Skip to content
NoChargeback

Discover reason code UA01 and how to answer card present fraud disputes

Discover reason code UA01 (Fraud, Card Present Transaction) means the cardholder told the issuer they did not authorize a purchase made in person with a physical card. It applies to in store, counter and terminal sales, not online checkout, and the outcome usually depends on how the card was read at your terminal.

Draft my evidence See pricing

Read and dispute permissions only. We never move your money.

Analyst sorting printed dispute notices, an invoice and a delivery receipt into an evidence pile

What Discover reason code UA01 means

The issuer files UA01 when a cardholder reports a face to face transaction as fraudulent, for example after a lost, stolen or counterfeit card was used. Discover follows the EMV liability shift. If a chip card was read by its chip on a chip capable terminal, liability generally stays with the issuer. If a chip card was swiped or keyed on a terminal that could not read the chip, liability usually moves to the merchant. If you sell only online, a fraud dispute on your account is more likely UA02.

Typical triggers for a UA01 chargeback

  • A counterfeit magnetic stripe card swiped on a terminal without chip support.
  • A lost or stolen card used at the counter without PIN or identity checks.
  • A card number keyed in by staff when the card was not read at all.
  • Fallback to swipe after a chip read failed, without further verification.
  • A cardholder who does not recognize the merchant name printed on the statement.

Time limits for Discover UA01

The cardholder typically has around 120 days from the processing date to dispute the charge. Your response window is set by your processor and is often between 7 and 21 days. In Stripe the exact deadline appears as the evidence due date on the dispute. A missed deadline loses the dispute automatically.

Evidence that wins a UA01 dispute

  • The terminal record showing the card was read by chip or contactless, with the POS entry mode.
  • PIN verification or the cardholder signature on the receipt, where captured.
  • Proof the terminal was EMV capable on the transaction date.
  • The transaction receipt with date, time, amount and last four card digits.
  • Staff notes, ID checks or video records for high value sales, where your policy allows.

What to avoid when you respond

  • Do not rely on a generic statement that the sale looked normal. The issuer needs terminal data.
  • Do not refund after the dispute is opened, because the funds are already withdrawn.
  • Do not submit evidence for the wrong sale when several happened close together.

How to prevent Discover UA01 chargebacks

  • Use chip and contactless capable terminals at every point of sale.
  • Train staff not to key card numbers or fall back to swipe without extra checks.
  • Ask for ID on high value in person orders.
  • Keep receipts and terminal logs for at least the full dispute window.

How UA01 appears in Stripe

Stripe usually shows Discover UA01 disputes with the reason fraudulent, and the network reason code field on the dispute carries UA01. NoChargeback reads both, pulls the card read method and receipt data available on in person charges, and builds the evidence pack with the matching Stripe fields filled in. Read more on Stripe chargeback protection and fraud prevention for online stores.

Rebuttal letter opening for Discover UA01

We are responding to the dispute filed under Discover reason code UA01. The transaction took place in person on an EMV capable terminal, and the card was read by its chip, as shown in the terminal record below with its entry mode, date, time and amount. Under Discover rules this places fraud liability with the issuer, and the receipt confirms the card was present at the sale.

Draft my evidence

Does UA01 apply to online sales?

No. UA01 covers card present transactions made in person. A fraud dispute on an online, phone or mail order purchase usually arrives as Discover UA02.

Can a merchant win a Discover UA01 chargeback?

Yes, most often when the card was read by chip on an EMV capable terminal, because liability then generally stays with the issuer. Swiped or keyed sales are much harder to defend.

Should I refund a UA01 dispute?

Not after the dispute is filed, because the funds are already withdrawn. If you learn of a stolen card before a dispute exists, a refund can cost less than the chargeback and its fee.