provide terminal configuration records and the chip authorization in the transaction receipt
- ✓The transaction receipt shows "chip read" authorization (not "swipe" or "fallback")
- ✓Your processor logs confirm chip data was captured
Accept this chargeback if...
- ✗Your terminal is not EMV-enabled
- ✗The transaction was processed as a magnetic stripe fallback
Evidence checklist
- ✅ Required
Terminal configuration log showing EMV capability: Documentation from your terminal or payment processor confirming that EMV chip reading was active and enabled at the time of the transaction.
- ✅ Required
Transaction receipt showing chip authorization (not swipe): The receipt must explicitly show the card was read via chip, not magnetic stripe. Look for “chip read” or equivalent in the authorization method field.
- ⭐ Strongly recommended
Processor logs confirming chip data was transmitted in the authorization: Your acquiring bank or processor can provide authorization detail records showing the EMV chip data (cryptogram, application identifier) was included in the transaction.
Key deadlines
Response window: 30 calendar days from the chargeback notification date.
Locate your terminal configuration records immediately — these may require contacting your payment processor and can take time to obtain.
How to prevent this chargeback
- 1
Upgrade all physical terminals to EMV-capable hardware immediately: Any terminal that cannot read EMV chips exposes you to full liability for counterfeit fraud. This is the single most important step.
- 2
Disable magnetic stripe fallback where possible: Work with your acquirer to disable fallback transactions. While fallback can be legitimate (chip malfunction), it is also a vector for counterfeit fraud and shifts liability to you.
- 3
Audit terminal configuration periodically: Verify that EMV is active across all your terminals on a regular schedule. Configuration changes, software updates, or hardware replacements can inadvertently disable chip reading.
Frequently asked questions
What is Visa 10.1?
Visa 10.1 is filed when a counterfeit chip card was used at a card-present terminal that was not EMV-enabled. The dispute triggers the EMV liability shift — because the terminal could not read the chip, the merchant (not the card issuer) bears the liability for the fraudulent transaction.
What is the EMV liability shift and when did it take effect?
The EMV liability shift is a Visa policy (in effect in the US since October 2015) that transfers fraud liability from the card issuer to the merchant when a chip card is processed at a non-EMV terminal. If your terminal reads the chip, the issuer is liable for fraud. If your terminal cannot read the chip and processes it as a swipe, you are liable.
How do I prove my terminal was chip-enabled?
Provide your terminal configuration log showing EMV capability was active and enabled on the transaction date, and the transaction receipt showing a chip authorization (not a swipe or fallback). Your payment processor can also supply authorization logs confirming chip data was transmitted. All three together make a strong case.
What is magnetic stripe fallback and why is it risky?
Magnetic stripe fallback occurs when a chip card is inserted but the chip read fails, so the terminal falls back to processing the magnetic stripe. This is treated the same as a non-EMV transaction for liability purposes — the liability shifts to the merchant. Fallback transactions are a significant source of 10.1 disputes and should be disabled where your acquirer permits it.
Related reason codes
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