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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


Cardholder Dispute


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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