4871 – Chip Liability Shift – Lost/Stolen/Never Received Issue (NRI) Fraud

Dispute Condition Code




Message System

Why did I get this chargeback?

A chip card was issued, but the cardholder claims not to have possession of it. You processed a transaction without obtaining the cardholder’s PIN, and 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 completed with chip and PIN or the transaction was completed with chip but wasn’t PIN-preferring, 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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