Mastercard Recovery Option Defaults
- Nick Facca
- Devan Robertson
QFD evaluates disputes to determine the best recovery option available, based on the information available. The approach is different for non-fraud disputes and fraud claims.
Disputes
For non-fraud disputes, this evaluation is based on the information that is collection from the accountholder during the intake process. A claim reason is set based on this information and that claim reason aligns to a chargeback reason code, as shown in the table below.
| Claim Reason | Reason Code | Dispute Category | Recovery Rule |
|---|---|---|---|
| Merchant Not Provided | Goods or Services Not Provided (4853) | Cardholder Dispute | RC4853-2 |
| Merchant Damaged Defective | Goods or Services Were Either Not as Described or Defective (4853) | Cardholder Dispute | RC4853-1 |
| Merchant Not as Described | Goods or Services Were Either Not as Described or Defective (4853) | Cardholder Dispute | RC4853-1 |
| Merchant Terms | Goods or Services Were Either Not as Described or Defective (4853) | Cardholder Dispute | RC4853-1 |
| Merchant Quality | Goods or Services Were Either Not as Described or Defective (4853) | Cardholder Dispute | RC4853-1 |
| Merchant Counterfeit | Counterfeit Goods (4853) | Cardholder Dispute | RC4853-5 |
| Merchant Credit Not Processed | Credit Not Processed (4853) | Cardholder Dispute | RC4853-4 |
| Merchant Recurring | Recurring Transaction (4853) | Cardholder Dispute | RC4853-6 |
| Merchant Credit Not Issued | Credit Not Processed (4853) | Cardholder Dispute | RC4853-4 |
| Merchant No Show Charged | No-Show Hotel Charge (4853) | Cardholder Dispute | RC4853-8 |
| Merchant Credit Charged | Credit Posted as a Purchase (4853) | Cardholder Dispute | RC4853-11 |
| Merchant Duplicate | Cardholder Debited More than Once for the Same Goods or Services (4834) | Processing Error | RC4834-1 |
| Merchant Late Presentment | Late Presentment (4834) | Processing Error | RC4834-8 |
| Merchant Incorrect Amt | Transaction Amount Differs (4834) | Processing Error | RC4834-2 |
| ATM Par | ATM Dispute (4834) | Processing Error | RC4834-9 |
| Merchant Charged Loss Theft | Charges for Loss, Theft, or Damages (4834) | Processing Error | RC4834-3 |
| Merchant Incorrect Currency | Dynamic Currency Conversion (4834) | Processing Error | RC4834-4 |
| Merchant Paid Other Means | Cardholder Debited More than Once for the Same Goods or Services (4834) | Processing Error | RC4834-1 |
Fraud
For fraud and authorization claims, QFD includes a robust set of rules for evaluating each dispute to determine if chargeback rights exist for one, or more, chargeback reason codes. Those reason codes, or recovery options, are evaluated in the order shown in the table below and the first option that passes all validations is applied to the dispute. For more information about the specific rules that are evaluated, view the page for each individual option.
| Claim Reason | Reason Code | Dispute Category | Recovery Rule |
|---|---|---|---|
| All Fraud, Authorization | Required Authorization Not Obtained (4808) | Authorization | RC4808 |
| All Fraud, Authorization | Expired Chargeback Protection Period (4808) | Authorization | RC4808-2 |
| All Fraud, Authorization | Multiple Authorization Requests (4808) | Authorization | RC4808-3 |
| All Fraud, Authorization | CAT 3 Device (4808) | Authorization | RC4808-4 |
| All Fraud | Chip Liability Shift (4870) | Fraud | RC4870 |
| All Fraud | Chip Liability Shift Lost Stolen NRI (4871) | Fraud | RC4871 |
| All Fraud | No Cardholder Authorization (4837) | Fraud | RC4837 |
| All Fraud | Questionable Merchant Activity (4849) | Fraud | RC4849 |