Mastercard · Chargeback reason codes
Mastercard 4870 chargeback: Chip Liability Shift explained
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Mastercard reason code 4870, Chip Liability Shift, means a counterfeit copy of an EMV chip card was used in person at a terminal that was not chip-capable, or a chip-capable terminal did not send the chip data. The issuer must report it as counterfeit fraud and has 120 days to file. Answer with proof the chip data was sent, a technical fallback or offline chip approval, or that the card was not a valid chip card.
- Category
- Fraud (card present)
- Time limit for the bank to file
- 120 days
- Time limit to respond
- Your processor's deadline (on Stripe usually 7–21 days); Mastercard gives the acquirer 45 days from the chargeback for a second presentment
- Typical evidence
- Chip data (DE 55) sent, technical fallback, offline chip approval
- Can it be prevented?
- Yes: chip terminals that read and send chip data
- Who usually wins
- The merchant if the chip was read
What PlatformDTC does
PlatformDTC's in-store point of sale sends every card payment to a Stripe Terminal card reader on the store's own Stripe account, and online checkout orders are card-not-present, so this chip liability code cannot arise on an online order. Every reader payment is saved on the order with its Stripe payment record.
What it means
The genuine card had a chip, but a counterfeit was swiped at a terminal that could not read chips, or chip data was missing from the transaction. The cardholder held all their cards at the time.
Why customers file it
Card skimming and counterfeit stripe copies used at swipe-only terminals.
Evidence that wins
Any second presentment can also show that a refund was already issued, or that the chargeback was invalid (late, a duplicate, or missing the required documents).
- The chip data was provided with the transaction, or no online authorization was required
- The card was not a valid chip card
- A technical fallback or an offline chip authorization
- The issuer's fraud count was exceeded or the fraud was not reported
How to prevent it
- Use chip terminals and always read the chip
- Send the full chip data with authorizations
For developers
On Stripe the dispute object arrives with reason "fraudulent" and the card network's own code in payment_method_details.card.network_reason_code; listen for charge.dispute.created and read evidence_details.due_by for the deadline.
The acquirer answers with a second presentment within 45 days; the Central Site Business Date of the chargeback counts as day zero. For cardholder disputes the issuer may then file pre-arbitration within 30 days, and the acquirer has 30 days to accept or reject it.
Frequently asked questions
- Can an online order get a 4870?
- No. 4870 needs a counterfeit card used in person. Online fraud claims use 4837.
- What is DE 55?
- The data element that carries the chip data in the authorization; its absence at a chip terminal can trigger 4870.
Sources
Related
- 4871 — A lost, stolen or never-received PIN chip card was used at a terminal that could not take a PIN.
- 4837 — The cardholder says they did not authorize the purchase. Mastercard's main fraud chargeback.
- 4849 — Mastercard listed the merchant in its Questionable Merchant Audit Program or confirmed coercion.
- 4999 — A domestic chargeback allowed by local rules in Europe that fits no other code.
- 4855 — Legacy "goods or services not provided" code; the claim now sits under 4853 Cardholder Dispute.
- 4860 — Legacy "credit not processed" code; the claim now sits under 4853 Cardholder Dispute.
- 4841 — Legacy code for cancelled recurring billing or digital goods; now under 4853.