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:

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.
The Cardmember Account must be added to the Exception File no later than the Network Processing Date of the Chargeback.
The Issuer was certified by AEGNS to process AEIPS Chip/PIN Card Transactions on or before the Transaction date.
The Issuer for the Transaction is located in an AEGNS-designated country for AEIPS Lost/Stolen/ Non-received FLS.
The Transaction occurred at an merchant located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS.
The Transaction occurred on or after the AEGNS-designated AEIPS Lost/Stolen/Non-received FLS effective date for both the Issuer and Acquirer countries.
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.
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:

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.
The Cardmember Account must be added to the Exception File no later than the Network Processing Date of the Chargeback.

Validations

Validation	Value	Logic	Associated Rule(s)
Within association window for submitting the chargeback	True	120 days from the Network Processing Date of the Presentment	HasChargebackWindowExpired
Is Eligible for 4799 Fraud Liability Shift - Lost/Stolen/Non-Received Is a POS transaction The Issuer/Merchant for the Transaction is located in an AEGNS-designated country for AEIPS Lost/Stolen/Non-received FLS The Transaction was processed on a Card Account that was issued with an AEIPS chip or AEIPS chip/PIN Card The Transaction was performed using a lower level technology than the Card (i.e., Magnetic Stripe or key-entered). The Card is identified as chip and PIN and one (1) of the following conditions are met: The ICC chip/PIN indicator in the POS First Presentment (1240) message indicates that a chip Transaction was not performed, or 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.	True	IsPOSTransaction_A = true AND Is4799FLSParticipating_A = true AND IsChipCard_A =true AND (IsChipReadTransaction_A = false) OR (IsChipReadTransaction_A = true AND ICC Chip/PIN Indicator Code = YN AND PIN Capture Capability =0,1) OR ICC Chip/PIN Indicator Code = NN	Is4799EligibleCheck_A
A Mail/Telephone/Internet Transaction.	False	Cardmember Present = 2, 3 or S	IsMOTO_A
A Fallback Transaction	False	Card Data Input Mode = 9	IsFallbackTransaction_A
Transaction that occurred in which either the Issuer or Acquirer is not located in a designated AEIPS Lost/Stolen/Non-received FLS.	False	Is4799FLSParticipating_A = false	Is4799FLSParticipating_A
Automated Fuel Dispenser Transaction where the MCC is 5542 that originated from an merchant in Caribbean Countries, United States, or United States Territories.	False	Country of origination = Caribbean Countries, United States, or United States Territories AND MCC= 5542	IsAFDFLSExcluded
Transactions that occurred at a PIN capable and enabled POS device located in Caribbean Countries, United States, or United States Territories	True	PIN Capture Capability Code != 0 AND Country of origination = Caribbean Countries, United States, or United States Territories	IsPinCapTermExcluded_A
A Digital Wallet Program Transaction.	False	Card present = Y or Z	IsDigitalWalletTransaction_A
A Expresspay Transaction	False	Card present = X	IsExpressPayTransaction_A
A Transactions qualifies under the No Signature/No PIN Program but the POS device is PIN capable and enabled.	False	Program Indicator Code = NS or 11 AND Cardmember Authentication Capability Code =1	IsNoSigPinAtPinTerm_A
A Merchant-Presented Quick Response (MPQR) Transactions.	False	Card present = 8 AND Card Capture Capability Code = 7	IsMPQRTransaction_A
Is a transactions to fund a Stored Value Digital Facility (SVDF).	False	MCC = 6540	IsSDVFTransaction_A

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