Conditions

May be used by an Issuer or Issuer Processor to initiate a Chargeback Request when a Card Transaction was not completed in accordance with the Authorization requirements in the agreement and PULSE Operating Rules and Procedures, as applicable, including failure to obtain a positive Authorization Response (e.g., no Authorization, declined Authorization) and providing an Authorization Response after the expiration date on the Card.  Following are examples of applicable scenarios:

• Authorization Request was declined but a Purchase was charged to the Account, including where CVV Data was not submitted with the Track Data in the Authorization Request for a Purchase involving a Contactless Payment Device
• Issuer or Issuer Processor cannot collect Purchase amount from Cardholder for any reason and the Issuer or Issuer Processor responded to an Authorization Request with a declined or negative Authorization Response
• Issuer or Issuer Processor cannot collect the Purchase amount from the Cardholder at the time the Transaction Data is presented to the Issuer or Issuer Processor for Settlement and challenges the validity of a Purchase involving an unembossed Prepaid Gift Card for the following reason:
  
  • The Merchant did not obtain a positive Authorization Response for a Card Present Purchase using electronic means by swiping the Card into a POS Device, but instead, “key entered” or “force entered” Card information into the POS Device
• Purchase is completed after the expiration date on the Card and the Issuer cannot collect the amount of the Purchase from the Account for any reason
• Purchase is billed to a closed, terminated, inactive or delinquent Account as indicated by a declined Authorization Response
• Cardholder does not recognize the Purchase, a copy of Transaction documentation was requested through a TRR and the Transaction documentation provided by the Acquirer or Acquirer Processor does not include an authorization code reflecting a positive Authorization Response and does not resolve the Dispute
• An Authorization Response was not obtained by the Acquirer using procedures specified in the agreement or PULSE Operating Rules and Procedures, as applicable, for the amount of the Purchase as represented by Transaction Data
• The amount of the Purchase as represented by Transaction Data exceeds the amount of the positive Authorization Response received by the Acquirer or Acquirer Processor subject to any applicable Tolerance Levels, including a Partial Authorization response and in either case, the Issuer or Issuer Processor cannot collect the amount subject to Dispute from the Cardholder
• For a Purchase at an Automated Fuel Dispenser (AFD) operated by a Merchant in Automated Fuel Dispensers (MCC 5542), the amount of the Card Transaction as represented in Transaction Data submitted for Settlement exceeds:
  
  • The amount of the Purchase as represented by the amount of the Authorization Advice Message; or
  • $100.00, if the Issuer or Issuer Processor provided a positive Authorization Response for $1.00 and no Clearing Message was submitted by the Acquirer or Acquirer Processor
• A Chip Card Transaction when Chip fallback procedures were used by the Merchant to obtain a positive Authorization Response, and the Authorization Request does not indicate use of Chip fallback procedures as specified in the PULSE ISO 8583 (1987) Specifications Manual.

The amount of a Chargeback Request with Chargeback Reason Code 4863 is limited to the amount by which the Card Transaction as represented in Transaction Data differs from the amount indicated in a positive Authorization Response for the Card Transaction by more than a Tolerance Level, which is calculated by multiplying the percentage applicable to the industry in which the Merchant operated by the amount of the Card Transaction:

Timing

An Issuer or Issuer Processor may initiate a Chargeback within the following timelines as applicable:

• If a Transaction Retrieval Request (TRR) is submitted, a Chargeback must be initiated between 60 calendar days of the TRR initiation date and 30 calendar days of the close date of such TRR.
• If there is no TRR, the Chargeback must be initiated within 120 calendar days of the Processing date of the Card Transaction.

Dependencies

None.

Validations

• Is not a PPE transaction in an amount less than $50.