Reason code

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.

To address a chargeback under reason code 4867:

• 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.​

• Transaction Authorization Records: Provide records confirming that the transaction received proper authorization from the issuer at the time of processing.

• ‍Surveillance Footage: If available, supply video evidence from the point of sale showing the cardholder present and completing the transaction.

To minimize the occurrence of chargebacks under reason code 4867:

• Ensure EMV Compliance: Use EMV-compliant terminals that require chip and PIN verification for transactions.
  

• Educate Customers on PIN Security: Encourage cardholders to keep their PIN confidential and avoid sharing it with others.​
  
  
• Monitor Transactions for Unusual Activity: Implement systems to detect and flag transactions that deviate from a cardholder's typical spending patterns.​

• Regular Staff Training: Train employees to recognize and respond to potential fraud indicators during transactions.