We have a client stating that they did not make a transaction that was initiated using a Mastercard Enhanced Verification Code. Mastercard is saying the transaction was not fraudulent since the Enhanced Verification Code was used. Can a bank deny this dispute using the same reason that Mastercard denied the claim?

What is a Mastercard Enhanced Verification Code. You mean the three-digit code from the back of the card?

It is my understanding that it is a code that is sent by Mastercard to the customer's phone or email address and entered as part of the transaction to ensure that the person completing the transaction is the person receiving the code. It is not the CVV code.

Just playing devil's advocate here. Use of Mastercard EVC only means the person making the transaction had access to the cardholder's email (or had hacked the account and changed the email). It doesn't mean the cardholder made the transaction (but does make it more likely, IMO). Mastercard says the cardholder's financial institution also has access to the code.

Mastercard Secure Code FAQ

You ability to recover funds via the Mastercard chargeback process is irrelevant with respect to your obligation to reimburse your customer if a transaction is unauthorized. As InFairness correctly points out, the information needed to initiate a purchase using this verification method can still be phished, hacked, or otherwise compromised. This is not adequate evidence to prove that the consumer authorized the transaction.

That was the direction that I was going as well. Thank you for your response.