Discover has announced that it will no longer allow merchants to use a card imprint as a defense against a chargeback. Merchants have the choice to accept a key-entered transaction or request a different form of payment.
As a result of this change, Discover has also updated its Dispute Rules:
- Issuers can longer use UA02 – Card Not Present Fraud on In-App tokenized card sales when an “authentication successful” CAVV result was received.
- CAVV results, when present in authorization, must be submitted in settlement to avoid loss of dispute protection.
Merchants will benefit from added protection during In-App card sales when fully authenticated, and should be aware of increased liability for key-entered transactions and make decisions accordingly.