ChargebackKit
MastercardFraudUpdated June 2026

Mastercard Reason Code 4870: Chip Liability Shift — Counterfeit Fraud

A counterfeit card was used in a card-present transaction that was not processed via the EMV chip (for example a magstripe fallback on a chip-capable card), shifting counterfeit-fraud liability to the merchant. Mastercard's lost-or-stolen chip-liability variant is the separate code 4871.

Respond within ~45 days
Highly winnable

Your strongest argument

The EMV chip was read at a certified terminal — the chip liability shift condition is not met.

Evidence that wins a Mastercard 4870 dispute

  • Proof the terminal was EMV-certified and the chip was read (not a magstripe fallback)
  • Transaction record confirming chip-on-chip acceptance
  • Authorization log showing EMV data was transmitted in the authorization request

Ordered strongest first — lead your rebuttal with the items at the top.

Not sure you have enough to win?

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How processors label this dispute

ProcessorWhat you'll see
Stripereason: fraudulent
SquareChip liability shift

Where to pull this evidence

Prove the genuine cardholder made and benefited from the purchase. Authentication data wins these. Here's exactly where the relevant records live in each processor dashboard — gather them free before you build your pack.

Stripe

Dashboard → Payments → Disputes (or the email alert from Stripe).

  • AVS & CVC check results: Open the original payment → Payment details → "Checks" (CVC, ZIP, address).
  • Customer email, IP, and device: Payment → Customer section and the "Risk insights" / Radar panel.
  • Receipt / order confirmation: Payment → "Send receipt" or your order-management system; export the PDF.
  • Refund history & reference IDs: Payment → Timeline shows any refunds with their re_… reference IDs.

Shopify Payments

Shopify admin → Orders → the flagged order → "Chargeback" banner, or Settings → Payments → Manage disputes.

  • Order & fulfillment details: Orders → the order → Fulfillment + Timeline (shows when items shipped).
  • Tracking number & carrier: Orders → Fulfillment → tracking; confirm "Delivered" status with the carrier.
  • Customer info & IP: Order → Customer section; Order → Additional details / fraud analysis for IP and AVS/CVV.
  • Fraud analysis (AVS/CVV/risk): Order → "Fraud analysis" panel shows AVS, CVV, and Shopify’s risk indicators.

Square

Square Dashboard → Disputes (or Balance → Disputes), or the email from Square.

  • Transaction & receipt: Transactions → the payment → receipt; "Resend receipt" for a copy.
  • Card-present / chip details: Transaction detail shows entry method (chip, tap, keyed) — chip reads support card-present disputes.
  • Customer details: Customer Directory → the customer; or the transaction’s customer section.
  • Itemization & amount: Transaction → itemized breakdown to rebut "incorrect amount" claims.

PayPal

PayPal → Resolution Center → the open case (Dispute, Claim, or Chargeback).

  • Transaction details & ID: Activity → the transaction → details; note the Transaction ID.
  • Proof of delivery / tracking: Resolution Center → "Respond" → add tracking number + carrier (PayPal validates delivery).
  • Proof of shipment / service: Resolution Center evidence upload: invoice, shipment receipt, or service-completion proof.
  • Buyer communication: Resolution Center message thread + your own email records with the buyer.

Build a submission-ready Mastercard 4870 response

ChargebackKit assembles your evidence into a formatted, labeled rebuttal pack with the exhibits and response letter card networks expect — pre-mapped to Fraudulent / Unauthorized disputes.

Build your evidence pack — $19

Or run the free readiness check first.

Frequently asked questions

What is Mastercard reason code 4870?↓
Mastercard 4870 ("Chip Liability Shift — Counterfeit Fraud") is filed when counterfeit-card fraud occurs in a card-present transaction that was not processed via the EMV chip — for example a magstripe swipe on a chip-capable card. Because the EMV chip is what prevents counterfeit cards, not reading it shifts liability to the merchant. The lost-or-stolen-card variant is the separate code 4871.
How do I win a Mastercard 4870?↓
Provide records showing the terminal was EMV-certified and the chip was actually read during the transaction. If you fell back to magstripe on a chip card without a proper fallback procedure, the dispute is difficult to contest.
What triggers a chip liability shift on a Mastercard dispute?↓
Accepting a counterfeit chip-capable card via magstripe instead of the chip, or otherwise bypassing EMV processing, on a card-present transaction where the resulting fraud is counterfeit. Lost- or stolen-card chip liability falls under 4871, not 4870.

Where to go next

Build the pack for Fraudulent / Unauthorized disputes, or dig into the matching guide, template, and processor evidence requirements.

Build the pack for this dispute

Updated June 2026. Reason-code meanings and evidence requirements are sourced from card network documentation and may change; always check your processor dashboard for the exact deadline and label on your dispute.