Understanding American Express Chargeback Reason Code F31: EMV Lost/Stolen/Non-Received

When American Express flags a transaction under Reason Code F31, it signals suspected fraud involving an EMV chip-and-PIN card that was lost, stolen, or never received. The code is applied when the purchase was not processed as a proper chip-and-PIN transaction. Liability often shifts to the merchant if EMV and PIN verification were bypassed.

Key Takeaways

• What it means: A chip-and-PIN card was reported lost, stolen, or not received. The purchase was not processed with EMV and PIN.
• Causes: Magstripe or manual entry. PIN not captured. Non‑EMV terminals. Misclassified transactions.
• How to respond: Prove proper EMV use with PIN. Prove the sale was card-not-present with checks. Show a refund was given.
• How to prevent: Use EMV chip-and-PIN. Avoid fallback methods. Classify sales correctly.

What is an American Express Reason Code F31 Chargeback?

Reason Code F31 sits in American Express’s fraud category. It applies when a cardholder disputes a transaction because their chip-and-PIN card was lost, stolen, or never received. The payment made on that card did not follow chip-and-PIN processing. In short, the issuer believes the purchase should have been blocked by EMV and PIN validation, but it was not. That often points to a swipe or manually keyed entry on a card that should have been “dipped” with a PIN.

This code is typically linked to card-present transactions involving EMV cards. However, it can also arise in cases where a card was not received, and the credentials were used elsewhere. It is not meant for contactless payments, digital wallet transactions, or purchases covered by a No PIN programme.

Primary Causes for a Code F31 Chargeback

The most common driver is bypassing EMV and PIN. That includes swiping the magstripe, manually keying the card number, or using a terminal that cannot read chips. Even a chip read that fails, followed by a manual fallback without appropriate checks, can lead to this code. This happens if the cardholder later reports the card lost, stolen, or never received.

Another cause is misclassifying the sale type as card-present but cleared as card-not-present, or vice versa. American Express and issuers may then infer that the wrong security controls were applied. Staff choosing speed over proper processing also increases exposure. A card intercepted in the post or taken from the cardholder’s possession is a typical fraud path. Or, a family member or acquaintance uses the card without consent, and the cardholder denies the purchase. In each scenario, the key factor is that the chip-and-PIN safeguards were not used.

Time Limit for Disputing an American Express Reason Code F31 Chargeback

The stated time limit to respond to an F31 chargeback is 20 days. That window includes time for your acquirer to receive the case, inform you, review your evidence, and submit the response. In practice, the merchant’s working time may be much shorter, often a single‑digit number of days. Plan to act immediately upon receipt.

Your response should aim to prove either that the transaction was processed as a valid EMV chip-and-PIN sale or that it was a card-not-present transaction with appropriate verification. Submitting partial or late evidence risks losing the dispute. This affects recovery and can raise your overall dispute ratio. Missing the deadline will usually mean the chargeback stands, and the funds remain with the cardholder.

Build a repeatable process to gather receipts, terminal logs, and order data within hours, not days. Coordinate with your acquirer on cut-off times, acceptable formats, and any case-specific requirements. Quick, complete replies help protect revenue and reduce the chance of secondary disputes.

What F31 Means for Consumers & Issuers

For consumers, F31 reflects the protections tied to chip-and-PIN cards. If their card goes missing or never arrives, and a purchase posts without proper PIN validation, the cardholder can dispute the charge. Consumers should report lost or stolen cards quickly and monitor statements. They may receive a provisional credit while the issuer reviews evidence from the merchant.

For issuers, F31 signals a likely breakdown in EMV controls. The issuer will check authorisation records, EMV data elements, and how the transaction was classified. If the purchase was not processed as a chip-and-PIN transaction when it should have been, liability stays with the merchant. If the sale was card-not-present, the issuer considers whether the merchant followed standard CNP checks. Issuers must confirm that F31 is the right category before filing. 

What F31 Means for Merchants

F31 is a signal to review your point-of-sale setup and procedures. If you routinely swipe, manually key, or allow fallback when a chip is present, you increase the risk of fraud and shift liability to your business. Over time, repeated cases can damage your standing with issuers and card schemes. This can increase operational costs and threaten your ability to accept cards.

Check that every terminal is EMV-capable, chip readers are functioning, and PIN prompts are active and visible. Train staff to “dip the chip” and never default to magstripe or manual entry unless there is an acceptable reason. In these cases, carry out the proper checks and authorisation. Record why any fallback occurred.

For online or telephone orders, classify the sale as card-not-present and apply layered verification. Keep clear records linking the cardholder to the order: AVS/CVV results, device indicators, delivery signatures, and communications. Good data helps protect revenue and strengthens your position if you need to challenge a dispute. In short, apply the right controls for the transaction type and document what you did.

How to Respond to a Code F31 Chargeback

Start with the 20‑day time limit in mind and prioritise your response. Gather and submit evidence that shifts liability away from your business. For card-present sales, provide proof that you processed the payment via EMV with PIN validation. Useful items include the transaction receipt, EMV data (such as TVR/TSI), terminal logs showing a successful chip read, and confirmation that a PIN was captured. If a fallback occurred, explain why and include the authorisation response and any extra checks performed.

For card-not-present transactions, show that the purchase was CNP and that you applied suitable verification. Submit AVS and CVV results, 3-D Secure data if used, device or IP information, order confirmation messages, delivery confirmation, and any signed proof of receipt. If you have already issued a credit, include the credit memo and settlement details. If you don't have solid evidence in your favour, it's usually best to accept the chargeback without delay, which helps reduce unnecessary costs.

Proactive Prevention: The Ultimate Defence

The most effective way to protect revenue is to stop disputes at source. In-store, read the chip and capture the PIN on every eligible card-present sale. Do not switch to a swipe or keyed entry unless scheme rules allow it and extra checks are applied. Keep terminals updated and well-maintained, and record any fallback with a clear reason. Train staff to classify transactions correctly during clearing. You can also try out Chargeback.io to be notified of incoming disputes before they become formal chargebacks.