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Fraud Liability Shift - Lost/Stolen/Non-Received (4799)

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Chargeback Reason

To transfer lost/stolen/non-received fraud liability from the Issuer to the Acquirer for Transactions conducted with an AEIPS chip and PIN Card at a POS device that is unable to process an AEIPS chip and PIN Transaction. Only Transactions that take place in designated countries are eligible for Lost/Stolen/Non-received FLS.

Description

A Transaction has occurred for which:

  • The Cardmember denies participation, and
  • The Transaction is classified by the Issuer as lost, stolen or non-received fraud, and
  • The Issuer for the Transaction is located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS, and
  • The Transaction occurred at an merchant located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS, and
  • The Transaction was processed on a Card Account that was issued with an AEIPS chip/PIN Card, and
  • The Transaction was performed using a lower level technology than the Card, (Magnetic Stripe or key-entered), or the POS device was not able to accept PIN entry.

Conditions

The Issuer must meet all the following conditions:

  1. The Transaction information must be submitted to the GNS Fraud Repository as fraud either by manually entering into the WFIS or electronically transmitting it to the GNS Fraud Repository prior to the Chargeback submission date.
  2. The Cardmember Account must be added to the Exception File no later than the Network Processing Date of the Chargeback.
  3. The Issuer was certified by AEGNS to process AEIPS Chip/PIN Card Transactions on or before the Transaction date.
  4. The Issuer for the Transaction is located in an AEGNS-designated country for AEIPS Lost/Stolen/ Non-received FLS.
  5. The Transaction occurred at an merchant located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS.
  6. The Transaction occurred on or after the AEGNS-designated AEIPS Lost/Stolen/Non-received FLS effective date for both the Issuer and Acquirer countries.
  7. The Card is identified as chip and PIN and one (1) of the following conditions are met:
    1. The ICC chip/PIN indicator in the POS First Presentment (1240) message indicates that a chip Transaction was not performed, or
    2. The ICC chip/PIN indicator in the POS First Presentment (1240) message indicates that a chip Transaction was performed but the PIN was not used 
      due to the Terminal not being capable or the PIN pad was not working.
  8. For Final Chargeback - This Chargeback is only applicable if the First Chargeback was either a fraud type or one of the following:
    1. 4512 - Multiple Processing
    2. 4516 - Request for Support Not Fulfilled
    3. 4517 - Request for Support Illegible/Incomplete
    4. 4754 - Local Regulations/Legal Dispute

Timeframes

120 days from the Network Processing Date of the Presentment

Dependencies

The Issuer must provide all of the following:

  1. Issuer Declaration indicating the date the Account was listed on the Exception File.
  2. Date that the Transaction information was submitted, and that confirmation was received from the GNS Fraud Repository with a fraud type code of lost, stolen, or non-received.

Validations

ValidationValueLogicAssociated Rule(s)
Is a POS transactionTrue

Merchant Category Code != 6011

IsPOSTransaction_A
The Issuer for the Transaction is located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS

True

Is4799FLSParticipating = True

Is4799FLSParticipating 
The Transaction occurred at an S/E located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLSTrueIs4799FLSParticipating = TrueIs4799FLSParticipating 
The Transaction was processed on a Card Account that was issued with an AEIPS chip or AEIPS chip/PIN CardTrueIsChipCard =TRUE
The Transaction was performed using a lower level technology than the Card (i.e., Magnetic Stripe or key-entered).True

Card Data Input Mode, position 7 != 5


Is a Mail/Telephone/Internet Transaction.False

Cardmember present, position 5 = 2, 3 or S


Transaction is identified as Fallback in the First Presentment.False

Card Data Input Mode, position 7 = 9


Transactions that occurred in a country not designated by AEGNS for 
Lost/Stolen/Non-received FLS.		False

Transaction that occurred in which either the Issuer or Acquirer is not located in a designated AEIPS Lost/Stolen/Non-received FLS.False

Automated Fuel Dispenser Transaction where the MCC is 5542 that originated from an S/E in Caribbean Countries, United States, or United States Territories.FalseCountry of origination =
MCC= 5542
Transactions that occurred at a PIN capable and enabled POS device located in Caribbean Countries, United States, or United States TerritoriesFalsePin capture capability is no = 0 and 
located in Caribbean, US or US Territories =
Is a Digital Wallet Program Transaction.FalseCard present, position 6 = Y or Z
Is an Expresspay TransactionFalseCard present, position 6 = X
A Transactions qualifies under the No Signature/No PIN Program but the POS device is PIN capable and enabled.FalseProgram Indicator Code =NS or 11 and 
Cardmember Authentication Capabiity Code, position 2 =1
Is a Merchant-Presented Quick Response (MPQR) Transactions.FalseCard present, position 6 = 8
Is a transactions to fund a Stored Value Digital Facility (SVDF).FalseMCC = 6540

The Card is identified by AEGNS as chip or chip/PIN capable.

  • The ICC Chip/PIN Indicator indicates that a chip Transaction was not performed or
  • The ICC chip/PIN indicator  indicates that a chip Transaction was performed but the PIN was not used due to the Terminal not being capable or the PIN pad was not working.

True

IsChipCard =TRUE

Card Data Input Mode, position 7 != 5 or
Card Data Input Mode, position 7 = 5 and Cardmember Authentication, position 8 != 1


Related Questionnaires

Fraud Questionnaire



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