Reason Code 4871: Chip/PIN Liability Shift – Lost/Stolen/Never Received Issue Fraud

The cardholder claims they didn't authorize the transaction because they don't have the card. Or that the merchant processed the transaction without getting the cardholder's PIN.

• A fraudster used a stolen card at a terminal with no PIN entry.
• A fraudster convinces the merchant to let them bypass the PIN entry.

Merchants should:

• Upgrade terminals to EMV-compliant terminals.
• Obtain verification, including biometrics, signature, PIN, or token.
• Create a manual or electronic imprint of each card-present transaction.
• Insist that every chip card should be inserted or tapped instead of swiped.