A fallback transaction happens when the cardholder inserts a chip card into an EMV compliant device but there is a fault with the chip. The device cannot read the chip but allows the cardholder to complete the transaction using the magnetic stripe on the card.
Note: Because the device is EMV ready and there was an attempt to process using the chip, the merchant is not liable for that transaction.
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Tags: chip card, complete transaction, emv, fallback transaction, chargeback transaction, fault with chip