Reason Code 4870: Chip Liability Shift

The cardholder claims the purchase was unauthorized. Either the transaction was processed with a forged EMV chip card or the merchant processed a transaction using a counterfeit card on a terminal that would've detected fraud had it been EMV compliant.

• A fraudster with a cloned card targets a non-EMV-compliant terminal.
• A fraudster convinces the merchant they should swipe instead of scanning the card.

Merchants should:

• Only use EMV-enabled terminals. 
• Create a manual or electronic imprint of each card-present transaction.
• Get secondary verification, including PIN and signature.
• Insist that every chip card should be inserted or tapped instead of swiped.
• Train staff members on the proper practice of the above requirements.