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What Does Mastercard 4871 Chip/PIN Liability Shift Mean? Mastercard chargeback reason code 4871, or "Chip/PIN Liability Shift," happens when a merchant doesn't use the correct Chip and PIN procedures and a charge is disputed by the cardholder. When this happens, the responsibility for the chargeback moves from the card issuer to the merchant. This usually happens if a chip card is used at a non-chip-enabled terminal, or the PIN isn't entered or is entered incorrectly, and the transaction end up being fraudulent.
Key Details of Chargeback Reason Code 4871: Chip/PIN Liability Shift
- Definition: This reason code applies when a merchant processes a transaction using a magnetic stripe or non-chip method instead of utilizing the chip technology on a chip-enabled card, or when the transaction should have been verified by PIN but wasn’t.
- Liability Shift: The liability for fraudulent transactions shifts from the card issuer to the merchant when proper chip/PIN procedures are not followed.
Common Causes of 4871: Chip/PIN Liability Shift
- Non-Chip Terminals: Using a terminal that can’t process chip transactions.
- Improper Processing: Swiping the card or manually entering the card info instead of using the chip reader.
- PIN Bypass: Not requiring a PIN for a chip-enabled card.
- Technical Issues: Terminal problems that prevent chip use.
Resolution Time Frame for Mastercard Reason Code 4871: Chip/PIN Liability Shift
- For Cardholders: They have up to 120 days from the transaction date to dispute the charge.
- For Merchants: You usually have 45 days to respond to the chargeback with evidence to dispute it.
Preventing or Mitigating Chargeback Reason Code 4871: Chip/PIN Liability Shift
Here are some tips to avoid or deal with these kinds of 4871: Chip/PIN Liability Shift
- Use Chip-Enabled Terminals: Make sure your POS terminals can handle chip cards.
- Train Your Staff: Ensure your team knows to always use the chip reader for chip cards.
- Require PIN Entry: Always ask for the PIN when processing chip cards.
- Maintain Your Terminals: Regularly check and update your POS systems to keep them running smoothly.
- Monitor Transactions: Keep an eye on transactions to ensure chip technology is being used correctly.
- Talk to Issuers: If you encounter problems with chip transactions, reach out to the card issuers for help.
