Chargeback Guide Merchant Edition

Chargeback Guide

Merchant Edition

30 April 2024

Contents

Summary of Changes, 30 April 2024.................................................................................... 22

Chapter 1: General Information................................................................................................24

Network Processing...............................................................................................................................25

Definitions...............................................................................................................................................25

Chargeback Cycles and Arbitration Case Filing...............................................................................25

Disputes of a Third Party Processed Transaction.......................................................................25

Overview of the Single and Dual Message System Chargeback Cycles and Arbitration

Case Filing......................................................................................................................................... 26

Compliance Case Filing.........................................................................................................................27

Reversals..................................................................................................................................................28

Rights and Obligations..........................................................................................................................28

Hardship Variances................................................................................................................................29

Related Documentation....................................................................................................................... 30

Chapter 2: Dual Message System Chargebacks............................................................ 31

Overview..................................................................................................................................................35

Authorization-related Chargeback.....................................................................................................35

Chargeback.......................................................................................................................................37

Required Authorization Not Obtained.................................................................................... 37

Expired Chargeback Protection Period...................................................................................40

Multiple Authorization Requests..............................................................................................41

CAT 3 Device................................................................................................................................42

Transit First Ride Risk (FRR) Claims........................................................................................ 44

Second Presentment.......................................................................................................................45

Required Authorization Obtained............................................................................................46

Expired Chargeback Protection Period...................................................................................47

Multiple Authorization Requests..............................................................................................48

One Authorization with Multiple Clearing Records...............................................................49

CAT 3 Device ...............................................................................................................................50

Credit Previously Issued.............................................................................................................50

Additional Second Presentment Options...............................................................................52

Cardholder Dispute Chargeback ........................................................................................................53

Chargeback.......................................................................................................................................55

Goods or Services Were Either Not as Described or Defective.......................................... 55

Goods or Services Not Provided...............................................................................................57

Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued.............................................................................................................................61

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only.............. 63

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Digital Goods Purchase of USD 25 or Less............................................................................65

Credit Not Processed................................................................................................................. 67

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed............ 71

Counterfeit Goods......................................................................................................................74

Cardholder Dispute of a Recurring Transaction....................................................................75

Issuer Dispute of a Recurring Transaction..............................................................................76

Addendum Dispute.....................................................................................................................78

“No-Show” Hotel Charge...........................................................................................................80

Transaction Did Not Complete.................................................................................................81

Timeshares...................................................................................................................................82

Credit Posted as a Purchase.....................................................................................................83

Second Presentment.......................................................................................................................83

General Second Presentment...................................................................................................83

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only.............. 84

Digital Goods Purchase of USD 25 or Less............................................................................85

Credit Previously Issued.............................................................................................................86

Additional Second Presentment Options...............................................................................89

Fraud-related Chargebacks.................................................................................................................90

No Cardholder Authorization.........................................................................................................90

Chargeback..................................................................................................................................93

No Cardholder Authorization..............................................................................................93

Second Presentment..................................................................................................................96

Two or More Previous Fraud-related Chargebacks......................................................... 97

Fraud-related Chargeback Counter Exceeds Threshold.................................................98

Not Reported to the Fraud and Loss Database.............................................................. 99

Contactless Transaction Unattended Terminals...........................................................100

PIN Transaction...................................................................................................................100

Authenticated Transaction................................................................................................101

Authenticated Transaction – Mainland China Domestic Transactions Only............ 102

Account Takeover................................................................................................................103

Addendum Charges............................................................................................................103

Address Verification Service (AVS) Transaction............................................................104

Compelling Evidence for Airline Transactions................................................................ 105

Compelling Evidence for Recurring and Installment-based Repayment

Transactions.........................................................................................................................105

Compelling Evidence for E-commerce and MO/TO Transactions.............................. 107

Invalid Chargeback............................................................................................................. 109

Guaranteed Reservation Service (“No-show")..............................................................109

Chip Liability Shift.............................................................................................................. 110

Chip/PIN Liability Shift......................................................................................................111

Credit Previously Issued..................................................................................................... 111

Additional Second Presentment Options....................................................................... 114

Questionable Merchant Activity .................................................................................................115

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Chargeback............................................................................................................................... 116

Questionable Merchant Audit Program (QMAP).......................................................... 116

Coercion Program...............................................................................................................117

Second Presentment............................................................................................................... 118

Not Considered in Violation of Mastercard Rule for Coercion Claim.........................118

Late First Chargeback Submission..................................................................................119

Improper Fraud Reporting.................................................................................................120

Ineligible Fraud.................................................................................................................... 120

Not Listed in Mastercard Announcement.......................................................................121

Credit Previously Issued..................................................................................................... 122

Additional Second Presentment Options....................................................................... 124

Chip Liability Shift......................................................................................................................... 125

Chargeback............................................................................................................................... 130

Chip Liability Shift.............................................................................................................. 131

Second Presentment .............................................................................................................. 133

Two or More Previous Fraud-related Chargebacks.......................................................133

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 134

Not Reported to the Fraud and Loss Database............................................................135

Issuer Authorized Transaction.......................................................................................... 135

Technical Fallback............................................................................................................... 136

Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization........ 137

Chip Transaction-Offline Authorized...............................................................................137

DE 55 Was Provided...........................................................................................................138

Invalid Chargeback............................................................................................................. 138

Credit Previously Issued..................................................................................................... 139

Additional Second Presentment Options....................................................................... 141

Chip Liability Shift-Lost/Stolen/Never Received Issue (NRI) Fraud......................................142

Chargeback............................................................................................................................... 148

Lost/Stolen/NRI Fraud Chip Liability Shift.................................................................... 148

Second Presentment............................................................................................................... 149

Two or More Previous Fraud-related Chargebacks.......................................................150

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 150

Not Reported to the Fraud and Loss Database............................................................151

Authorized Online Transaction......................................................................................... 151

Technical Fallback............................................................................................................... 152

Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization........ 152

DE 55 Was Provided in the First Presentment/1240 Message..................................153

Invalid Chargeback............................................................................................................. 153

Credit Previously Issued..................................................................................................... 153

Additional Second Presentment Options....................................................................... 156

Point-of-Interaction Error..................................................................................................................157

Chargeback.....................................................................................................................................158

Cardholder Debited More than Once for the Same Goods or Services..........................158

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Transaction Amount Differs...................................................................................................159

ATM Disputes............................................................................................................................ 161

Charges for Loss, Theft, or Damages...................................................................................162

Currency Errors.........................................................................................................................163

Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss.. 164

Improper Merchant Surcharge (Select Countries only).....................................................165

Unreasonable Amount (EEA, Gibraltar, United Kingdom)................................................ 166

Second Presentment.....................................................................................................................166

Cardholder Debited More than Once for the Same Goods or Services .........................167

Cardholder Debited More than Once for the Same Goods or Services-PIN

Transaction................................................................................................................................167

Transaction Amount Differs...................................................................................................168

ATM Disputes............................................................................................................................ 169

Charges for Loss, Theft, or Damages...................................................................................170

Late Presentment-Corrected Transaction Date.................................................................170

Currency Errors.........................................................................................................................171

Unreasonable Amount (EEA, Gibraltar, United Kingdom)................................................ 171

Credit Previously Issued...........................................................................................................172

Improper Merchant Surcharge (Intra-European and Inter-European transactions

only)............................................................................................................................................ 174

Additional Second Presentment Options.............................................................................175

Cardholder Dispute-Not Elsewhere Classified (U.S. Region Only)............................................. 176

Installment Billing Dispute (Participating Countries Only)..........................................................176

Domestic Chargeback Dispute (Europe Region Only).................................................................. 176

Requirements for Issuer’s First Chargeback and Acquirer’s Second Presentment............ 176

Improper Use of Message Reason Code 4999..........................................................................176

Arbitration Case Filing..................................................................................................................176

Additional Processing Notes..............................................................................................................176

Chargeback Message Reason Codes............................................................................................... 177

First Chargeback: MTI 1442.........................................................................................................177

Second Presentment: MTI 1240..................................................................................................177

Technical Return........................................................................................................................177

Documentation Return............................................................................................................177

Substance Return.....................................................................................................................177

Second Presentment/1240 (Function Codes 205 or 282) Message Reason Code

Usage...............................................................................................................................................178

Chapter 3: Single Message System Chargebacks.......................................................182

Overview...............................................................................................................................................184

Exception Transaction Types............................................................................................................. 184

Supporting Documentation...............................................................................................................184

Acquirer Adjustment Reason Codes.................................................................................................184

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code 06-Correction of a Representment...................................................185

Acquirer Correction..................................................................................................................185

Issuer Chargeback....................................................................................................................186

Message Reason Code 10-Correct a Terminal Malfunction...................................................186

Acquirer Correction..................................................................................................................186

Issuer Chargeback....................................................................................................................187

Message Reason Code 20-Returned Item (U.S. Shared Deposits Only)..............................187

Message Reason Code 24-Empty Deposit Envelope (U.S. Shared Deposits Only)............187

Message Reason Code 25-Error in Addition (U.S. Shared Deposits Only)...........................187

Message Reason Code 26-Error in Settlement (U.S. Shared Deposits Only)..................... 187

Message Reason Code 28-Non-Cash Item Deposited (U.S. Shared Deposits Only)......... 187

Message Reason Code 29-Foreign/Counterfeit Currency Deposited (U.S. Shared

Deposits Only)................................................................................................................................187

Message Reason Code 30-Cardholder Disputed Amount (U.S. Shared Deposits Only)...187

Message Reason Code 85-Adjustment Reversal......................................................................187

Acquirer Adjustment................................................................................................................187

Issuer Chargeback....................................................................................................................188

Chargeback Reason Codes................................................................................................................188

Correction of a Chargeback.........................................................................................................189

Issuer Correction.......................................................................................................................189

Acquirer Representment......................................................................................................... 189

Cash Dispute-ATM Only................................................................................................................189

Issuer Chargeback....................................................................................................................189

Acquirer Representment (Second Presentment)................................................................190

Mastercard Automated Reversal...........................................................................................191

Cardholder Disputed Amount (U.S. Shared Deposits Only)...................................................192

Defective/Not as Described-Intra-U.S. Region and U.S. Territories Only............................ 192

Chip Liability Shift......................................................................................................................... 192

Issuer Chargeback....................................................................................................................192

Counterfeit Fraud...............................................................................................................192

Lost, Stolen, or Never Received Fraud.............................................................................193

Chip Liability Shift Program for Domestic and Intraregional Transactions............. 194

Chip Liability Shift Program for Interregional Transactions........................................197

Improper Use for Issuer Chargeback.....................................................................................198

Acquirer Representment (Second Presentment)................................................................199

Transaction Amount Differs.........................................................................................................200

Issuer Chargeback....................................................................................................................200

Acquirer Representment (Second Presentment)................................................................201

Mastercard Automated Reversal...........................................................................................201

Duplicate Transaction...................................................................................................................202

Issuer Chargeback....................................................................................................................202

Acquirer Representment (Second Presentment)................................................................202

Mastercard Automated Reversal...........................................................................................203

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

No Cardholder Authorization.......................................................................................................204

Issuer Chargeback....................................................................................................................204

Acquirer Representment (Second Presentment)................................................................205

Mastercard Automated Reversal...........................................................................................206

Credit Not Received.......................................................................................................................206

Issuer Chargeback....................................................................................................................206

Acquirer Representment (Second Presentment)................................................................208

Mastercard Automated Reversal...........................................................................................209

Goods or Services Not Provided..................................................................................................209

Issuer Chargeback....................................................................................................................209

Acquirer Representment (Second Presentment)................................................................212

Mastercard Automated Reversal...........................................................................................212

Late Presentment..........................................................................................................................213

Issuer Chargeback....................................................................................................................213

Acquirer Representment (Second Presentment)................................................................213

Mastercard Automated Reversal...........................................................................................214

Invalid Adjustment-Account Closed............................................................................................214

Issuer Chargeback....................................................................................................................214

Acquirer Representment (Second Presentment)................................................................215

Invalid Adjustment-Insufficient Funds....................................................................................... 215

Issuer Chargeback....................................................................................................................215

Acquirer Representment (Second Presentment)................................................................215

Chapter 4: Single Message System Chargebacks for Non-Mastercard

BIN Maestro Card-Not-Present (CNP) Debit Transactions.................................. 216

Overview...............................................................................................................................................219

Authorization-related Chargeback.................................................................................................. 219

Chargeback.....................................................................................................................................220

Required Authorization Not Obtained..................................................................................220

Second Presentment.....................................................................................................................221

Required Authorization Obtained..........................................................................................221

Credit Previously Issued...........................................................................................................221

Duplicate Chargeback.............................................................................................................222

Invalid Chargeback...................................................................................................................223

Arbitration Case Filing..................................................................................................................223

Cardholder Dispute Chargeback...................................................................................................... 223

Chargeback.....................................................................................................................................225

Goods or Services Were Either Not as Described or Defective........................................225

Goods or Services Not Provided.............................................................................................226

Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued.......................................................................................................................... 229

Digital Goods Purchase of USD 25 or Less..........................................................................230

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Credit Not Processed...............................................................................................................231

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed.......... 233

Counterfeit Goods....................................................................................................................234

Cardholder Dispute of a Recurring Transaction..................................................................235

Issuer Dispute of a Recurring Transaction........................................................................... 235

Addendum Dispute.................................................................................................................. 236

“No-Show” Hotel Charge........................................................................................................ 237

Transaction Did Not Complete...............................................................................................238

Timeshares.................................................................................................................................239

Credit Posted as a Purchase...................................................................................................239

Second Presentment.....................................................................................................................240

General Second Presentment................................................................................................ 240

Credit Previously Issued...........................................................................................................240

Duplicate Chargeback.............................................................................................................242

Past Chargeback Time Limit..................................................................................................242

Chargeback Documentation Not Provided..........................................................................242

Chargeback Documentation was Illegible........................................................................... 243

Invalid Chargeback...................................................................................................................243

Arbitration Case Filing..................................................................................................................244

Fraud-related Chargebacks...............................................................................................................244

No Cardholder Authorization.......................................................................................................244

Chargeback............................................................................................................................... 245

No Cardholder Authorization............................................................................................245

Second Presentment............................................................................................................... 246

Two or More Previous Fraud-related Chargebacks.......................................................246

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 246

Not Reported to the Fraud and Loss Database............................................................247

Account Takeover................................................................................................................248

Addendum Charges............................................................................................................248

Address Verification Service (AVS) Transaction............................................................249

Compelling Evidence for Airline Transactions................................................................ 249

Compelling Evidence for Recurring Transactions.......................................................... 250

Compelling Evidence for E-commerce and MO/TO Transactions.............................. 250

Invalid Chargeback............................................................................................................. 251

Guaranteed Reservation Service (“No-show")..............................................................252

Credit Previously Issued..................................................................................................... 252

Duplicate Chargeback........................................................................................................253

Past Chargeback Time Limit.............................................................................................254

Chargeback Documentation Not Provided.................................................................... 254

Chargeback Documentation was Illegible......................................................................254

Arbitration Case Filing.............................................................................................................255

Questionable Merchant Activity..................................................................................................255

Chargeback............................................................................................................................... 256

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Questionable Merchant Audit Program (QMAP).......................................................... 256

Coercion Program...............................................................................................................256

Second Presentment............................................................................................................... 257

Not Considered in Violation of Mastercard Rule for Coercion Claim.........................257

Late First Chargeback Submission..................................................................................258

Improper Fraud Reporting.................................................................................................258

Ineligible Fraud.................................................................................................................... 258

Not Listed in Mastercard Announcement.......................................................................259

Credit Previously Issued..................................................................................................... 259

Duplicate Chargeback........................................................................................................260

Past Chargeback Time Limit.............................................................................................261

Arbitration Case Filing.............................................................................................................261

Point-of-Interaction Error..................................................................................................................261

Chargeback.....................................................................................................................................262

Cardholder Debited More than Once for the Same Goods or Services..........................262

Transaction Amount Differs...................................................................................................263

ATM Disputes............................................................................................................................ 263

Charges for Loss, Theft, or Damages...................................................................................263

Second Presentment.....................................................................................................................264

Cardholder Debited More than Once for the Same Goods or Services..........................264

Transaction Amount Differs...................................................................................................264

ATM Disputes............................................................................................................................ 265

Charges for Loss, Theft, or Damages...................................................................................265

Credit Previously Issued...........................................................................................................265

Duplicate Chargeback.............................................................................................................267

Past Chargeback Time Limit..................................................................................................267

Chargeback Documentation Not Provided..........................................................................267

Chargeback Documentation was Illegible........................................................................... 268

Invalid Chargeback...................................................................................................................268

Arbitration Case Filing..................................................................................................................268

Chapter 5: Pre-Arbitration and Arbitration Case Filing.......................................... 269

Overview...............................................................................................................................................271

Processing Platform............................................................................................................................272

Time Frames and Requirements.......................................................................................................272

Single Message System Arbitration Case Filing.......................................................................273

Dual Message System and Non-Mastercard BIN Maestro Card-Not-Present (CNP)

Debit Card Transactions...............................................................................................................281

Authorization-related..............................................................................................................281

Invalid Second Presentment............................................................................................. 281

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................288

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Required Documentation Not Received to Support Second Presentment...............294

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 300

Change of Chargeback Reason to an Authorization-related Chargeback...............305

Cardholder Dispute..................................................................................................................310

Cardholder Reasserts Their Claim................................................................................... 310

Invalid Second Presentment............................................................................................. 317

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................322

Required Documentation Not Received to Support Second Presentment...............327

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 332

Change of Reason within the Cardholder Dispute Chargeback.................................336

Change of Chargeback Reason to a Cardholder Dispute Chargeback .................... 340

No Cardholder Authorization................................................................................................. 345

Invalid Second Presentment............................................................................................. 345

Compelling Evidence for Airline, Recurring, Installment-based Repayment, E-

Commerce, and MO/TO Transactions.............................................................................350

Addendum Disputes...........................................................................................................356

Address Verification Services (AVS) Transaction.......................................................... 362

Guaranteed Reservation Service (“No-show”).............................................................. 368

New Merchant Location.................................................................................................... 374

Documentation Received with Second Presentment was Illegible or Scanning

Error ......................................................................................................................................380

Required Documentation Not Received to Support Second Presentment ..............384

Acquirer Reference Data (ARD) Does Not Match or is Invalid ................................... 389

Change of Chargeback Reason to a No Cardholder Authorization Chargeback.... 393

Questionable Merchant Activity ........................................................................................... 398

Invalid Second Presentment............................................................................................. 398

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................403

Required Documentation Not Received to Support Second Presentment...............407

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 412

Change of Chargeback Reason to a Questionable Merchant Chargeback..............417

Chip Liability Shift....................................................................................................................421

Invalid Second Presentment............................................................................................. 421

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................426

Required Documentation Not Received to Support Second Presentment...............431

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 436

Chip Liability - Lost/Stolen/Never Received Issue (NRI) Fraud........................................441

Invalid Second Presentment............................................................................................. 441

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................446

Required Documentation Not Received to Support Second Presentment ..............451

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 456

Point-of-Interaction Error.......................................................................................................461

Transaction Amount Differs (Gratuity Disputes Only).................................................461

ATM Disputes.......................................................................................................................466

ATM Dispute-Required Second Presentment Supporting Documentation Not

Received (Europe Issuers only)..........................................................................................473

Invalid Second Presentment............................................................................................. 478

Documentation Received with Second Presentment was Illegible or Scanning

Error.......................................................................................................................................483

Required Documentation Not Received to Support Second Presentment...............487

Acquirer Reference Data (ARD) Does Not Match or is Invalid.................................... 492

Change of Chargeback Reason to a Point-of-Interaction (POI) Error Chargeback496

Mastercard Review Process...............................................................................................................500

Appeals..................................................................................................................................................500

Time Frames...................................................................................................................................500

How to File an Appeal...................................................................................................................500

Appeal Review Process............................................................................................................501

Chapter 6: Domestic South Africa Disputes.................................................................. 502

Overview...............................................................................................................................................504

Domestic Transaction.........................................................................................................................504

Adjustments Initiated on or after 8 January 2024....................................................................... 504

Correct a Terminal Malfunction...................................................................................................504

Acquirer submission of a pre-compliance case.........................................................................504

Issuer Response to the Pre-Compliance Case...........................................................................505

Disputes Initiated on or before 7 January 2024............................................................................505

Acquirer submission of a second presentment pre-compliance case................................... 505

Issuer Response to the Pre-Compliance Case...........................................................................508

Acquirer Escalation to a Compliance Case................................................................................508

Issuer Response to the Compliance Case..................................................................................508

Disputes Initiated on or after 8 January 2024.............................................................................. 509

Cash Dispute-ATM Only................................................................................................................509

Issuer submission of a pre-compliance case........................................................................509

Acquirer Response to the Pre-Compliance Case.................................................................510

Issuer Escalation to a Compliance Case...............................................................................511

Acquirer Response to the Compliance Case........................................................................512

Transaction Amount Differs.........................................................................................................512

Issuer submission of a pre-compliance case........................................................................512

Acquirer Response to the Pre-Compliance Case.................................................................513

Issuer Escalation to a Compliance Case...............................................................................514

Acquirer Response to the Compliance Case........................................................................514

Duplicate Transaction...................................................................................................................515

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Issuer submission of a pre-compliance case........................................................................515

Acquirer Response to the Pre-Compliance Case.................................................................516

Issuer Escalation to a Compliance Case...............................................................................516

Acquirer Response to the Compliance Case........................................................................517

No Cardholder Authorization.......................................................................................................517

Issuer submission of a pre-compliance case........................................................................518

Acquirer Response to the Pre-Compliance Case.................................................................518

Issuer Escalation to a Compliance Case...............................................................................519

Acquirer Response to the Compliance Case........................................................................520

Credit Not Received.......................................................................................................................520

Issuer submission of a pre-compliance case........................................................................521

Acquirer Response to the Pre-Compliance Case.................................................................522

Issuer Escalation to a Compliance Case...............................................................................523

Acquirer Response to the Compliance Case........................................................................524

Goods or Services Not Provided..................................................................................................525

Issuer submission of a pre-compliance case........................................................................525

Acquirer Response to the Pre-Compliance Case.................................................................527

Issuer Escalation to a Compliance Case...............................................................................527

Acquirer Response to the Compliance Case........................................................................529

Late Presentment..........................................................................................................................529

Issuer submission of a pre-compliance case........................................................................529

Acquirer Response to the Pre-Compliance Case.................................................................530

Issuer Escalation to a Compliance Case...............................................................................531

Acquirer Response to the Compliance Case........................................................................531

Invalid Adjustment-Account Closed............................................................................................532

Issuer submission of a pre-compliance case........................................................................532

Acquirer Response to the Pre-Compliance Case.................................................................532

Issuer Escalation to a Compliance Case...............................................................................533

Acquirer Response to the Compliance Case........................................................................533

Invalid Adjustment-Insufficient Funds....................................................................................... 534

Issuer submission of a pre-compliance case........................................................................534

Acquirer Response to the Pre-Compliance Case.................................................................534

Issuer Escalation to a Compliance Case...............................................................................535

Acquirer Response to the Compliance Case........................................................................535

Mastercard Review Process...............................................................................................................536

Appeals..................................................................................................................................................536

Appeal Review Process.......................................................................................................................537

Chapter 7: Compliance Case Filing.......................................................................................538

Overview...............................................................................................................................................539

Processing Platform............................................................................................................................540

Compliance Case Processing.............................................................................................................542

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Timeframes and Requirements.........................................................................................................544

Case Filing Requirements...................................................................................................................545

Missing, Invalid, or Inaccurate Authorization Data..................................................................545

Inaccurate Clearing Data That Restricts Chargeback Cycles................................................547

Valid Chargeback Exceeding System Availability.....................................................................550

Invalid Subsequent First Presentment.......................................................................................552

Same Day Processing of Chargeback Reversal and Second Presentment..........................554

Fee Collection/1740 Message.....................................................................................................556

ATM Dynamic Currency Conversion............................................................................................557

Merchant Not Listed or Improperly Listed on MATCH............................................................ 560

Unspent Gift Card Funds..............................................................................................................562

Acquirer Request for Cardholder Statement of Fraud........................................................... 564

Refund Transactions and Corrections........................................................................................566

MoneySend Originating Institution.............................................................................................569

MoneySend Receiving Institution or Payment Transactions.................................................. 571

Invalid Return of Processed Adjustment (Mainland China Domestic Only)........................ 574

Interchange Discrepancy (Non—Brazil Domestic)....................................................................575

All Other Rules Violations - Third-Party Processed Transactions.......................................... 578

All Other Rules Violations............................................................................................................. 580

Mastercard Review Process...............................................................................................................581

Appeals..................................................................................................................................................582

Time Frames...................................................................................................................................582

How to File an Appeal...................................................................................................................582

Appeal Review Process..................................................................................................................583

Chapter 8: Mastercard Merchant Presented QR........................................................584

Overview...............................................................................................................................................585

How to File, and Respond to, Disputes through the Compliance Case Filing Process............585

Dispute Reasons..................................................................................................................................587

Goods or Services were Either not as Described or Defective...............................................587

Pre-Compliance Case.............................................................................................................. 587

Compliance Case......................................................................................................................589

Goods or Services were not Provided.........................................................................................590

Pre-Compliance Case.............................................................................................................. 590

Compliance Case......................................................................................................................594

Credit not Processed.....................................................................................................................597

Pre-Compliance Case.............................................................................................................. 597

Compliance Case......................................................................................................................600

Paid by Other Means.....................................................................................................................602

Pre-Compliance Case.............................................................................................................. 602

Compliance Case......................................................................................................................603

Billed an Incorrect Amount...........................................................................................................605

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Pre-Compliance Case.............................................................................................................. 605

Compliance Case......................................................................................................................606

Duplicate Transaction...................................................................................................................607

Pre-Compliance Case.............................................................................................................. 607

Compliance Case......................................................................................................................609

Chapter 9: Chargebacks-Mastercard Europe ATM Transactions

(Mastercard, Maestro, and Cirrus)........................................................................................611

Overview...............................................................................................................................................613

Clearing.................................................................................................................................................613

Processing Cycles.................................................................................................................................613

Processing Cycle for ATM Transactions......................................................................................613

Presentment...................................................................................................................................614

Reversals....................................................................................................................................614

Chargebacks...................................................................................................................................615

Second Presentment.....................................................................................................................615

Chip Transactions...........................................................................................................................616

Message Reason Codes......................................................................................................................616

Message Reason Code 4804-Multiple Processing....................................................................617

Proper Use of Message Reason Code 4804.........................................................................617

Improper Use of Second Presentment................................................................................. 617

Message Reason Code 4808-Transaction Not Authorized.....................................................617

Proper Use of Message Reason Code 4808.........................................................................618

Proper Use for Issuer’s First Chargeback.............................................................................618

Proper Use for Acquirer’s Second Presentment..................................................................618

Expired Payment Guarantee.............................................................................................618

Transaction Authorized......................................................................................................619

Message Reason Code 4809-Transaction Not Reconciled......................................................619

Proper Use of Message Reason Code 4809.........................................................................619

Improper Use of Acquirer’s Second Presentment...............................................................620

Message Reason Code 4811-Stale Transaction.......................................................................620

Proper Use of Message Reason Code 4811.........................................................................620

Improper Use of Acquirer’s Second Presentment...............................................................620

Message Reason Code 4834-Duplicate Processing of Transaction......................................620

Proper Use of Message Reason Code 4834.........................................................................620

Proper Use for Issuer’s First Chargeback.............................................................................620

Proper Use for Acquirer’s Second Presentment..................................................................621

Transaction Authorized (For Intra-European and Inter-European Transactions

Only)......................................................................................................................................621

Credit Previously Issued (For Intra-European and Inter-European Transactions

Only)......................................................................................................................................621

Chargeback Remedied.......................................................................................................621

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Invalid Data Record.............................................................................................................622

Message Reason Code 4842-Late Presentment..................................................................... 622

Proper Use of Message Reason Code 4842.........................................................................622

Proper Use for Issuer’s First Chargeback.............................................................................622

Improper Use for Issuer’s First Chargeback.........................................................................622

Proper Use for Acquirer’s Second Presentment..................................................................623

Correct Transaction Date Provided................................................................................. 623

Account not Permanently Closed.....................................................................................623

Message Reason Code 4846-Currency Errors.......................................................................... 623

Proper Use for Issuer’s First Chargeback.............................................................................623

Second Presentment............................................................................................................... 625

Message Reason Code 4859-ATM Dispute............................................................................... 625

Proper Use of Message Reason Code 4859.........................................................................625

Improper Use of Message Reason Code 4859.................................................................... 625

Proper Use for Issuer’s First Chargeback.............................................................................626

Proper Use For Acquirer’s Second Presentment.................................................................626

Message Reason Code 4870-Chip Liability Shift.....................................................................628

Proper Use of Message Reason Code 4870.........................................................................628

Improper Use of Message Reason Code 4870.................................................................... 629

Proper Use for Issuer’s First Chargeback.............................................................................630

Proper Use for Acquirer’s Second Presentment..................................................................630

Chargeback Invalid............................................................................................................. 630

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 631

Message Reason Code 4880-Late Presentment..................................................................... 631

Proper Use of Intra-European or Inter-European Message Reason Code 4880........... 631

Improper Use for Issuer’s First Chargeback.........................................................................631

Proper Use for Acquirer’s Second Presentment..................................................................632

Chapter 10: Chargebacks-Maestro POS Transactions............................................633

Overview...............................................................................................................................................637

Exception Item Processing.................................................................................................................639

Exception Transaction Types........................................................................................................639

Reversals..........................................................................................................................................639

Retrieval Requests......................................................................................................................... 639

Acquirer Requirements............................................................................................................ 639

Chip Transactions...........................................................................................................................640

Chargebacks...................................................................................................................................640

Chargeback Procedures.......................................................................................................... 640

Supporting Documentation for a Chargeback................................................................... 640

Second Presentment Procedures................................................................................................641

Supporting Documentation for a Second Presentment................................................... 641

Message Reason Codes for Interregional Transactions................................................................642

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Interregional Message Reason Code 4804-Transaction Multiple Processing......................643

Proper Use of Interregional Message Reason Code 4804.................................................643

Improper Use for Acquirer’s Second Presentment............................................................. 643

Interregional Message Reason Code 4809-Transaction Not Reconciled .............................643

Proper Use of Interregional Message Reason Code 4809.................................................643

Improper Use for Acquirer’s Second Presentment............................................................. 643

Interregional Message Reason Code 4811-Stale Transaction...............................................643

Proper Use of Interregional Message Reason Code 4811.................................................643

Improper Use of Acquirer’s Second Presentment...............................................................643

Interregional Message Reason Code 4831-Disputed Amount.............................................. 643

Proper Use of Interregional Message Reason Code 4831.................................................643

Proper Use for Issuer’s First Chargeback.............................................................................644

Proper Use for Acquirer’s Second Presentment..................................................................644

Interregional Message Reason Code 4834-Duplicate Transaction ......................................644

Proper Use of Interregional Message Reason Code 4834.................................................644

Proper Use for Issuer’s First Chargeback.............................................................................644

Proper Use for Acquirer’s Second Presentment..................................................................644

Interregional Message Reason Code 4837-No Cardholder Authorization.......................... 645

Proper Use of Interregional Message Reason Code 4837.................................................645

Improper Use of Interregional Message Reason Code 4837............................................ 645

Proper Use for Acquirer’s Second Presentment..................................................................646

Invalid Chargeback............................................................................................................. 646

Two or More Previous Fraud-related Chargebacks.......................................................646

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 647

Interregional Message Reason Code 4855-Goods or Services Not Delivered.....................647

Proper Use of Interregional Message Reason Code 4855.................................................647

Improper Use for Issuer’s First Chargeback.........................................................................648

Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued.......................................................................................................................... 649

Proper Use for Acquirer’s Second Presentment..................................................................650

Interregional Message Reason Code 4860-Credit Not Received...........................................650

Proper Use of Interregional Message Reason Code 4860.................................................650

Proper Use for Issuer’s First Chargeback.............................................................................650

Proper Use for Acquirer’s Second Presentment..................................................................651

Interregional Message Reason Code 4870-Chip Liability Shift.............................................651

Proper Use of Interregional Message Reason Code 4870.................................................651

Improper Use of Interregional Message Reason Code 4870............................................ 652

Proper Use for Acquirer’s Second Presentment..................................................................653

Invalid Chargeback............................................................................................................. 653

Two or More Previous Fraud-related Chargebacks.......................................................653

Fraud-related Chargeback Counter Exceeds Threshold.............................................. 654

Interregional Message Reason Code 4880-Late Presentment..............................................654

Proper Use of Interregional Message Reason Code 4880.................................................654

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Proper Use for Acquirer’s Second Presentment..................................................................655

Message Reason Codes for Intra-European and Inter-European Transactions....................... 655

Intra-European Message Reason Code 4808-Transaction Not Authorized........................ 656

Proper Use of Intra-European Message Reason Code 4808............................................ 656

Improper Use of Intra-European Message Reason Code 4808........................................658

Proper Use for Issuer’s First Chargeback.............................................................................658

Proper Use for Acquirer’s Second Presentment..................................................................658

Transaction Authorized......................................................................................................658

Expired Payment Guarantee.............................................................................................659

Improper Use for Acquirer’s Second Presentment............................................................. 659

Proper Use for New Presentments..................................................................................659

Intra-European and Inter-European Message Reason Code 4831-Disputed Amount......659

Proper Use of Intra-European and Inter-European Message Reason Code 4831........ 659

Proper Use for Issuer’s First Chargeback.............................................................................660

Proper Use for Acquirer’s Second Presentment..................................................................662

Chargeback Remedied.......................................................................................................662

Improper Merchant Surcharge (Intra-European and Inter-European

Transactions Only)..............................................................................................................662

Intra-European Message Reason Code 4834-Duplicate Processing of Transaction......... 663

Proper Use of Intra-European Message Reason Code 4834............................................ 663

Proper Use for Issuer’s First Chargeback.............................................................................663

Proper Use for Acquirer’s Second Presentment..................................................................663

Transaction Authorized......................................................................................................663

Credit Previously Issued..................................................................................................... 664

Chargeback Remedied.......................................................................................................664

Invalid Data Record.............................................................................................................664

Intra-European Message Reason Code 4837-No Cardholder Authorization......................665

Proper Use of Intra-European Message Reason Code 4837............................................ 665

Improper Use of Intra-European Message Reason Code 4837........................................665

Proper Use for Issuer’s First Chargeback.............................................................................666

Proper Use for Acquirer’s Second Presentment..................................................................666

Transaction Authorized......................................................................................................667

Chargeback Remedied.......................................................................................................667

Invalid Chargeback............................................................................................................. 667

Two or More Previous Fraud-related Chargebacks.......................................................668

Improper Use for Acquirer's Second Presentment.............................................................668

Intra-European Message Reason Code 4841-Canceled Recurring or Digital Goods

Transactions....................................................................................................................................668

Proper Use of Intra-European Message Reason Code 4841............................................ 668

Proper Use for Issuer’s First Chargeback.............................................................................670

Recurring Transaction Canceled Before Billing.............................................................. 670

Account Listed in Payment Cancellation Service (PCS).............................................. 670

Cardholder Dispute of a Recurring Transaction............................................................ 671

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Digital Goods.......................................................................................................................671

Subsequent Message Reason Code 4841 Chargeback................................................672

Proper Use for Acquirer's Second Presentment................................................................. 672

Recurring Transactions.......................................................................................................672

Digital Goods.......................................................................................................................673

Improper Use for Acquirer’s Second Presentment............................................................. 673

Intra-European Message Reason Code 4846-Currency Errors..............................................673

Currency Errors.........................................................................................................................673

Second Presentment............................................................................................................... 674

Intra-European Message Reason Code 4855-Goods or Services Not Provided................. 675

Proper Use of Intra-European Message Reason Code 4855............................................ 675

Improper Use for Issuer’s First Chargeback.........................................................................678

Proper Use for Acquirer’s Second Presentment..................................................................679

Intra-European Message Reason Code 4860-Credit Not Received......................................680

Proper Use of Intra-European Message Reason Code 4860............................................ 680

Improper Use of Intra-European Message Reason Code 4860........................................682

Proper Use for Issuer’s First Chargeback.............................................................................682

Credit Not Processed..........................................................................................................682

Timeshare.............................................................................................................................683

Credit Posted as a Purchase.............................................................................................684

Proper Use for Acquirer’s Second Presentment..................................................................684

Credit Issued........................................................................................................................684

Cancellation or Returns......................................................................................................684

Purchase Properly Posted..................................................................................................685

Credit Previously Issued-Intra-European and Inter-European Transactions............ 685

Reason Code 4860-Arbitration Case Filing......................................................................... 686

Intra-European Message Reason Code 4870-Chip Liability Shift........................................ 686

Proper Use for Intra-European Message Reason Code 4870...........................................686

Improper Use of Intra-European Message Reason Code 4870........................................687

Proper Use for Issuer’s First Chargeback.............................................................................687

Proper Use for Acquirer’s Second Presentment..................................................................688

Invalid Chargeback............................................................................................................. 688

Transaction Authorized......................................................................................................688

Two or More Previous Fraud-related Chargebacks.......................................................689

Intra-European Message Reason Code 4880-Late Presentment.........................................690

Proper Use of Intra-European Message Reason Code 4880............................................ 690

Improper Use for Issuer’s First Chargeback.........................................................................690

Proper Use for Acquirer’s Second Presentment..................................................................690

Domestic Chargeback Rules..............................................................................................................690

Additional Rules Applicable to Domestic Transactions in Ireland, Turkey, and France.......691

Proper Use of Message Reason Code 4837.........................................................................691

Improper Use of Message Reason Code 4837.................................................................... 691

Proper Use for Acquirer’s Second Presentment..................................................................691

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Arbitration Case Filing.............................................................................................................691

Chapter 11: CVM and Transit Limit Amounts............................................................... 692

Overview...............................................................................................................................................693

CVM Limit Amounts............................................................................................................................693

Chapter 12: Domestic Chargebacks, Arbitration Case Filing, and

Compliance Case Filing................................................................................................................ 694

Participating Countries-Installment Billing Dispute (Reason Code 4850)................................697

Proper Use of Message Reason Code 4850.............................................................................. 697

Improper Use of Message Reason Code 4850..........................................................................698

Proper Use of Issuer’s First Chargeback....................................................................................698

Incorrect Number of Installments......................................................................................... 698

Incorrect Installment Amount................................................................................................698

Premature Processing of Installment................................................................................... 699

Not an Installment Transaction............................................................................................. 699

Invalid Installment Acceleration.............................................................................................699

Subsequent Installments Charged Back After Chargeback of First Installment for

Message Reason Code 4837.................................................................................................. 699

Proper Use for Acquirer’s Second Presentment....................................................................... 700

Correct Number of Installments............................................................................................700

Correct Installment Amount...................................................................................................700

Installment Not Premature.....................................................................................................701

Valid Installment Acceleration................................................................................................701

Additional Remedies................................................................................................................ 702

Arbitration Case Filing..................................................................................................................703

Invalid Second Presentment...................................................................................................703

Cardholder Reasserts their Claim .........................................................................................707

Documentation Received with Second Presentment was Illegible or Scanning Error 711

Required Documentation Not Received to Support Second Presentment ................... 713

Acquirer Reference Data (ARD) Does Not Match or is Invalid .........................................716

India....................................................................................................................................................... 720

Mexico....................................................................................................................................................720

South Africa......................................................................................................................................... 720

U.S. Region-Cardholder Dispute-Not Elsewhere Classified (Reason Code 4854)...................720

Proper Use of Message Reason Code 4854.............................................................................. 720

Improper Use of Message Reason Code 4854..........................................................................722

Proper Use for Issuer’s First Chargeback...................................................................................722

Disputed Surcharge................................................................................................................. 723

Proper Use for Acquirer’s Second Presentment....................................................................... 723

Invalid Chargeback...................................................................................................................724

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Disputed Surcharge................................................................................................................. 724

Disputed Surcharge-Incorrect Pro-rated Calculation........................................................725

Additional Remedies................................................................................................................ 725

Arbitration Case Filing..................................................................................................................726

Invalid Second Presentment...................................................................................................726

Cardholder Reasserts their Claim .........................................................................................730

Documentation Received with Second Presentment was Illegible or Scanning Error 734

Required Documentation Not Received to Support Second Presentment ................... 736

Acquirer Reference Data (ARD) Does Not Match or is Invalid .........................................739

U.S. Region-U.S. Shared Deposits....................................................................................................743

Returned Item (Reason Code 20)............................................................................................... 743

Acquirer Adjustment................................................................................................................743

Issuer Chargeback....................................................................................................................744

Empty Deposit Envelope (Reason Code 24).............................................................................744

Acquirer Adjustment................................................................................................................744

Issuer Chargeback....................................................................................................................744

Error in Addition (Reason Code 25)............................................................................................744

Acquirer Adjustment................................................................................................................744

Issuer Chargeback....................................................................................................................745

Error in Settlement (Reason Code 26).......................................................................................745

Acquirer Adjustment................................................................................................................745

Issuer Chargeback....................................................................................................................745

Customer Keyed Wrong Amount (Reason Code 27)...............................................................745

Acquirer Adjustment................................................................................................................745

Issuer Chargeback....................................................................................................................746

Non-Cash Item Deposited (Reason Code 28)...........................................................................746

Acquirer Adjustment................................................................................................................746

Issuer Chargeback....................................................................................................................746

Foreign/Counterfeit Currency Deposited (Reason Code 29).................................................746

Acquirer Adjustment................................................................................................................746

Issuer Chargeback....................................................................................................................747

Cardholder Disputed Amount (Reason Code 30).................................................................... 747

Issuer Chargeback....................................................................................................................747

Acquirer Representment......................................................................................................... 748

Arbitration Case Filing.............................................................................................................748

Intra-U.S. Region and U.S. Territories-Defective/Not as Described (Reason Code 53)......... 748

Issuer Chargeback......................................................................................................................... 748

General Use............................................................................................................................... 748

Counterfeit Goods....................................................................................................................750

Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued.......................................................................................................................... 751

Acquirer Representment (Second Presentment).....................................................................752

Arbitration Case Filing..................................................................................................................753

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

General Use............................................................................................................................... 753

Counterfeit Goods....................................................................................................................753

Chapter 13: Transaction Identification Requirements.............................................755

Transaction Date.................................................................................................................................756

Contactless Transactions...................................................................................................................756

Contactless Transit Aggregated Transactions......................................................................... 758

Contactless-only Transactions.................................................................................................... 760

Payment Transactions........................................................................................................................761

Electronic Commerce Transactions..................................................................................................763

Electronic Commerce Transactions at Automated Fuel Dispensers..........................................764

Digital Secure Remote Payment Transactions...............................................................................767

Digital Secure Remote Payment Transactions Containing Chip Data.................................768

Digital Secure Remote Payment Transactions Containing Digital Payment Data............770

Merchant-initiated Transactions following Digital Secure Remote Payment

Transactions....................................................................................................................................772

Mastercard Biometric Card Program Transactions.......................................................................773

Transaction Type Identifier (TTI).......................................................................................................773

Merchant Country of Origin.............................................................................................................. 774

China Deposit Transactions...............................................................................................................774

China Funds Transfer Transactions..................................................................................................774

Cardholder-initiated Transactions (CITs)........................................................................................776

Merchant-initiated Transactions (MITs)..........................................................................................778

Chapter 14: Mainland China Domestic Adjustments............................................... 782

Overview...............................................................................................................................................783

Chapter 15: Forms..........................................................................................................................785

Accessing Forms..................................................................................................................................786

Referenced Forms..........................................................................................................................787

Notices....................................................................................................................................................788

Contents

Chargeback Guide Merchant Edition— • 30 April 2024

Summary of Changes, 30 April 2024

This is a summary of the changes that have occurred since the previous publication of the

manual.

Description of Change Where to Look

Minor edits, formatting. Throughout

None. Chapter 1 General Information

Incorporated changes from the following

announcements:

• AN 8446 - Revised Standards for Reducing First

Presentment Time Frames in India- effective 3

April 2024

• AN 8455 - Revised Standards for Fraud

Chargebacks - effective for chargebacks on or

after 12 April 2024

• AN 8665 - Revised Standards for Late

Presentment Chargebacks - effective for

chargebacks on or after 12 April 2024

• AN 8732 - Revised Standards for Chargebacks

Related to the Stand-In Listing Requirement in

the Latin America and the Caribbean Region -

effective for chargebacks on or after 22

January 2024

• AN 9202 - Revised Standards for Refund-

Related Disputes - effective 5 March 2024

• AP 9287 - Revised Standards for Mastercard

Corporate Purchasing Card in India - effective 2

April 2024

• AP 9288 - Revised Standards for Mastercard

Corporate Purchasing Card in Sri Lanka -

effective 2 April 2024

• AP 9289 - Revised Standards for Mastercard

Corporate Purchasing Card in Bangladesh -

effective 2 April 2024

Chapter 2 Dual Message System Chargebacks

None. Chapter 3 Single Message System Chargebacks

Chapter 4 Single Message System Chargebacks for

Non-Mastercard BIN Maestro Card-Not-Present

(CNP) Debit Transactions

Chapter 5 Pre-arbitration and Arbitration Case

Filing

Summary of Changes, 30 April 2024

Chargeback Guide Merchant Edition— • 30 April 2024

Description of Change Where to Look

Chapter 6 Domestic South Africa Disputes

Chapter 7 Compliance Case Filing

None. Appendix A Chargebacks-Mastercard Europe ATM

Transactions (Mastercard, Maestro, and Cirrus)

None. Appendix B Chargebacks Maestro POS

Transactions

Incorporated changes from the following

announcements:

• AN 7874 - Revised Standards for CVM Limits in

Mynmar - effective 1 August 2023

• AN 8542 - Revised Standards for Transit-

Related CVM Limit Changes Japan - effective 1

April 2024

• AN 8643 - Revised Standards for CVM Limits in

Select Countries in Middle/East Africa Region -

effective 30 November 2023

• AN 8645 - Revised Standards for CVM Limits in

El Salvador, Guatemala, Nicaragua, and

Panama - effective 1 March 2024

• AN 9025 - Revised Standards for Contactless

Transit Aggregated Limits in Chile - effective 31

January 2024

Appendix C CVM Limit Changes

None. Appendix D Domestic Chargebacks, Arbitration

Case Filing, and Compliance Case Filing

Appendix E Transaction Identification

Requirements

Appendix F Mainland China Domestic Adjustments

Appendix G Forms

Summary of Changes, 30 April 2024

Chargeback Guide Merchant Edition— • 30 April 2024

Chapter 1 General Information

This chapter provides a high-level overview of the single and dual message system chargeback cycles as

well as arbitration and compliance.

Network Processing..............................................................................................................................................25

Definitions..............................................................................................................................................................25

Chargeback Cycles and Arbitration Case Filing.............................................................................................. 25

Disputes of a Third Party Processed Transaction......................................................................................25

Overview of the Single and Dual Message System Chargeback Cycles and Arbitration Case

Filing...................................................................................................................................................................26

Compliance Case Filing........................................................................................................................................27

Reversals.................................................................................................................................................................28

Rights and Obligations.........................................................................................................................................28

Hardship Variances...............................................................................................................................................29

Related Documentation.......................................................................................................................................30

General Information

Chargeback Guide Merchant Edition— • 30 April 2024

Network Processing

The Single Message System (formerly known as the Mastercard

Debit Switch [MDS])

processes authorization, clearing, and settlement in a single message. Refer to the Single

Message System Specifications and the Single Message Transaction Manager User Guide for

detailed information.

The Dual Message System processes authorization messages through the Authorization

Platform and clearing/settlement messages through the Global Clearing Management System

(GCMS). GCMS uses messages in the Integrated Product Messages (IPM) format. Refer to the

Global Clearing Management System Reference Manual for detailed information on how to

process messages, currency conversion, and edits. Refer to the IPM Clearing Formats for

message formats and data requirements.

The China Switch (CSW) processes authorization, clearing and settlement in a single message.

CSW is only responsible for switching Mainland China domestic transactions. Refer to China

Switch Specifications for detailed information.

Definitions

The terms “Customer” and “Standards” as used in this guide have the meaning set forth in the

Definitions chapter of Mastercard Rules.

An On-Us transaction is a domestic transaction for which the issuer and acquirer is the same

Customer.

Chargeback Cycles and Arbitration Case Filing

The following table provides an overview of the chargeback cycles, pre-arbitration, and

arbitration case filing.

Detailed information can be found in each chapter of this manual.

In Mainland China, the rules in the Dual Message System Chargebacks chapter apply.

In the European Economic Area (EEA), the chargeback rules apply to all disputed transactions

regardless of the processor. Please refer to your chosen processor’s documentation for

processing instructions and for equivalent data elements to those referenced in this guide.

Disputes of a Third Party Processed Transaction

In the European Economic Area (EEA), Gibraltar, and the United Kingdom, the chargeback rules

apply to all disputed transactions regardless of the processor.

Mastercard facilitates submission of the chargeback cycles, pre-arbitration and arbitration case

filing for third-party processed transactions when both Customers are in the EEA, Gibraltar or

the United Kingdom and have not agreed to any other dispute resolution procedure as part of

General Information

Network Processing

Chargeback Guide Merchant Edition— • 30 April 2024

their third-party processing arrangement. A third-party processed transaction is a transaction

that is not processed through Mastercard Switching Services.

An acquirer has the right to reject a chargeback when the acquirer can provide evidence that

another dispute resolution procedure was agreed to between the parties. This must be done

within the second presentment cycle.

These dispute procedures are only available when transactions were processed by a registered

third-party processor and properly reported as collection-only through the Global Clearing

Management System, and the issuer has opted into having its third-party processed transaction

data loaded into Mastercom Claims Manager.

In addition to fulfilling the applicable requirements found within this guide, the Customers must

provide support documentation with sufficient detail to enable all parties, including

Mastercard’s Dispute Resolution Management staff, to understand the dispute. This includes,

but is not limited to, processing logs, relevant data elements and explanations. Lack of sufficient

detail may result in an unfavorable ruling decision. New or updated information will not be

accepted in any appeal.

Overview of the Single and Dual Message System Chargeback Cycles and Arbitration Case

Filing

First

Presentment

The first presentment occurs when the acquirer submits transaction data through the

Single or Dual Message System to the issuer for posting to the cardholder’s account.

Single Message

In the Single Message System, this is

a Presentment/0210 message.

Dual Message

In the Dual Message System, this is a First

Presentment/1240 message.

Chargeback The issuer may initiate a chargeback when the circumstances of the transaction meet

the requirement of a chargeback reason code described in the Single Message System

Chargebacks or Dual Message System Chargebacks chapters.

A chargeback may be for the total transaction amount or a lesser amount. Additionally,

one clearing transaction may have multiple chargebacks for partial amounts. The total

amount being charged back must not exceed the total transaction amount.

Upon reissuing a Mastercard, Debit Mastercard, or Maestro card with the same primary

account number (PAN) and a new expiration date, the issuer must include the

expiration date in all chargeback records.

General Information

Overview of the Single and Dual Message System Chargeback Cycles and Arbitration Case Filing

Chargeback Guide Merchant Edition— • 30 April 2024

Single Message

In the Single Message System, this is

an Advice Reason Code/0489

message.

Function codes are not used in the

Single Message System, rather the

issuer charges back either the full or

partial amount.

Dual Message

In the Dual Message System, this is a First

Chargeback/1442 message.

When the total transaction amount is being

charged back, DE 24 (Function Code) must

include a value of 450 (Full Amount).

When a partial amount is being charged back,

DE 24 must include a value of 453 (Partial

Amount).

Second

Presentment

An acquirer may process a second presentment when the acquirer:

• Believes the issuer’s chargeback did not fulfill the requirements of the chargeback

reason code

• Can provide information that addresses the original reason for the dispute

A second presentment must be for the total chargeback amount or a lesser amount.

Single Message

This is an Advice Reason Code/0491

message.

Function codes are not used in the

Single Message System, rather the

acquirer represents either the full or

partial amount.

Dual Message

This is a Second Presentment/1240 message.

When the total transaction amount is being

second presented, DE 24 (Function Code) must

include a value of 205 (Full Amount).

When a partial amount is being second

presented, DE 24 must include a value of 282

(Partial Amount).

Arbitration

Case Filing

After the chargeback cycles have been completed, the issuer may continue a dispute by

using the pre-arbitration and arbitration case filing process. When an arbitration case is

not resolved between the issuer and the acquirer, Mastercard will determine

responsibility for the dispute.

A case filing must be for the total second presentment amount or a lesser amount.

Refer to the Pre-Arbitration and Arbitration Case Filing chapter for detailed

information.

Compliance Case Filing

A compliance case may be filed by either an issuer or an acquirer when:

• A chargeback doesn’t exist to address the dispute

• A rule has been violated

Refer to the Compliance Case Filing chapter for detailed information.

General Information

Compliance Case Filing

Chargeback Guide Merchant Edition— • 30 April 2024

Reversals

In the Single Message System (SMS), a chargeback and a second presentment may be reversed

as described in the Single Message Systems Chargebacks chapter.

In the Dual Message System (DMS), a chargeback and second presentment may be reversed as

described in the Global Clearing Management System Reference Manual.

In the China Switch (CSW), a chargeback and a second presentment may be reversed as

described in the China Switch User Guide - Customer Portal.

Rights and Obligations

The following applies in addition to the rights and obligations described in the Standards:

• An issuer is limited to one chargeback for each presented transaction amount within the

time frame applicable for the chargeback reason code. The transaction amount may be

charged back one time by the issuer, either as a full amount, a partial amount, or multiple

partial amounts not to exceed the original clearing message amount.

• The issuer, acquirer, merchant, or cardholder must not retain funds, goods, and/or services

twice for the same transaction. Issuers and acquirers are responsible to research and identify

refunds prior to each chargeback processing cycle. Issues of this nature must be resolved

properly during the chargeback and second presentment cycles and within the required time

frames. A compliance case filing is invalid. Examples include but are not limited to:

– When an issuer has billed a transaction to its cardholder’s account for payment and the

issuer has exercised a chargeback, the issuer must credit the cardholder’s account for the

amount of the successful chargeback.

– When a cardholder is credited twice (once by the issuer as a result of a chargeback and

again through a refund processed by the merchant), the acquirer must process a timely

second presentment which identified a refund was previously processed. A compliance

case is invalid. When a second presentment is not processed within the required second

presentment time frame, an acquirer seeking return of the refund amount must do so

outside of the chargeback and compliance process. An example of outside of the

chargeback and compliance process includes, but is not limited to, a good faith collection

letter. In this example, a good faith collection letter is written correspondence from the

acquirer to the issuer requesting the return of the refunded amount. When a good faith

collection letter is accepted by the issuer in writing the Fee Collection/1740 message

must be processed in accordance with chapter 19-Fee Collection of the Global Clearing

Management System Reference Manual.

For the avoidance of doubt:

– "Refund" means either a refund transaction (as identified with a value of 20 [Credit

(Purchase Return)] in DE 3 [Processing Code], subfield 1 [Cardholder transaction type]

of the clearing record) or a MoneySend Payment Transaction Fast Refund to the

original card (as described in the Mastercard MoneySend and Funding Transactions

Program Standards).

General Information

Reversals

Chargeback Guide Merchant Edition— • 30 April 2024

– Refund properly documented in second presentment and within time frame: When a

refund was processed before the second presentment and the timely second

presentment properly documented the refund, the issuer must not continue the

dispute for the refunded amount as the refund resolved the chargeback. Upon

completion of all of the chargeback cycles, if a properly documented pre-arbitration/

arbitration case is filed, Mastercard will likely rule in favor of the acquirer.

The two exceptions to the above are when:

– The issuer or cardholder can clearly document that the refund applied to a different

transaction. With proper documentation from the cardholder, the issuer may

continue with the dispute.

– The refund that was processed before the second presentment was for a partial

amount of the disputed transaction and the acquirer failed to provide a valid

remedy for the remainder of the disputed amount. The issuer may continue with

the dispute for the amount that was not refunded, when applicable.

– Refund before second presentment and within time frame, but not properly

documented in second presentment: A refund is required to be documented in the

second presentment and not in the pre-arbitration/arbitration case filing. When the

first chargeback is valid and timely, if a case is filed with Mastercard involving a refund

that was processed before the second presentment but the second presentment did

not properly document the refund, Mastercard will likely hold the issuer responsible for

the refunded amount and hold the acquirer responsible for the fines and fees

associated with the case.

– Refund after second presentment: A refund is required to be documented in a timely

manner in the second presentment and not in the pre-arbitration/arbitration case

filing. When a refund was processed after the second presentment, an acquirer

seeking return of the refund amount must do so outside of the arbitration and

compliance process. An example of outside of the chargeback and compliance process

includes, but is not limited to, a good faith collection letter. In this example, a good

faith collection letter is written correspondence from the acquirer to the issuer

requesting the return of the refunded amount. When a good faith collection letter is

accepted by the issuer in writing the Fee Collection/1740 message must be processed

in accordance with chapter 19-Fee Collection of the Global Clearing Management

System Reference Manual. In the event an arbitration case is submitted concerning the

refund, Mastercard will likely rule in favor of the issuer provided the first chargeback

was timely and valid.

Hardship Variances

A hardship variance is considered when a natural disaster causes severe operational difficulties.

A hardship variance removes the GCMS time frame edits in the dual message system for the

chargeback cycles of all message reason codes for a specific time period. Removing the time

frame edits means that GCMS will not reject a message solely because the message was sent

after the time frame for the cycle. All other requirements of the reason code continue to apply.

General Information

Hardship Variances

Chargeback Guide Merchant Edition— • 30 April 2024

Refer to the Global Clearing Management System Reference Manual and IPM Clearing Formats

for additional information.

Hardship variances are not supported in the Single Message System.

Related Documentation

Chargeback Guide Merchant Edition— • 30 April 2024

Chapter 2 Dual Message System Chargebacks

This chapter contains information about chargeback processing for the Dual Message System and China

Switch. China Switch is only responsible for switching Mainland China domestic transactions.

Overview.................................................................................................................................................................35

Authorization-related Chargeback....................................................................................................................35

Chargeback.......................................................................................................................................................37

Required Authorization Not Obtained....................................................................................................37

Expired Chargeback Protection Period.................................................................................................. 40

Multiple Authorization Requests.............................................................................................................41

CAT 3 Device...............................................................................................................................................42

Transit First Ride Risk (FRR) Claims........................................................................................................44

Second Presentment.......................................................................................................................................45

Required Authorization Obtained........................................................................................................... 46

Expired Chargeback Protection Period.................................................................................................. 47

Multiple Authorization Requests.............................................................................................................48

One Authorization with Multiple Clearing Records..............................................................................49

CAT 3 Device ..............................................................................................................................................50

Credit Previously Issued............................................................................................................................ 50

Additional Second Presentment Options.............................................................................................. 52

Cardholder Dispute Chargeback .......................................................................................................................53

Chargeback.......................................................................................................................................................55

Goods or Services Were Either Not as Described or Defective......................................................... 55

Goods or Services Not Provided.............................................................................................................. 57

Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher

Issued............................................................................................................................................................61

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only............................. 63

Digital Goods Purchase of USD 25 or Less........................................................................................... 65

Credit Not Processed.................................................................................................................................67

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed............................71

Counterfeit Goods.....................................................................................................................................74

Cardholder Dispute of a Recurring Transaction................................................................................... 75

Issuer Dispute of a Recurring Transaction.............................................................................................76

Addendum Dispute....................................................................................................................................78

“No-Show” Hotel Charge..........................................................................................................................80

Transaction Did Not Complete................................................................................................................81

Timeshares..................................................................................................................................................82

Dual Message System Chargebacks

Chargeback Guide Merchant Edition— • 30 April 2024

Credit Posted as a Purchase....................................................................................................................83

Second Presentment.......................................................................................................................................83

General Second Presentment..................................................................................................................83

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only............................. 84

Digital Goods Purchase of USD 25 or Less........................................................................................... 85

Credit Previously Issued............................................................................................................................ 86

Additional Second Presentment Options.............................................................................................. 89

Fraud-related Chargebacks................................................................................................................................90

No Cardholder Authorization........................................................................................................................ 90

Chargeback.................................................................................................................................................93

No Cardholder Authorization............................................................................................................. 93

Second Presentment.................................................................................................................................96

Two or More Previous Fraud-related Chargebacks........................................................................ 97

Fraud-related Chargeback Counter Exceeds Threshold................................................................98

Not Reported to the Fraud and Loss Database..............................................................................99

Contactless Transaction Unattended Terminals.......................................................................... 100

PIN Transaction.................................................................................................................................. 100

Authenticated Transaction...............................................................................................................101

Authenticated Transaction – Mainland China Domestic Transactions Only........................... 102

Account Takeover...............................................................................................................................103

Addendum Charges...........................................................................................................................103

Address Verification Service (AVS) Transaction........................................................................... 104

Compelling Evidence for Airline Transactions................................................................................105

Compelling Evidence for Recurring and Installment-based Repayment Transactions.......... 105

Compelling Evidence for E-commerce and MO/TO Transactions............................................. 107

Invalid Chargeback.............................................................................................................................109

Guaranteed Reservation Service (“No-show")............................................................................. 109

Chip Liability Shift..............................................................................................................................110

Chip/PIN Liability Shift..................................................................................................................... 111

Credit Previously Issued.....................................................................................................................111

Additional Second Presentment Options.......................................................................................114

Questionable Merchant Activity ................................................................................................................115

Chargeback...............................................................................................................................................116

Questionable Merchant Audit Program (QMAP)..........................................................................116

Coercion Program.............................................................................................................................. 117

Second Presentment...............................................................................................................................118

Not Considered in Violation of Mastercard Rule for Coercion Claim........................................ 118

Late First Chargeback Submission................................................................................................. 119

Improper Fraud Reporting................................................................................................................120

Dual Message System Chargebacks

Chargeback Guide Merchant Edition— • 30 April 2024

Ineligible Fraud....................................................................................................................................120

Not Listed in Mastercard Announcement......................................................................................121

Credit Previously Issued.....................................................................................................................122

Additional Second Presentment Options.......................................................................................124

Chip Liability Shift.........................................................................................................................................125

Chargeback...............................................................................................................................................130

Chip Liability Shift..............................................................................................................................131

Second Presentment ..............................................................................................................................133

Two or More Previous Fraud-related Chargebacks......................................................................133

Fraud-related Chargeback Counter Exceeds Threshold..............................................................134

Not Reported to the Fraud and Loss Database........................................................................... 135

Issuer Authorized Transaction..........................................................................................................135

Technical Fallback...............................................................................................................................136

Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization....................... 137

Chip Transaction-Offline Authorized..............................................................................................137

DE 55 Was Provided..........................................................................................................................138

Invalid Chargeback.............................................................................................................................138

Credit Previously Issued.....................................................................................................................139

Additional Second Presentment Options.......................................................................................141

Chip Liability Shift-Lost/Stolen/Never Received Issue (NRI) Fraud.....................................................142

Chargeback...............................................................................................................................................148

Lost/Stolen/NRI Fraud Chip Liability Shift................................................................................... 148

Second Presentment...............................................................................................................................149

Two or More Previous Fraud-related Chargebacks......................................................................150

Fraud-related Chargeback Counter Exceeds Threshold..............................................................150

Not Reported to the Fraud and Loss Database........................................................................... 151

Authorized Online Transaction.........................................................................................................151

Technical Fallback...............................................................................................................................152

Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization....................... 152

DE 55 Was Provided in the First Presentment/1240 Message.................................................153

Invalid Chargeback.............................................................................................................................153

Credit Previously Issued.....................................................................................................................153

Additional Second Presentment Options.......................................................................................156

Point-of-Interaction Error.................................................................................................................................157

Chargeback....................................................................................................................................................158

Cardholder Debited More than Once for the Same Goods or Services......................................... 158

Transaction Amount Differs.................................................................................................................. 159

ATM Disputes............................................................................................................................................161

Charges for Loss, Theft, or Damages..................................................................................................162

Dual Message System Chargebacks

Chargeback Guide Merchant Edition— • 30 April 2024

Currency Errors........................................................................................................................................ 163

Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss................. 164

Improper Merchant Surcharge (Select Countries only).................................................................... 165

Unreasonable Amount (EEA, Gibraltar, United Kingdom)............................................................... 166

Second Presentment....................................................................................................................................166

Cardholder Debited More than Once for the Same Goods or Services ........................................ 167

Cardholder Debited More than Once for the Same Goods or Services-PIN Transaction........... 167

Transaction Amount Differs.................................................................................................................. 168

ATM Disputes............................................................................................................................................169

Charges for Loss, Theft, or Damages..................................................................................................170

Late Presentment-Corrected Transaction Date................................................................................170

Currency Errors........................................................................................................................................ 171

Unreasonable Amount (EEA, Gibraltar, United Kingdom)............................................................... 171

Credit Previously Issued..........................................................................................................................172

Improper Merchant Surcharge (Intra-European and Inter-European transactions only)...........174

Additional Second Presentment Options............................................................................................175

Cardholder Dispute-Not Elsewhere Classified (U.S. Region Only).............................................................176

Installment Billing Dispute (Participating Countries Only)......................................................................... 176

Domestic Chargeback Dispute (Europe Region Only)..................................................................................176

Requirements for Issuer’s First Chargeback and Acquirer’s Second Presentment............................176

Improper Use of Message Reason Code 4999.........................................................................................176

Arbitration Case Filing................................................................................................................................. 176

Additional Processing Notes.............................................................................................................................176

Chargeback Message Reason Codes.............................................................................................................. 177

First Chargeback: MTI 1442........................................................................................................................177

Second Presentment: MTI 1240.................................................................................................................177

Technical Return.......................................................................................................................................177

Documentation Return...........................................................................................................................177

Substance Return....................................................................................................................................177

Second Presentment/1240 (Function Codes 205 or 282) Message Reason Code Usage.............. 178

Dual Message System Chargebacks

Chargeback Guide Merchant Edition— • 30 April 2024

Overview

Chargebacks fall into four categories:

• Authorization

• Cardholder disputes

• Fraud

• Point-of-Interaction Error

Authorization-related Chargeback

This section provides information in handling an authorization-related chargeback.

The issuer must attempt to honor the transaction before exercising this chargeback right.

An authorization-related chargeback may be submitted when one of the following occurred:

• Authorization was required, but not obtained.

• The primary account number (PAN) does not exist.

• An offline chip-approved purchase transaction or other transaction not requiring online

authorization by the issuer was presented in clearing more than seven-calendar days after

the transaction date (meaning day eight).

• A refund transaction was presented in clearing more than five-calendar days after the

transaction date (meaning day six).

For a refund transaction, the transaction date is the date on which the merchant agreed to

provide a refund to the cardholder (the refund transaction receipt date, or if the refund

transaction transaction was authorized by the issuer, then the refund transaction

authorization approval date).

• The authorization chargeback protection time period expired for the presentment. The

authorization chargeback protection time periods are:

– For preauthorizations: 30-calendar days

– For final authorizations:

– For India domestic transactions: Four-calendar days

– For all other transactions: Seven-calendar days

– For undefined authorizations: Seven-calendar days

And one of the following:

Dual Message System Chargebacks

Overview

Chargeback Guide Merchant Edition— • 30 April 2024

– For a transaction occurring at a merchant located in the Europe Region, the account was

permanently closed before the chargeback was processed.

– For a transaction occurring at a merchant located in any other region, the issuer deemed

the account not to be in good standing (a “statused” account) before filing the

chargeback.

• A card-not-present authorization was declined by the issuer and subsequently approved

through Stand-In processing or X-Code with an approval response as specified in the

Authorization Manual with the following exceptions:

– The issuer generated a decline response that included a value of 02 (Cannot approve at

this time, try again later) in DE 48 (Additional Data-Private Use), subelement 84

(Merchant Advice Code).

– The issuer generated an approval response after previously declining the transaction.

– The merchant can prove that the cardholder initiated the authorization request.

An authorization-related chargeback must not be submitted for any of the following:

• A properly identified Emergency Cash Advance transaction. A properly identified Emergency

Cash Advance transaction contains a value of “Emergency Cash Advance” in DE 43 (Card

Acceptor Name/Location) of the First Presentment/1240 message.

• A properly identified contactless transit aggregated transaction when all of the following

occurred:

– An Authorization Request/0100 message was generated for the transaction.

– The issuer approved the authorization request.

– The transaction amount was equal to or less than the contactless transit aggregated

transaction CVM limit amount as published in Appendix C, CVM and Transit Limit

Amounts.

– For India domestic transactions: There were four-calendar days or less between the date

of the first contactless tap and the date the First Presentment/1240 message was

generated.

For all other transactions: There were 14-calendar days or less between the date of the

first contactless tap and the date the First Presentment/1240 message was generated.

• For Taiwan domestic in-flight transactions, refer to “AN 2491-Revised Standards-Taiwan

Domestic In-flight Transactions” regarding Authorization Related Chargeback requirements.

Supporting Documents. Supporting Documents must be in English or accompanied by an

English translation unless both the issuer and the acquirer share a common language.

Supporting Documents must provide sufficient detail to enable all parties to understand the

nature of the dispute or rebuttal. Mastercard will determine whether the Supporting

Documents contain sufficient detail.

The cardholder email, cardholder letter, and/or cardholder message (including through a

password-protected website) must come directly from the cardholder or, in the case of a

commercial card, the corporate entity. A completed Dispute Resolution Form must be the direct

result of a conversation with the cardholder.

Supporting Documents must be provided as follows:

Dual Message System Chargebacks

Authorization-related Chargeback

Chargeback Guide Merchant Edition— • 30 April 2024

• For Mainland China domestic chargeback and second presentment: Supporting Documents

must be provided using the Mainland China Dispute Resolution Platform. Supporting

Documents must be uploaded into the Mainland China Dispute Resolution Platform at the

time of submitting a chargeback or second presentment.

• For all other disputes: Supporting Documents must be provided using the Mastercom

application. Although Supporting Documents can be entered into Mastercom at any time

before the next cycle is processed, Supporting Documents must be entered into the

Mastercom system within eight-calendar days of generating a chargeback or second

presentment requiring Supporting Documents to avoid liability for the disputed transaction

solely for failing to provide Supporting Documents (codes 2002 or 4901).

Chargeback

The tables in this section detail the conditions under which an authorization-related chargeback

may be processed.

Required Authorization Not Obtained

Chargeback Condition. Both of the following:

• Authorization was required.

• Authorization was not properly obtained.

Time Frame.

For Mainland China domestic transactions: Between 5 and 90-calendar days of the transaction

settlement date.

For all other transactions: Within 90-calendar days of the Central Site Business Date of the transaction.

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions and Mainland

China domestic transactions.

• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single

Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System

transactions

• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on

the Single Message System

Supporting Documents. None

Message Text. None

Dual Message System Chargebacks

Chargeback

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

Multiple Authorizations Records. A transaction may have multiple authorization records. Additionally,

several airline ticket transactions may be combined into one authorization record.

Multiple Clearing Records. Multiple clearing records may have been or will be submitted in connection

with a single approved authorization.

10% Tolerance to Accommodate Currency Conversion Rates. This chargeback is not available for

transactions that were converted to a different currency and the cleared transaction amount exceeds

the authorized transaction amount by less than 10%. This tolerance allows for different currency

conversion rates that could have been applicable on the authorization and clearing dates.

Gratuity Tolerances. The table below lists the gratuity tolerances. The issuer may charge back only the

gratuity amount in excess of the gratuity tolerance.

Transaction type

Gratuity tolerance

Chip/PIN transactions 0%

Contactless transactions 0%

Mastercard Consumer-Presented Quick Response

(QR) Transactions

Transactions for which the authorization was

coded as a final authorization

Mainland China domestic transactions 0%

United States domestic card-not-present

transactions identified with either of the following

MCCs:

• MCC 5812 (Eating Places, Restaurants)

• MCC 5814 (Fast Food Restaurants)

30%

With the partial approval exception noted below.

All other card-not-present transactions 0%

All other United States domestic card-present

transactions

30%

With the partial approval exception noted below.

All other card-present transactions 20%

With the partial approval exception noted below.

Partial Approval Exception. The gratuity tolerance does not apply when both of the following occurred:

• The Authorization Request/0100 message contained a value of 1 (Merchant terminal supports

receipt of partial approvals) in DE 48 (Additional Data-Private Use), subelement 61 (POS Data,

Extended Condition Codes), subfield 1 (Partial Approval Terminal Support Indicator).

• The Authorization Response/0110 message contained a value of 10 (Partial Approval) in DE 39

(Response Code) and a partial approval amount in DE 6 (Amount, Cardholder Billing).

Dual Message System Chargebacks

Required Authorization Not Obtained

Chargeback Guide Merchant Edition— • 30 April 2024

Contactless Transit Aggregated Transaction. When the transaction amount of a properly identified

contactless transit aggregated transaction exceeds the contactless transit aggregated transaction

CVM limit amount, the issuer may charge back only the difference between the transaction amount and

the contactless transit aggregated transaction CVM limit amount.

Automated Fuel Dispenser (MCC 5542).

The issuer cannot charge back an automated fuel dispenser transaction effected in the U.S. region with:

• A Mastercard Corporate Card

, Mastercard Corporate Executive Card

, Mastercard Corporate Fleet

Card

, or Mastercard Corporate Purchasing Card

™

for any amount less than or equal to USD 500, if

the transaction was identified in the authorization request with MCC 5542 (Fuel Dispenser,

Automated), CAT 1, CAT 2, or CAT 6, and authorized by the issuer for USD 1.

If the transaction amount exceeds USD 500, the issuer may charge back only the difference between

the transaction amount and USD 500.

• Any other Mastercard card for any amount less than or equal to USD 175, if the transaction was

identified in the authorization request with MCC 5542 (Fuel Dispenser, Automated), CAT 1, CAT 2, or

CAT 6, and authorized by the issuer for USD 1.

If the transaction amount exceeds USD 175, the issuer may charge back only the difference between

the transaction amount and USD 175.

Dual Message System Chargebacks

Required Authorization Not Obtained

Chargeback Guide Merchant Edition— • 30 April 2024

Expired Chargeback Protection Period

Chargeback Condition. One of the following:

• The transaction occurred at a merchant located in the Europe region and the issuer permanently

closed the account before processing the chargeback.

• The transaction occurred at a merchant located in any other region and the issuer deems the

account not to be in good standing (a “statused” account) before processing the chargeback.

And one of the following:

• The authorization was identified as a preauthorization (DE 61 [Point-of-Service (POS) Data],

subfield 7 (POS Transaction Status) contains a value of 4 [Preauthorized request]) and the

transaction was presented or completed in more than:

– For India domestic transactions: 4-calendar days after the latest authorization approval date.

– For all other transactions: 30-calendar days after the latest authorization approval date.

• The authorization was not identified as a preauthorization and the transaction was presented more

than seven-calendar days after the authorization approval date.

• The authorization was identified as a Payment Transaction and the transaction was presented in

clearing more than one-calendar day after the authorization approval date.

Refer to Appendix E for Payment Transaction transaction identification requirements.

• The authorization was identified as a contactless transit aggregated transaction and the

transaction was presented in clearing more than 14-calendar days after the authorization approval

date.

• A refund transaction was presented in clearing more than five-calendar days after the transaction

date (meaning day six). For a refund transaction, the transaction date is the date on which the

merchant agreed to provide a refund to the cardholder (the refund transaction receipt date, or if the

refund transaction was authorized by the issuer, then the refund transaction authorization date).

• An offline chip-approved purchase transaction or other transaction not requiring online authorization

by the issuer was presented in clearing more than seven-calendar days after the transaction date

(meaning day eight).

This chargeback is not available for properly identified acquirer-financed or merchant-financed

preauthorized installment billing payments or transit debt recovery transactions.

Time Frame.

For Mainland China domestic transactions: Between 5 and 90-calendar days of the transaction

settlement date.

For all other transactions: Within 90-calendar days of the Central Site Business Date of the transaction.

Dual Message System Chargebacks

Expired Chargeback Protection Period

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions and Mainland

China domestic transactions

• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single

Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System

transactions

• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on

the Single Message System

Supporting Documents. None

Message Text. None

Notes. None

Multiple Authorization Requests

Chargeback Condition. A Card-Not-Present authorization was declined by the issuer and subsequently

approved in Stand-In or X-Code.

Time Frame. Within 90-calendar days of the Central Site Business Date of the transaction.

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions

• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single

Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated.

• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System

transactions

• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on

the Single Message System

Supporting Documents. None

Message Text. Optionally: Include MULTIPLE AUTH REQUESTS in DE 72 (Data Record)

Notes. This chargeback is not available for Mainland China domestic transactions.

Dual Message System Chargebacks

Multiple Authorization Requests

Chargeback Guide Merchant Edition— • 30 April 2024

CAT 3 Device

Chargeback Condition. One of the following:

1. The transaction was not identified with one of the following MCCs:

a. 4784-Bridges and Road Fees, Tolls

b. 5499-Miscellaneous Food Stores-Convenience Stores, Markets, Specialty Stores (solely for

Contactless-only Transactions)

c. 7523-Automobile Parking Lots and Garages

d. 7542-Car Washes

2. The transaction was identified with one of the above MCCs and the transaction amount was

greater than one of the following:

a. The CVM Limit as published in Appendix C (CVM and Transit Limit Amounts) for contactless-

only CAT 3 devices

b. HKD 500 for domestic Hong Kong SAR CAT 3 transactions identified with MCC 7523

(Automobile Parking Lots and Garages)

c. EUR 50 for CAT 3 transaction occurring in Europe

d. USD 40, or its local currency equivalent, for all other CAT 3 transactions

3. The transaction was a magnetic stripe transaction identified with one of the MCCs listed in bullet 1.

4. The PAN was listed in the applicable Local Stoplist or Electronic Warning Bulletin File on the date of

the transaction.

5. The PAN was expired or not yet valid.

6. The transaction occurred in the Europe region with a card that had a service code of X2X (Positive

Online Authorization Required).

Time Frame. Within 90-calendar days of the Central Site Business Date of the transaction.

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions

• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single

Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated.

• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System

transactions

• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on

the Single Message System

Supporting Documents. None

Dual Message System Chargebacks

CAT 3 Device

Chargeback Guide Merchant Edition— • 30 April 2024

Message Text.

Include the following in DE 72 (Data Record):

For Local Stoplist or Electronic Warning Bulletin File, one of the following:

• R X

• R X S NN

For Europe region cards with X2X service code: SC X2X

For all others one of the following:

• CAT 3

• CAT LEVEL 3

Notes.

Local Stoplist or Electronic Warning Bulletin File

For R X, replace X with the one-character Electronic Warning Bulletin Region code in which the PAN is

listed.

For S NN, replace NN with the two-character subregional code in which the PAN was listed.

• Unknown Transaction Date. When the issuer cannot determine the transaction date from DE 12

(Date and Time, Local Transaction), the issuer may assume the transaction date is within 15-

calendar days before the Central Site Business Date.

• Unknown Face-to-Face Merchant Location. When the issuer cannot determine the merchant

location from DE 43 (Card Acceptor Name/Location), subfield 5 (Card Acceptor, State, Province, or

Region Code), the issuer may reference any region of the Electronic Warning Bulletin File that listed

the PAN on the date of the transaction in DE 72.

• Unknown Non-Face-to-Face and Non-Fixed Merchant Location. For non–face-to-face or non-fixed

merchant location transactions, the issuer may reference any regional Electronic Warning Bulletin

File that listed the PAN on the date of the transaction in DE 72.

• Subregional. An issuer must use both the merchant location (DE 43) and the merchant category

code (DE 26 [Card Acceptor Business Code (MCC)]) to determine whether the PAN was listed in the

applicable subregional Electronic Warning Bulletin File.

For information on the Local Stoplist or Electronic Warning Bulletin File, refer to the Account

Management System User Manual.

This chargeback is not available for Mainland China domestic transactions.

Dual Message System Chargebacks

CAT 3 Device

Chargeback Guide Merchant Edition— • 30 April 2024

Transit First Ride Risk (FRR) Claims

Chargeback Condition. One of the following:

1. The original transit transaction declined by the issuer was not a properly identified contactless

transit aggregated transaction.

2. The issuer declined the original contactless transit aggregated transaction or a subsequent transit

debt recovery transaction using a DE 39 (Response Code) value categorized as “Not Claimable”.

3. The acquirer or merchant did not fulfill the criteria for submitting an FRR claim transaction. For

example, the merchant submits an ineligible FRR claim to a non-domestic issuer, or did not initiate

at least nine transit debt recovery attempts in the 45-calendar day period following the issuer’s

decline of the contactless transit aggregated transaction, or the issuer approved a transit debit

recovery transaction.

4. The FRR claim transaction exceeded the FRR limit amount applicable in the merchant’s country, as

specified in Chapter 5 of the Quick Reference Booklet.

5. The acquirer previously submitted an FRR claim transaction for the same debt.

Time Frame. Within 90-calendar days of the Central Site Business Date of the transaction.

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions

• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single

Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated.

• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System

transactions

• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on

the Single Message System

Supporting Documents. None

DE 72 (Data Record). One of the following corresponding to the Chargeback Condition:

1. FRR INELIGIBLE

2. FRR NOT CLAIMABLE

3. FRR CRITERIA NOT FULFILLED

4. FRR LIMIT EXCEEDED

5. FRR ALREADY CLAIMED

Dual Message System Chargebacks

Transit First Ride Risk (FRR) Claims

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

An FRR claim transaction is properly identified in the First Presentment/1240 message with:

• A value of 08 (First Ride Risk Claim) in PDS 0210 (Transit Program), subfield 1 (Transit Transaction

Type Indicator); and

• An amount in DE 4 (Amount, Transaction) that does not exceed the FRR limit amount applicable in

the merchant’s country, as specified in Chapter 5 of the Quick Reference Booklet.

This chargeback is not available to Mainland China domestic transactions.

The China Switch does not currently support contactless transit aggregated transactions.

For more information about transit FRR claim transactions, refer to Rule 5.6.1-Transit First Ride Risk

Framework of the Transaction Processing Rules.

Second Presentment

The tables in this section detail the conditions under which a second presentment in response to

an authorization-related chargeback may be processed.

Partial Approvals, Partial and Full Reversals. Before processing a second presentment, the

acquirer must consider the following:

• When a partial authorization reversal is processed (either before or after clearing), the

transaction amount is reduced by that amount.

Therefore, a partial authorization reversal occurring after a partial approval must be less

than the amount partially approved by the issuer.

For example: An authorization is requested for USD 100, the issuer partially approved USD

75, the partial reversal must be USD 74.99 or less. The acquirer is liable for the remaining

unreversed transaction amount in the event of an Authorization-related chargeback.

• When a full authorization reversal is processed (either before or after clearing), then the

approval for the entire transaction is cancelled, and therefore the transaction is no longer

properly authorized.

For example: An authorization is requested for USD 100, the issuer approved USD 100, a full

reversal was processed for USD 100, the transaction is canceled, and the approval is

canceled. The acquirer is liable for the transaction in the event of an Authorization-related

chargeback because the approval was cancelled with the full authorization reversal.

Information on processing requirements for Partial Approvals, Full and Partial Reversals can be

found in the Transaction Processing Rules, 2.11 Full and Partial Reversals and 2.12 Full and

Partial Approvals.

PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting documentation

may differ from the PAN included by the acquirer in the clearing record. As a result, a difference

in PANs must not be the sole reason for an acquirer’s second presentment.

Dual Message System Chargebacks

Second Presentment

Chargeback Guide Merchant Edition— • 30 April 2024

Required Authorization Obtained

Second Presentment Condition.

For Mainland China domestic transactions: The transaction was preauthorized and completed within

the applicable chargeback protection period.

For all other transactions: The transaction was authorized and presented within the applicable

chargeback protection period.

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2008 (Issuer Authorized Transaction) for Dual Message System transactions and Mainland China

domestic transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. None

Message Text.

For Mainland China domestic transactions: When online authorized, include AUTHORIZATION DATE

MMDDYY NNNNNN in the comment field as documented in the China Switch User Guide - Customer

Portal.

For all other transactions: Include one of the following in DE 72 (Data Record):

• When online authorized: AUTHORIZATION DATE MMDDYY NNNNNN

• When offline EMV authorized and DE 55 not previously provided in the First Presentment/1240

message: DE 55 PROVIDED

Notes.

Replace MMDDYY with the date the issuer authorized the transaction.

Replace NNNNNN with the actual authorization response code provided by the issuer, its agent, or

Mastercard On-Behalf for the cleared transaction.

Offline Approved EMV Transaction

When DE 55 was provided in the First Presentment/1240 message respond with Second Presentment

Message Reason Code 2713-Invalid Chargeback.

When DE 55 was not provided in the First Presentment/1240-200 message, DE 55 must be provided in

the Second Presentment Presentment/1240-205 message.

China Switch does not support offline transaction.

Dual Message System Chargebacks

Required Authorization Obtained

Chargeback Guide Merchant Edition— • 30 April 2024

Expired Chargeback Protection Period

Second Presentment Condition. One of the following:

1. For Mainland China domestic transactions: The transaction was properly identified in authorization

as a preauthorization (DE 48, SE 61, subfield 5 = 2), the transaction was presented within 30-

calendar days of the preauthorization approval date and was not reversed.

For India domestic transactions: The transaction was properly identified in authorization as a

preauthorization (DE61, subfield 7 = 4), the transaction was presented within four-calendar days of

the authorization approval date, and was not reversed.

For all other transactions: The transaction was properly identified in authorization as a

preauthorization (DE 61, subfield 7 = 4), the transaction was presented within 30-calendar days of

the preauthorization approval date, and was not reversed.

2. For India domestic transactions: The transaction was not properly identified in authorization as a

preauthorization, the transaction was presented within four-calendar days of the authorization

approval date, and was not reversed.

For all other transactions: The transaction was not properly identified in authorization as a

preauthorization, the transaction was presented within seven-calendar days of the authorization

approval date, and was not reversed.

3. The transaction was properly identified in authorization as acquirer-financed or merchant-financed

installment payment.

4. The transaction was properly identified in authorization as a Mastercard contactless transit

aggregated or transit debt recovery transaction.

5. The transaction occurred at, one of the following:

a. A Europe region merchant location and the issuer has not permanently closed the account

b. A merchant located in any other region and the issuer has not “statused” the account (that is,

the issuer considered the account to be in good standing at the time of the chargeback)

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2713 (Invalid Chargeback) for Dual Message System transactions and Mainland China domestic

transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. None

Dual Message System Chargebacks

Expired Chargeback Protection Period

Chargeback Guide Merchant Edition— • 30 April 2024

Message Text.

For Mainland China domestic transactions: Include one of the following corresponding to the Second

Presentment Condition in comment field as documented in China Switch User Guide – Customer Portal:

1. PREAUTH MMDDYY

2. AUTH MMDDYY

3. INSTALLMENT

4. TRANSIT

5. ACCOUNT NOT STATUSED

For all other transactions: Include one of the following corresponding to the Second Presentment

Condition in DE 72 (Data Record):

1. PREAUTH MMDDYY

2. AUTH MMDDYY

3. INSTALLMENT

4. TRANSIT

5. Either:

a. ACCOUNT NOT CLOSED

b. ACCOUNT NOT STATUSED

Notes. When the transaction authorization was identified as a preauthorization, use PREAUTH.

When the transaction authorization was not identified as a preauthorization, use AUTH.

Replace MMDDYY with the approval date of the disputed transaction.

Multiple Authorization Requests

Second Presentment Condition. One of the following:

1. The issuer-generated decline response included a value of 02 (Cannot approve at this time, try again

later) in DE 48 (Additional Data-Private Use), subelement 84 (Merchant Advice Code).

2. The issuer generated an approval response after previously declining the transaction.

3. For a card-not-present transaction, the merchant can prove that the cardholder resubmitted the

online order.

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2008 (Issuer Authorized Transaction) for Dual Message System transactions and Mainland China

domestic transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Dual Message System Chargebacks

Multiple Authorization Requests

Chargeback Guide Merchant Edition— • 30 April 2024

Supporting Documents. One of the following corresponding to the Second Presentment Condition:

1. None

2. None

3. Documentation supporting the merchant’s claim

Mastercard will not consider in its ruling decision second presentment supporting documentation

received on or after a pre-arbitration or an arbitration case filing submission.

Message Text. None

Notes. None

One Authorization with Multiple Clearing Records

Second Presentment Condition. Both of the following:

• One of the following indicators was present in DE 25 (Message Reason Code) of the First

Presentment/1240 message

– 1403 (Previously approved authorization—partial amount, multi-clearing)

– 1404 (Previously approved authorization—partial amount, final clearing)

• The total of all clearing records submitted in connection with the approved authorization did not

exceed the approved amount.

Time Frame. For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2713 (Invalid Chargeback) for Dual Message System transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. None

Message Text. Include one of the following, as applicable, in DE 72 (Data Record):

• PREAUTH MMDDYY 1403

• AUTH MMDDYY 1403

• PREAUTH MMDDYY 1404

• AUTH MMDDYY 1404

Notes. When the transaction authorization was identified as a preauthorization, use PREAUTH.

When the transaction authorization was not identified as a preauthorization, use AUTH.

Replace MMDDYY with the approval date of the disputed transaction.

This chargeback is not available for Mainland China domestic transactions.

Dual Message System Chargebacks

One Authorization with Multiple Clearing Records

Chargeback Guide Merchant Edition— • 30 April 2024

CAT 3 Device

Second Presentment Condition. The transaction was not a magnetic stripe transaction identified as

occurring at a CAT 3 device and the PAN was not listed in the applicable Local Stoplist or Electronic

Warning Bulletin File on the date of the transaction and one or both of the following:

• The transaction was properly identified in clearing as a CAT 3 terminal.

• The transaction amount was equal to or less than the applicable maximum transaction amount.

Time Frame. For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2707 (No authorization request required or attempted) for Dual Message System transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. None

Message Text. Optionally, include CAT 3 in DE 72 (Data Record).

Notes. This second presentment is not available for Mainland China domestic transactions.

Credit Previously Issued

Second Presentment Condition. The merchant issued a credit to the cardholder’s account.

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2011 (Credit Previously Issued) for Dual Message System transactions and Mainland China domestic

transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. None

Message Text.

For Mainland China domestic transactions: Include MMDDYY NNNNNNNNNNNNNNNNNNNNNNN in

comment field as documented in China Switch User Guide – Customer Portal.

For all other transactions: Include MMDDYY NNNNNNNNNNNNNNNNNNNNNNN in DE 72 (Data

Record).

Dual Message System Chargebacks

CAT 3 Device

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

Replace MMDDYY with the date of the credit transaction.

Optionally, for Mainland China domestic transactions replace NNNNNNNNNNNNNNNNNNNNNNN

with the Network Reference Number (NRN) of the credit transaction.

Optionally, for all other transactions: Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer

Reference Data (ARD) of the credit transaction.

Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and again

through a refund processed by the merchant), the acquirer must process a timely second presentment

which identified a refund was previously processed. A compliance case is invalid. When a second

presentment is not processed within the required second presentment time frame, an acquirer seeking

return of the refund amount must do so outside of the chargeback and compliance process. An example

of outside of the chargeback and compliance process includes, but is not limited to, a good faith

collection letter. In this example, a good faith collection letter is written correspondence from the

acquirer to the issuer requesting the return of the refunded amount. When a good faith collection letter

is accepted by the issuer in writing, the Fee Collection/1740 message must be processed in accordance

with chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. For a

Mainland China Customer, a domestic Fee Collection must be processed as documented in the China

Switch User Guide – Customer Portal.

For the avoidance of doubt:

• A refund provided by the merchant includes a refund transaction, as identified with a value of 20

(Credit [Purchase Return] in DE 3 (Processing Code), subfield 1 (Cardholder transaction type) of the

clearing record, or MoneySend Payment Transaction Fast Refund to the original card as described in

the Mastercard MoneySend and Funding Transactions Program Standards.

• Refund properly documented in second presentment and within time frame: When a refund was

processed before the second presentment and the timely second presentment properly documented

the refund, the issuer must not continue the dispute for the refunded amount as the refund resolved

the chargeback. Upon completion of all of the chargeback cycles, if a properly documented pre-

arbitration/arbitration case is filed, Mastercard will likely rule in favor of the acquirer.

The two exceptions to the above are when:

– The issuer or cardholder can clearly document that the refund applied to a different transaction.

With proper documentation from the cardholder, the issuer may continue with the dispute.

– The refund that was processed before the second presentment was for a partial amount of the

disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the

disputed amount. The issuer may continue with the dispute for the amount that was not

refunded, when applicable.

• Refund before second presentment and within time frame, but not properly documented in second

presentment: A refund is required to be documented in the second presentment and not in the pre-

arbitration/arbitration case filing. When the first chargeback is valid and timely, if a case is filed with

Mastercard involving a refund that was processed before the second presentment but the second

presentment did not properly document the refund, Mastercard will likely hold the issuer responsible

for the refunded amount and hold the acquirer responsible for the fines and fees associated with the

case.

• Refund after second presentment: A refund is required to be documented in a timely manner in the

second presentment and not in the pre-arbitration/arbitration case filing. When a refund was

processed after the second presentment, an acquirer seeking return of the refund amount must do

Dual Message System Chargebacks

Credit Previously Issued

Chargeback Guide Merchant Edition— • 30 April 2024

so outside of the arbitration and compliance process. An example of outside of the chargeback and

compliance process includes, but is not limited to, a good faith collection letter. In this example, a

good faith collection letter is written correspondence from the acquirer to the issuer requesting the

return of the refunded amount. When a good faith collection letter is accepted by the issuer in

writing, the Fee Collection/1740 message must be processed in accordance with chapter 19-Fee

Collection of the Global Clearing Management System Reference Manual. For a Mainland China

customer, a domestic Fee Collection must be processed as documented in the China Switch User

Guide - Customer Portal.

In the event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor

of the issuer provided the first chargeback was timely and valid.

Additional Second Presentment Options

Second Presentment and Message Reason Codes Conditions. One of the following:

• One of the following for Dual Message System and Mainland China domestic transactions:

– 2001-Invalid Acquirer Reference Data; Documentation was Received or was Not Required

This message reason code is not available for Mainland China domestic transactions.

The combination of Primary Account Number and Acquirer Reference Data contained in the

chargeback record does not match the information contained in the first presentment record.

– 2004-Invalid Acquirer Reference Data on Chargeback; Documentation was Received

The combination of Primary Account Number and Acquirer Reference Data contained in the

chargeback record does not match the information contained in the first presentment record.

This message reason code is not available for Mainland China domestic transactions.

– 2701-Duplicate Chargeback

The issuer processed a first chargeback for the same transaction more than once.

Mastercard recommends that the acquirer provides the processing date and chargeback

reference number of the original chargeback with its second presentment.

– 2702-Past Chargeback Time Limit

The issuer’s first chargeback is processed past the time frame specified for the chargeback.

– 2713-Invalid Chargeback

The first chargeback does not meet the prerequisites for the message reason code.

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Supporting Documents. None

Message Text. None

Notes. Not available for ATM transactions.

Dual Message System Chargebacks

Additional Second Presentment Options

Chargeback Guide Merchant Edition— • 30 April 2024

Cardholder Dispute Chargeback

This section provides information in handling a cardholder dispute chargeback. Use of the

cardholder dispute chargeback requires that the cardholder engaged in the transaction.

A Cardholder Dispute chargeback may be submitted when the cardholder contacted the issuer

alleging one of the following:

• Goods or services were either not as described or defective, including shipped merchandise

was received damaged or not suitable for its intended purpose as well as the merchant didn’t

honor the terms and conditions of a contract.

• Goods or services were not provided.

• Digital goods were purchased totaling USD 25 or less and did not have adequate purchase

controls.

• Credit not processed.

• Counterfeit goods alleged to be authentic were purchased.

• Recurring transaction canceled prior to billing.

• Addendum dispute or “no-show” hotel charge was billed.

• Purchase transaction did not complete.

• Timeshare agreement or similar service provision was canceled within Mastercard time

frame, regardless of the contractual terms.

• Credit posted as a purchase.

A Cardholder Dispute chargeback must not be submitted for any of the following:

• Payment Transactions and MoneySend Payment Transactions.

• The cash back amount or any portion of the cash back amount.

• Mastercard Commercial Payments Account transaction. A Mastercard Commercial

Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP

(Mastercard Commercial Payments Account) in the First Presentment/1240 message.

• Failure to credit shipping or handling charges for buyer’s remorse cancellations or returns.

• A retail sale processed as a cash disbursement. Customers must accept these transactions

and collect the difference in the interchange fee and cash directly from the acquirer. When an

issuer’s attempt to collect the difference directly from the acquirer proves unsuccessful, the

issuer should contact Global Customer Service.

• Colombia only – The transaction was a Colombia domestic transaction addressed by

Reversion of Payments Regulation (RP-Reg) disputed as a Law 1480 2011, Article 51, and

Decree 587 of 2016 claim, specifically:

– Goods or Services Were Either Not as Described or Defective

– Goods or Services Not Provided

– Counterfeit Goods

For transactions in which value or assets are purchased for gambling, investment or similar

purposes: This chargeback right is only available for a transaction in which the purchased value

or assets failed to appear in the account agreed to between the cardholder and the merchant.

For the avoidance of doubt, chargeback rights are not available for

Dual Message System Chargebacks

Cardholder Dispute Chargeback

Chargeback Guide Merchant Edition— • 30 April 2024

1. refunds, withdrawals or transfer requests,

2. terms and conditions or account access,

3. winnings, gains or losses, or

4. use or subsequent use.

A second presentment must contain documentation of the value or asset either appearing in, or

transferred to, the account agreed to between the cardholder and the merchant.

Intra-European and Inter-European Transactions Only

For Polish National Post Office transactions completed in Poland for the purpose of transferring

funds to pay bills, such as utilities or phone bills, or for payment of goods on delivery, this

chargeback right is available for disputes relating to failure to transfer the funds, and is not

available for any dispute relating to the quality or delivery of the services provided or goods

purchased. Such transactions are identified with MCC 9402 (Postal Services-Government Only).

For the purchase of the goods and services sold by the Polish National Post Office itself, such as

stamps, the preceding limitation does not apply.

Staged Digital Wallet.

• A transaction to fund a Staged Digital Wallet (SDW) may be charged back if the funds did

not appear in the SDW. Chargeback rights are not available for any subsequent purchase of

goods or service from an SDW. SDW transactions are identified with a wallet identifier in DE

48 (Additional Data-Private Use), subelement 26 (Wallet Program Data), subfield 1 (Wallet

Identifier) and in PDS 0207 (Wallet Identifier) of the First Presentment/1240 Message.

• Intra-European and Inter-European Transactions Only. This chargeback right is also

available for purchases of goods or services (excluding gambling, investments, and similar

provision of services) made using an SDW, when the SDW funding transaction occurred

during the consumer’s purchase.

Such funding transactions are further identified with the SDW Operator name in conjunction

with the retailer name present in DE 43, subfield 1 (Card Acceptor Name) and the MCC that

most closely describes the primary business of the retailer in DE 18 (Merchant Type) of the

Authorization Request/0100 message and in DE 26 (Card Acceptor Business Code [MCC]) of

the First Presentment/1240 message.

The issuer or the cardholder must have contacted or attempted to contact the SDW

Operator or retailer to resolve the dispute before raising the chargeback. The result of this

attempt must be explained in the support documentation.

Supporting Documents. Supporting Documents must be in English or accompanied by an

English translation unless both the issuer and the acquirer share a common language.

Supporting Documents must provide sufficient detail to enable all parties to understand the

nature of the dispute or rebuttal. Mastercard will determine whether the Supporting

Documents contain sufficient detail.

The cardholder email, cardholder letter, and/or cardholder message (including through a

password-protected website) must come directly from the cardholder or, in the case of a

commercial card, the corporate entity. A completed Dispute Resolution Form must be the direct

result of a conversation with the cardholder.

Dual Message System Chargebacks

Cardholder Dispute Chargeback

Chargeback Guide Merchant Edition— • 30 April 2024

Supporting Documents must be provided as follows:

• For Mainland China domestic chargeback and second presentment: Supporting Documents

must be provided using the Mainland China Dispute Resolution Platform. Supporting

Documents must be uploaded into Mainland China Dispute Resolution Platform at the time

of submitting a chargeback or second presentment.

• For all other disputes: Supporting Documents must be provided using the Mastercom

application. Although Supporting Documents can be entered into Mastercom at any time

before the next cycle is processed, Supporting Documents must be entered into the

Mastercom system within eight-calendar days of generating a chargeback or second

presentment requiring Supporting Documents to avoid liability for the disputed transaction

solely for failing to provide Supporting Documents (codes 2002 or 4901).

Chargeback

The tables in this section detail the conditions under which a Cardholder Dispute chargeback

may be processed.

Goods or Services Were Either Not as Described or Defective

Chargeback Condition. The cardholder contacted the issuer claiming all of the following:

• The cardholder engaged in the transaction.

• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the

dispute.

• Merchant contact is optional when the cardholder is a corporate entity with a contractual

relationship with the merchant and the transaction is for an amount in excess of what is specified in

the contract. In such event the chargeback may be only for the amount of the excessive charge.

• The merchant refused to adjust the price, repair, or replace the goods or other things of value, or

issue a credit.

• For disputes involving goods: The cardholder returned the goods or informed the merchant the goods

were available for pickup.

And one of the following:

• When delivered from the merchant, the goods arrived broken or could not be used for the intended

purpose.

• Goods and services did not conform to their description. Examples include, but are not limited to:

– The cardholder claims that the quality or workmanship of the product is not as described.

– The cardholder claims that the specified color, size, or quantity is not as described.

• The merchant did not honor the terms and conditions of the contract with the cardholder including,

but not limited to, 100 percent money back guarantee, written promises, or return policy.

Dual Message System Chargebacks

Chargeback

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions, one of the following:

• Within 90-calendar days from when the services ceased with a maximum of 540-calendar days from

the transaction settlement date for issues of interruption of ongoing services.

• Between 15 and 90-calendar days from the transaction settlement date.

• Between 15 and 90-calendar days from the delivery/cancellation date of the goods or services.

For all other transactions, one of the following:

• Within 120-calendar days from when the services ceased with a maximum of 540-calendar days

from the transaction settlement date for issues of interruption of ongoing services.

• Between 15 and 120-calendar days from the transaction settlement date.

• Between 15 and 120-calendar days from the delivery/cancellation date of the goods or services.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute. This means that the cardholder email, letter, message or

completed Dispute Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how

each Chargeback Conditions was met.

When the cardholder is a corporate entity with a contractual relationship with the merchant and the

transaction is for an amount in excess of what is specified in the contract, the contract must be

provided when the merchant wasn’t contacted in an effort to resolve the dispute.

Optionally, documentation from an expert or professional that supports the cardholder’s dispute about

the level of quality or misrepresentation.

Optionally, documentation that supports the cardholder’s dispute including, but not limited to, the

original receipt, invoice, work order, brochure, contract, or appraisal.

Message Text. None

Notes. This chargeback is not available when proper disclosure of the condition of the goods is made at

the time of the sale, such as when goods are sold in “as is” condition.

This chargeback is not available for transactions identified with one of the following MCCs: 3000

through 3999, 4411, 4511, 4722, 6513, 7011, 7512, 7519, or 7922 and the merchant provided a

voucher for future use and that provision of voucher was properly disclosed in the merchant’s terms and

conditions. Refer to the Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued section for a possible chargeback.

Dual Message System Chargebacks

Goods or Services Were Either Not as Described or Defective

Chargeback Guide Merchant Edition— • 30 April 2024

Goods or Services Not Provided

Chargeback Condition. One of the following:

• The cardholder contacted the issuer claiming both of the following:

– The cardholder engaged in the transaction.

– The purchased goods or services were not received.

• Travel services arranged through an online travel agency or tour operator were not received and the

travel agency or tour operator is no longer in business.

Dual Message System Chargebacks

Goods or Services Not Provided

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions:

• In cases involving delayed delivery of goods or services and the delivery or performance date was not

specified by the merchant: The issuer must wait 30-calendar days from the transaction date before

submitting a chargeback and not to exceed 90-calendar days from the transaction settlement date.

However, the issuer may charge back the transaction immediately (and not wait the 30-calendar

days) upon learning the merchant will not provide the goods or services because, for example, for the

merchant is no longer in business.

• In cases involving delayed delivery of goods or services and the delivery or performance date was

specified by the merchant and the latest anticipated delivery or performance date was specified by

the merchant has passed: Within 90-calendar days of the latest anticipated delivery or performance

date specified by the merchant.

However, the issuer may charge back the transaction immediately (and not wait until the latest

anticipated delivery or performance date has passed) upon learning the merchant will not provide

the goods or services because, for example, for the merchant is no longer in business.

• In cases involving interruption of ongoing services: Within 90-calendar days of the date the

cardholder becomes aware that the service ceased. A chargeback must not be processed after 540-

calendar days from the transaction settlement date.

• In cases involving the purchase of a merchant-branded prepaid gift card without an expiration date

printed on the card and that merchant subsequently goes out of business: Within 540-calendar days

from the transaction settlement date.

• In cases involving the purchase of a merchant-branded prepaid gift card with an expiration date

printed on the card and that merchant subsequently goes out of business: Within 120-calendar days

from the expiration date printed on the card.

• In all other cases: Within 120-calendar days from the transaction settlement date.

For all other transactions:

• In cases involving delayed delivery of goods or services and the delivery or performance date was not

specified by the merchant: The issuer must wait 30-calendar days from the transaction date before

submitting a chargeback and not to exceed 120-calendar days from the transaction settlement

date.

However, the issuer may charge back the transaction immediately (and not wait the 30-calendar

days) upon learning the merchant will not provide the goods or services because, for example, for the

merchant is no longer in business.

• In cases involving delayed delivery of goods or services and the delivery or performance date was

specified by the merchant and the latest anticipated delivery or performance date was specified by

the merchant has passed: Within 120-calendar days of the latest anticipated delivery or

performance date specified by the merchant.

However, the issuer may charge back the transaction immediately (and not wait until the latest

anticipated delivery or performance date has passed) upon learning the merchant will not provide

the goods or services because, for example, for the merchant is no longer in business.

• In cases involving interruption of ongoing services: Within 120-calendar days of the date the

cardholder becomes aware that the service ceased. A chargeback must not be processed after 540-

calendar days from the Central Site Business Date of the first presentment.

• In cases involving the purchase of a merchant-branded prepaid gift card without an expiration date

printed on the card and that merchant subsequently goes out of business one of the following:

Dual Message System Chargebacks

Goods or Services Not Provided

Chargeback Guide Merchant Edition— • 30 April 2024

– For transactions completed using a card issued in either Canada, the United States, or one of the

U.S. Territories at a merchant located in either Canada, the United States, or one of the U.S.

Territories: Within 120-calendar days of the Central Site Business Date of the first presentment

The U.S. Territories consist of American Samoa, Guam, Northern Mariana Islands, Puerto Rico,

and the U.S. Virgin Islands.

– For all other transactions: Within 540-calendar days from the Central Site Business Date of the

first presentment.

• In cases involving the purchase of a merchant-branded prepaid gift card with an expiration date

printed on the card and that merchant subsequently goes out of business: Within 120-calendar days

from the expiration date printed on the card.

• In all other cases: Within 120-calendar days from the transaction settlement date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4855 (Goods or Services Not Provided) for Dual Message System transactions

• 55 (Non-receipt of Merchandise) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) must include both of the following:

• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand the

dispute. This means that the cardholder email, letter, message or completed Dispute Resolution

Form-Cardholder Dispute Chargeback (Form 1221) must document how each of the Chargeback

Conditions was met.

• A reasonably specific description of the goods/services purchased.

For disputes involving a transaction performed by an online travel agency or tour operator that is no

longer in business at the time of the chargeback: an email, letter, or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) provided by the individual or corporate entity requesting

the travel arrangements from the online travel agency or tour operator that includes all of the following:

• A description of the complaint in sufficient detail to enable all parties to understand the dispute. This

means that the cardholder email, letter, message or completed Dispute Resolution Form-Cardholder

Dispute Chargeback (Form 1221) must document how each of the Chargeback Conditions was met.

• A reasonably specific description of the goods/services purchased.

Message Text. None

Dual Message System Chargebacks

Goods or Services Not Provided

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

This chargeback is not available for transactions identified with one of the following MCCs: 3000

through 3999, 4411, 4511, 4722, 6513, 7011, 7512, 7519, or 7922 and the merchant provided a

voucher for future use and that provision of voucher was properly disclosed in the merchant’s terms and

conditions. Refer to the Travel/Entertainment Services Not Provided/Not as Described and Merchant

Voucher Issued section for a possible chargeback.

This chargeback applies when the cardholder receives an empty box or a box containing worthless items,

such as a brick or a stack of paper.

Interruption of ongoing services

The issuer must only charge back an amount representing the services not received by the cardholder.

When an end date was not defined, then the issuer must calculate the prorated amount based upon 18

months.

For example, the cardholder purchased a lifetime membership for USD 1,000. The merchant goes out of

business after three months. The amount to be charged back is USD 833 (USD 1,000 divided by 18

months = USD 55 for each month. 18 months minus 3 months = 15. USD 55 * 15 = USD 833.)

This chargeback does not apply when merchandise is not received and one of the following occurred:

• The cardholder has taken possession of the merchandise from the merchant and subsequently makes

arrangements to have the merchandise shipped by a third party.

• The goods are being held in customs for unpaid duty or customs fees. The cardholder is obligated to

pay the appropriate fees.

• The merchant delivered the merchandise and the cardholder refused to accept delivery.

• The cardholder signed a waiver absolving the merchant from responsibility when the merchandise is

not received.

For example: A cardholder purchases vases and arranges with the merchant to have the vases

shipped to the United States. At the time of purchase, the cardholder signs a waiver form that

states: “PROOF OF DISPATCH OF THE MERCHANDISE WILL BIND THE CARDHOLDER.” The vases

never arrive, and the cardholder contacts the merchant. The merchant provides documentation to

show that the merchandise was shipped. By signing the waiver, the cardholder absolved the

merchant of liability for merchandise that the cardholder did not receive.

• The cardholder declined delivery insurance.

For example: The merchant provides the cardholder with an opportunity to purchase insurance on

the merchandise to be delivered. Normally, such insurance stipulates that the cardholder must

initiate claims that limit the merchant responsibility to the presenting documentation that verifies

shipment or dispatch. The merchant should provide a signed waiver of liability obtained from the

cardholder when the cardholder declined to purchase insurance, along with documentation that

shows that the merchant shipped the merchandise.

Dual Message System Chargebacks

Goods or Services Not Provided

Chargeback Guide Merchant Edition— • 30 April 2024

Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher Issued

Chargeback Condition. Both of the following:

1. The cardholder contacted the issuer claiming all of the following:

– The cardholder engaged in the transaction.

– The purchased goods or services were not received due to merchant cancellation.

– The merchant provided a voucher for future use in lieu of a refund and that provision of voucher

was properly disclosed in the merchant’s terms and conditions.

– The merchant is unable or unwilling to honor the voucher in violation of the voucher terms and

conditions.

2. The transaction was identified with one of the following MCCs:

– Airlines and Air Carrier (MCCs 3000 through 3350, 4511)

– Car Rental Agencies (MCCs 3351 through 3500, 7512)

– Cruise Lines (MCC 4411)

– Lodging-Hotels, Motels, Resorts (MCCs 3501 through 3999, 7011)

– Motor Home and Recreational Vehicle Rental (MCC 7519)

– Real Estate Agents and Managers—Rentals (MCC 6513)

– Theatrical Producers, Ticket Agencies (excluding Motion Picture) (MCC 7922)

– Travel Agencies and Tour Operators (MCC 4722)

– Real Estate Agent and Broker (MCC 7013) – Limited to Mainland China domestic transactions

– Scenic Spot Ticketing (MCC 4733) – Limited to Mainland China domestic transactions

Time Frame.

For Mainland China domestic transactions, both of the following:

• Within 90-calendar days from the latest anticipated delivery or performance date specified by the

merchant.

For cases involving merchant-provided vouchers for future use, the voucher expiration date is

considered the latest anticipated delivery or performance date specified by the merchant.

• Within 365-calendar days from the original expected delivery or performance date specified by the

merchant.

For transactions completed using a card issued in either Canada or the United States at a merchant

located in either Canada or the United States, both of the following:

• Within 120-calendar days from the original delivery or performance date specified by the merchant.

• Within 540-calendar days from the Central Site Business Date of the original transaction.

For all other transactions, both of the following:

• Within 120-calendar days from the latest anticipated delivery or performance date specified by the

merchant.

For cases involving merchant-provided vouchers for future use, the voucher expiration date is

considered the latest anticipated delivery or performance date specified by the merchant.

• Within 365-calendar days from the original expected delivery or performance date specified by the

merchant.

Dual Message System Chargebacks

Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher Issued

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4855 (Goods or Services Not Provided) for Dual Message System transactions

• 55 (Non-receipt of Merchandise) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) must include both of the following:

• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand the

dispute. This means that the cardholder email, letter, message or completed Dispute Resolution

Form-Cardholder Dispute Chargeback (Form 1221) must document how each of the Chargeback

Conditions was met.

• A reasonably specific description of the goods/services purchased.

Message Text. None

Notes.

This chargeback does not apply to Intra-EEA and domestic European disputes for failed travel

merchants. Refer to the Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

section.

Dual Message System Chargebacks

Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher Issued

Chargeback Guide Merchant Edition— • 30 April 2024

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

Chargeback Condition.

This chargeback takes precedence for Intra-EEA and domestic European transactions, when the

cardholder contacted the issuer claiming a travel service has not, or will not, be provided, and the

merchant is seeking protection from creditors, insolvent, bankrupt or in liquidation, at least one of the

following conditions must be met prior to the issuer raising a chargeback:

1. The travel service was covered by a bonding authority or similar scheme according to local law, and

one of the following:

– The cardholder (or traveler) requested reimbursement from the bonding authority or similar

scheme and did not receive reimbursement, or the claim was declined.

– The merchant, bonding authority or similar scheme (including an insolvency practitioner) stated

cardholders (or travelers) should contact their issuer for reimbursement and/or the bond is

insufficient. For sake of clarity, the statement can either be a public statement such as on a

website, advertisement, or similar, as well as direct communication with the cardholder (or

traveler).

– For Swedish domestic transactions: no additional requirement. The cardholder (or traveler) is not

obligated to request reimbursement from a bonding authority or similar scheme.

2. The travel service was not covered by a bonding authority or similar scheme according to local law,

or neither the issuer nor the cardholder after reasonable effort can determine whether the travel

service was covered by a bonding authority or similar scheme according to local law.

Dual Message System Chargebacks

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame. One of the following corresponding to the Chargeback Condition:

1. Within 150-calendar days from the latest expected service date, whether the bonding authority or

similar scheme responded or not. The issuer must wait at least 30-calendar days from the date the

request was sent prior to processing a chargeback, unless a negative response was received, in

which case, the chargeback may be processed upon receipt of the negative reply.

The following exceptions apply:

– For German domestic transactions: Within 240-calendar days from the latest expected service

date, whether the bonding authority or similar scheme responded or not. The issuer must wait at

least 60-calendar days from the date the request was sent prior to processing a chargeback,

unless a negative response was received, in which case, the chargeback may be processed upon

receipt of the negative reply.

– For Polish domestic transactions: Within 540-calendar days from the Central Site Business Date,

whether the bonding authority or similar scheme responded or not. The issuer must wait at least

60-calendar days from the date the request was sent prior to processing a chargeback, unless a

negative response was received, in which case, the chargeback may be processed upon receipt of

the negative reply.

– For Swedish domestic transactions: Within 120-calendar days from the latest expected service

date.

2. Within 120-calendar days after from the latest expected service date.

In addition to both of the above (with the noted exceptions for German domestic transactions, Polish

domestic transactions, and Swedish domestic transactions), when the transaction was identified with

one of the following MCCs, the maximum time frame is 365-calendar days from the original expected

delivery or performance date specified by the merchant:

• Airlines and Air Carrier (MCCs 3000 through 3350, 4511)

• Car Rental Agencies (MCCs 3351 through 3500, 7512)

• Cruise Lines (MCC 4411)

• Lodging-Hotels, Motels, Resorts (MCCs 3501 through 3999, 7011)

• Motor Home and Recreational Vehicle Rental (MCC 7519)

• Real Estate Agents and Managers—Rentals (MCC 6513)

• Theatrical Producers, Ticket Agencies (excluding Motion Picture) (MCC 7922)

• Travel Agencies and Tour Operators (MCC 4722)

In all cases, the issuer does not have to wait for the latest expected service date before processing the

chargeback. A chargeback may be processed immediately upon learning the travel services will not be

provided to the cardholder (or traveler). The issuer is still obliged to meet all other applicable chargeback

requirements, such as a request for reimbursement from the bonding authority or similar scheme.

Message Reason Code. 4853 (Cardholder Dispute-Defective/Not as Described) for Dual Message

System transactions.

The following message reason codes may continue to be used; however, they will eventually be

eliminated.

• 4855 (Goods or Services Not Provided) for Dual Message System transactions

• 4859 (German Domestic Rule-Card Acceptor Unwilling or Unable to Render Services) for Dual

Message System transactions

Dual Message System Chargebacks

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

Chargeback Guide Merchant Edition— • 30 April 2024

Supporting Documents.

Cardholder email, letter, message or completed Dispute Resolution Form-Cardholder Dispute Chargeback

(Form 1221) must include all of the following:

• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand the

dispute.

• A reasonably specific description of the travel services purchased. For example, for flights: relevant

airlines, flight numbers, origin/destination details, dates/times, passenger names, ticket/

confirmation numbers, and so on.

• If Chargeback Condition 1 is applicable (except Swedish domestic transactions): evidence of the

bonding authority or similar scheme’s response to the cardholder’s (or traveler’s) claim, statement to

contact the cardholder's issuer for reimbursement, or proof of bond insufficiency. If the cardholder

(or traveler) requested reimbursement and did not receive a response, then a copy of the request for

reimbursement. A detailed cardholder (or traveler) explanation is permitted if such documentation is

not available.

Message Text. None

Notes.

If partial travel services have already been provided, the chargeback amount should be prorated to

reflect only the travel services not provided. If the cardholder (or traveler) has received partial

reimbursement from a bonding authority or similar scheme, the chargeback should also be prorated to

reflect the reimbursement.

Failure to address bond coverage or a request for reimbursement in the chargeback documentation does

not invalidate the chargeback even if the travel service is covered by a bonding authority or similar

scheme. If the acquirer provides specific evidence of bond coverage in a second presentment, the issuer

must instruct the cardholder (or traveler) to request reimbursement prior to a pre-arbitration case. The

pre-arbitration case is permitted if the reimbursement claim is declined or there is no reimbursement

after 30-calendar days from the date the request was sent. The reimbursement request does not

extend the pre-arbitration timeframe, so the issuer should make a good-faith effort to determine bond

coverage prior to the initial chargeback.

For the avoidance of doubt, Mastercard does not consider the following the equivalent of a bonding

authority or similar scheme: 1) reimbursement that an issuer is legally required to provide to their

cardholder, 2) a cardholder’s (or traveler’s) personal or corporate travel insurance policy, and/or 3) legally

required compensation already paid or due to the cardholder (or traveler) by the merchant that is

separate from the purchase price. This list is not exhaustive.

When Chargeback Condition 1 is applicable (except Swedish domestic transactions): If the travel service

was paid for by a travel agency or tour operator as the cardholder, a cardholder (or traveler) request for

reimbursement from a bonding authority or similar scheme is still required if a bond exists.

Digital Goods Purchase of USD 25 or Less

Digital goods are goods that are stored, delivered, and used in electronic format, such as, by way

of example but not limitation, books, newspapers, magazines, music, games, game pieces, and

software (excludes gift cards).

The delivery of digital goods purchased in a transaction may occur on a one-time or subscription

basis.

Dual Message System Chargebacks

Digital Goods Purchase of USD 25 or Less

Chargeback Guide Merchant Edition— • 30 April 2024

Chargeback Condition. The cardholder contacted the issuer alleging both of the following:

• Digital goods were purchased in an e-commerce transaction that was less than or equal to USD 25

(or the local currency equivalent).

• The merchant did not offer the cardholder purchase control settings.

In addition, all of the following:

• The cardholder's account is not closed.

• The cardholder's account is in good standing with no associated fraudulent transactions.

• The issuer must determine, based on a challenge of the cardholder, that prior to the date(s) of the

disputed transaction(s), the cardholder had provided card information to the merchant in order to

establish an account that could be used for future digital goods purchases, but the merchant did not

offer or establish the following minimum purchase controls in connection with the use of that

account:

– 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; and

– 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.

The issuer is advised to ask the following questions when challenging the cardholder and to educate the

cardholder on the use of purchase control settings:

1. Was the cardholder given the option to disable all digital goods purchases on the account?

2. Did the cardholder agree (such as by checking a box) to permit digital goods purchases to be made

without the entry of a password or other form of authentication?

3. When the cardholder was required to enter authentication credentials to use the account, was the

cardholder prompted to re-enter the credentials after a period of inactivity? When known, did that

period exceed 15 minutes?

4. Did the merchant site afford the cardholder the option to confirm or to cancel each purchase?

5. Did the cardholder receive notification (such as using email, text, or other means) promptly after

each purchase was completed?

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of the transaction settlement date.

For all other transactions: Within 120-calendar days of the transaction settlement date.

Dual Message System Chargebacks

Digital Goods Purchase of USD 25 or Less

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions

• 41 (Canceled Recurring Transaction) for Debit Mastercard transactions processed on the Single

Message System

Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s purchase control complaint in

sufficient detail to enable all parties to understand the dispute. This means that the cardholder email,

letter, message or completed Dispute Resolution Form-Cardholder Dispute Chargeback (Form 1221)

must document how each Chargeback Conditions was met.

Message Text.

For Mainland China domestic transactions, include DIGITAL GOODS in comment field as documented in

China Switch User Guide – Customer Portal.

For all other transactions, include DIGITAL GOODS in DE 72 (Data Record).

Notes. This chargeback is not available for fraud disputes.

Credit Not Processed

Chargeback Condition. The cardholder contacted the issuer claiming one of the following:

• The merchant agreed to provide a refund and failed to process that refund.

• The merchant failed to disclose its refund policy at the time of the transaction and is unwilling to

accept a return or cancellation of goods or services.

• The merchant has not responded to the return or the cancellation of goods or services.

• The merchant posted a credit for a reduced amount without proper disclosure.

• The merchant failed to issue a Value Added Tax (VAT) credit.

Dual Message System Chargebacks

Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions, one of the following:

• Between 15 and 90-calendar days from the date on the credit documentation, or the date the

service was canceled, or the goods were returned.

When waiting the 15-calendar days would cause the issuer to exceed the 90-calendar day time

frame, the issuer may chargeback the transaction earlier than 15-calendar days.

When the credit documentation is dated, the 90-day chargeback time frame counts the date on the

credit documentation as day zero.

When the credit documentation is undated, the 90-day time frame counts the date on the

cardholder letter, email, message, or Dispute Resolution Form—Cardholder Dispute Chargeback (Form

1221) as day zero.

When the cardholder letter is undated, the chargeback time frame counts the receipt date of the

documentation by the issuer as day zero.

• The issuer can immediately charge back the transaction upon receiving one of the following forms of

credit documentation:

– A letter from the merchant advising the issuer to obtain credit using a chargeback

– Proof of an improperly disclosed in-store credit

– A TID voided by the merchant

For all other transactions, one of the following:

• Within 120-calendar days of the transaction date for a VAT credit.

• Between 15 and 120-calendar days from the date on the credit documentation, or the date the

service was canceled, or the goods were returned.

When waiting the 15-calendar days would cause the issuer to exceed the 120-calendar day time

frame, the issuer may chargeback the transaction earlier than 15-calendar days.

When the credit documentation is dated, the 120-day chargeback time frame counts the date on

the credit documentation as day zero.

When the credit documentation is undated, the 120-day time frame counts the date on the

cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute Chargeback (Form

1221) as day zero.

When the cardholder letter is undated, the chargeback time frame counts the receipt date of the

documentation by the issuer as day zero.

• The issuer can immediately charge back the transaction upon receiving one of the following forms of

credit documentation:

– A letter from the merchant advising the issuer to obtain credit using a chargeback

– Proof of an improperly disclosed in-store credit

– A TID voided by the merchant

Dual Message System Chargebacks

Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4860 (Credit Not Processed) for Dual Message System transactions

• 60 (Credit Not Processed) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. One of the following:

• A cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute Chargeback

(Form 1221) describing the cardholder’s complaint in sufficient detail to enable all parties to

understand the dispute. This means that the cardholder email, letter, message or completed Dispute

Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how each Chargeback

Conditions was met.

• Merchant documentation to support a credit is due to the cardholder.

• Proof of an improperly disclosed in-store credit and cardholder explanation.

Message Text.

For improperly disclosed partial credit only:

• For Mainland China domestic transactions: Include NNNNNNNNNNNNNNNNNNNNNNN in comment

field as documented in China Switch User Guide – Customer Portal.

• For all other transactions: Include NNNNNNNNNNNNNNNNNNNNNNN in DE 72 (Data Record).

For all others: None

Dual Message System Chargebacks

Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

For Mainland China domestic transactions, replace NNNNNNNNNNNNNNNNNNNNNNN with the

Network Reference Number (NRN) of the credit transaction.

For all other transactions, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference

Data (ARD) of the credit transaction.

This chargeback is not available transactions identified with one of the following MCCs: 3000 through

3999, 4411, 4511, 4722, 6513, 7011, 7512, 7519, or 7922 and the merchant provided a voucher for

future use and that provision of voucher was properly disclosed in the merchant’s terms and conditions.

Refer to the Travel/Entertainment Services Cancelled/Returned and Credit Not Processed section for

a possible chargeback.

A refund provided by the merchant includes a refund transaction, as identified with a value of 20 (Credit

[Purchase Return] in DE 3 (Processing Code), subfield 1 (Cardholder transaction type) of the clearing

record, or MoneySend Payment Transaction Fast Refund to the original card as described in the

Mastercard MoneySend and Funding Transactions Program Standards. The terms “refund” and “credit”

mean either a transaction identified with a value of 20 (Credit [Purchase Return] in DE 3 [Processing

Code], subfield 1 (Cardholder transaction type) of the clearing record, or a MoneySend Payment

Transaction Fast Refund to the original card as described in the Mastercard MoneySend and Funding

Transactions Program Standards.

Proper Disclosure

Merchants that are unwilling to accept buyer’s remorse returns and cancellations or that want to have

special terms including (but not limited to) restocking fees or in-store credits, must disclose these terms

at the time of the transaction. The cardholder must be informed of the refund policy as described in the

Transaction Processing Rules, section 3.11 Specific Terms of Transaction. Failure to disclose a refund

policy will result in the merchant’s requirement to accept the goods for return and issue a credit.

When the merchant informed the cardholder of its refund policy at the time of purchase, the cardholder

must abide by that policy. For example, the cardholder’s sales slip clearly indicates that the refund policy

is “in-store credit only” or “no refunds.”

Dual Message System Chargebacks

Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed

Chargeback Condition.

The cardholder contacted the issuer claiming one of the following:

• The merchant agreed to provide a refund and failed to process that refund.

• The merchant failed to disclose its refund policy at the time of the transaction and is unwilling to

accept the cardholder’s return or cancellation of goods or services.

• The merchant has not responded to the cardholder’s return or cancellation of goods or services.

• The merchant posted a credit for a reduced amount without proper disclosure.

In addition, the transaction was identified with one of the following MCCs:

• Airlines and Air Carrier (MCCs 3000 through 3350, 4511)

• Car Rental Agencies (MCCs 3351 through 3500, 7512)

• Cruise Lines (MCC 4411)

• Lodging-Hotels, Motels, Resorts (MCCs 3501 through 3999, 7011)

• Motor Home and Recreational Vehicle Rental (MCC 7519)

• Real Estate Agents and Managers—Rentals (MCC 6513)

• Theatrical Producers, Ticket Agencies (excluding Motion Picture) (MCC 7922)

• Travel Agencies and Tour Operators (MCC 4722)

• Real Estate Agent and Broker (MCC 7013) – Limited to Mainland China domestic transactions

• Scenic Spot Ticketing (MCC 4733) – Limited to Mainland China domestic transactions

Dual Message System Chargebacks

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions both of the following time frames:

1. Between 15 and 90-calendar days from the date on the credit documentation, or the date the

service was canceled, or the goods were returned.

– When waiting the 15-calendar days would cause the issuer to exceed the 90-calendar day time

frame, the issuer may chargeback the transaction earlier than 15-calendar days.

– When the credit documentation is dated, the date on the credit documentation is counted as

day zero.

– When the credit documentation is undated, the date on the cardholder letter, email, message, or

Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) is counted as day zero.

– When the cardholder letter is undated, the receipt date of the documentation by the issuer is

counted as day zero.

– The issuer can immediately charge back the transaction upon receiving one of the following

forms of credit documentation:

– A letter from the merchant advising the issuer to obtain credit using a chargeback

– Proof of an improperly disclosed in-store credit

– A TID voided by the merchant

2. Within 365-calendar days from the original expected delivery or performance date specified by the

merchant.

For all other transactions, both of the following time frames:

1. Between 15 and 120-calendar days from the date on the credit documentation, or the date the

service was canceled, or the goods were returned.

– When waiting the 15-calendar days would cause the issuer to exceed the 120-calendar day time

frame, the issuer may chargeback the transaction earlier than 15-calendar days

– When the credit documentation is dated, the date on the credit documentation is counted as

day zero

– When the credit documentation is undated, the date on the cardholder letter, email, message, or

Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) is counted as day zero

– When the cardholder letter is undated, the receipt date of the documentation by the issuer is

counted as day zero

– The issuer can immediately charge back the transaction upon receiving one of the following

forms of credit documentation:

– A letter from the merchant advising the issuer to obtain credit using a chargeback

– Proof of an improperly disclosed in-store credit

– A TID voided by the merchant

2. For transactions completed using a card issued in either Canada or the United States at a merchant

located in either Canada or the United States: Within 540-calendar days from the Central Site

Business Date of the original transaction.

For all other transactions: Within 365-calendar days from the original expected delivery or

performance date specified by the merchant.

Dual Message System Chargebacks

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4860 (Credit Not Processed) for Dual Message System transactions

• 60 (Credit Not Processed) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. One of the following:

• A cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute Chargeback

(Form 1221) describing the cardholder’s complaint in sufficient detail to enable all parties to

understand the dispute. This means that the cardholder email, letter, message or completed Dispute

Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how each Chargeback

Conditions was met.

• Merchant documentation to support a credit is due to the cardholder.

• Proof of an improperly disclosed in-store credit and cardholder explanation.

Message Text.

For improperly disclosed partial credit only:

• For Mainland China domestic transactions: Include NNNNNNNNNNNNNNNNNNNNNNN in

comment field as documented in China Switch User Guide – Customer Portal.

• For all other transactions: NNNNNNNNNNNNNNNNNNNNNNN in DE 72 (Data Record).

For all others: None

Dual Message System Chargebacks

Travel/Entertainment Services Cancelled/Returned and Credit Not Processed

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

For Mainland China domestic transactions: Replace NNNNNNNNNNNNNNNNNNNNNNN with the

Network Reference Number (NRN) of the credit transaction.

For all other transactions: Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference

Data (ARD) of the credit transaction.

A refund provided by the merchant includes a refund transaction, as identified with a value of 20 (Credit

[Purchase Return] in DE 3 (Processing Code), subfield 1 (Cardholder transaction type) of the clearing

record, or MoneySend Payment Transaction Fast Refund to the original card as described in the

Mastercard MoneySend and Funding Transactions Program Standards.

Proper Disclosure

Merchants that are unwilling to accept buyer’s remorse returns and cancellations or that want to have

special terms including (but not limited to) restocking fees or in-store credits, must disclose these terms

at the time of the transaction. The cardholder must be informed of the refund policy as described in the

Transaction Processing Rules, section 3.11 Specific Terms of Transaction. Failure to disclose a refund

policy will result in the merchant’s requirement to accept the goods for return and issue a credit.

When the merchant informed the cardholder of its refund policy at the time of purchase, the cardholder

must abide by that policy. For example, the cardholder’s sales slip clearly indicates that the refund policy

is “in-store credit only” or “no refunds.”

Counterfeit Goods

“Counterfeit” means that the goods were not produced by an authorized manufacturer of the

goods and therefore infringe on intellectual property rights.

Chargeback Condition. The cardholder contacted the issuer claiming both of the following:

• The cardholder engaged in the transaction.

• The cardholder claims that the goods were purported to be genuine, but were counterfeit.

Time Frame.

For Mainland China domestic transactions, one of the following:

• Within 90-calendar days of transaction settlement date.

• When the transaction involved delayed delivery: Within 90-calendar days of the date the goods and

services were received.

For all other transactions, one of the following:

• Within 120-calendar days of the Central Site Business Date.

• When the transaction involved delayed delivery: Within 120-calendar days of the date the goods and

services were received.

Dual Message System Chargebacks

Counterfeit Goods

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute and the disposition of the goods. This means that the

cardholder email, letter, message or completed Dispute Resolution Form-Cardholder Dispute Chargeback

(Form 1221) must document how each Chargeback Conditions was met.

Examples of disposition include but are not limited to:

• The goods are in the possession of a governmental agency, such as customs.

• The goods are in the possession of the cardholder.

• The cardholder discarded the goods.

• The cardholder returned the goods to the merchant.

Message Text. Optionally:

For Mainland China domestic transactions, include COUNTERFEIT in comment field as documented in

China Switch User Guide – Customer Portal.

For all other transactions, include COUNTERFEIT in DE 72 (Data Record).

Notes. None

Cardholder Dispute of a Recurring Transaction

A recurring transaction allows for continuous billing without a specified end date.

Chargeback Condition. The cardholder contacted the issuer claiming one of the following:

• The cardholder notified the merchant to cancel the recurring transaction and the merchant

continued to bill the cardholder.

• The cardholder was not aware that the cardholder was agreeing to a recurring transaction.

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date.

For all other transactions: Within 120-calendar days of the transaction settlement date.

Dual Message System Chargebacks

Cardholder Dispute of a Recurring Transaction

Chargeback Guide Merchant Edition— • 30 April 2024

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions

• 41 (Canceled Recurring Transaction) for Debit Mastercard transactions processed on the Single

Message System

Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute. This means that the cardholder email, letter, message or

completed Dispute Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how

each Chargeback Conditions was met.

Message Text. None.

Notes.

Proper Disclosure of Terms and Conditions

Terms and conditions for recurring transactions must be clearly detailed to the cardholder. Recurring

transaction terms and conditions must be separate and distinct from general terms and conditions of

sale.

Issuer Dispute of a Recurring Transaction

Chargeback Condition.

For Mainland China domestic transactions, one of the following:

1. The issuer previously charged back a disputed recurring transaction with the same PAN and

merchant.

2. The issuer previously notified the merchant or acquirer to cancel the recurring transaction prior to

the disputed transaction occurring.

For all other transactions, one of the following:

1. The issuer listed the account in the Payment Cancellation Service (PCS) prior to the disputed

transaction occurring.

2. The issuer previously charged back a disputed recurring transaction with the same PAN and

merchant.

3. The issuer previously notified the merchant or acquirer to cancel the recurring transaction prior to

the disputed transaction occurring.

Dual Message System Chargebacks

Issuer Dispute of a Recurring Transaction

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date.

For all other transactions: Within 120-calendar days of the transaction settlement date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions

• 41 (Canceled Recurring Transaction) for Debit Mastercard transactions processed on the Single

Message System

Supporting Documents.

For Mainland China domestic transactions, one of the following correspond to the Chargeback

Condition:

1. One of the following:

– A new cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute

Chargeback (Form 1221) stating that the merchant was notified of the cancellation before the

disputed transaction.

– The original cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute

Chargeback (Form 1221) from the original chargeback disputing a recurring transaction stating

that the merchant was notified of the cancellation before the disputed transaction.

2. Issuer certification letter stating that the merchant was notified of the cancellation before the

disputed transaction.

For all other transactions, one of the following correspond to the Chargeback Condition:

1. None

2. One of the following:

– A new cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute

Chargeback (Form 1221) stating that the merchant was notified of the cancellation before the

disputed transaction.

– The original cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute

Chargeback (Form 1221) from the original chargeback disputing a recurring transaction stating

that the merchant was notified of the cancellation before the disputed transaction.

3. Issuer certification letter stating that the merchant was notified of the cancellation before the

disputed transaction.

Dual Message System Chargebacks

Issuer Dispute of a Recurring Transaction

Chargeback Guide Merchant Edition— • 30 April 2024

Message Text.

For Mainland China domestic transactions, include one of the following corresponding to the

Chargeback Condition in comment field as documented in China Switch User Guide – Customer Portal:

1. CB MMDDYY NRN XXXXXXXXXXXXXXXXXXXXXXX

2. None

For all other transactions, include one of the following corresponding to the Chargeback Condition in DE

72 (Data Record):

1. RPCS MMDDYY

2. CB MMDDYY ARD XXXXXXXXXXXXXXXXXXXXXXX

3. None

Notes.

One of the following correspond to the Chargeback Condition:

1. Replace MMDDYY with the date the PAN was listed in the Payment Cancellation Service (PCS).

2. Replace MMDDYY with the date of the original chargeback for Cardholder Dispute of a Recurring

Transaction (refer to the previous table) which contained the cardholder’s letter, email, message or

completed Dispute Resolution Form describing the cardholder’s dispute.

For Mainland China domestic transactions: Replace XXXXXXXXXXXXXXXXXXXXXXX with the

Network Reference Number (NRN) of the original chargeback for Cardholder Dispute of a Recurring

Transaction.

For all other transactions: Replace XXXXXXXXXXXXXXXXXXXXXXX with the Acquirer Reference

Data (ARD) of the original chargeback for Cardholder Dispute of a Recurring Transaction (refer to

the previous table titled Cardholder Dispute of a Recurring Transaction) which contained the

cardholder’s letter, email, message or completed Dispute Resolution Form describing the

cardholder’s dispute.

3. None

Addendum Dispute

An addendum dispute is the dispute of a separate transaction that occurs after a valid

transaction involving the same merchant and the same cardholder.

Chargeback Condition. The cardholder contacted the issuer claiming all of the following:

• The cardholder engaged in a valid transaction with the merchant.

• A subsequent transaction occurred with that same merchant without the cardholder’s consent.

• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the

dispute.

Merchant contact is optional when the cardholder is a corporate entity with a contractual

relationship with the merchant and the transaction is for an amount in excess of what is specified in

the contract. In such event the chargeback may be only for the amount of the excessive charge.

Dual Message System Chargebacks

Addendum Dispute

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date of

the disputed subsequent transaction.

For all other transactions: Within 120-calendar days of the Central Site Business Date of the disputed

subsequent transaction.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions

• 59 (Services Not Rendered) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute. This means that the cardholder email, letter, message or

completed Dispute Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how

each Chargeback Conditions was met.

When the cardholder is a corporate entity with a contractual relationship with the merchant and the

transaction is for an amount in excess of what is specified in the contract, the contract must be

provided when the merchant wasn’t contacted in an effort to resolve the dispute.

Message Text. None

Notes.

The right to charge back the disputed amount is not dependent on the method of payment for the

original transaction. For example, the cardholder may have paid cash for the accepted transaction, but

the disputed subsequent transaction was applied to the Mastercard card because the cardholder

presented the Mastercard card to the merchant to guarantee the service.

A cardholder is not responsible for a charge representing loss, theft, or damage unless the transaction

was completed as described in the Transaction Processing Rules, section 3.12 Charges for Loss, Theft, or

Damage-Mastercard POS Transactions Only.

Cardholders are responsible for valid addendum charges. Examples include, but are not limited to, meals

that were signed for by the cardholder but not included in the final hotel folio or for parking tickets/

traffic fines issued while the vehicle was in the cardholder’s possession.

Dual Message System Chargebacks

Addendum Dispute

Chargeback Guide Merchant Edition— • 30 April 2024

“No-Show” Hotel Charge

Chargeback Condition. The cardholder contacted the issuer to dispute a “no-show” hotel charge from a

merchant that participates in the Mastercard Guaranteed Reservations Service (described in Appendix F

of the Transaction Processing Rules) and alleged one of the following:

1. The cardholder canceled the reservation.

2. The cardholder used the accommodations.

3. The merchant provided alternate accommodations. For example, the cardholder arrived at the hotel

and no room was available. Although the hotel arranged for accommodations at another hotel, the

merchant billed the cardholder in error.

4. The “no-show” charge differed from the rate quoted to the cardholder. Under these circumstances,

only the difference between the two charges can be charged back.

5. The merchant did not advise the cardholder that the merchant would charge a “no-show” fee.

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date.

For all other transactions: Within 120-calendar days of the Central Site Business Date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions

• 59 (Services Not Rendered) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute and one of the following corresponding to the Chargeback

Condition:

1. When available, cancellation number.

2. For Mainland China domestic transactions: The issuer must provide the NRN of the transactions

that represent the actual use of the accommodations.

For all other transactions: The issuer must provide the ARD of the transactions that represent the

actual use of the accommodations. When the cardholder used the accommodations but did not use

his or her credit card for payment, the issuer must provide verification of the alternate form of

payment, such as a cash receipt or canceled check.

3. No additional documentation is required.

4. No additional documentation is required.

5. No additional documentation is required.

Dual Message System Chargebacks

“No-Show” Hotel Charge

Chargeback Guide Merchant Edition— • 30 April 2024

Message Text.

For Mainland China domestic transactions: When the “no-show” charge differed from the rate quoted

to the cardholder, include one of the following in comment field as documented in China Switch User

Guide – Customer Portal:

• NO SHOW XXX NNNN

• RS5 XXX NNNN

For all other transactions: When the “no-show” charge differed from the rate quoted to the cardholder,

include one of the following in DE 72 (Data Record):

• NO SHOW XXX NNNN

• RS5 XXX NNNN

Notes.

When the “no-show” charge differed from the rate quoted to the cardholder, the issuer must:

• Replace XXX with the three-digit ISO currency code of the transaction currency in which the rate was

quoted.

• Replace NNNN with the rate quoted expressed in that currency.

Transaction Did Not Complete

Chargeback Condition. The cardholder contacted the issuer claiming all of the following:

• The cardholder engaged in the transaction.

• The cardholder claims the disputed transaction failed to complete.

• The cardholder did not use the goods or services.

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date.

For all other transactions: Within 120-calendar days of the transaction settlement date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4855 (Goods or Services Not Provided) for Dual Message System transactions

• 55 (Non-receipt of Merchandise) for Debit Mastercard transactions processed on the Single Message

System

Dual Message System Chargebacks

Transaction Did Not Complete

Chargeback Guide Merchant Edition— • 30 April 2024

Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-

Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail to

enable all parties to understand the dispute. This means that the cardholder email, letter, message or

completed Dispute Resolution Form-Cardholder Dispute Chargeback (Form 1221) must document how

each Chargeback Conditions was met.

Message Text. None

Notes. None

Timeshares

Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder canceled the

timeshare or similar provision of services within the Mastercard time frame, regardless of the

contractual terms.

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of cancellation date.

For all other transactions: Within 120-calendar days of the cancellation date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4860 (Credit Not Processed) for Dual Message System transactions

• 60 (Credit Not Processed) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. A cardholder letter, email, message, or Dispute Resolution Form-Cardholder

Dispute Chargeback (Form 1221) is required when the cardholder made a transaction for a timeshare or

any similar provision of services and canceled the agreement within one of the following:

• 90-calendar days of the agreement date for intra-European and inter-European transactions.

• 14-calendar days of the agreement date for all other transactions.

Message Text.

For Mainland China domestic transactions, include TIMESHARE in comment field as documented in

China Switch User Guide – Customer Portal.

For all other transactions, include TIMESHARE in DE 72 (Data Record)

Dual Message System Chargebacks

Timeshares

Chargeback Guide Merchant Edition— • 30 April 2024

Notes. None

Credit Posted as a Purchase

Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder account has

been inaccurately posted with a debit instead of a credit.

Time Frame.

For Mainland China domestic transactions: Within 90-calendar days of transaction settlement date.

For all other transactions: Within 120-calendar days of the transaction settlement date.

Message Reason Code. One of the following:

• 4853 (Cardholder Dispute) for Dual Message System transactions and Mainland China domestic

transactions

• 53 (Cardholder Dispute-Defective/Not as Described) for Debit Mastercard transactions processed

on the Single Message System

The following message reason codes may continue to be used; however, they will eventually be

eliminated. The following message reason codes must not be used for Mainland China domestic

transactions.

• 4860 (Credit Not Processed) for Dual Message System transactions

• 60 (Credit Not Processed) for Debit Mastercard transactions processed on the Single Message

System

Supporting Documents. None

Message Text. None

Notes. The chargeback amount can be up to twice the original transaction amount to offset the error.

The issuer should then correctly credit the cardholder’s account.

Second Presentment

The tables in this section detail the conditions under which a second presentment in response to

a Cardholder Dispute chargeback may be processed.

PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting documentation

may differ from the PAN included by the acquirer in the clearing record. As a result, a difference

in PANs must not be the sole reason for an acquirer’s second presentment.

General Second Presentment

Second Presentment Condition.

The acquirer can provide evidence in response to the cardholder’s

claims.

Dual Message System Chargebacks

Credit Posted as a Purchase

Chargeback Guide Merchant Edition— • 30 April 2024

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System

transactions and Mainland China domestic transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. The merchant’s explanation and documentation.

When the Second Presentment is in response to a First Chargeback for an Addendum Dispute the

acquirer must provide proof the transaction was completed as described in the Transaction Processing

Rules, section 3.12 Charges for Loss, Theft, or Damage-Mastercard POS Transactions Only.

When the Second Presentment is in response to a First Chargeback for Credit Not Processed, the

acquirer must provide documentation that proper disclosure was made in accordance with the

Transaction Processing Rules, section 3.11 Specific Terms of a Transaction.

Mastercard will not consider in its ruling decision second presentment supporting documentation

received on or after a pre-arbitration or an arbitration case filing submission.

Message Text. None

Notes. A merchant or acquirer statement that the cardholder never contacted the merchant to cancel

the recurring transaction is not a valid second presentment.

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s

claims.

Time Frame. Within 45-calendar days of the chargeback settlement date.

Message Reason Code. 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual

Message System transactions.

Dual Message System Chargebacks

Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only

Chargeback Guide Merchant Edition— • 30 April 2024

Supporting Documents. One of the following:

• Proof that the cardholder (or traveler) received reimbursement from the merchant, a bonding

authority or similar scheme according to local law.

• The merchant’s explanation and documentation showing that the travel services paid for will be

provided or were available to the cardholder (or traveler).

• The merchant’s explanation and documentation, specifically documenting that the travel services are

covered by a bonding authority or similar scheme according to local law and that the cardholder (or

traveler) has recourse to collect reimbursement. Instructions on how to request reimbursement must

be provided. An acquirer statement that a bonding authority or similar scheme exists is not sufficient

by itself. This remedy is not applicable to Swedish domestic transactions.

Mastercard will not consider in its ruling decision second presentment supporting documentation

received on or after a pre-arbitration or an arbitration case filing submission.

Message Text. None.

Notes. A merchant or acquirer statement that the cardholder never contacted the bonding authority or

similar scheme to request reimbursement is not a valid basis for a second presentment.

Digital Goods Purchase of USD 25 or Less

Second Presentment Condition. The acquirer can substantiate that the merchant offered at least the

following minimum purchase controls at the time of the transaction or transactions.

• 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; and

• 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.

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System

transactions and Mainland China domestic transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. Documentation to support that the chargeback is remedied or invalid (for

example, website screen images).

Mastercard will not consider in its ruling decision second presentment supporting documentation

received on or after a pre-arbitration or an arbitration case filing submission.

Dual Message System Chargebacks

Digital Goods Purchase of USD 25 or Less

Chargeback Guide Merchant Edition— • 30 April 2024

Message Text. None

Notes. None

Credit Previously Issued

Second Presentment Condition. The merchant issued a credit to the cardholder’s account.

Time Frame.

For Mainland China domestic transactions: Within 30-calendar days of the chargeback settlement date.

For Nigeria domestic transactions: Within two-business days.

For all other transactions: Within 45-calendar days of the chargeback settlement date.

Message Reason Code. One of the following:

• 2011 (Credit Previously Issued) for Dual Message System transactions and Mainland China domestic

transactions

• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System

Supporting Documents. One of the following:

1. When the credit was processed to the cardholder’s Mastercard account: None

2. When the credit was processed by other means: Compelling evidence showing the credit was

processed.

Mastercard will not consider in its ruling decision second presentment supporting documentation

received on or after a pre-arbitration or an arbitration case filing submission.

Message Text. One of the following corresponding to the Supporting Documents:

1. For Mainland China domestic transactions: Include CRED MMDDYY NRN or MMDDYY NRN in

comment field as documented in China Switch User Guide – Customer Portal.

For all other transactions: Include CRED MMDDYY ARD or MMDDYY ARD in DE 72 (Data Record).

2. For Mainland China domestic transactions: Include CREDIT MMDDYY XXXXXXXXXXXX in comment

field as documented in China Switch User Guide – Customer Portal.

For all other transactions: Include CREDIT MMDDYY XXXXXXXXXXXX in DE 72 (Data Record).

Dual Message System Chargebacks

Credit Previously Issued

Chargeback Guide Merchant Edition— • 30 April 2024

Notes.

This second presentment is not available for ATM transactions.

Replace MMDDYY with the date of the credit transaction.

Optionally, for Mainland China domestic transactions replace NNNNNNNNNNNNNNNNNNNNNNN

with the Network Reference Number (NRN) of the credit transaction.

Optionally, for all other transactions replace ARD with the Acquirer Reference Data (ARD) of the credit

transaction.

Replace XXXXXXXXXXXX with the means by which the credit was processed. Examples include, but are

not limited to: bank transfer, store credit, check, cash, prepaid card.