Timeframes
120 days from the Network Processing Date of the Presentment
Conditions
All of the following:
- The cardholder contacted the issuer claiming that the cardholder did not authorize the transaction.
- Both the issuer and the acquirer are located in a country or region participating in a domestic, intraregional, or interregional chip liability shift as shown in the Chip Liability Shift Participation table (earlier in this section).
- One of the following:
- A fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid terminal
- A fraudulent transaction occurred at a hybrid terminal but DE 55 was not present in the Authorization Request/0100 or Financial Transaction Request/0200 message
- The validly-issued card was an EMV chip card.
- The transaction was reported to SAFE as counterfeit in accordance with the SAFE Products User Guide prior to processing the chargeback.
Dependencies
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Chargeback Reason
The Card Account is closed or the Card is cancelled at the time of the Transaction or, the Cardmember denies participation in the Transaction and the merchant is listed on the High Risk merchant list.
The Fraud Full Recourse Chargeback allows Issuers the right to transfer liability of all fraud types, including counterfeit Cards, to the Acquirer for any merchant subject to this Chargeback.
Description
Processing under this reason code requires that the merchant was listed on the High Risk merchant list at the time of the Chargeback under one (1) of the following categories:
- A Fictitious and/or Collusive merchant who is listed on the High Risk merchant list with a risk indicator of “S”, or
- A prohibited or illegal industry merchant who is listed on the High Risk merchant list with a risk indicator of “I”, or
- A high Fraud to Gross (FTG) sale volume ratio merchant who is listed on the High Risk merchant list with a risk indicator of “F”, or
- An Internet Electronic Delivery merchant who is listed on the High Risk merchant list with a risk indicator of “T”, or
- Merchant was cancelled for derogatory reasons and was listed on the High Risk merchant list with a risk indicator of “X”
Conditions
The Issuer must meet all the following conditions:
- May be used even if the Transaction was Authorized.
- Amount to be charged back is the full Transaction amount.
- Before filing this Chargeback, the Issuer must manually enter the fraud Transaction into the WFIS or electronically transmit it into the GNS Fraud Repository.
- For Final Chargeback - This Chargeback is only applicable if the First Chargeback was either a fraud type or one of the following:
- 4512 - Multiple Processing
- 4516 - Request for Support Not Fulfilled
- 4517 - Request for Support Illegible/Incomplete
- 4754 - Local Regulations/Legal Dispute
Timeframes
120 days from the Network Processing Date of the Presentment
Dependencies
- Before filing this Chargeback, the Issuer must manually enter the fraud Transaction into the WFIS or electronically transmit it into the GNS Fraud Repository
Validations
| Validation | Value | Logic | Associated Rule(s) | |
|---|---|---|---|---|
| Not Chip Liability Shift EligibleWithin association window for submitting the chargeback | True |
| IsChipLiabilityShiftEligible | |
| Consumer-Presented QR transaction that was properly identified in the Authorization Request/0100 message or Financial Transaction Request/0200 message. | False |
| IsMCQRTransaction_MC | |
| Authorization Approval after the FNS Date. The issuer approved the transaction after submitting two or more chargebacks involving the same Mastercard card account (for this purpose, “account” means primary account number [PAN] and expiration date) for any of the following message reason codes: 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback count is two or greater. | False | 2 or more previous disputes with reason code 4837, 4840, 4870, or 4871 on the same card number | IsApprovedAfterFNS_MC | |
| FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than 15 chargebacks in aggregate involving the same account for message reason codes 4837, 4840, 4870, or 4871. | False | 15 or more previous disputes with reason code 4837, 4840, 4870, or 4871 on the same card number | IsFNSCountReached_MC | |
| A Digital Secure Remote Payment (DSRP) transaction or any subsequent transaction for a related partial shipment or recurring payment. | False |
| IsDSRPTransaction_MC | |
| A valid EMV chip transaction occurred and DE 55 and related data was provided in the Authorization Request/0100 message or Financial Transaction Request/0200 message (when online-authorized) and the First Presentment/1240 message. | False | integratedCircuitCardRelatedData is not null | IsChipTransaction_MC | |
| A magnetic stripe-read or key-entered transaction occurred and was properly identified as the result of technical fallback in the Authorization Request/0100 message and in the First Presentment/1240 message. | False |
| IsFallBackTransaction_MC | |
| The Authorization Request/0100 message contained a service code value other than 2xx or 6xx in DE 35 (Track 2 Data) or DE 45 (Track 1 Data) | False | @String.startsWith(serviceCode), "2" OR @String.startsWith(serviceCode), "6" | IsChipServiceCode_MC | |
| The transaction was a mail order, phone order, e-commerce, or recurring payment transaction. | False |
| IsMOTOTransaction_MC | |
| Mastercard Commercial Payments Account. The transaction was a Mastercard Commercial Payments Account transaction. A Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First Presentment/1240 message. | False | gcmsProductIndentifier = "MAP" | IsMCCommercialPayment_MC120 days from the Network Processing Date of the Presentment | HasChargebackWindowExpired |
Is Eligible for 4763 Fraud Full Recourse
| True |
| Is4763EligibleCheck_A | |
| A Fallback Transaction | False | Card Data Input Mode = 9 | IsFallbackTransaction_A | |
| A transaction where a Transaction Certificate is provided in the First Presentment | False | Cardmember Authentication Entity Code = 1 And Bit 55 =1 "" | IsChipTransactionCertified_A | |
| A SafeKey Transaction | False | Program Indicator Code = 04 | IsSafeKeyTransaction_A | |
| A Expresspay Transaction of less than or equal to the Cumulative Spend Protection defined. | False |
| IsLowDollarExpressPay_A | |
| A Merchant-Presented Quick Response (MPQR) Transactions. | False |
| IsMPQRTransaction_A | |
A gambling transaction. | False | MCC = 7801, 7802, 7995 | IsGamblingMCC_A |
Related Questionnaires
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