Reason code · Mastercard

Mastercard 4871: chip liability shift, lost, stolen or never received

4871 means a lost, stolen or never-received card was used in person, and your terminal couldn’t take a PIN even though the card was set up for one. The bank has 120 days from the transaction to file. The liability shifts to the side without PIN.

By the Dispute Daddy team, built on 10 years of fighting chargebacks · Updated

What 4871 means

4871 is Mastercard’s Lost/Stolen/NRI Fraud Chip Liability Shift. NRI stands for “never received issue”: a card stolen in the mail before the cardholder ever got it.

The bank can file it when the cardholder says they didn’t authorize the purchase, the card was a chip card set up to prefer a PIN, and your terminal couldn’t take a PIN. The thinking: a PIN would have stopped a thief holding the real card. If your terminal couldn’t ask for one, the loss shifts to your side.

Mastercard lists the regions where this shift applies, and the United States is on the list.

What the customer told their bank

“My card was lost.” “My wallet was stolen.” “My new card never showed up, and someone used it.” Unlike 4870, the real card was used here, not a copy.

Time limit

The bank has 120 calendar days from the transaction. Your deadline is the one on your notice, set by your processor out of the 45 days Mastercard gives your bank to respond.

What proof matters

Your terminal’s record of the sale. If it shows the chip was read and a PIN was entered, or that the sale falls outside the shift, that’s your answer. If your terminal really couldn’t take a PIN, there may be little to argue.

Signature isn’t a PIN

For a card set up to prefer a PIN, Mastercard’s rule asks a simple question: could your terminal take a PIN? A signature, or no verification at all, isn’t a substitute. Reading the chip helps against counterfeits under 4870, but on its own it generally won’t protect you from a 4871 when the real card was stolen.

The common mistake

Running an older terminal, or one with PIN entry switched off, at a counter that sees higher-value sales. Ask your processor whether your terminals accept PIN, and whether PIN entry is turned on. It’s a one-time fix.

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Questions

What does Mastercard 4871 mean?

The cardholder says they didn’t authorize the purchase. Their card was a chip card set up to prefer a PIN, and your terminal couldn’t accept a PIN. The bank can then shift the fraud loss to the merchant side.

What does NRI mean in Mastercard 4871?

Never Received Issue: a card that was mailed to the cardholder but intercepted before it arrived. Mastercard groups it with lost and stolen cards.

How long does a bank have to file a 4871?

Within 120 calendar days of the transaction. Use the due date on your notice for your own response.

Sources

  1. Mastercard Chargeback Guide, Merchant Edition, 19 May 2026 edition, Chapter 2, Chip Liability Shift, Lost/Stolen/NRI Fraud (4871): conditions, participating regions including the United States, and time frame; obtain the current edition from your acquirer.
  2. Stripe: Dispute reason code categories, Stripe groups Mastercard 4871 under Fraudulent; read October 25, 2026.

General information, not legal advice. Network and processor rules change; the due date on your own dispute notice always governs.

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