Flow
Like most chargeback processes, the Mastercard process includes 3 typical steps: chargeback, pre-arbitration and arbitration. Compliance is also supported when certain conditions are met. The arbitration chargeback is a legacy process that will be deprecated in April 2020 as part of the Mastercard Dispute Resolution Initiative.
Case Lifecycle
Chargeback
Pre-Arbitration
Arbitration
Pre-Compliance
Compliance
Arbitration Chargeback
Strategy
The Mastercard recovery strategy includes two separate recovery strategies: one for fraud and one for non-fraud. Each one includes several recovery options that align to the dispute categories and conditions supported by Mastercard chargeback rules.
Fraud
The fraud recovery strategy includes the following categories and conditions.
Authorization Related Chargeback
- 4808 - Required Authorization Not Obtained
- 4808 - Expired Chargeback Protection Period
- 4808 - Multiple Authorization Requests
Fraud
- 4837 - No Cardholder Authorization
- 4849 - Questionable Merchant Activity
- 4863 - Cardholder Does Not Recognize
- 4870 - Chip Liability Shift
- 4871 - Chip Liability Shift - Lost/Stolen/Never Received Issue (NRI) Fraud
Non-Fraud
The non-fraud recovery strategy includes the following categories and conditions.
Cardholder Dispute
- 4853 - Addendum Dispute
- 4853 - Counterfeit Goods
- 4853 - Credit Not Processed
- 4853 - Credit Posted as a Purchase
- 4853 - Digital Goods Purchase of USD 25 or Less
- 4853 - Failed Travel Merchant
- 4853 - Goods or Services Not Provided
- 4853 - Goods or Services Were Either Not as Described or Defective
- 4853 - No-Show Hotel Charge
- 4853 - Recurring Transaction
- 4853 - Timeshares
- 4853 - Transaction Did Not Complete
Point of Interaction (POI) Processing Error
- 4834 - ATM Disputes
- 4834 - Cardholder Debited More than Once for the Same Goods or Services
- 4834 - Dynamic Currency Conversion
- 4834 - Improper Merchant Surcharge
- 4834 - Transaction Amount Differs
- 4834 - Late Presentment
- 4834 - Charges for Loss, Theft, or Damages
- 4834 - Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss
- 4834 - Unreasonable Amount - Intra-European Economic Area (EEA) Transactions Only
Configuration
The following configuration options are supported for this flow.
Rule | Description |
---|---|
When should charge-backs require manual review? | |
Representment Pre-Conditions | What action should be taken when a 2nd presentment is received? |