Fraud
4867 Fraud-Chip Card and PIN Transaction
Details
This code is used when a cardholder disputes a transaction, alleging that their chip-enabled card was used fraudulently with a Personal Identification Number (PIN). Such disputes typically arise when a lost or stolen chip card is used by an unauthorized individual who knows or has guessed the cardholder's PIN.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
To address a chargeback under reason code 4867:
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Provide Evidence of Proper Transaction Processing: Submit documentation demonstrating that the transaction was conducted using a chip-enabled terminal with PIN entry. This includes terminal logs showing EMV data capture and successful PIN verification.
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Transaction Authorization Records: Provide records confirming that the transaction received proper authorization from the issuer at the time of processing.
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Surveillance Footage: If available, supply video evidence from the point of sale showing the cardholder present and completing the transaction.
How to prevent?
To minimize the occurrence of chargebacks under reason code 4867:
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Ensure EMV Compliance: Use EMV-compliant terminals that require chip and PIN verification for transactions.
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Educate Customers on PIN Security: Encourage cardholders to keep their PIN confidential and avoid sharing it with others.
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Monitor Transactions for Unusual Activity: Implement systems to detect and flag transactions that deviate from a cardholder's typical spending patterns.
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Regular Staff Training: Train employees to recognize and respond to potential fraud indicators during transactions.