What is a fallback transaction?

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 does not take on liability for that transaction.

Modified on: Thu, 8 Nov, 2018 at 8:57 AM