Chip Condition Code is a code carried in the F60 (Additional Data) DE14 field in clearing transactions, indicating the chip read status.
The values that can be sent in the Chip Condition Code field and their descriptions are below:
| Chip Condition Code | Description |
| Blank | Unknown |
| 0 | Non-chip card read at chip terminal (Non Chip Card Read At Chip Terminal) |
| 1 | Last chip read was successful (Last Chip Read Was Successful) |
| 2 | Last attempted chip read failed (Last Attempted Chip Read Failed) |
Why does it appear in the clearing record?
Chip Condition Code carries information into the clearing record about whether the card is chip-enabled and whether the chip was read successfully. This information is especially important when evaluating transactions made using the magnetic stripe of a chip-enabled card.
Fallback transactions
When a chip-enabled card is read via its magnetic stripe at a chip-enabled terminal, this is called a "fallback" transaction. Fallback transactions are considered risky because they are frequently seen in fraud attempts involving counterfeit magnetic-stripe cards. A code value of 2 indicates that the terminal first attempted to read the chip but failed. This information shows that the transaction was genuinely carried out via the magnetic stripe because of a chip malfunction.
Liability shift
According to card scheme rules, if a fraudulent transaction made with a chip-enabled card occurs at a terminal that does not support chip, liability generally shifts to the merchant's acquiring bank. Chip Condition Code is one piece of evidence showing how the transaction was carried out in such disputes.
Related fields
Chip Condition Code is evaluated together with the F22 (POS Entry Mode) field. F22 shows which method was used to read the card data, while Chip Condition Code shows the result of the chip read attempt.
