Reason code

This code is used when a cardholder disputes a transaction, alleging that a counterfeit chip card was used fraudulently. This typically occurs when a merchant processes a chip card transaction without adhering to EMV standards, such as by using a magnetic stripe instead of a chip reader, leading to potential liability for counterfeit fraud.

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To address a chargeback under reason code 4866:

• Provide Evidence of EMV Compliance: Submit documentation demonstrating that the transaction was processed using a chip-enabled terminal and that the chip on the card was read successfully.​
  
  
• Transaction Logs: Include logs from the point-of-sale system indicating that the chip data was captured and the transaction was authorized.​

• Authorization Details: Provide records showing that authorization was obtained from the issuer at the time of the transaction.

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To minimize the occurrence of retrieval requests under reason code 4866:

• Ensure EMV Compliance: Upgrade all point-of-sale terminals to be EMV-compliant and ensure they are properly configured to read chip cards.​
  
  
• Train Staff on EMV Procedures: Educate employees on the importance of using chip verification and the proper handling of chip cards during transactions.​
  
  
• Monitor Transactions for Irregularities: Regularly review transaction records for any signs of fraudulent activity or deviations from standard processing procedures.​

• Stay Updated on Security Standards: Keep abreast of the latest security protocols and ensure that all systems are updated to protect against emerging threats.

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