Reason code

This code applies when a transaction is disputed due to fraud involving a lost, stolen, or never received card, and the liability shifts under the EMV (Europay, Mastercard, and Visa) chip and PIN guidelines. 

If a merchant processes a chip card transaction without adhering to EMV standards, such as not using a chip-enabled terminal or failing to verify the PIN, the liability for fraudulent transactions may shift from the issuer to the merchant.​

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To address a chargeback under Reason Code 4871, you should provide evidence that the transaction was processed in compliance with EMV standards:​

• Proof of EMV Compliance: Documentation showing that the transaction was conducted using a chip-enabled terminal with proper PIN verification.​
  
  
• Transaction Logs: Detailed logs from the point-of-sale system indicating the use of the chip and PIN during the transaction.

• Authorization Approval: Records demonstrating that authorization was obtained from the issuer at the time of the transaction.

Providing clear and comprehensive documentation can help demonstrate that the transaction was legitimate and processed according to EMV guidelines, potentially leading to the chargeback being overturned.

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To minimize the risk of chargebacks under reason code 4871:

• Upgrade to EMV-Compliant Terminals: Ensure all point-of-sale terminals are capable of processing chip and PIN transactions.​
  
  
• Train Staff on EMV Procedures: Educate employees on the importance of using chip and PIN verification and the proper handling of chip cards.​
  
  
• Enforce PIN Verification: Require PIN entry for all chip card transactions to enhance security and reduce fraud risk.​
  
  
• Regularly Update Systems: Keep point-of-sale systems and software up to date to maintain compliance with the latest EMV standards.