Understanding American Express Chargeback Reason Code F10: Missing Imprint

Reason code F10 sits in the fraud category. It is raised if a cardholder claims they didn't authorise a card-present transaction. This usually happens when a merchant keyed in the card details, but didn't get an electronic or physical imprint. The merchant is therefore liable unless they can prove the card was present or show evidence that it was a legitimate transaction. Or, they can supply evidence that the transaction qualified under an exemption program.

Key Takeaways

• What it means: A customer denies authorising a card-present transaction. The merchant has not proved the card was present.
• Causes: Faulty terminals or POS systems. Damaged cards. Incorrect processing by the merchant.
• How to respond: Supply a physical or digital imprint, show it was a valid CNP transaction, or that it was valid under the Keyed No Imprint Programme
• How to prevent: Capture chip or magnetic swipe data. If you have to key the details, take a physical imprint.

What is an American Express Reason Code F10 Chargeback?

The F10 chargeback sits in Amex's Fraud category. It is raised when a cardholder denies that they actually approved a purchase that was processed as card-present. The shorthand "Missing Imprint" indicates that the merchant never captured a physical or digital imprint of the card. That means they have no proof it was present, which leaves them exposed to disputes. F10 is not used for card-not-present transactions that were correctly identified. Neither does it apply to transactions qualifying for the Keyed No Imprint Programme. Proof that the transaction did qualify for this programme is therefore a valid defence. 

Primary Causes for a Code F10 Chargeback

There is a range of different root causes that may result in an F10 chargeback being issued. The most common ones fall into five broad categories. Technical failures are a frequent source of these chargebacks. If the POS terminal can't read the card's chip or magnetic stripe, staff sometimes revert to keying in the details. Secondly, damaged cards – if the chip or stripe has suffered physical damage and can't be read, staff may again key in the information.

Third is merchant error, where a card-not-present transaction is incorrectly processed as card-present. This might be a mail order, telephone sale or online purchase. The final two causes are types of fraud. Friendly fraud crops up when the actual cardholder makes a purchase but disputes it later. If they realise the merchant didn't take an imprint, they may think they can secure a refund they are not entitled to. There's also genuine fraud: criminals use stolen card details and persuade staff to key them in, even though they don't have the card.

Time Limit for Disputing an American Express Reason Code F10 Chargeback

From receiving the notification of an F10 chargeback, you have 20 days to put together a response. This time is measured from when you are sent the notification, not when you first read it. It's vital to check any notifications as soon as they come in to avoid delays. If you don't reply within the 20-day limit, you will almost always lose the case by default. It's therefore best practice to have a defined person or team to spot incoming claims and manage the response. End-to-end, the process usually takes between 40 and 60 days, including the time taken for Amex to make its decision.

What F10 Means for Consumers & Issuers

For customers, this type of chargeback keeps them safe from anyone using their card details in a situation where their card wasn't present. It reassures them that if they spot this type of transaction, the issuer is ready to act on their behalf. Once they have raised the dispute, the issuer will provisionally credit them the amount, so they're not out of pocket. For issuers, it's a notice to review the details of the transaction and assess if the correct procedures were followed. Issuers rely on merchants to be able to provide compelling evidence. If that's not available, the issuer will almost always rule in favour of the cardholder.

What F10 Means for Merchants

For merchants, code F10 has an immediate impact: loss of funds. But there are also a number of knock-on effects. Dispute processing fees add to the overall cost. Multiple F10 codes damage the merchant's relationship with American Express, which may mark them as high-risk. As a result, the merchant may lose eligibility for the Keyed No Imprint Programme or lose card acceptance rights altogether. 

How to Respond to a Code F10 Chargeback

Responding effectively to an F10 chargeback relies on good record-keeping and prompt action. As soon as a chargeback notification arrives, you need to start gathering all the relevant documentation and labelling it clearly. Make sure all evidence is in the correct format as defined by your acquirer. The exact proof you need to supply depends on the circumstances of the chargeback. 

• For legitimate card-not-present sales: evidence it was processed correctly such as proof of a telephone or mail order.
• For Keyed No Imprint Programme sales: evidence the conditions were met, such as a CID match or proof of cardholder presence.
• For already refunded transactions: proof of the credit posted to their account.

Proactive Prevention: The Ultimate Defence

The majority of code F10 chargebacks are easily avoidable with the right processes in place. It's much better to prevent them at the source than fight them later. Always use EMV-compliant terminals for chip card purchases. Make sure staff know how to handle transactions if the chip or magnetic stripe can't be read. Use a manual imprinting device to capture card details if you have to manually key them in. And remember that this should be a last resort: only used if no other payment method is available. 

If you process a lot of manually keyed in-person transactions, join the American Express Keyed No Imprint Programme (if you haven't already). Finally, to get early warnings of cardholders raising disputes, try out chargeback alerts. These alerts give you valuable extra time to contact the cardholder and resolve issues, which can prevent a formal chargeback. This saves both time and money in the long run.

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