4870 – Chip Liability Shift

Dispute Condition Code




Message System

Why did I get this chargeback?

The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant, rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.

How long can the issuer wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof the transaction was authorized and the valid card was not an EMV chip card, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Only use EMV-compliant terminals.
  • Always use the correct cardholder verification method—signature, PIN, etc.
  • Create an electronic or manual imprint for every card-present transaction.

More MASTERCARD Reason Codes

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