Discover Reason Code UA12

Discover Chargeback Reason Code UA12: Swiped Card Transaction – Invalid Signature

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Description

The UA12 is the sub-Reason Code of UA10, assigned by Discover Card Network where a dispute initiated as a UA10 Retrieval Request and Discover Card Network finds that the transaction receipt provided by the merchant reveals signature of cardholder does not match with signature included in the signature block on the back of the Card that was used in the Credit Card Sale at the POS.

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Most Common Causes

• Cardholder’s signature on the transaction documents did not matched with the signature on the back of the card used at the time of purchase at the POS terminal.
• Cardholder finds the credit card sale as fraud.
• Merchant did not obtain the authorization from the cardholder during processing the transaction at POS terminal.
• Credit Card imprint is not legible and/or does not having all the security features.
• Transaction documents are illegible.

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Evidence Required

• Merchants or acquirers must sendMerchants or acquirers must send response documentation within the timeframe.
• Transaction Documentation that includes a full and legible print of all security features required to be embossed on the Card and a valid, legible sign of the Cardholder or an Authorized User.
• Transaction Documentation that includes correct signature of cardholder.

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Prevention

• Merchant should obtain cardholder’s authorization at the time of sale.
• If electronic machine or the terminal cannot recognize/read the card’s magnetic strip, request authorization by key entering the account number. Be sure the key-entered account number matches the account number on the card. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.
• Suppose your terminal is not working, ,call your center for authorization approval and mention approval code on the order receipt in the space provided. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.
• If you have done payments by phonethen you should confirm or verify the account number again to your customer.

Common Examples

1. Linda goes 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 Linda does a fraudulent signature, as it’s her mother’s card. After a few days, her mother checks her account and sees such a big amount on her bank statement from an ice cream place. Being unaware of the charge she contacts her bank and puts a dispute under the Reason Code UA12: Swiped Card Transaction – Invalid Signature.