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Chargeback Reason Codes 2021

Search the Chargeback Reason Code Database

Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future.

Mastercard

Mastercard Chargeback Reason Codes

Fraud

Description

No Cardholder Authorization

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

  1. The cardholder claims the transaction was unauthorized.
  2. The transaction was placed by someone who had fraudulently obtained the account information; the cardholder didn't recognize the transaction (billing descriptor) on the credit card statement; a family member used the account without the primary cardholder's knowledge.

Prevention Steps

  1. Consider using all the tools available to you—including Mastercard SecureCode, CVC2, and Address Verification Service (AVS).
  2. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction.
  3. Use a billing descriptor that is easily recognized by the cardholder.
  4. Always submit an authorization request, no matter the transaction amount.
  5. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders.
  6. Only use EMV-compliant terminals.
  7. Always use the correct cardholder verification method—signature, PIN, etc.
  8. Create clear billing descriptors
  9. Do not accept expired cards under any circumstances
  10. Obtain secondary validation (PIN, signature, imprint etc.)
  11. Do not override declined transactions
  12. Train staff on the proper procedures for handling terminal issues

Learn More about MasterCard Chargeback Reason Code 4837: Fraud

Description

Fraudulent Processing of Transactions

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder claims to have authorized one card-present transaction with you, but one or more additional transactions conducted in the next 15 minutes were not authorized.

Prevention Steps

  1. If you notice a duplicate transaction, issue a credit as soon as possible
  2. Double check all transaction receipts before they are deposited.
  3. Only send batches one time.
  4. If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.

Learn More about MasterCard Chargeback Reason Code 4840: Fraud

Description

Questionable Merchant Activity

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

  1. This transaction is listed in a Mastercard Announcement under the Global Merchant Audit Program (GMAP).
  2. This transaction violates Mastercard’s rules or the merchant was on a Mastercard security list.
  3. The acquirer processed a transaction for a merchant that later was listed in a MasterCard Global Security Bulletin for violating GMAP or QMAP.

Prevention Steps

  1. Always adhere to Mastercard rules and regulations.
  2. Maintain accurate records
  3. Check transactions against the Mastercard Global Security Bulletin list

Learn More about MasterCard Chargeback Reason Code 4849: Fraud

Description

Cardholder Does Not Recognize—Potential Fraud

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder claims not to recognize a card-not-present transaction.

Prevention Steps

  1. Consider using all the tools available to you—including Mastercard SecureCode, CVC2, and Address Verification Service (AVS).
  2. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction.
  3. Use a billing descriptor that is easily recognized by the cardholder.
  4. Make sure you differentiate between card-absent and card-present transactions during authorization and clearing.

Learn More about MasterCard Chargeback Reason Code 4863: Fraud

Description

Chip Liability Shift

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.

Prevention Steps

  1. Only use EMV-compliant terminals.
  2. Always use the correct cardholder verification method—signature, PIN, etc.
  3. Create an electronic or manual imprint for every card-present transaction.

Learn More about MasterCard Chargeback Reason Code 4870: Fraud

Description

Chip/PIN Liability Shift

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

A chip card was issued, but the cardholder claims not to have possession of it. You processed a transaction without obtaining the cardholder’s PIN, and now the cardholder claims the purchase was unauthorized.

Prevention Steps

  1. Only use EMV-compliant terminals.
  2. Always use the correct cardholder verification method—signature, PIN, etc.
  3. Create an electronic or manual imprint for every card-present transaction.

Learn More about MasterCard Chargeback Reason Code 4871: Fraud

Authorization

Description

Warning Bulletin File

Time Limit (Issuer/Cardholder)

45 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4807, however, this code will soon be eliminate. It will be incorporated into code 4808.

Prevention Steps

This code, while currently functional, is being consolidated into 4808, and therefore should not be used.

Learn More about MasterCard Chargeback Reason Code 4807: Authorization

Description

Authorization-Related Chargeback

Time Limit (Issuer/Cardholder)

90 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The merchant didn't obtain authorization or attempted to obtain authorization after the transaction date; the merchant attempted to "force" the transaction; the merchant re-swiped the card multiple times after an initial authorization decline.

Prevention Steps

  1. Confirm authorization on all transactions
  2. Make sure terminal are chip-compliant
  3. Do not override declined transactions

Learn More about MasterCard Chargeback Reason Code 4808: Authorization

Description

Account Number Not On File

Time Limit (Issuer/Cardholder)

45 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason codes 4812, however, this code will soon be eliminate. It will be incorporated into code 4808.

Prevention Steps

This code, while currently functional, is being consolidated into 4808, and therefore should not be used.

Learn More about MasterCard Chargeback Reason Code 4812: Authorization

Processing Errors

Card Member Disputes

Inquiry/Miscellaneous

Not Classified

Expired

Services

Dispute Compliance

Point-of-Interaction Error

Description

Point-of-Interaction Error

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times.

Prevention Steps

  1. Review transaction receipts before depositing
  2. Submit a batch only one time
  3. Credit any duplicate transactions
  4. Deposit receipts with only one acquirer
  5. Train staff on the proper procedures for handling credits

Learn More about MasterCard Chargeback Reason Code 4834: Point-of-Interaction Error

Description

Transaction Amount Differs

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4831, however, this code will soon be eliminate. It will be incorporated into code 4834.

Prevention Steps

  1. Double check calculations and the final transaction amount before processing
  2. Don't change the transaction amount without the cardholder's consent
  3. Void any transactions if the cardholder wishes to use a different payment method

Learn More about MasterCard Chargeback Reason Code 4831: Point-of-Interaction Error

Description

Late Presentment

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

  1. You presented the transaction more than seven calendar days after the transaction date and the account is now permanently closed.
  2. The transaction wasn't processed in a timely fashion and the account has since been closed; transaction was posted after 180 days of the original transaction date.

Prevention Steps

  1. Always send an authorization request before processing a transaction.
  2. Present transactions to the issuer within the specified time limit.
  3. Send completed transactions to your card processor as soon as possible (preferably on day of the sale)

Learn More about MasterCard Chargeback Reason Code 4842: Point-of-Interaction Error

Description

Correct Transaction Currency Code Not Provided

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

  1. The cardholder claims you didn’t give the option to pick a currency or you used POI currency conversion incorrectly.
  2. The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.

Prevention Steps

  1. Don’t automatically apply dynamic currency conversion to transactions. Give customers the option to select the service if they are interested, but don’t require its use.
  2. Have systems in place to manage multiple currencies. Make sure staff are trained on procedures.
  3. Inform cardholders of the use of currency conversion and applicable fees.
  4. Always give the cardholder the option to make the purchase using local currency.
  5. Train your sales staff on proper procedures for transaction using a different currency.

Learn More about MasterCard Chargeback Reason Code 4846: Point-of-Interaction Error

Description

Installment Billing Dispute

Time Limit (Issuer/Cardholder)

45 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder claims an installment charge to their account was made incorrectly.

Learn More about MasterCard Chargeback Reason Code 4850: Point-of-Interaction Error

Description

Domestic Chargeback Dispute (Europe Region Only)

Time Limit (Issuer/Cardholder)

45 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

A chargeback that occurs when a customer states the transaction should have been a credit to the account but was processed as a sale

Learn More about MasterCard Chargeback Reason Code 4999: Point-of-Interaction Error

Cardholder Disputes

Description

Cardholder Dispute

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The merchant sent the wrong item; the item was damaged during shipping; the merchant inaccurately described the products or services; the merchant didn't perform the services as described; the merchant did not accept a product return; the merchant sold counterfeit products; the quality of goods or services wasn't adequate.

Prevention Steps

  1. Clearly explain the situations that might cause you to charge the card including charges for loss, theft, or damage.
  2. Have the cardholder read and agree to terms of service before processing the original transaction.
  3. Double check orders to ensure the correct item is shipped
  4. Double check orders to ensure the correct item is shipped
  5. Provide honest, detailed product descriptions
  6. Accept returns from cardholders and issue credit promptly
  7. Never sell counterfeit products

Learn More about MasterCard Chargeback Reason Code 4853: Cardholder Disputes

Description

Canceled Recurring or Digital Goods Transactions

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

  1. Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4841, however, this code will soon be eliminate. It will be incorporated into code 4853.
  2. Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder.
  3. Cardholder did not understand the original terms of the transaction; cardholder received goods/used services after cancelling the recurring transaction; cardholder canceled too late to stop the transaction; merchant did not cancel the transaction.

Prevention Steps

This code, while currently functional, is being consolidated into 4853, and therefore should not be used.

Learn More about MasterCard Chargeback Reason Code 4841: Cardholder Disputes

Description

Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)

Time Limit (Issuer/Cardholder)

*120 calendar days or 60 calendar days from first learning about the dispute from the cardholder

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant.

Prevention Steps

Resolve all customer complaints as quickly as possible. *or 60 calendar days from first learning about the dispute from the cardholder 

Learn More about MasterCard Chargeback Reason Code 4854: Cardholder Disputes

Description

Goods or Services Not Provided

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4855, however, this code will soon be eliminate. It will be incorporated into code 4853.

Prevention Steps

This code, while currently functional, is being consolidated into 4853, and therefore should not be used. *Other time modifiers may apply

Learn More about MasterCard Chargeback Reason Code 4855: Cardholder Disputes

Description

Addendum, No-show, or ATM Dispute

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

The cardholder claims not to have received cash or only received a partial amount from an ATM withdrawal.

Prevention Steps

  1. Reconcile ATMs promptly.
  2. Adjust out-of-balance ATMs.
  3. Process a credit as soon as possible if you notice a discrepancy.

Learn More about MasterCard Chargeback Reason Code 4859: Cardholder Disputes

Description

Credit Not Processed

Time Limit (Issuer/Cardholder)

120 calendar days

Time Limit (Acquirer/Merchant)

45 calendar days

Typical Causes

Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4860, however, this code will soon be eliminate. It will be incorporated into code 4853.

Prevention Steps

This code, while currently functional, is being consolidated into 4853 and therefore should not be used.

Learn More about MasterCard Chargeback Reason Code 4860: Cardholder Disputes

Consumer Disputes