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Mastercard 4871 - Chip/PIN Lost/Stolen/NRI Fraud

Overview​

Used when a legitimate chip card that was lost, stolen, or never received by the cardholder is used fraudulently, particularly when PIN should have prevented the fraud.

When This Code Applies​

  • Card was lost and used before reported
  • Card was stolen and used fraudulently
  • Card never received by cardholder (intercepted)
  • PIN should have been required but wasn't
  • PIN bypass occurred when not permitted

Liability Shift Scenarios​

Liability Shifts TO Merchant When:​

ScenarioWhy
Chip + signature (when PIN required)PIN not collected
Chip + no CVMCardholder verification missing
PIN bypass for high-valueExceeded no-PIN limit
Non-chip terminalEMV not supported

Liability Stays WITH Issuer When:​

ScenarioWhy
Chip + PIN verifiedCorrect authentication
PIN verified onlineIssuer approved PIN
Low-value contactlessWithin no-PIN threshold
Card not blocked timelyIssuer delay

PIN Requirements by Transaction Type​

TransactionPIN Required
Chip debitYes (above threshold)
Chip creditVaries by region
Contactless under limitNo
Contactless over limitYes
ATMAlways

Regional PIN Thresholds​

RegionContactless No-PIN Limit
US$100
Europe€50 (varies)
UK£100
CanadaCAD $250
AustraliaAUD $200

Time Frames​

RegionChargeback Window
Standard90 calendar days
Europe ATM/Maestro120 calendar days

Representment Options​

Valid Defenses​

  1. PIN was verified - Online PIN verification
  2. Below PIN threshold - Transaction didn't require PIN
  3. Proper CVM performed - Signature where permitted
  4. Card not reported lost/stolen - At time of transaction
  5. Refund already issued - Transaction credited

Evidence Required​

DefenseDocumentation
PIN verifiedPIN verification in auth response
Below thresholdTransaction amount vs. limit
Signature obtainedSigned receipt
Not reportedTimestamp vs. loss report

Message Text Requirements​

DefenseMessage Text
PIN verifiedPIN VERIFIED
Signature obtainedSIGNATURE
Below thresholdUNDER THRESHOLD

Second Presentment Time Frames​

RegionWindow
Standard45 calendar days
Costa Rica10 calendar days
Kazakhstan30 calendar days
Nigeria2 business days
Tanzania20 calendar days

Prevention Strategies​

Terminal Configuration​

  1. Require PIN for debit - Always prompt
  2. Configure thresholds properly - Honor network limits
  3. No PIN bypass - Disable where not permitted
  4. CVM enforcement - Don't skip verification

Transaction Monitoring​

  1. Velocity checks - Multiple transactions same card
  2. Geographic anomalies - Impossible travel
  3. High-risk indicators - Gift cards, high value
  4. Real-time alerts - Suspicious patterns

Staff Training​

  1. Card inspection - Check for tampering
  2. Signature verification - Compare to card
  3. Suspicious behavior - Report concerns
  4. PIN entry privacy - Shield keypad

Win Rate Expectations​

ScenarioExpected Win Rate
PIN verified online85-95%
Signature (where permitted)40-60%
No PIN/signatureUnder 15%

Difference from 4870​

CodeScenarioCard Type
4870Counterfeit cardFake chip card
4871Lost/stolen/NRILegitimate card, wrong hands
  • 4870 - Chip Liability Shift (Counterfeit)
  • 4837 - No Cardholder Authorization

See Also​