What characterizes a counterfeit card?

A counterfeit card is characterized by improper production methods that allow it to appear genuine even though it is not. This involves either the card being poorly printed or encoded in a way that mimics legitimate cards, making it difficult for merchants and consumers to discern authenticity at first glance. Counterfeit cards typically lack the security features and legitimate data that are present on authentic cards, thereby highlighting the importance of detection methods in payment processing.

Counterfeit cards represent a significant risk in the payments ecosystem, as they are often used in fraudulent transactions. Understanding the features that define a counterfeit card is essential for payment professionals to implement effective anti-fraud measures.