Reduce Fallback Errors

Protect Your System and Pocketbook by Reducing Fallback Errors from Credit Card Transactions

Credit card brands are constantly monitoring transactions for fraud and loop holes that criminals take advantage of.  To protect everyone in the payment chain (card-holder, merchants, software companies, and processers), credit card brands update their policies and security frequently.

Some credit card brands have started charging additional fees for fallback errors.  For example, Mastercard now charges an EMV Performance Noncompliance fee for fallback errors that are greater than 1% of a merchant's total Mastercard transactions per month per location.

Merchants can also lose revenue and chargeback rights because of fallback errors. 

One way to reduce criminal activity, revenue loss, and fees, is to reduce fallback errors.  In a nutshell, most fallback errors occur when a chipped card is swiped at a chip-capable terminal instead.  They can occur due to:

  • Swiping a chipped card
  • Faulty devices
  • Not having up-to-date point of sale software
  • Someone not putting their card all the way in the machine and then swiping
  • Chip malfunctions on a card, so the card is swiped instead

Don’t let fallback errors affect your bottom line.  Implement procedures with staff to fix the above fallback occurrences.  If a system upgrade is needed, contact us and we will gladly help.