Description of Reason Code 4870
Chip Liability Shift
Insights from Rules and Regulations
The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount.
How to Win Reason Code 4870
Respond with evidence showing that the liability shift does not apply by providing documentation displaying the card involved was not a hybrid card according to the service code (DE 35 or DE 45) in the authorization request (that is, the value of the first position was not a 2 or a 6), the transaction was completed with chip, or the chargeback was otherwise invalid (for example, the terminal was a hybrid).
Transaction Modifiers applicable to Reason Code 4870