TC40 data is information reported by issuing banks each time a consumer makes a fraud claim. Issuing banks report TC40 data to the merchants’ acquiring bank, other issuing banks, and card brands like Visa and MasterCard.
Each TC40 claim includes data about the merchant, the banks involved with the transaction, when and where the transaction occurred, and other details. Visa collects TC40 data under what it calls the Risk Identification Service (RIS). MasterCard dubs its TC40 data collection, in part, the System to Avoid Fraud Effectively (SAFE) report.
TC40 reports should not be confused with chargebacks. Chargebacks occur when the issuing bank requires a merchant to return funds when a charge is under dispute. If, and only if, the transaction is revealed as fraud, the issuing bank must file a TC40 claim.