MasterCard Reason Codes
What Businesses Need to Know about MasterCard Reason Codes
No business is immune to chargebacks. Chargebacks occur when a customer disputes a transaction.
Customers may dispute transactions for a number of reasons, including non-delivery of products and services, miscommunication about a refund, misunderstanding of the amount of the charge, or a variety of other reasons.
Once you receive a chargeback, you will want to track the progress of your resolution process. You can do so easily with reason codes.
Here’s how reason codes make it easy for you to check the status of your disputes or chargebacks:
Mastercard Chargeback Reason Codes Demystified
MasterCard chargeback reason codes are a set of four digits beginning with the 48xx.
Mastercard Reason codes fall under four categories.
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4807 – Warning Bulletin File
4808 – Authorization-Related Chargeback
4812 – Account Number Not On File
4841 – Cancelled Recurring or Digital Goods Transactions
4853 – Cardholder Dispute
4854 – Cardholder Dispute – Not Elsewhere Classified
4855 – Goods or Services Not Provided
4859 – No Show/Addendum/ATM Dispute
4860 – Credit Not Processed
4837 – No Cardholder Authorization
4840 – Fraudulent Processing of Transactions
4849 – Questionable Merchant Activity
4863 – Cardholder Does Not Recognize/Potential Fraud
4870 – Chip Liability Shift
4871 – Chip/PIN Liability Shift – Lost/Stolen/Never Received Issue (NRI) Fraud
Point of Interactions Errors
4831 – Transaction Amount Differs
4834 – Point of Interaction Error
4842 – Late Presentment
4846 – Incorrect Currency Code
The only way to avoid chargeback disputes is to avoid chargebacks altogether.
Here are a few proven tips to prevent chargebacks:
Magnetic stripe technology can be easily compromised by the sophisticated hackers of today. Thankfully, chip technology is incredibly difficult to hack, which allows for a safer and more secure environment for your business and your customers.
When chip cards were globally adopted in 2015, important changes were also made in how liability is assigned for credit card fraud.
Mastercard Chargeback Prevention Tips:
- Process credit immediately
- Share the return or exchange policy before completing the checkout process
- Keep dissatisfied customers in the loop about the steps you are taking to resolve the dispute
- Obtain the customer’s signature for items picked up in store, work orders, etc
- Bill customers after products are shipped or service provided
Need Help with a Chargeback Dispute?
If your business has been subject to a Mastercard chargeback dispute, or if you have received an inquiry – you need to act fast.
Get in touch with us right away so we can help you successfully navigate a Mastercard transaction dispute with ease and confidence.
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