TC40 FAQ

What are TC40 and SAFE?

Visa and Mastercard have fraud reporting programs, TC40 and SAFE, respectively. When a cardholder reports a transaction as fraudulent, their issuing bank files a TC40 or SAFE report, which is then sent to the card network and the merchant's bank. These programs track data related to fraudulent transactions, providing insights that can help merchants understand and mitigate fraud risks.

Where do I find these fraud reports?

Fraud reports are identified by Event Code Z. You can find them in Express Stats (if configured) and within the Gateway Admin.

How should I handle a fraud-reported event?

Upon receiving a fraud report (Event Code Z), carefully assess the transaction and customer for potential fraud. The appropriate action depends on your risk tolerance and business model:

  • High-Risk Digital Goods Providers (e.g., subscription-based websites): Recommended actions include immediately canceling any associated subscriptions, blocking the customer's information, and considering reversing the transaction to avoid a chargeback.

  • Other Merchants: Recommended actions include considering reversing the transaction to avoid a chargeback and reviewing all related customer transactions, reversing them as needed.

How do fraud reports help prevent chargebacks?

While these reports don't directly prevent chargebacks, they offer valuable insights for merchants:

  • Fraud Pattern Identification: Analyzing the data can reveal patterns or trends in fraudulent activity, helping you identify vulnerabilities in your system.

  • Card Testing Detection: Analyzing the data can uncover card testing fraud, which involves small, unauthorized transactions that might otherwise go unnoticed.

  • Fraud Prevention Enhancement: The data can be used to refine fraud prevention tools and strategies, improving your overall risk management.

  • Issuer Risk Assessment: Issuing banks use this data to assess the fraud risk associated with merchants.

How do TC40 reports impact merchants?

The data in these reports is used to identify merchants with high fraud levels, potentially leading to enrollment in Visa and Mastercard excessive fraud programs. Actively monitoring your fraud reports is crucial for proactive risk management.

Do all fraud reports result in chargebacks?

No. A fraud report indicates a fraud claim was made, but not all claims become chargebacks. However, a high percentage of fraud reports are followed by chargebacks. Therefore, it is recommended that you review these reports promptly and take action to prevent potential losses.

Where can I find more information about TC-40 and other event codes?

Refer to the Appendix for Event Codes in the Gateway Integration Guide for a comprehensive list of event codes and their meanings.