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:

Issuer Declaration indicating the date the Account was listed on the Exception File.
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

Validation	Value	Logic	Associated Rule(s)
Is a POS transaction	True	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 FLS	True	Is4799FLSParticipating = True	Is4799FLSParticipating
The Transaction was processed on a Card Account that was issued with an AEIPS chip or AEIPS chip/PIN Card	True	IsChipCard =TRUE	IsChipCard
The Transaction was performed using a lower level technology than the Card (i.e., Magnetic Stripe or key-entered).	True	Card Data Input Mode != 5	IsChipReadTransaction_A
Is a Mail/Telephone/Internet Transaction.	False	Cardmember Present = 2, 3 or S	IsMOTO_A
Transaction is identified as Fallback in the First Presentment.	False	Card Data Input Mode = 9	IsFallbackTransaction_A
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 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	False	Pin capture capability is no = 0 and located in Caribbean, US or US Territories =
Is a Digital Wallet Program Transaction.	False	Card present, position 6 = Y or Z
Is an Expresspay Transaction	False	Card present, position 6 = X
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 Capabiity Code, position 2 =1
Is a Merchant-Presented Quick Response (MPQR) Transactions.	False	Card present, position 6 = 8
Is a transactions to fund a Stored Value Digital Facility (SVDF).	False	MCC = 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

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