Table of Contents
- What is Mastercard chargeback reason code 4834?
- What causes code 4834 chargebacks?
- What's the time limit to respond to code 4834 chargebacks?
- How can merchants fight code 4834 chargebacks?
- How can merchants prevent code 4834 chargebacks?
- About Mastercard chargeback reason codes
Merchants who receive a chargeback for a transaction placed with a Mastercard card may encounter reason code 4834, which indicates an improperly processed transaction that the cardholder does not believe they should be responsible for paying. The actual underlying cause of this chargeback is usually either friendly fraud or merchant error. Merchants who believe they have received an invalid chargeback under reason code 4834 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.
What is Mastercard chargeback reason code 4834?
Mastercard chargeback reason code 4834 falls under the “Point-of-Interaction Error” category. The shorthand description is “Point-of-Interaction Error.” This reason code is used for various processing errors, such as late or duplicate processing. Some of these dispute scenarios had their own reason codes in the past, but are now consolidated under 4834.
This reason code may be accompanied by a description that provides additional context for the cardholder’s dispute claims:
- ATM Disputes
The cardholder claims that they withdrew cash at an ATM but did not receive the full amount they requested, or that they were debited twice for a single withdrawal.
- Loss, Theft, or Damages
Some merchants (hotels and rental agencies, for example) may add additional charges for lost, stolen, or damaged property. Cardholders may dispute these charges if they are improperly included in the main purchase transaction.
- Currency Conversion
The transaction used Dynamic Currency Conversion and the cardholder claims that they did not agree to the currency used in the transaction, that the currency conversion was done incorrectly, or that they were not given the option to choose the currency used in the transaction.
- Cardholder Debited More Than Once for the Same Goods or Services
The cardholder claims that they have been charged more than once for a single transaction, or that the disputed transaction duplicates a payment already made via some different method.
- Late Presentment
The merchant did not submit the transaction to their payment processor within the allowed timeframe and the cardholder’s account is now closed. The timeframes vary depending on the transaction type, but most electronic transactions must be received by the issuer within seven days.
- Transaction Amount Differs
The final transaction amount does not match the amount that was submitted for authorization.
What causes code 4834 chargebacks?
This chargeback is often caused by merchant error. Duplicate processing can occur when a single transaction is processed more than one time, when the merchant deposits both the merchant and sales copies of the transaction receipt, when a merchant creates multiple sales receipts for a single transaction, when a merchant deposits a receipt with more than one acquiring bank, or when a merchant submits a batch of transactions multiple times.
Improper transaction procedures can lead to other point-of-interaction errors. Friendly fraud may occur under this reason code when cardholders mistake similar or recurring payments for duplicate transactions.
What's the time limit to respond to code 4834 chargebacks?
The acquirer or merchant has 45 days to respond to a chargeback filed under reason code 4834.
How can merchants fight code 4834 chargebacks?
Merchants can fight this chargeback if the cardholder’s claims are false. The description will indicate the forms of evidence that will be required to fight back. Your chargeback response should include the following:
- ATM Disputes: Proof that the ATM disbursed the correct amount of funds.
- Loss, Theft, or Damages: Documentation showing that the cardholder was made aware of the charges and authorized the payment.
- Currency Conversion: Proof that the cardholder was properly informed of their options and agreed to the conversion.
- For duplicate transaction processing chargebacks, include one of the following:
- Documentation that shows that the disputed transaction was not a duplicate, but a separate and appropriate charge for different goods or services.
- Proof that no alternate forms of payment were received.
- Late Presentment: Include one of the following:
- Proof that a credit has already been issued to the cardholder.
- Proof that the transaction was submitted within the allowable time frame.
- Evidence that the chargeback is invalid because the issuer did not provide the original Acquirer Reference Data in the DE 72 data record.
- Transaction Amount Differs: Include either documentation that proves that the cardholder was billed the correct amount, or evidence that the chargeback is invalid because the issuer did not provide the original Acquirer Reference Data in the DE 72 data record.
How can merchants prevent code 4834 chargebacks?
Careful handling of transaction processes and attention to detail can go a long way toward avoiding these chargebacks. The following tips can help:
- Keep ATMs well-maintained and in good repair.
- When ATM errors occur, be proactive about refunding customers.
- If there is a possibility that you might charge a customer for loss, theft, or damages, make sure they have read your terms of sale and agree to pay these charges if necessary.
- Process charges for loss, theft, or damages separately from the primary transaction and provide the customer with an itemized receipt.
- Always give customers the choice of whether or not to use Dynamic Currency Conversion, and make sure they can see the transaction total, in their chosen currency, before processing the payment.
- Review your transaction receipts before depositing them.
- If you notice that you have processed a duplicate transaction, reverse it or issue a credit immediately.
- Only submit one batch at a time.
- Only deposit receipts with one acquirer.
- Know the time frames you are operating under and submit transactions to your payment processor as soon you can, ideally within 24 hours.
- Never change the transaction amount without first obtaining the cardholder’s consent and requesting a new authorization.
- If the cardholder changes their mind mid-transaction and wishes to switch to a different payment method, void the transaction in progress immediately.
- Train your staff on the proper procedures for transaction processing, especially when dealing with tips, currency conversion, and other variable amounts.
About Mastercard chargeback reason codes
Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid.
When a cardholder contacts their issuing bank to dispute a transaction and receive a chargeback, the dispute is assigned a reason code that most closely matches the substance of the cardholder’s claims. The reason code provides the merchant and other stakeholders in the dispute with a concise explanation for why a chargeback has been granted.
Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands.
Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. Mastercard uses a four-digit numbering scheme for its chargeback reason codes.
Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. With this information, you can determine the root causes of your chargebacks and take action to prevent them from reoccurring.