MasterCard Dispute Guide

Your comprehensive guide to reason codes, modifiers, time limits, and compelling evidence for MasterCard Disputes.

MasterCard Reason Codes

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MasterCard uses the four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors (which MasterCard refers to as Point-of-Interaction Errors).

Code Description Transaction Modifers Category How to Win
4837 No Cardholder Authorization CNP Airline Transaction, Customer Profile, Digital Goods Download, Ecommerce Transaction: Partial Shipment or Balance Due, Recurring Transaction, Site to Store Fraud
4840 Fraudulent Processing of Transactions None Fraud
4849 Questionable Merchant Activity None Fraud
4863 Cardholder Does Not Recognize—Potential Fraud None Fraud
4870 Chip Liability Shift None Fraud
4871 Chip/PIN Liability Shift None Fraud
4807 Warning Bulletin File None Authorization
4808 Authorization-Related Chargeback None Authorization
4812 Account Number Not On File None Authorization
4834 Point-of-Interaction Error Addendum/”No-Show” Dispute, DCC Selected by Merchant, DCC Unknown/Refused, Incorrect Transaction Amount, Late Presentment, Unreasonable Amount Point-of-Interaction Error
4831 Transaction Amount Differs None Point-of-Interaction Error
4842 Late Presentment None Point-of-Interaction Error
4846 Correct Transaction Currency Code Not Provided None Point-of-Interaction Error
4850 Installment Billing Dispute None Point-of-Interaction Error
4999 Domestic Chargeback Dispute (Europe Region Only) None Point-of-Interaction Error
4853 Cardholder Dispute Addendum/”No-Show” Dispute, Counterfeit Merchandise, Credit Not Processed, Digital Goods Purchase of USD 25 or Less, Non-Receipt, Not As Described/Defective, Recurring Transaction, Timeshare Cancellation, Transaction Not Completed Cardholder Disputes
4841 Canceled Recurring or Digital Goods Transactions Recurring Transaction – Digital Goods Cardholder Disputes
4854 Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only) None Cardholder Disputes
4855 Goods or Services Not Provided Digital Goods Purchase of USD 25 or Less, European Transaction for Travel Services Cardholder Disputes
4859 Addendum, No-show, or ATM Dispute ATM Transaction Cardholder Disputes
4860 Credit Not Processed None Cardholder Disputes

MasterCard Time Limits to Respond

Time limits are for the acquiring bank. Merchants will typically be given half the amount of time the acquiring bank is given to accomodate for the time they need to process internally.

Chargebacks
0 days
from the date of chargeback

MasterCard Transaction Modifiers

A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback.

Addendum / “No-Show” Dispute

Applies to Reason Codes

How to Respond

  • Provide either:
    • Proof that the deficiency that led to this dispute has been corrected
    • Evidence proving that the cardholder is responsible for the addendum or “no-show” charge

ATM Transaction

Applies to Reason Codes

How to Respond

  • Provide a legible copy of either the ATM audit tape or an internal transaction report from the acquirer. The ATM audit tape or the transaction report must show any terminal financial activity that occurred immediately before and after the disputed transaction. At a minimum, the audit tape or transaction report must include:
    • Primary account number read from track 2 of the magnetic stripe or from the chip (DE 2)
    • Transaction type and account accessed (DE 3)
    • Transaction amount in local currency (DE 4)
    • Transaction trace or system trace audit number (DE 11)
    • Transaction date and time (DE 12)
    • Terminal ID (DE 41)
    • Terminal status (only required in case of partial or no dispense)
    • Error report (only required in case of partial or no dispense) The documentation may also show:
      1. Terminal’s response to the last command received from the interchange system
      2. Retract indicator
      3. Bill counts for each canister

CNP Airline Transaction

Applies to Reason Codes

How to Respond

  • Provide at least one of the following documents and, if necessary, accompanied by an explanation thereof:
    • Flight ticket or boarding pass showing the passenger’s name
    • Flight manifest showing the passenger’s name
    • Additional transactions connected with the disputed flight, such as, upgrades, excess baggage charges, and in-flight purchases
    • Passenger identification documentation showing a link to the cardholder
    • Credits of frequent flyer miles for the flight, showing connection to the cardholder
    • Proof of receipt of the flight ticket at the cardholder’s billing address

Counterfeit Merchandise

Applies to Reason Codes

How to Respond

Your response needs to include documentation to support your claim that the merchandise was not counterfeit.

Credit Not Processed

Applies to Reason Codes

How to Respond

  • Provide any of the following in your response:
    • Proof that the deficiency that led to this dispute has been corrected
    • A statement that neither a return nor attempted to return merchandise has been made
    • A statement and evidence that the cardholder’s return does not comply with your written policies

Customer Profile

Applies to Reason Codes

How to Respond

  • If you require a cardholder to register prior to completing a purchase, you must provide documentation confirming the cardholder or authorized user is registered to purchase goods with a password and must provide one or more of the following:
    • The cardholder or authorized user completed other undisputed purchases prior to, or after, the alleged fraudulent transaction
    • The cardholder or authorized user completed the disputed transaction from a registered device and IP address
    • Details of the purchase
    • Signed proof of delivery
    • Email addresses to support digital download delivery
    • The cardholder or authorized user completed the disputed transaction from a registered device and IP address
    • The cardholder or authorized user registered the disputed goods or services. For example, registration for purposes of warranty or future software updates
    • A fully enabled SecureCode transaction was used to register a PAN for future transaction

DCC Selected by Merchant

Applies to Reason Codes

How to Respond

  • Provide all of the following as relevant compelling evidence:
    • A copy of the transaction receipt
    • Certification confirming that Dynamic Currency Conversion was chosen by the cardholder and not by the merchant

DCC Unknown/Refused

Applies to Reason Codes

How to Respond

  • Ask your acquirer to provide certification that you are registered to offer Dynamic Currency Conversion and to provide a copy of the transaction receipt showing the your local currency

Digital Goods Download

Applies to Reason Codes

How to Respond

  • In your response, provide:
    • The cardholder’s written confirmation of registration to receive electronic delivery of goods or services

Digital Goods at or Under $25 USD

Applies to Reason Codes

How to Respond

  • You may respond when you and your acquirer can substantiate that the merchant offered at least the following minimum purchase controls at the time of the transaction or transactions (in the case of multiple transactions charged back in a batch):
    • The option, enabled as a default setting, for the cardholder to disable all digital goods purchases
    • The time period during which a digital goods purchase can be made on the cardholder’s account with the merchant (the “account open” period) must not exceed 15 minutes from the time at which the cardholder enters account authentication credentials
    • Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount of each pending digital goods purchase before completion of the transaction

Ecommerce Transaction: Partial Shipment or Balance Due

Applies to Reason Codes

How to Respond

  • Provide a statement documenting all of the following if, after completing an authenticated ecommerce transaction, you obtained authorization for a related transaction involving a partial shipment or the payment of a balance due:
    • The original transaction was a digital; secure remote payment (DSRP) transaction or was SecureCode initiated
    • Description of the goods or services purchased in the initial transaction
    • Date and authorization for approval code for the initial transaction
    • The initial transaction was not disputed

European Transaction for Travel Services

Applies to Reason Codes

How to Respond

  • Provide documentation and explanation that the services were covered by a bonding authority, insurance or consumer protection scheme. An acquirer statement that such a scheme exists is not sufficient.

Incorrect Transaction Amount

Applies to Reason Codes

How to Respond

  • Provide evidence that either:
    • The cardholder was billed the accurate amount represented in the disputed transaction
    • The chargeback is invalid because the issuer failed to provide the original ARD in DE 72 (Data Record)

Late Presentment

Applies to Reason Codes

How to Respond

  • Your response to this chargeback can include any of the following:
    • Evidence that a credit was issued
    • Documentation indicating the transaction was submitted within the applicable timeframe
    • Evidence that the chargeback is invalid because the issuer failed to provide the original ARD in DE 72 (Data Record)

Non-Receipt

Applies to Reason Codes

How to Respond

  • Provide evidence that either:
    • The cardholder received the goods or services
    • The deficiency that led to this dispute has been corrected

Not As Described/Defective

Applies to Reason Codes

How to Respond

  • Provide evidence of any of the following:
    • The cardholder received the goods or services which fit the description at the time of the purchase
    • The deficiency that led to this dispute has been corrected
    • A statement that neither a return nor attempted to return merchandise has been made

Recurring Transaction

Applies to Reason Codes

How to Respond

  • For MasterCard reason code 4837, provide all of the following:
    • Description of the goods or services being provided the transaction was recurring by providing the start date of the recurring transaction and, if used, one of the following :
      • SecureCode was used to initiate the original transaction
      • If the card validation code 2 (CVC 2) was provided in the authorization request/0100 message and the card validation code result (DE 48, subelement 87) had a value of M in the Authorization Response/0110 message
    • More than one transaction was processed by providing the date(s) of previous transaction(s)
    • Previous transactions were not disputed
  • For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following:
    • The transaction was not a recurring transaction. For example, the merchant bills the cardholder in installments
    • The transaction was recurring and the cardholder failed to meet the cancellation terms of the signed contract
    • Documentation that services are being provided to and used by the cardholder after the cancellation date are available
    • You can document that proper disclosure of entering into the recurring transaction was provided to and accepted by the cardholder

Recurring Transaction – Digital Goods

Applies to Reason Codes

How to Respond

  • Provide documentation to support that the chargeback is remedied or invalid

Site to Store

Applies to Reason Codes

How to Respond

  • Provide a receipt, work order, or other document signed by the cardholder stating that the goods or services were received by the cardholder (common terms include “will call” and “in-store pickup”)

Timeshare Cancellation

Applies to Reason Codes

How to Respond

  • Provide proof of any of the following:
    • The deficiency that led to this dispute has been corrected
    • The cardholder did not cancel the timeshare agreement or similar service in accordance with your written policies with which they agreed

Transaction Not Completed

Applies to Reason Codes

How to Respond

  • Provide proof that either:
    • The deficiency that led to this dispute has been corrected
    • The transaction posted correctly to the cardholder’s account

Unreasonable Amount

Applies to Reason Codes

How to Respond

  • Provide documentation showing that the cardholder agreed to an amount range as reasonable and that the transaction did not exceed this amount range

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