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Chargeback Guide
Chargeback Guide
14 May 2020
TB
Summary of Changes, 14 May 2020
Update section title from “Not Reported to SAFE” Dual Message System Chargebacks-Initiated On or
to “Not Reported to the Fraud and Loss Before 16 July 2020 > Fraud-related Chargebacks
Database”. > Chip Liability Shift -Lost/Stolen/Never Received
Update Second Presentment Condition and Issue (NRI) Fraud > Second Presentment > Not
Supporting Documents table rows. Reported to the Fraud and Loss Database
Update title from: “Unreasonable Amount (Intra- Dual Message System Chargebacks-Initiated On or
EEA Transactions Only)” to “Unreasonable Before 16 July 2020 > Point-of-Interaction Error >
Amount (EEA, Gibraltar, United Kingdom)” Second Presentment > Unreasonable Amount
(EEA, Gibraltar, United Kingdom)
Update title from: “Unreasonable Amount (Intra- Dual Message System Chargebacks-Initiated On or
EEA Transactions Only)” to “Unreasonable After 17 July 2020 > Point-of-Interaction Error >
Amount (EEA, Gibraltar, United Kingdom)” Chargeback > Unreasonable Amount (EEA,
Gibraltar, United Kingdom)
Appendix D, Domestic Chargebacks, Arbitration Case Filing, and Compliance Case Filing
Incorporated the changes announced in “AN 3257—Revised Standards—Elimination of
Chargeback Transaction Batching”, that includes:
Update paragraphs two, three, and remove Domestic Chargebacks, Arbitration Case Filing,
paragraph five and Compliance Case Filing > Participating
Countries—Installment Billing Dispute (Reason
Code 4850) > Proper Use of Message Reason
Code 4850
Contents
Chargeback...............................................................................................................174
Cardholder Debited More than Once for the Same Goods or Services................... 174
Transaction Amount Differs...................................................................................175
ATM Disputes....................................................................................................... 176
Charges for Loss, Theft, or Damages..................................................................... 177
Late Presentment.................................................................................................. 179
POI Currency Conversion (Dynamic Currency Conversion)..................................... 180
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange
Loss...................................................................................................................... 181
Improper Merchant Surcharge (Intra-European and Inter-European transactions
only)..................................................................................................................... 181
Unreasonable Amount (EEA, Gibraltar, United Kingdom)....................................... 182
Second Presentment.................................................................................................. 182
Cardholder Debited More than Once for the Same Goods or Services................... 183
Cardholder Debited More than Once for the Same Goods or Services—PIN
Transaction........................................................................................................... 183
Transaction Amount Differs................................................................................... 184
ATM Disputes....................................................................................................... 184
Charges for Loss, Theft, or Damages..................................................................... 185
Late Presentment.................................................................................................. 186
Late Presentment—Corrected Transaction Date..................................................... 187
POI Currency Conversion (Dynamic Currency Conversion)..................................... 188
Unreasonable Amount (EEA, Gibraltar, United Kingdom)....................................... 188
Credit Previously Issued......................................................................................... 189
Improper Merchant Surcharge (Intra-European and Inter-European transactions
only)..................................................................................................................... 191
Additional Second Presentment Options................................................................191
Arbitration Chargeback............................................................................................. 193
General Arbitration Chargeback............................................................................193
Acquirer Reference Data (ARD) Does Not Match or is Invalid................................. 193
Additional Arbitration Chargeback Options........................................................... 194
Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only).................................. 195
Installment Billing Dispute (Participating Countries Only)................................................ 195
Domestic Chargeback Dispute (Europe Region Only)...................................................... 195
Requirements for Issuer’s First Chargeback, Acquirer’s Second Presentment, and
Issuer’s Arbitration Chargeback..................................................................................195
Improper Use of Message Reason Code 4999............................................................ 195
Arbitration Case Filing............................................................................................... 195
Additional Processing Notes........................................................................................... 195
Progressive Handling Fees...............................................................................................196
Progressive Handling Fee Overview............................................................................ 196
Issuer Use of Message Reason Code 7622.............................................................196
Acquirer Use of Message Reason Code 7623........................................................ 196
Chargeback.......................................................................................................... 273
Global Merchant Audit Program (GMAP).......................................................... 273
Questionable Merchant Audit Program (QMAP)................................................274
Mastercard Rule 3.7 Violation for Coercion Claim............................................. 275
Second Presentment............................................................................................. 276
Not Considered in Violation of Mastercard Rule 3.7 for Coercion Claim............ 276
Late First Chargeback Submission..................................................................... 276
Improper Fraud and Loss Database Reporting................................................... 277
Ineligible Fraud................................................................................................. 277
Not Listed in Mastercard Announcement.......................................................... 277
Credit Previously Issued.................................................................................... 278
Additional Second Presentment Options........................................................... 280
Arbitration Chargeback.........................................................................................280
Chip Liability Shift......................................................................................................280
Chargeback.......................................................................................................... 285
Chip Liability Shift............................................................................................ 285
Second Presentment ............................................................................................ 286
Two or More Previous Fraud-related Chargebacks.............................................287
Fraud-related Chargeback Counter Exceeds Threshold......................................287
Not Reported to the Fraud and Loss Database.................................................. 288
Issuer Authorized Transaction........................................................................... 288
Technical Fallback............................................................................................. 289
Second Presentment.........................................................................................289
Chip Transaction—DE 55 Not Provided—Did Not Require Online
Authorization................................................................................................... 289
Chip Transaction— Offline Authorized..............................................................290
DE 55 Was Provided in the First Presentment/1240 Message.............................290
Invalid Chargeback........................................................................................... 291
Credit Previously Issued.................................................................................... 291
Additional Second Presentment Options........................................................... 293
Arbitration Chargeback.........................................................................................294
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud............................... 294
Chargeback.......................................................................................................... 300
Lost/Stolen/NRI Fraud Chip Liability Shift........................................................... 300
Second Presentment............................................................................................. 301
Two or More Previous Fraud-related Chargebacks.............................................302
Fraud-related Chargeback Counter Exceeds Threshold......................................302
Not Reported to the Fraud and Loss Database.................................................. 303
Authorized Online Transaction..........................................................................303
Technical Fallback............................................................................................. 304
Chip Transaction—DE 55 Not Provided—Did Not Require Online
Authorization................................................................................................... 304
DE 55 Was Provided in the First Presentment/1240 Message.............................304
Retrieval Requests......................................................................................................575
Acquirer Requirements..........................................................................................575
Chip Transactions...................................................................................................... 576
Chargebacks............................................................................................................. 576
Chargeback Procedures.........................................................................................576
Supporting Documentation for a Chargeback....................................................... 576
Second Presentment Procedures................................................................................ 577
Supporting Documentation for a Second Presentment.......................................... 577
Message Reason Codes for Interregional Transactions.................................................... 578
Interregional Message Reason Code 4804—Transaction Multiple Processing.............. 579
Proper Use of Interregional Message Reason Code 4804....................................... 579
Improper Use for Acquirer’s Second Presentment.................................................. 579
Interregional Message Reason Code 4809—Transaction Not Reconciled ................... 579
Proper Use of Interregional Message Reason Code 4809....................................... 579
Improper Use for Acquirer’s Second Presentment.................................................. 579
Interregional Message Reason Code 4811—Stale Transaction.................................... 579
Proper Use of Interregional Message Reason Code 4811....................................... 579
Improper Use of Acquirer’s Second Presentment....................................................579
Interregional Message Reason Code 4831—Disputed Amount...................................579
Proper Use of Interregional Message Reason Code 4831....................................... 579
Proper Use for Issuer’s First Chargeback.................................................................580
Proper Use for Acquirer’s Second Presentment...................................................... 580
Interregional Message Reason Code 4834—Duplicate Transaction ............................ 580
Proper Use of Interregional Message Reason Code 4834....................................... 580
Proper Use for Issuer’s First Chargeback.................................................................580
Proper Use for Acquirer’s Second Presentment...................................................... 580
Interregional Message Reason Code 4837—No Cardholder Authorization................. 581
Proper Use of Interregional Message Reason Code 4837....................................... 581
Improper Use of Interregional Message Reason Code 4837................................... 581
Proper Use for Acquirer’s Second Presentment...................................................... 582
Invalid Chargeback........................................................................................... 582
Two or More Previous Fraud-related Chargebacks.............................................582
Fraud-related Chargeback Counter Exceeds Threshold......................................583
Interregional Message Reason Code 4855—Goods or Services Not Delivered.............583
Proper Use of Interregional Message Reason Code 4855....................................... 583
Improper Use for Issuer’s First Chargeback.............................................................584
Proper Use for Acquirer’s Second Presentment...................................................... 584
Interregional Message Reason Code 4860—Credit Not Received............................... 584
Proper Use of Interregional Message Reason Code 4860....................................... 584
Proper Use for Issuer’s First Chargeback.................................................................585
Proper Use for Acquirer’s Second Presentment...................................................... 585
Interregional Message Reason Code 4870—Chip Liability Shift.................................. 585
Proper Use of Interregional Message Reason Code 4870....................................... 585
Issuer Chargeback.................................................................................................684
Non-Cash Item Deposited (Reason Code 28)..............................................................684
Acquirer Adjustment............................................................................................. 684
Issuer Chargeback.................................................................................................685
Foreign/Counterfeit Currency Deposited (Reason Code 29)........................................ 685
Acquirer Adjustment............................................................................................. 685
Issuer Chargeback.................................................................................................685
Cardholder Disputed Amount (Reason Code 30)........................................................685
Issuer Chargeback.................................................................................................685
Acquirer Representment........................................................................................686
Arbitration Case Filing...........................................................................................686
Intra-U.S. Region and U.S. Territories—Defective/Not as Described (Reason Code 53)..... 686
Issuer Chargeback..................................................................................................... 686
General Use.......................................................................................................... 686
Counterfeit Goods................................................................................................ 688
Acquirer Representment (Second Presentment)..........................................................688
Arbitration Case Filing............................................................................................... 689
General Use.......................................................................................................... 689
Counterfeit Goods................................................................................................ 690
Notices...........................................................................................................................716
Definitions
The terms “Customer” and “Standards” as used in this guide have the meaning set forth in
the Definitions chapter of Mastercard Rules.
Overview of the Single and Dual Message System Chargeback Cycles and
Arbitration Case Filing
First The first presentment occurs when the acquirer submits transaction data through the
Presentment Single or Dual Message System to the issuer for posting to the cardholder’s account.
Single Message Dual Message
In the Single Message System, this is In the Dual Message System, this is a First
a Presentment/0210 message. Presentment/1240 message.
Chargeback The issuer may initiate a chargeback when the circumstances of the transaction meet
the requirement of a chargeback reason code described in the Single Message System
Chargebacks or Dual Message System Chargebacks chapters.
A chargeback may be for the total transaction amount or a lesser amount.
Additionally, one clearing transaction may have multiple chargebacks for partial
amounts. The total amount being charged back must not exceed the total transaction
amount.
Upon reissuing a Mastercard, Debit Mastercard, or Maestro card with the same
primary account number (PAN) and a new expiration date, the issuer must include the
expiration date in all chargeback records.
Arbitration After the chargeback cycles have been completed, a dispute may be escalated using
Case Filing the pre-arbitration and arbitration case filing process. When an arbitration case is not
resolved between the issuer and the acquirer, Mastercard will determine responsibility
for the dispute.
A case filing must be for the total second presentment amount or a lesser amount.
Refer to the Arbitration Case Filing-For Chargebacks Initiated On or Before 16 July
2020 or the Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On
or After 17 July 2020 chapters for detailed information.
Reversals
In the Single Message System (SMS), a chargeback and a second presentment may be
reversed as described in the Single Message Systems Chargebacks chapter.
In the Dual Message System (DMS), a first chargeback, second presentment, and arbitration
chargeback may be reversed as described in the Global Clearing Management System
Reference Manual.
The arbitration chargeback cycle will be eliminated for first chargebacks processed on or after
17 July 2020.
case is invalid. When a second presentment is not processed within the required second
presentment timeframe, an acquirer seeking return of the refund amount must do so
outside of the chargeback and compliance process. An example of outside of the
chargeback and compliance process includes, but is not limited to, a good faith
collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a
good faith collection letter is accepted by the issuer in writing the Fee Collection/1740
message must be processed in accordance with chapter 19-Fee Collection of the Global
Clearing Management System Reference Manual.
For the avoidance of doubt:
– Refund properly documented in second presentment and within timeframe:
When a refund was processed before the second presentment and the timely second
presentment properly documented the refund, the issuer must not continue the
dispute for the refunded amount as the refund resolved the chargeback. Upon
completion of all of the chargeback cycles, if a properly documented pre-arbitration/
arbitration case is filed, Mastercard will likely rule in favor of the acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a
different transaction. With proper documentation from the cardholder, the issuer
may continue with the dispute.
– The refund that was processed before the second presentment was for a partial
amount of the disputed transaction and the acquirer failed to provide a valid
remedy for the remainder of the disputed amount. The issuer may continue with
the dispute for the amount that was not refunded, when applicable.
– Refund before second presentment and within timeframe, but not properly
documented in second presentment: A refund is required to be documented in
the second presentment and not in the pre-arbitration/arbitration case filing. When
the first chargeback is valid and timely, if a case is filed with Mastercard involving a
refund that was processed before the second presentment but the second
presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the
fines and fees associated with the case.
– Refund after second presentment: A refund is required to be documented in a
timely manner in the second presentment and not in the pre-arbitration/arbitration
case filing. When a refund was processed after the second presentment, an acquirer
seeking return of the refund amount must do so outside of the arbitration and
compliance process. An example of outside of the chargeback and compliance
process includes, but is not limited to, a good faith collection letter. In this example, a
good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is
accepted by the issuer in writing the Fee Collection/1740 message must be processed
in accordance with chapter 19-Fee Collection of the Global Clearing Management
System Reference Manual. In the event an arbitration case is submitted concerning
the refund, Mastercard will likely rule in favor of the issuer provided the first
chargeback was timely and valid.
Hardship Variances
Related Documentation
Refer to the following documents for more information related to the subjects discussed in
this document:
• Account Management System User Manual
• Authorization Manual
• Customer Interface Specification
• Global Clearing Management System Reference Manual
• IPM Clearing Formats
• M/Chip Requirements
• Mastercard Consolidated Billing System
• Mastercard Rules
• MasterCom Pro User Guide
• MasterCom Hosted User Guide
• Single Message Transaction Manager User Guide
• Quick Reference Booklet
• Security Rules and Procedures
• Settlement Manual
• Single Message System Settlement and Reports
• Transaction Processing Rules
Overview...................................................................................................................................... 49
Authorization-related Chargeback ............................................................................................... 49
Chargeback..............................................................................................................................50
Required Authorization Not Obtained.................................................................................. 50
Expired Chargeback Protection Period..................................................................................53
Multiple Authorization Requests.......................................................................................... 54
CAT 3 Device....................................................................................................................... 55
Second Presentment.................................................................................................................57
Required Authorization Obtained.........................................................................................58
Expired Chargeback Protection Period..................................................................................59
Multiple Authorization Requests.......................................................................................... 60
One Authorization with Multiple Clearing Records............................................................... 60
CAT 3 Device....................................................................................................................... 61
Credit Previously Issued........................................................................................................61
Additional Second Presentment Options.............................................................................. 64
Arbitration Chargeback............................................................................................................ 64
General Arbitration Chargeback.......................................................................................... 64
Acquirer Reference Data (ARD) Does Not Match or is Invalid................................................ 65
Additional Arbitration Chargeback Options..........................................................................65
Cardholder Dispute Chargeback .................................................................................................. 66
Chargeback..............................................................................................................................68
Goods or Services Were Either Not as Described or Defective............................................... 68
Goods or Services Not Provided........................................................................................... 69
Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only...................... 73
Digital Goods Purchase of USD 25 or Less............................................................................ 75
Credit Not Processed............................................................................................................77
Counterfeit Goods...............................................................................................................79
Cardholder Dispute of a Recurring Transaction.....................................................................80
Issuer Dispute of a Recurring Transaction............................................................................. 81
Addendum Dispute..............................................................................................................82
“No-Show” Hotel Charge....................................................................................................83
Addendum Disputes......................................................................................................117
Address Verification Service (AVS) Transaction............................................................... 118
Compelling Evidence.....................................................................................................118
Guaranteed Reservation Service (“No-show”)................................................................119
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................119
Additional Arbitration Chargeback Options................................................................... 120
Questionable Merchant Activity ............................................................................................. 121
Chargeback....................................................................................................................... 123
Global Merchant Audit Program (GMAP).......................................................................123
Questionable Merchant Audit Program (QMAP).............................................................124
Mastercard Rule 3.7 Violation for Coercion Claim..........................................................125
Second Presentment.......................................................................................................... 125
Not Considered in Violation of Mastercard Rule 3.7 for Coercion Claim.........................126
Late First Chargeback Submission..................................................................................126
Improper Fraud Reporting............................................................................................. 126
Ineligible Fraud..............................................................................................................127
Not Listed in Mastercard Announcement.......................................................................127
Credit Previously Issued................................................................................................. 127
Additional Second Presentment Options........................................................................129
Arbitration Chargeback..................................................................................................... 129
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................129
Cardholder Does Not Recognize............................................................................................. 130
Chargeback....................................................................................................................... 133
Cardholder Does Not Recognize.................................................................................... 133
Second Presentment.......................................................................................................... 134
Two or More Previous Fraud-related Chargebacks..........................................................134
Fraud-related Chargeback Counter Exceeds Threshold...................................................135
New Information to Identify the Transaction.................................................................. 135
Address Verification Service (AVS)..................................................................................136
Face-to-Face Transaction............................................................................................... 136
Conflicting Information in Authorization and Clearing Messages................................... 137
Mastercard SecureCode SL1 (Merchant-only Liability Shift)............................................ 137
Mastercard SecureCode SL2 (Global Liability Shift).........................................................138
Credit Previously Issued................................................................................................. 138
Additional Second Presentment Options........................................................................140
Arbitration Chargeback..................................................................................................... 140
New Information Not Provided...................................................................................... 140
UCAF Value Discrepancy............................................................................................... 141
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................141
Overview
Authorization-related Chargeback
This section provides information in handling an authorization-related chargeback.
The issuer must attempt to honor the transaction before exercising this chargeback right.
An authorization-related chargeback may be submitted when one of the following occurred:
• Authorization was required but not obtained.
• The primary account number (PAN) does not exist.
• The authorization chargeback protection time period had expired for the presentment
(meaning seven calendar days for final or undefined authorizations and 30 days for
preauthorizations) and one of the following:
– For a transaction occurring at a merchant located in the Europe Region, the account
was permanently closed before the chargeback was processed
– For a transaction occurring at a merchant located in any other region, the issuer deemed
the account not to be in good standing (a “statused” account) before filing the
chargeback
• A card-not-present authorization was declined by the issuer and subsequently approved
through Stand-In processing or X-Code with an approval response as specified in the
Authorization Manual with the following exceptions:
– The issuer generated a decline response that included a value of 02 (Cannot approve at
this time, try again later) in DE 48 (Additional Data—Private Use), subelement 84
(Merchant Advice Code).
– The issuer generated an approval response after previously declining the transaction.
– The merchant can prove that the cardholder initiated the authorization request.
An authorization-related chargeback must not be submitted for any of the following:
• A properly identified Emergency Cash Advance transaction. A properly identified
Emergency Cash Advance transaction contains a value of “Emergency Cash Advance” in
DE 43 (Card Acceptor Name/Location) of the First Presentment/1240 message.
• A properly identified contactless transit aggregated transaction when all of the following
occurred:
– An Authorization Request/0100 message was generated for the transaction.
– The issuer approved the authorization request.
– The transaction amount was equal to or less than the contactless transit aggregated
transaction CVM limit amount as published in Appendix C, CVM Limit Amounts.
– There were 14 calendar days or less between the date of the first contactless tap and
the date the First Presentment/1240 message was generated.
• For Taiwan domestic in-flight transactions, refer to “AN 2491—Revised Standards—Taiwan
Domestic In-flight Transactions” regarding Authorization Related Chargeback
requirements.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The tables in this section detail the conditions under which an authorization-related
chargeback may be processed.
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Notes.
Multiple Authorizations Records. A transaction may have multiple authorization records.
Additionally, several airline ticket transactions may be combined into one authorization record.
Multiple Clearing Records. Multiple clearing records may have been or will be submitted in
connection with a single approved authorization.
10% Tolerance to Accommodate Currency Conversion Rates. This chargeback is not available for
transactions that were converted to a different currency and the cleared transaction amount exceeds
the authorized transaction amount by less than 10%. This tolerance allows for different currency
conversion rates that could have been applicable on the authorization and clearing dates.
15% Tolerance. The 15% tolerance does not apply to any transaction.
20% Tolerance. The 20% tolerance for gratuities does not apply to the following types of
transactions:
• Chip/PIN transactions
• Contactless transactions
• Card-not-present transactions (see below for a variation relating to U.S. region domestic restaurant
transactions)
• Mastercard Consumer-Presented Quick Response (QR) Transaction
• Transactions for which the authorization was not coded as a pre-authorization
A 20% tolerance for gratuities will continue to apply to any other transaction types.
20% Tolerance. A 20% tolerance for gratuities will apply to card-not-present transactions conducted
with a U.S. region-issued card at a U.S. region merchant and identified with either of the following
MCCs:
• MCC 5812 (Eating Places, Restaurants)
• MCC 5814 (Fast Food Restaurants)
20% Tolerances—Partial Approval. This tolerance does not apply when both of the following
occurred:
• The Authorization Request/0100 message contained a value of 1 (Merchant terminal supports
receipt of partial approvals) in DE 48 (Additional Data—Private Use), subelement 61 (POS Data,
Extended Condition Codes), subfield 1 (Partial Approval Terminal Support Indicator).
• The Authorization Response/0110 message contained a value of 10 (Partial Approval) in DE 39
(Response Code) and a partial approval amount in DE 6 (Amount, Cardholder Billing).
Contactless Transit Aggregated Transaction. When the transaction amount of a properly identified
contactless transit aggregated transaction exceeds the contactless transit aggregated transaction CVM
limit amount, the issuer may charge back only the difference between the transaction amount and the
contactless transit aggregated transaction CVM limit amount.
Automated Fuel Dispenser (MCC 5542). The issuer cannot charge back an automated fuel
dispenser transaction effected in the U.S. region with:
• A Mastercard Corporate Card®, Mastercard Corporate Executive Card®, Mastercard Corporate Fleet
Card®, or Mastercard Corporate Purchasing Card™ for any amount less than or equal to USD 150,
if the transaction was identified in the authorization request with MCC 5542 (Fuel Dispenser,
Automated), CAT 2 or CAT 6, and authorized by the issuer for USD 1.
If the transaction amount exceeds USD 150, the issuer may charge back only the difference
between the transaction amount and USD 150.
• Any other Mastercard card for any amount less than or equal to USD 100, if the transaction was
identified in the authorization request with MCC 5542 (Fuel Dispenser, Automated), CAT 2 or CAT
6, and authorized by the issuer for USD 1.
If the transaction amount exceeds USD 100, the issuer may charge back only the difference
between the transaction amount and USD 100.
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4808 for Dual Message System transactions
• 08 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System
transactions
• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on
the Single Message System
CAT 3 Device
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4808 for Dual Message System transactions
• 08 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System
transactions
• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on
the Single Message System
Supporting Documents. For batched chargebacks: A list of the ARDs and the amount of each
transaction.
For all other chargebacks: None
DE 72 (Data Record). For Local Stoplist or Electronic Warning Bulletin File, one of the following:
• RX
• R X S NN
For batched chargebacks: CAT 3 MULTIPLE TRANS NNN
For Europe region cards with X2X service code: SC X2X
For all others one of the following:
• CAT 3
• CAT LEVEL 3
Notes
Batching CAT 3 Device Transactions
Multiple disputed transactions may be combined into one chargeback, this is called batching. The
batching option is only available when the PAN, merchant name and acquirer are the same for all
transactions within the batch.
Each individual disputed transaction included in the batch must be within the chargeback time frame.
The chargeback must be processed using an ARD from one of the disputed transactions included the
batch.
The chargeback must be processed for the total amount of all the disputed transactions included in
the batch.
Each transaction in the batch must be less than or equal to USD 25 or the local currency equivalent.
The total amount of all transactions in the batch must not exceed USD 250 or the local currency
equivalent.
For CAT 3 MULTIPLE TRANS NNN, replace NNN with the number of transactions in the batch.
Local Stoplist or Electronic Warning Bulletin File
For R X, replace X with the one character Electronic Warning Bulletin Region code in which the PAN is
listed.
For S NN, replace NN with the two character subregional code in which the PAN was listed.
• Unknown Transaction Date. When the issuer cannot determine the transaction date from DE 12
(Date and Time, Local Transaction), the issuer may assume the transaction date is within 15
calendar days before the Central Site Business Date.
• Unknown Face-to-Face Merchant Location. When the issuer cannot determine the merchant
location from DE 43 (Merchant Name/Location), subfield 5 (State, Province, or Region Code), the
issuer may reference any region of the Electronic Warning Bulletin File that listed the PAN on the
date of the transaction in DE 72.
• Unknown Non-Face-to-Face and Non-Fixed Merchant Location. For non–face-to-face or non-
fixed merchant location transactions, the issuer may reference any regional Electronic Warning
Bulletin File that listed the PAN on the date of the transaction in DE 72.
• Subregional. An issuer must use both the merchant location (DE 43) and the merchant category
code (DE 26 [Merchant Business Code (MCC)]) to determine whether the PAN was listed in the
applicable subregional Electronic Warning Bulletin File.
For information on the Local Stoplist or Electronic Warning Bulletin File refer to the Account
Management System User Manual.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to an authorization-related chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The transaction was authorized and presented within the
applicable Chargeback Protection Period.
Time Frame. Within 45 calendar days of the chargeback settlement date
IPM Second Presentment Message Reason Code. One of the following:
• 2008 (Issuer Authorized Transaction) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes.
Replace MMDDYY with the date the issuer authorized the transaction.
Replace NNNNNN with the actual authorization response code provided by the issuer, its agent or
Mastercard On-Behalf for the cleared transaction.
Offline Approved EMV Transaction
When DE 55 was provided in the First Presentment/1240 message respond with IPM Second
Presentment Message Reason Code 2713-Invalid Chargeback.
When DE 55 was not provided in the First Presentment/1240-200 message, DE 55 must be provided in
the Second Presentment Presentment/1240-205 message.
Notes. When the transaction authorization was identified as a preauthorization, use PREAUTH.
When the transaction authorization was not identified as a preauthorization, use AUTH.
Replace MMDDYY with the approval date of the disputed transaction.
Notes.
When the transaction authorization was identified as a preauthorization, use PREAUTH.
When the transaction authorization was not identified as a preauthorization, use AUTH.
Replace MMDDYY with the approval date of the disputed transaction.
CAT 3 Device
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
The tables in this section detail the conditions under which an arbitration chargeback in
response to an acquirer’s second presentment may be processed.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following:
• 4808 Authorization-related Chargeback
• 48XX
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required.
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
1. 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
The Mastercard Dispute Resolution staff will find the acquirer responsible when the acquirer files
an arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
2. 4902—Documentation Received was Illegible
Supporting documentation is illegible. The issuer’s arbitration chargeback will be considered
invalid should the Mastercard Dispute Resolution staff determine that the supporting
documentation is legible during an arbitration case filing.
3. 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
• Timeshare agreement or similar service provision was canceled within Mastercard time
frame, regardless of the contractual terms
• Credit posted as a purchase
A Cardholder Dispute chargeback must not be submitted for any of the following:
• Payment Transactions and Mastercard MoneySend™ Payment Transactions
• The cash back amount or any portion of the cash back amount.
• Mastercard Commercial Payments Account transaction. A Mastercard Commercial
Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP
(Mastercard Commercial Payments Account) in the First Presentment/1240 message.
• Failure to credit shipping or handling charges for buyer’s remorse cancellations or returns.
• A retail sale processed as a cash disbursement. Customers must accept these transactions
and collect the difference in the interchange fee and cash directly from the acquirer. When
an issuer’s attempt to collect the difference directly from the acquirer proves unsuccessful,
the issuer should contact Global Customer Service.
Chargebacks are available to the issuer for transactions in which any value is purchased for
gambling, investment or similar purposes. However, issuers have no chargeback rights related
to the use of these chips or value, unspent chips, or withdrawal of such value, or on any
winnings, gains or losses resulting from the use of such chips or value.
Staged Digital Wallet.
• A transaction to fund a Staged Digital Wallet (SDW) may be charged back if the funds did
not appear in the SDW. Chargeback rights are not available for any subsequent purchase
of goods or service from a SDW. SDW transactions are identified with a wallet identifier in
DE 48 (Additional Data—Private Use), subelement 26 (Wallet Program Data), subfield 1
(Wallet Identifier) and in PDS 0207 (Wallet Identifier) of the First Presentment/1240
Message.
• Intra-European and Inter-European Transactions Only. This chargeback right is also
available for purchases of goods or services (excluding gambling, investments and similar
provision of services) made using a SDW, when the SDW funding transaction occurred
during the consumer’s purchase.
Such funding transactions are further identified with the SDW Operator name in
conjunction with the retailer name present in DE 43, subfield 1 (Card Acceptor Name) and
the MCC that most closely describes the primary business of the retailer in DE 18
(Merchant Type) of the Authorization Request/0100 message and in DE 26 (Card Acceptor
Business Code [MCC]) of the First Presentment/1240 message.
The issuer or the cardholder must have contacted or attempted to contact the SDW
Operator or retailer to resolve the dispute before raising the chargeback. The result of this
attempt must be explained in the support documentation.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Chargeback
The tables in this section detail the conditions under which a Cardholder Dispute chargeback
may be processed.
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in the transaction
• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the
dispute
Merchant contact is optional when the cardholder is a corporate entity with a contractual
relationship with the merchant and the transaction is for an amount in excess of what is specified
in the contract. In such event the chargeback may be only for the amount of the excessive charge.
• The merchant refused to adjust the price, repair or replace the goods or other things of value, or
issue a credit
• For disputes involving goods: The cardholder returned the goods or informed the merchant the
goods were available for pickup
And one of the following:
• When delivered from the merchant, the goods arrived broken or could not be used for the
intended purpose.
• Goods and services did not conform to their description. Examples include, but are not limited to:
– The cardholder claims that the quality or workmanship of the product is not as described.
– The cardholder claims that the specified color, size, or quantity is not as described.
• The merchant did not honor the terms and conditions of the contract with the cardholder
including, but not limited to, 100 percent money back guarantee, written promises, or return
policy.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute. This means that the cardholder email, letter, message
or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must document
how each Chargeback Conditions was met.
When the cardholder is a corporate entity with a contractual relationship with the merchant and the
transaction is for an amount in excess of what is specified in the contract, the contract must be
provided when the merchant wasn’t contacted in an effort to resolve the dispute.
Optionally, documentation from an expert or professional that supports the cardholder’s dispute about
the level of quality or misrepresentation.
Optionally, documentation that supports the cardholder’s dispute including, but not limited to, the
original receipt, invoice, work order, brochure, contract, or appraisal.
Notes. This chargeback is not available when proper disclosure of the conditions of the goods is made
at the time of the sale, such as when goods are sold in “as is” condition.
Time Frame.
• In cases involving delayed delivery of goods or services and the delivery or performance date was
not specified by the merchant: the issuer must wait 30 calendar days from the transaction date
before submitting a chargeback and not to exceed 120 calendar days from the transaction
settlement date.
However, the issuer may charge back the transaction immediately (and not wait the 30 calendar
days) upon learning the merchant will not provide the goods or services because, for example, for
the merchant is no longer in business.
• In cases involving delayed delivery of goods or services and the delivery or performance date was
specified by the merchant and the latest anticipated delivery or performance date was specified by
the merchant has passed: within 120 calendar days of the latest anticipated delivery or
performance date specified by the merchant.
However, the issuer may charge back the transaction immediately (and not wait until the latest
anticipated delivery or performance date has passed) upon learning the merchant will not provide
the goods or services because, for example, for the merchant is no longer in business.
• In cases involving interruption of ongoing services, within 120 calendar days of the date the
cardholder becomes aware that the service ceased. A chargeback must not be processed after 540
calendar days from the Central Site Business Date of the first presentment.
• In cases involving the purchase of a merchant-branded prepaid gift card without an expiration date
printed on the card and that merchant subsequently goes out of business, within 540 calendar
days from the Central Site Business Date of the first presentment.
• In cases involving the purchase of a merchant-branded prepaid gift card with an expiration date
printed on the card and that merchant subsequently goes out of business, within 120 calendar
days from the expiration date printed on the card.
• In all other cases: within 120 calendar days from the transaction settlement date.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must include both of the following:
• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute. This means that the cardholder email, letter, message or completed Dispute Resolution
Form—Cardholder Dispute Chargeback (Form 1221) must document how each of the
Chargeback Conditions was met.
• A reasonably specific description of the goods/services purchased
For disputes involving a transaction performed by an online travel agency or tour operator that is no
longer in business at the time of the chargeback: an email, letter, or completed Dispute Resolution
Form—Cardholder Dispute Chargeback (Form 1221) provided by the individual or corporate entity
requesting the travel arrangements from the online travel agency or tour operator that includes all of
the following:
• A description of the complaint in sufficient detail to enable all parties to understand the dispute.
This means that the cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must document how each of the Chargeback
Conditions was met.
• A reasonably specific description of the goods/services purchased
Notes
This chargeback applies when the cardholder receives an empty box or a box containing worthless
items, such as a brick or a stack of paper.
Interruption of ongoing services
The issuer must only charge back an amount representing the services not received by the cardholder.
When an end date was not defined, then the issuer must calculate the prorated amount based upon
18 months.
For example, the cardholder purchased a lifetime membership for USD 1,000. The merchant goes out
of business after three months. The amount to be charged back is USD 833 (USD 1,000 divided by 18
months = USD 55 per month. 18 months minus 3 months = 15. USD 55 * 15 = USD 833.)
This chargeback does not apply when:
• The cardholder has taken possession of the merchandise from the merchant and subsequently
makes arrangements to have the merchandise shipped by a third party.
• The goods are being held in customs for unpaid duty or customs fees. The cardholder is obligated
to pay the appropriate fees.
• The merchant delivered the merchandise and the cardholder refused to accept delivery.
• The cardholder signed a waiver absolving the merchant from responsibility when the merchandise
is not received.
For example: A cardholder purchases vases and arranges with the merchant to have the vases
shipped to the United States. At the time of purchase, the cardholder signs a waiver form that
states: “PROOF OF DISPATCH OF THE MERCHANDISE WILL BIND THE CARDHOLDER.” The vases
never arrive, and the cardholder contacts the merchant. The merchant provides documentation to
show that the merchandise was shipped. By signing the waiver, the cardholder absolved the
merchant of liability for merchandise that the cardholder did not receive.
• The cardholder declined insurance.
For example: The merchant provides the cardholder with an opportunity to purchase insurance on
the merchandise to be delivered. Normally, such insurance stipulates that the cardholder must
initiate claims that limit the merchant responsibility to the presenting documentation that verifies
shipment or dispatch. The merchant should provide a signed waiver of liability obtained from the
cardholder when the cardholder declined to purchase insurance, along with documentation that
shows that the merchant shipped the merchandise.
Chargeback Condition.
For Intra-EEA and domestic European Transactions, when the cardholder contacted the issuer claiming
a travel service has not, or will not, be provided, and when the merchant is seeking protection from
creditors, insolvent, bankrupt or in liquidation, at least one of the following conditions must be met:
1. The travel service was covered by a bonding authority or similar scheme according to local law,
and one of the following:
– The cardholder (or traveler) requested reimbursement from the bonding authority or similar
scheme and did not receive it, or the claim was declined.
– For Swedish Domestic Transactions: no additional requirement. The cardholder (or traveler) is
not obligated to request reimbursement from a bonding authority or similar scheme prior to
the issuer raising a chargeback.
The cardholder (or traveler) does not need to request reimbursement from the bonding authority
or similar scheme if the merchant, bonding authority or similar scheme publicly states that the
bond is insufficient prior to the chargeback.
2. The travel service was not covered by a bonding authority or similar scheme according to local
law, or neither the issuer nor the cardholder after reasonable effort can determine whether the
travel service was covered by a bonding authority or similar scheme according to local law.
Supporting Documents.
Cardholder email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must include all of the following:
• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute.
• A reasonably specific description of the travel services purchased. For example, for flights: relevant
airlines, flight numbers, origin/destination details, dates/times, passenger names, ticket/
confirmation numbers, and so on.
• If Chargeback Condition 1 is applicable (except Swedish Domestic Transactions): evidence of the
bonding authority or similar scheme’s response to the cardholder’s (or traveler’s) claim, or proof of
bond insufficiency. If the cardholder (or traveler) requested reimbursement and did not receive a
response, then a copy of the request for reimbursement. A detailed cardholder (or traveler)
explanation is permitted if such documentation is not available.
Notes.
When the transaction is neither Intra-EEA nor domestic European, the applicable global rules apply,
namely Cardholder Dispute - Services Not Provided (reason code 4853). Bonding authority
requirements do not apply to such chargebacks.
If partial travel services have already been provided, the chargeback amount should be prorated to
reflect only the travel services not provided. If the cardholder (or traveler) has received partial
reimbursement from a bonding authority or similar scheme, the chargeback should also be prorated
to reflect the reimbursement.
If the acquirer provides specific evidence of bond coverage in a second presentment, the issuer must
instruct the cardholder (or traveler) to request reimbursement prior to an arbitration chargeback. The
arbitration chargeback is permitted if the reimbursement claim is declined or there is no
reimbursement after 30 calendar days from the date the request was sent. The reimbursement request
does not extend the arbitration chargeback timeframe, so the issuer should make a good-faith effort
to determine bond coverage prior to the initial chargeback.
For the avoidance of doubt, Mastercard does not consider the following the equivalent of a bonding
authority or similar scheme: 1) reimbursement that an issuer is legally required to provide to their
cardholder, 2) a cardholder’s (or traveler’s) personal or corporate travel insurance policy, and/or 3)
legally required compensation already paid or due to the cardholder (or traveler) by the merchant that
is separate from the purchase price. This list is not exhaustive.
If the travel service was paid for by a travel agency or tour operator as the cardholder, a cardholder (or
traveler) request for reimbursement from a bonding authority or similar scheme is still required if a
bond exists.
Chargeback Condition. The cardholder contacted the issuer alleging both of the following:
• Digital goods were purchased in an e-commerce transaction that was less than or equal to USD 25
(or the local currency equivalent)
• The merchant did not offer the cardholder purchase control settings.
In addition, all of the following:
• The cardholder's account is not closed
• The cardholder's account is in good standing with no associated fraudulent transactions
• The issuer must determine, based on a challenge of the cardholder, that prior to the date(s) of the
disputed transaction(s), the cardholder had provided card information to the merchant in order to
establish an account that could be used for future digital goods purchases, but the merchant did
not offer or establish the following minimum purchase controls in connection with the use of that
account:
– The option, enabled as a default setting, for the cardholder to disable all digital goods
purchases;
– The time period during which a digital goods purchase can be made on the cardholder’s
account with the merchant (the “account open” period) must not exceed 15 minutes from the
time at which the cardholder enters account authentication credentials; and
– Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount
of each pending digital goods purchase before completion of the transaction.
The issuer is advised to ask the following questions when challenging the cardholder and to educate
the cardholder on the use of purchase control settings:
1. Was the cardholder given the option to disable all digital goods purchases on the account?
2. Did the cardholder agree (such as by checking a box) to permit digital goods purchases to be
made without the entry of a password or other form of authentication?
3. When the cardholder was required to enter authentication credentials to use the account, was the
cardholder prompted to re-enter the credentials after a period of inactivity? When known, did
that period exceed 15 minutes?
4. Did the merchant site afford the cardholder the option to confirm or to cancel each purchase?
5. Did the cardholder receive notification (such as via email, text, or other means) promptly after
each purchase was completed?
Time Frame. Within 120 calendar days of the transaction settlement date
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s purchase control complaint in
sufficient detail to enable all parties to understand the dispute. This means that the cardholder email,
letter, message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221)
must document how each Chargeback Conditions was met.
In addition, for batched chargebacks: A list of the ARDs and the amount of each disputed transaction.
Notes. Replace NNN with the number of items being charged back.
This chargeback is not available for fraud disputes.
Batching Digital Goods Transactions
Multiple disputed transactions may be combined into one chargeback message, this is called batching.
The batching option is only available when the PAN, merchant name and acquirer are the same for all
of the disputed transactions being included in the batch.
Each individual disputed transaction included in the batch must be within the chargeback time frame.
The chargeback must be processed using an ARD from one of the disputed transactions included the
batch.
The chargeback must be processed for the total amount of all the disputed transactions included in
the batch.
Each transaction in the batch must be less than or equal to USD 25 or the local currency equivalent.
The total amount of all transactions in the batch must not exceed USD 250 or the local currency
equivalent.
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The merchant failed to disclose its refund policy at the time of the transaction and is unwilling to
accept a return or cancellation of goods or services
• The merchant has not responded to the return or the cancellation of goods or services
• The merchant posted a credit for a reduced amount without proper disclosure
• The merchant failed to issue a Value Added Tax (VAT) credit
Notes
Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the credit
transaction.
Proper Disclosure
Merchants that are unwilling to accept buyer’s remorse returns and cancellations or that want to have
special terms including (but not limited to) restocking fees or in-store credits, must disclose these
terms at the time of the transaction. The cardholder must be informed of the refund policy as
described in the Transaction Processing Rules, section 3.11 Specific Terms of Transaction. Failure to
disclose a refund policy will result in the merchant’s requirement to accept the goods for return and
issue a credit.
When the merchant informed the cardholder of its refund policy at the time of purchase, the
cardholder must abide by that policy. For example, the cardholder’s sales slip clearly indicates that the
refund policy is “in-store credit only” or “no refunds.”
Counterfeit Goods
“Counterfeit” means that the goods were not produced by an authorized manufacturer of
the goods and therefore infringe on intellectual property rights.
Chargeback Condition. The cardholder contacted the issuer claiming both of the following:
• The cardholder engaged in the transaction.
• The cardholder claims that the goods were purported to be genuine, but were counterfeit.
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute and the disposition of the goods. This means that
the cardholder email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must document how each Chargeback Conditions was met. Examples of
disposition include but are not limited to:
• The goods are in the possession of a governmental agency, such as customs
• The goods are in the possession of the cardholder
• The cardholder discarded the goods
• The cardholder returned the goods to the merchant
Notes. None
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The cardholder notified the merchant to cancel the recurring transaction and the merchant
continued to bill the cardholder.
• The cardholder was not aware that the cardholder was agreeing to a recurring transaction.
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute. This means that the cardholder email, letter,
message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must
document how each Chargeback Conditions was met.
Time Frame. Within 120 calendar days of the transaction settlement date.
Addendum Dispute
An addendum dispute is the dispute of a separate transaction that occurs after a valid
transaction involving the same merchant and the same cardholder.
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in a valid transaction with the merchant.
• A subsequent transaction occurred with that same merchant without the cardholder’s consent.
• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the
dispute.
Merchant contact is optional when the cardholder is a corporate entity with a contractual
relationship with the merchant and the transaction is for an amount in excess of what is specified
in the contract. In such event the chargeback may be only for the amount of the excessive charge.
Time Frame. Within 120 calendar days of the Central Site Business Date of the disputed subsequent
transaction.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute. This means that the cardholder email, letter,
message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must
document how each Chargeback Conditions was met.
When the cardholder is a corporate entity with a contractual relationship with the merchant and the
transaction is for an amount in excess of what is specified in the contract, the contract must be
provided when the merchant wasn’t contacted in an effort to resolve the dispute.
Notes
The right to charge back the disputed amount is not dependent on the method of payment for the
original transaction. For example, the cardholder may have paid cash for the accepted transaction, but
the disputed subsequent transaction was applied to the Mastercard card because the cardholder
presented the Mastercard card to the merchant to guarantee the service.
A cardholder is not responsible for a charge representing loss, theft, or damage unless the transaction
was completed as described in the Transaction Processing Rules, section 3.12 Charges for Loss, Theft,
or Damage—Mastercard POS Transactions Only.
Cardholders are responsible for valid addendum charges. Examples include, but are not limited to:
meals that were signed for by the cardholder but not included in the final hotel folio or for parking
tickets/traffic fines issued while the vehicle was in the cardholder’s possession.
Chargeback Condition. The cardholder contacted the issuer to dispute a “no-show” hotel charge
from a merchant that participates in the Mastercard Guaranteed Reservations Service (described in
Appendix E, Lodging Merchant Services) and alleged one of the following:
1. The cardholder canceled the reservation
2. The cardholder used the accommodations
3. The merchant provided alternate accommodations. For example, the cardholder arrived at the
hotel and no room was available. Although the hotel arranged for accommodations at another
hotel, the merchant billed the cardholder in error.
4. The “no-show” charge differed from the rate quoted to the cardholder. Under these
circumstances, only the difference between the two charges can be charged back.
5. The merchant did not advise the cardholder that the merchant would charge a “no-show” fee.
Time Frame. Within 120 calendar days of the Central Site Business Date.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute and one of the following corresponding to the
Chargeback Condition:
1. When available, cancellation number
2. The issuer must provide the ARD of the transactions that represent the actual use of the
accommodations. When the cardholder used the accommodations but did not use his or her
credit card for payment, the issuer must provide verification of the alternate form of payment,
such as a cash receipt or canceled check.
3. No additional documentation is required
4. No additional documentation is required
5. No additional documentation is required
DE 72 (Data Record). When the “no-show” charge differed from the rate quoted to the cardholder,
one of the following:
• NO SHOW XXX NNNN
• RS5 XXX NNNN
Notes
When the “no-show” charge differed from the rate quoted to the cardholder, the issuer must:
• Replace XXX with the three-digit ISO currency code of the transaction currency in which the rate
was quoted
• Replace NNNN with the rate quoted expressed in that currency
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in the transaction
• The cardholder claims the disputed transaction failed to complete
• The cardholder did not use the goods or services
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute. This means that the cardholder email, letter, message
or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must document
how each Chargeback Conditions was met.
Notes. None
Timeshares
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder canceled
the timeshare or similar provision of services within the Mastercard time frame, regardless of the
contractual terms.
Notes. None
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder account
has been inaccurately posted with a debit instead of a credit.
Time Frame. Within 120 calendar days of the transaction settlement date.
Notes. The chargeback amount can be up to twice the original transaction amount to offset the error.
The issuer should then correctly credit the cardholder’s account.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Cardholder Dispute chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s
claims.
Notes. A merchant or acquirer statement that the cardholder never contacted the merchant to cancel
the recurring transaction is not a valid second presentment.
Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s
claims.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied) for Dual Message System transactions.
Notes. A merchant or acquirer statement that the cardholder never contacted the bonding authority
or similar scheme to request reimbursement is not a valid basis for a second presentment.
Second Presentment Condition. The acquirer can substantiate that the merchant offered at least
the following minimum purchase controls at the time of the transaction or transactions (in the case of
multiple transactions charged back in a batch).
• The option, enabled as a default setting, for the cardholder to disable all digital goods purchases;
• The time period during which a digital goods purchase can be made on the cardholder’s account
with the merchant (the “account open” period) must not exceed 15 minutes from the time at
which the cardholder enters account authentication credentials; and
• Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount of
each pending digital goods purchase before completion of the transaction.
Supporting Documents. Documentation to support that the chargeback is remedied or invalid (for
example, website screen images).
Notes. None
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Supporting Documents. For Intra-European and Inter-European transactions, one of the following:
1. When the credit was processed to the cardholder’s Mastercard account: None
2. When the credit was processed by other means: Compelling evidence showing the credit was
processed.
For all other transactions: None
DE 72 (Data Record). For Intra-European and Inter-European transactions, one of the following
corresponding to the Supporting Documents:
1. CRED MMDDYY ARD
2. CREDIT MMDDYY XXXXXXXXXXXX
For all other transactions: MMDDYY ARD
Notes
This second presentment is not available for ATM transactions.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace ARD with the Acquirer Reference Data (ARD) of the credit transaction.
Replace XXXXXXXXXXXX with the means by which the credit was processed. Examples include, but
are not limited to: bank transfer, store credit, check.
An Inter-European Transaction is defined as: A Transaction completed using a Card issued in a
country or territory listed in Single European Payments Area (SEPA) at a Terminal located in a country
or territory listed in Non-Single European Payments Area (Non-SEPA) or Transaction completed using a
Card issued in a country or territory listed in Non-Single European Payments Area (Non-SEPA) at a
Terminal located in a country or territory listed in Single European Payments Area (SEPA).
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
IPM Second Presentment Message Reason Codes and Second Presentment Conditions. One of
the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback Required supporting
documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code. Mastercard will block the Arbitration Chargeback when an acquirer
second presents with message reason code 2002 after eight calendar days from the first
chargeback and before the issuer sends the supporting documentation. The acquirer must
accept supporting documentation as long as the acquirer has not processed a second
presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2704—Invalid Data Record Text
Text required to appear in the first chargeback’s DE 72 (Data Record) is missing or incomplete.
– 2709—Documentation Received was Illegible Supporting documentation is illegible.
The acquirer’s second presentment will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during
an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
– 2713—Invalid Chargeback
The first chargeback does not meet the prerequisites for the message reason code.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes. None
Arbitration Chargeback
The tables in this section detail the conditions under which an arbitration chargeback in
response to a second presentment may be processed.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4853 (Cardholder Dispute)
Supporting Documents. A new cardholder letter, email, message, or Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) dated after the second presentment and specifically
addressing the Merchant’s explanation.
In addition:
• For disputes involving Good or Services were Not as Described or Defective: When not
provided with the first chargeback, documentation from an expert or professional that supports
the cardholder’s dispute about the level of quality or misrepresentation may be required when the
validity of the dispute is challenged by the merchant. Other documentation necessary to support
the validity of the dispute may include, but is not limited to, the original receipt, invoice, work
order, brochure, contract, or appraisal.
• For disputes involving Counterfeit: When not provided with the first chargeback, one of the
following:
– Documentation provided by a person purporting to be the owner or authorized representative
of the owner of intellectual property rights for the goods purported to be counterfeit (which
documentation may be available from a website) substantiating that the goods purchased are
counterfeit; or
– Documentation substantiating that the merchant that sold the purported counterfeit goods
was closed by a governmental agency for selling counterfeit goods now purported by the
cardholder to be counterfeit; or
– Documentation from a bona fide expert substantiating that the disputed goods are counterfeit,
which documentation is on the expert’s letterhead or validated by other information
demonstrating that the opinion expressed is that of an expert.
Additionally, Mastercard requests that the issuer report the cardholder’s allegation of an intellectual
property rights infringement with an email to: [email protected]
• For disputes involving Credit Not Processed: When the original cardholder letter, email,
message, or Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) included in
the first chargeback states that the cardholder returned the merchandise and the merchant denies
receiving the merchandise in the second presentment, the issuer must then obtain proof that the
merchandise was returned to and received by the merchant to accompany the arbitration
chargeback.
• For disputes involving Goods or Services Were Not Provided: One of the following:
– When the second presentment documentation includes a signed delivery receipt, the new
cardholder letter, email, message, or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must state the signature on the delivery receipt is not the cardholder’s
signature or the signature of any person authorized by the cardholder.
When the second presentment documentation stated that paper airline tickets were issued, the
new cardholder letter, email, message or completed Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) must explain the disposition of the paper airline tickets by
clearly stating that the airline tickets are no longer in the cardholder’s possession and how the
airline tickets were disposed (for example, the airline tickets were discarded, destroyed,
returned to the issuer, returned to the travel agency, or disposed in some other manner).
– None, when all of the following:
– The dispute was not for paper airline tickets
– The second presentment documentation included a delivery receipt dated before the
original cardholder letter
– The delivery receipt was not signed by the cardholder, or a person authorized by the
cardholder.
• For disputes involving a “No-show” Hotel Charge: When the original cardholder letter, email,
message, or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221)
included in the first chargeback did not include a cancellation number and the acquirer processed
a second presentment that states one the following:
– The hotel has a formal Guaranteed Reservation Program that includes the issuance of
confirmation and cancellation numbers.
– The hotel has no record of the cancellation. The cardholder must provide proof of merchant
contact within the cancellation time frame required by the Guaranteed Reservation Service
program (such as a copy of a phone bill indicating that a call was made to the merchant before
18:00 [merchant’s local time] on the date of the reservation).
Supporting Documents. A new Cardholder letter, email, message, or Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) dated after the second presentment and specifically
addressing the Merchant’s explanation.
When the Acquirer fulfilled the requirements for a valid second presentment, in particular by
documenting that the travel services were covered by a bonding authority or similar scheme according
to local law, then evidence of the bonding authority or similar scheme’s response to the Cardholder’s
(or traveler’s) claim, or proof of bond insufficiency must be provided. If the Cardholder (or traveler)
requested reimbursement and did not receive a response after 30 calendar days from the date the
request was sent, then a copy of the request for reimbursement must be provided. A detailed
Cardholder (or traveler) explanation is permitted if such documentation is not available.
Notes. A request for reimbursement from a bonding authority or similar scheme is not required for
Swedish domestic transactions.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
1. 4901—Required Documentation Not Received to Support Second Presentment Required
supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution Management staff will find the acquirer responsible when the
acquirer files an arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
2. 4902—Documentation Received was Illegible Supporting documentation is illegible.
The issuer’s arbitration chargeback will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during an
arbitration case filing.
3. 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
Notes. None
Fraud-related Chargebacks
For purposes of the chargeback Standards, the following message reason codes are deemed
to be fraud-related.
• 4837—No Cardholder Authorization
• 4849—Questionable Merchant Activity
• 4863—Cardholder Does Not Recognize—Potential Fraud
• 4870—Chip Liability Shift
• 4871—Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud
No Cardholder Authorization
This section provides information in handling a dispute when the cardholder states that the
cardholder did not engage in the transaction.
A No Cardholder Authorization chargeback must not be processed for any of the following:
• Face-to-face card-read transactions. A face-to-face transaction at an attended terminal
with card-read (not key-entered) account information.
Digital goods are goods that are stored, delivered, and used in electronic format, such as,
by way of example but not limitation, books, newspapers, magazines, music, games, game
pieces, and software (excludes gift cards).
Refer to Message Reason Code 4853—Cardholder Dispute regarding chargeback
requirements for non-fraud digital goods transactions.
• Brazil only—The transaction was a Mastercard Agro Card transaction occurring in Brazil
with a Mastercard Agro Card issued in Brazil. A Mastercard Agro Card transaction occurs
when PDS 0002 (GCMS Product Identifier) was MLF (Mastercard Agro Card) in the First
Presentment/1240 message.
• Bangladesh only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Bangladesh with a Mastercard MCP card issued in Bangladesh. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than BDT 100,000.
• India only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in India with a Mastercard MCP card issued in India. A Mastercard
MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was MCP
(Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when the
value of the transaction is equal to or greater than INR 100,000.
• Sri Lanka only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Sri Lanka with a Mastercard MCP card issued in Sri Lanka. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than LKR 200,000.
• Taiwan only—The transaction was chip-initiated domestic transaction occurring at a
cardholder-activated terminal (CAT) that was properly identified as a CAT Level 2 in Taiwan
under one of the below MCCs
– 4011—Railroads – Freight
– 4111—Transportation – Suburban and Local Commuter Passenger, including Ferries
– 4225—Public Warehousing-Farm Products Refrigerated Goods, Household Goods, and
Storage
– 5399—Miscellaneous General Merchandise
– 5411—Grocery Stores and Supermarkets
– 5422—Freezer and Locker Meat Provisioners
– 5542—Automated Fuel Dispensers
– 5812—Eating Places and Restaurants
– 5814—Fast Food Restaurants
– 5999—Miscellaneous and Specialty Retail Stores
– 7011—Lodging- Hotels, Motels, and Resorts
– 7012—Timeshares
– 7210—Laundry, Cleaning, and Garment Services
– 7278—Buying and Shopping Services and Clubs
– 7512—Automobile Rental Agency
Chargeback
The tables in this section detail the conditions under which an issuer may process a first
chargeback under the No Cardholder Authorization chargeback.
No Cardholder Authorization
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder did not
authorize the transaction.
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4837 (No Cardholder Authorization) for Dual Message System transactions
• 37 (No Cardholder Authorization) for Debit Mastercard transactions processed on the Single
Message System
Notes
Fraud Reporting
The transaction must be reported to the Fraud and Loss Database as required in the Fraud and Loss
Database User Guide.
Dispute Resolution Form-Fraud (Form 0412)
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before processing the chargeback:
• The Mastercard card account is closed
• The issuer blocked the account on its host
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration
• Report the transaction to the Fraud and Loss Database
CAT 2 Transactions
This chargeback is not available for counterfeit transactions occurring at a cardholder-activated
terminal (CAT) that was properly identified as a CAT Level 2 in the authorization and clearing
messages.
The chargeback is also not available for chip-initiated domestic transactions occurring at a cardholder-
activated terminal (CAT) that was properly identified as a CAT Level 2 in Taiwan under one of the
below MCCs.
• 4011—Railroads – Freight
• 4111—Transportation – Suburban and Local Commuter Passenger, including Ferries
• 4225—Public Warehousing-Farm Products Refrigerated Goods, Household Goods, and Storage
• 5399—Miscellaneous General Merchandise
• 5411—Grocery Stores and Supermarkets
• 5422—Freezer and Locker Meat Provisioners
• 5542—Automated Fuel Dispensers
• 5812—Eating Places and Restaurants
• 5814—Fast Food Restaurants
• 5999—Miscellaneous and Specialty Retail Stores
• 7011—Lodging- Hotels, Motels, and Resorts
• 7012—Timeshares
• 7210—Laundry, Cleaning, and Garment Services
• 7278—Buying and Shopping Services and Clubs
• 7512—Automobile Rental Agency
• 7523—Parking Lots and Garages
• 7832—Motion Picture Theaters
• 8062—Hospitals
• 9402—Postal Services Government Only
This chargeback is available for lost, stolen, never received (NRI) contact and contactless transactions
when all of the following occurs:
• Before processing the chargeback, the issuer must block the account on its host and list the
primary account number (PAN) on the Mastercard Stand-in Account File with a “capture card”
response until card expiration or for contactless transactions involving a Mastercard token, the
issuer must deactivate the token.
• The cardholder email, letter, message or completed Dispute Resolution Form—Fraud (Form 0412)
alleging that the transaction is fraudulent also must state, or the issuer must otherwise certify by
means of a separate document accompanying the cardholder letter, that the card was lost, stolen,
or never received (NRI) at the time of the transaction.
Aggregated Contactless Transit Transactions
The issuer may only charge back the disputed amount of an Aggregated Contactless Transit
transaction when the Aggregated Contactless Transit transaction cleared for an amount above the
applicable CVM Limit.
Domestic Installment Billing
This chargeback may be used to charge back the first installment submitted under a domestic
installment payment arrangement for a fraud-related reason. In order to keep the integrity of the
Fraud Notification Service chargeback counters, the issuer must use message reason code 4850—
Installment Billing Dispute to charge back any subsequent installment payments.
Batching MCC 4813, 4814, 4816 or 5967 Transactions
Multiple unauthorized, card-activated phone charges (MCC 4813 or 4814), computer network or
information service charges (MCC 4816), or audiotext or videotext charges (MCC 5967) transactions
may be combined into one chargeback message, this is called batching. The batching option is only
available when the PAN, merchant name and acquirer are the same for all of the disputed transactions
being included in the batch.
Each individual disputed transaction included in the batch must be within the chargeback time frame.
The chargeback must be processed using an ARD from one of the disputed transactions included the
batch.
The chargeback must be processed for the total amount of all the disputed transactions included in
the batch.
Replace NNN with number of transactions
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a No Cardholder Authorization chargeback may be processed.
CAT 3. When the disputed transaction occurred at a CAT 3 device, the terminal must have
been properly identified as a CAT 3 device in the First Presentment/1240 message in order for
the acquirer to second present.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
New Information. New information regarding the merchant name and/or transaction date is
not a valid second presentment.
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Notes. Replace NN with the chargeback count value provided by the Fraud Notification Service in PDS
0200, subfield 2 of the First Chargeback/1442 message. The chargeback count value must be 16 or
greater.
Second Presentment Condition. The transaction was a contactless transaction equal to or less than
the applicable CVM limit.
Refer to Appendix C for the CVM limits.
PIN Transaction
Second Presentment Condition. A PIN was present in the Authorization Request/0100 message.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2008 (Issuer Authorized Transaction) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date the transaction was authorized.
Replace NNNNNN with the authorization approval code.
Account Takeover
Second Presentment Condition. The acquirer can provide evidence that the transaction resulted
from an account takeover.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents. Documentation proving the transaction resulted from an account takeover.
Examples include, but are not limited to:
• The Daily Acquirer Loss Date File. For more information, refer to the SAFE Products User Guide
• The Monthly Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide
• The Acquirer Dashboard in Mastercard Connect > Fraud Center > Fraud Insights
• A statement from the cardholder confirming that the account was in fact taken over and that
fraud subsequently occurred.
Addendum Charges
Second Presentment Condition. The acquirer can substantiate that the addendum transaction is the
cardholder’s responsibility.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code 2700 (See Corresponding Documentation/
Chargeback Remedied) for Dual Message System transactions.
Supporting Documents.
Documentation substantiating the cardholder has participated in the original transaction and
documentation to establish the cardholder is responsible for the addendum transaction. For example,
the original rental agreement or hotel folio.
When the disputed amount presents charges for loss, theft, or damage: Documentation
substantiating the transaction was completed as described in the Transaction Processing Rules, section
3.12 Charges for Loss, Theft, or Damage—Mastercard POS Transactions Only.
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to non-face-to-face airline transactions.
Supporting Documents. At least one of the following documents and, when necessary, an
explanation:
• Flight ticket or boarding pass showing the passenger’s name
• Flight manifest showing the passenger’s name
• Additional transactions connected with the disputed flight, such as upgrades, excess baggage
charges, and in-flight purchases
• Passenger identification documentation showing a link to the cardholder
• Credits of frequent flyer miles for the flight, showing connection to the cardholder
• Proof of receipt of the flight ticket at the cardholder’s billing address
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to non–face-to-face recurring transactions.
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to e-commerce, mail order, and telephone order transactions.
Supporting Documents.
At least one of the following documents and, when necessary, an explanation:
• A receipt, work order, or other document signed by the cardholder substantiating that the goods
or services were received by the cardholder (commonly referred to as “will call” and “in-store
pickup”)
• The cardholder’s written confirmation of registration to receive electronic delivery of goods or
services
• Copies of written correspondence exchanged between the merchant and the cardholder (such as
letter, email, or fax) showing that the cardholder participated in the transaction.
• A merchant statement documenting all of the following when, after completing an authenticated
e-commerce transaction, the merchant obtained authorization for a related transaction involving a
partial shipment or the payment of a balance due:
– The initial transaction was a Digital Secure Remote Payment (DSRP) transaction, DE 48,
subelement 42 (Electronic Commerce Indicators), subfield 1 (Electronic Commerce Security
Level Indicator and UCAF Collection Indicator), position 3 (UCAF Collection Indicator) is set to 2
in authorization, or was SecureCode-initiated;
– Description of the goods or services purchased in the initial transaction;
– Date and authorization approval code for the initial transaction; and
– The initial transaction was not disputed.
• When a merchant requires a cardholder to register prior to completing a purchase, the merchant
must provide documentation confirming the cardholder or authorized user is registered to
purchase goods with a password and must provide one or more of the following documentation:
– The cardholder or authorized user completed other undisputed purchases prior to, or after, the
alleged fraudulent transaction
– The cardholder or authorized user completed the disputed transaction from a registered device
and IP address
– Details of the purchase
– Signed proof of delivery
– Email addresses to support digital download delivery
– The cardholder or authorized user registered the disputed goods or services. For example,
registration for purposes of warranty or future software updates.
– The disputed goods or services were used
– A fully enabled SecureCode transaction was used to register a PAN for future transactions
Second Presentment Condition. The transaction was the result of a “no show” as described in the
Guaranteed Reservations section of the Lodging Merchant Service appendix of this manual.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Invalid Chargeback
Second Presentment Condition The issuer’s chargeback was invalid. For example, the issuer
submitted documentation that failed to support the chargeback.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2713 (Invalid Chargeback) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date the transaction was authorized.
Replace NNNNNN with the authorization approval code.
Second Presentment Condition. A transaction between Customers that participate in the Global
Chip Liability Shift Program Level 2 and the acquirer can show that the transaction occurred at a
hybrid terminal equipped with a PIN pad, while the card was not PIN-preferring.
This is a final remedy.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
This section details the conditions under which an arbitration chargeback in response to a
second presentment may be processed.
New Location Information Provided in the Second Presentment
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4837 (No cardholder authorization)
Addendum Disputes
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4837 (No cardholder authorization)
Supporting Documents. When the original transaction was fraudulent and the acquirer failed to
provide proof of card presence: A new cardholder letter, completed Dispute Resolution Form-Fraud
(Form 0412), email, or message dated after the second presentment and specifically including both of
the following:
• Addresses the merchant’s explanation
• Identifies that the original transaction also was fraudulent
For charges of loss, theft, or damages where the acquirer failed to provide proof of card presence:
None
Notes.
When, as a result of information provided in the second presentment, the issuer learns that the
disputed transaction is an Addendum Transaction involving the same merchant, the issuer must
change the message reason code to 4853-Cardholder Dispute Chargeback, Addendum Dispute.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code 4837 (No cardholder authorization
DE 72 (Data Record). One of the following corresponding to the Arbitration Chargeback Condition:
1. CONFIRMED AVS
2. INVALID AVS REMEDY
Notes. None
Compelling Evidence
Arbitration Chargeback Condition. The cardholder reviewed the information provided in the
second presentment and reasserts fraud.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code 4837 (No cardholder authorization)
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
• 48XX—New valid chargeback reason
When the merchant’s explanation remedied the original chargeback condition but that information
allowed the issuer to determine a new chargeback condition exists, then the issuer may continue
the chargeback by processing the arbitration chargeback using the requirements of the new
chargeback condition.
When the first chargeback was processed as 4837-No Cardholder Authorization, an issuer is
prohibited from processing an arbitration chargeback using 4870-Chip Liability Shift or 4871-Chip
Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud .
• 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution Management staff will find the acquirer responsible when the
acquirer files an arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
• 4902—Documentation Received was Illegible Supporting documentation is illegible.
The issuer’s arbitration chargeback will be considered invalid should Mastercard Dispute Resolution
Management staff determine that the supporting documentation is legible during an arbitration
case filing.
• 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
Chargeback
The tables in this section detail the conditions under which an issuer may process a first
chargeback under the Questionable Merchant Activity chargeback.
Global Merchant Audit Program (GMAP)
Notes.
Replace NNNN with the applicable Mastercard Announcement number.
A new first chargeback is allowed under this message reason code when a previous chargeback was
not successful and all requirements under this message reason code have been met.
Time Frame Within 30 calendar days of the date of the noncompliance confirmation letter.
Message Reason Code. One of the following:
• 4849 (Questionable Merchant Activity) for Dual Message System transactions
• 49 (Questionable Merchant Activity) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents. A copy of the noncompliance confirmation letter from Mastercard that the
acquirer’s merchant violated Rule 3.7 two or more times based on coercive transactions within the
case scope period.
DE 72 (Data Record). BRAM CASE NO. NNNNN
Notes
Replace NNNNN with the Business Risk Assessment and Mitigation (BRAM) program case number
stated in the noncompliance confirmation letter from Mastercard.
A new first chargeback is allowed under this message reason code when a previous chargeback was
not successful and all requirements under this message reason code have been met.
Second Presentment
The tables in this section detail the conditions under which an acquirer may process a second
presentment in response to a Questionable Merchant Activity chargeback.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. MERCHANT NOT IN VIOLATION
2. MISSING CONFIRMATION LETTER
Notes. None
Second Presentment Condition. The issuer submitted the first chargeback more than 30 calendar
days after the date of the noncompliance confirmation letter from Mastercard for claims of coercion.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database on or before the chargeback date. Mastercard allows three days from the reporting date for
the Fraud and Loss Database processing. Mastercard considers the the Fraud and Loss Database
reporting within time when the transaction reporting date in the Fraud and Loss Database is within
three days of the chargeback date.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Ineligible Fraud
Second Presentment Condition. The fraud type under which the transaction was reported in the
Fraud and Loss Database is not eligible for chargeback.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Notes. None
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes.
Replace MMDDYY with the date of the credit transaction. Optionally, replace
NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the credit
transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
The tables in this section detail the conditions under which an issuer may process an
arbitration chargeback in response to an acquirer’s second presentment.
Acquirer Reference Data (ARD) Does Not Match or is Invalid
Time Frame. Within 45 calendar days of the second presentment settlement date
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
NOTE: By itself, a value of 01 (PAN manual entry) in DE 22 (Point-of-Service [POS] Entry Mode)
Subfield 1 (POS Terminal PAN Entry Mode) of the Authorization Request/0100 message does
not definitely identify a transaction as non-face-to-face. Data elements 61 (Point-of-Service
{POS} Data) of the Authorization Request/0100 and DE 22 (Point of Service [POS] Entry Mode)
of the First Presentment/1240 message should also be reviewed.
The issuer must not use this chargeback for any of the following:
• A valid Mastercard Consumer-Presented Quick Response (QR) transactions. A
Mastercard Consumer-Presented QR transaction that was properly identified in the
• The cardholder states the card used to perform the transaction was lost/stolen
• An ATM transaction
• A transaction that occurred at a properly identified cardholder-activated terminal
(CAT) 1, 2 or 3 device
• Authorization Approval after the FNS Date. The issuer approved the transaction after
submitting two or more chargebacks involving the same card account (for this purpose,
“account” means primary account number [PAN], or PAN and expiration date) for any of
the following message reason codes: 4837, 4840, 4870, or 4871. Message reason code
4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback
count is two or greater.
• FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than
15 chargebacks in aggregate involving the same account (as defined above) for message
reason codes 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will
be included in the FNS count once the FNS fraud chargeback count is two or greater.
• Properly identified “no-show” lodging transactions.
Chargeback
The table in this section details the conditions under which an issuer may process a first
chargeback under the Cardholder Does Not Recognize chargeback.
Cardholder Does Not Recognize
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4863 (Cardholder Does Not Recognize—Potential Fraud) for Dual Message System transactions
• 63 (Cardholder Does Not Recognize—Potential Fraud) for Debit Mastercard transactions processed
on the Single Message System
Supporting Documents. Cardholder letter, email, or message clearly stating that the cardholder does
not recognize the transaction and has made every effort to identify the transaction with the issuer
and/or the merchant.
An Expedited Dispute Resolution Form is not allowed.
In addition, for batched chargebacks: A list of the ARDs and the amount of each disputed transaction.
Notes.
Batching 4863 Chargebacks
Multiple disputed transactions may be combined into one chargeback message, this is called batching.
The batching option is only available when the PAN, merchant name and acquirer are the same for all
of the transactions being included in the batch.
Each individual transaction included in the batch must be within the chargeback time frame.
The chargeback must be processed using an ARD from one of the disputed transactions included the
batch.
The chargeback must be processed for the total amount of all the disputed transactions included in
the batch.
Replace NNN with the number of transactions being charged back.
Second Presentment
The tables in this section detail the conditions under which an acquirer may process a second
presentment in response to a Cardholder Does Not Recognize chargeback.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
account card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 2 (Fraud Notification Service
Chargeback Counter) of the First Chargeback/1442 message is present and contains a chargeback
counter value that exceeds 15 (a value of 16 or more).
Second Presentment Condition. The acquirer can provide new information, not already contained
in the authorization or clearing messages, which would help to identify the transaction.
Additional information includes, but is not limited to, the following:
• A description of the merchandise or services.
• The original transaction amount when the disputed transaction represents partial shipment.
• “Ship to” address (when applicable).
Second Presentment Condition. The acquirer can provide documentation that the acquirer received
a positive Address Verification Service (AVS) response of X (address match with nine-digit ZIP code) or
Y for the transaction and documentation showing that the address to which the merchandise was
sent is the same as the AVS confirmed address.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
Face-to-Face Transaction
Second Presentment Condition. The transaction was properly and consistently identified as face-to-
face in both the authorization and clearing messages.
Time Frame. Within 45 calendar days of the chargeback settlement date
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
The tables in this section detail the conditions under which an issuer may process an
arbitration chargeback in response to an acquirer’s second presentment.
New Information Not Provided
Arbitration Chargeback Condition. The issuer asserts that the information provided in the second
presentment to assist the cardholder in identifying the transaction was not new information.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4863 (Cardholder Does Not Recognize—
Potential Fraud)
Notes. None
Arbitration Chargeback Condition. The value contained in the UCAF within the Authorization
Request/0100 message is not identical to the value in the Authorization Response/0110 message.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4863 (Cardholder Does Not Recognize—
Potential Fraud)
Time Frame. Within 45 calendar days of the second presentment settlement date
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
• 48XX—New valid chargeback reason
When the merchant’s explanation remedied the original chargeback condition but that information
allowed the issuer to determine a new chargeback condition exists, then the issuer may continue
the chargeback by processing the arbitration chargeback using the requirements of the new
chargeback condition.
When new information was provided in the Second Presentment, the issuer must not continue
with an arbitration chargeback for Cardholder Does Not Recognize (4863). The new information
will either allow the cardholder to recognize the transaction (and then another chargeback may be
applicable) or the cardholder won’t recognize the transaction (and then another fraud chargeback
may be applicable).
When the first chargeback was processed as 4863-Cardholder Does Not Recognize, an issuer is
prohibited from processing an arbitration chargeback using 4870-Chip Liability Shift or 4871-Chip
Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud.
• 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution staff will find the acquirer responsible when the acquirer files an
arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
• 4902—Documentation Received was Illegible
Supporting documentation is illegible. The issuer’s arbitration chargeback will be considered invalid
should Mastercard Dispute Resolution staff determine that the supporting documentation is legible
during an arbitration case filing.
• 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation doesn’t correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
Intraregional/domestic transactions:
• Excluding transactions at 1 October 2015
automated fuel dispensers (MCC
5542)
The issuer may not use this message reason code when the following occur.
Term Definition
Technical Fallback Transaction In a technical fallback transaction, either the chip or the merchant
device (CAD) failed, as shown by the presence of:
• A value of 79 or 80 is present in DE 22 (Point-of-Service [POS] Entry
Mode), subfield 1 (POS Terminal PAN Entry Mode) of the
Authorization Request 0100 message or:
• A value of 01 in DE 22, subfield 1 of the Authorization Request/
0100 message, when the authorization and clearing messages
indicate that the transaction occurred at a hybrid terminal.
For information about DE 22, Subfield 1 values, refer to the Customer
Interface Specification manual.
Term Definition
Hybrid POS Terminal A POS Terminal that:
1. Is capable of processing both contact chip transactions and
magnetic stripe-based transactions;
2. Has the equivalent hardware, software, and configuration as a
hybrid POS terminal with full EMV Level 1 and Level 2 type approval
status with regard to the chip technical specifications; and
3. Has satisfactorily completed the Mastercard Terminal Integration
Process (TIP) in the appropriate environment of use.
A Hybrid POS Terminal is identified in transaction messages with the
following values:
• A value of 3, 5, 8, or 9 in DE 61 (Point-of-Service Data), subfield 11
(POS Card Data Terminal Input Capability Indicator) in the
Authorization Request/0100 or Financial Transaction Request/0200
message, as described in the Customer Interface Specification and
Single Message System Specifications manuals; and
• A value of 5, C, D, E, or M in DE 22 (Point of Service Data Code),
subfield 1 (Terminal Data: Card Data Input Capability) of the First
Presentment/1240 message, as described in the IPM Clearing
Formats manual.
Chargeback
The tables in this section detail the conditions under which a first chargeback under the Chip
Liability Shift chargeback may be processed.
The issuer may charge back a Mastercard ATM Network transaction using this message reason
code only when the transaction was conducted with an EMV chip card at a magnetic stripe-
reading-only ATM and both Customers are located in countries or regions participating in the
Chip Liability Shift for ATM transactions. Refer to the Single Message System Chargebacks
chapter, message reason code 70—Chip Liability Shift. Europe region Customers should refer
to Appendix A, Message Reason Code 4870—Chip Liability Shift for more details.
Chip Liability Shift
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4870 (Chip Liability Shift) for Dual Message System transactions
• 70 (Chip Liability Shift) for Debit Mastercard transactions processed on the Single Message System
Notes.
A Dispute Resolution Form-Fraud (Form 0412) provided as Supporting Documentation must be the
result of contact with the cardholder.
The Dispute Resolution Form-Fraud (Form 0412) may only be used when the card account is closed.
Before processing the chargeback using this form, the issuer must block the account on its host; list
the account number on the Mastercard Stand-in Account File with a “capture card” response until
card expiration, and report the transaction to the Fraud and Loss Database in the Fraud Center
application on Mastercard Connect.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Chip Liability Shift chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Two or More Previous Fraud-related Chargebacks
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 2 (Fraud Notification Service
Chargeback Counter) of the First Chargeback/1442 message is present and contains a chargeback
counter value that exceeds 15 (a value of 16 or more).
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database in the Fraud Center application on Mastercard Connect on or before the chargeback date.
Mastercard allows three days from the reporting date for the Fraud and Loss Database processing.
Mastercard considers the Fraud and Loss Database reporting within time when the transaction
reporting date in the Fraud and Loss Database is within three days of the chargeback date.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Supporting Documents. Documentation that supports the second presentment from one of the
following:
• The Daily Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide.
• Monthly Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide.
• The Acquirer Dashboard in Mastercard Connect > Fraud Center > Fraud Insights.
Second Presentment Condition. The transaction was authorized online and did not involve a valid
EMV chip card as evidenced by the service code in DE 35 (Track 2 Data) or DE 45 (Track 1 Data) of the
Authorization Request/0100 message.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Technical Fallback
Second Presentment Condition. The transaction was the result of technical fallback.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
Second Presentment Condition. DE 55 was provided in the First Presentment/1240 message and
one of the following:
• The transaction was completed with chip and PIN.
• The transaction was completed with chip while the card was not PIN-preferring
• The transaction was the result of CVM fallback
Invalid Chargeback
Second Presentment Condition. The transaction involved an issuer or acquirer located in a country
or region without an applicable domestic or intraregional chip liability shift or that does not participate
in the interregional Chip Liability Shift Program.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Second Presentment Condition. The merchant issued a credit to the cardholder’s account
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
This section details the conditions under which an issuer may process an arbitration
chargeback in response to an acquirer’s second presentment.
Acquirer Reference Data (ARD) Does Not Match or is Invalid
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
• 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution Management staff will find the acquirer responsible when the
acquirer files an arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
• 4902—Documentation Received was Illegible Supporting documentation is illegible.
The issuer’s arbitration chargeback will be considered invalid should Mastercard Dispute Resolution
Management staff determine that the supporting documentation is legible during an arbitration
case filing.
• 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
For all other transactions, a hybrid terminal equipped with a PIN pad capable (at a
minimum) of checking the PIN offline, but DE 55 was not present in the Authorization
Request/0100 message or Financial Transaction Request/0200 message.
– A hybrid terminal where the PIN pad is not present or not working.
• The validly issued card was a hybrid PIN-preferring card.
• A fraudulent contactless transaction exceeding the applicable CVM limit resulted from the
use of a contactless-enabled hybrid PIN-preferring card or access device at a contactless-
enabled POS terminal not capable (at a minimum) of performing online PIN verification, or
where the PIN pad is not present or not working.
The transaction was reported to the Fraud and Loss Database as lost/stolen/NRI in accordance
with the Fraud and Loss Database User Guide prior to processing the chargeback. Mastercard
allows three days from the reporting date for the Fraud and Loss Database processing.
Mastercard considers the Fraud and Loss Database reporting within time when the transaction
reporting date in the Fraud and Loss Database is within three days of the chargeback date.
Intraregional/domestic transactions:
• Excluding transactions at automated fuel 1 October 2015
dispensers (MCC 5542)
Term Definition
PIN-preferring chip card, Offline PIN means the PIN is verified “offline” by the chip prior to
hybrid PIN-preferring card authorization of the transaction by the issuer or the chip. Online PIN
means the PIN is passed in the authorization request message and verified
“online” by the issuer during authorization.
When issued in the Asia/Pacific, Canada, Europe, Latin America and the
Caribbean, or Middle East/Africa region—An EMV chip card that has
been personalized so that the offline PIN CVM option appears in the
card’s CVM list with higher priority than the signature option.
When issued in the United States region—An EMV chip card that has
been personalized so that a PIN CVM option (online PIN or offline PIN)
appears in the card’s CVM list with a higher priority than the signature
option.
NOTE: This message reason code does not apply to U.S. region
automated fuel dispenser [MCC 5542] transactions until 1 October
2020.
Contactless-enabled hybrid An EMV chip card with contactless payment functionality that has been
PIN-preferring card personalized so that the online PIN CVM option appears on the card’s
contactless CVM list with a higher priority than the signature option.
Contactless-enabled secure An access device, including any mobile payment device or contactless
CVM-preferring access device payment device, with contactless payment functionality that:
• Has been personalized so that the online PIN CVM option appears on
the CVM list with a higher priority than the signature option, and may
also support on-device cardholder verification; or
• Always performs on-device cardholder verification.
Term Definition
PIN-capable hybrid POS When located in the Asia/Pacific, Canada, Europe, Latin America and the
terminal Caribbean, or Middle East/Africa region—A hybrid POS terminal that is
capable at a minimum of performing offline PIN verification when a PIN-
preferring chip card is presented. It also may be capable of online PIN
verification and, when attended, must support signature.
When located in the United States region—A hybrid POS terminal capable
of performing both online and offline PIN verification when a PIN-
preferring chip card is presented and which, when attended, also
supports signature.
A PIN-capable hybrid POS terminal is indicated when DE 22, subfield 2
(Terminal Data: Cardholder Authentication Capability), of the First
Presentment/1240 message contains a value of 1.
Technical fallback transaction In a technical fallback transaction, either the chip or the merchant device
(CAD) failed, as shown by the presence of:
• A value of 79 or 80 is present in DE 22 (Point-of-Service [POS] Entry
Mode), subfield 1 (POS Terminal PAN Entry Mode) of the Authorization
Request/0100 message or
• A value of 01 in DE 22, subfield 1 of the Authorization Request/0100
message, when the authorization and clearing messages indicate that
the transaction occurred at a hybrid terminal.
For information on DE 22, subfield 1 values, refer to the Customer
Interface Specification manual.
Term Definition
Valid EMV chip cards When a transaction involves a valid EMV chip card, a value of 2 or 6 is
present in position 1 of the three-digit service code in DE 35 (Track 2
Data) or DE 45 (Track 1 Data) of the Authorization Request/0100
message.
Contactless-enabled POS A POS terminal enabled with contactless payment functionality, including
terminal but not limited to a hybrid POS terminal or contactless-only POS terminal.
Chip/PIN transaction Either of the following:
• A contact chip transaction effected with a valid EMV chip card at a
PIN-capable hybrid POS terminal using the chip and with offline or
online PIN as the CVM.
• A contactless transaction effected with a contactless-enabled secure
CVM-preferring card or access device at a contactless-enabled POS
terminal using contactless payment functionality and with online PIN
or successful on-device cardholder verification as the CVM.
The issuer may not use this message reason code under the following conditions.
• The transaction occurred with an online PIN-preferring card and PIN data was
provided in the Authorization Request/0100 or Financial Transaction Request/0200
message.
• The transaction occurred at a PIN-enabled hybrid POS terminal and was approved
although PIN was not present due to the use of PIN bypass functionality.
• A counterfeit card transaction occurred with an unaltered service code (reason code
4870 [Chip Liability Shift—Counterfeit Fraud] should be used).
• A Digital Secure Remote Payment (DSRP) transaction or any subsequent transaction
for a related partial shipment or recurring payment occurred. Refer to Appendix F for
Digital Secure Remote Payment transaction identification requirements.
• A contactless transaction occurred at a contactless-enabled POS terminal with a
successful Consumer Device Cardholder Verification Method (CDCVM), as indicated by the
data provided in “CVM Results” or the “Issuer Application Data” within DE 55
• A properly identified contactless transaction occurred and one of the following:
– The transaction amount was equal to or less than the CVM limit (found in Appendix C)
– The transaction amount exceeded the CVM limit and was completed with online PIN or
successful on-device cardholder verification
– The validly issued card or access device was issued with magstripe mode-only
contactless functionality and did not support on-device cardholder verification, the
transaction amount exceeded the CVM limit and signature was selected as the CVM.
• Authorization Approval after the FNS Date. The issuer approved the transaction after
submitting two or more chargebacks involving the same Mastercard card account (for this
purpose, “account” means primary account number [PAN], or PAN and expiration date) for
any of the following message reason codes: 4837, 4840, 4870, or 4871. Message reason
code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
• FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than
15 chargebacks in aggregate involving the same account (as defined above) for message
reason codes 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will
be included in the FNS count once the FNS fraud chargeback count is two or greater.
• A valid EMV chip/PIN transaction occurred and DE 55 and related data were provided
in the Authorization Request/0100 message or Financial Transaction Request/0200 message
(when online-authorized) and the First Presentment/1240 message.
• Mastercard Consumer-Presented Quick Response (QR) transactions. A Mastercard
Consumer- Presented QR transaction that was properly identified in the Authorization
Request/0100 message or Financial Transaction Request/0200 message. Refer to Appendix
F for Mastercard Consumer-Presented QR transactions identification requirements.
• A magnetic stripe-read or key-entered transaction occurred and was properly identified as
the result of technical fallback in the Authorization Request/0100 message and in the
First Presentment/1240 message.
• The Authorization Request/0100 message contained a service code value other
than 2xx or 6xx, because of one of the following:
– The card was not an EMV chip card (issuers approve such transactions at their own risk).
– A counterfeit card transaction occurred in which the service code was altered from that
of the valid EMV chip card.
• The transaction was a mail order, phone order, e-commerce, or non–face-to-face
recurring payment transaction.
• The transaction was a Mastercard Commercial Payments Account transaction. A
Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS
Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
• Brazil only—The transaction was a Mastercard Agro Card transaction occurring in Brazil
with a Mastercard Agro Card issued in Brazil. A Mastercard Agro Card transaction occurs
when PDS 0002 (GCMS Product Identifier) was MLF (Mastercard Agro Card) in the First
Presentment/1240 message.
• Bangladesh only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Bangladesh with a Mastercard MCP card issued in Bangladesh. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than BDT 100,000.
• India only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in India with a Mastercard MCP card issued in India. A Mastercard
MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was MCP
(Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when the
value of the transaction is equal to or greater than INR 100,000.
• Sri Lanka only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Sri Lanka with a Mastercard MCP card issued in Sri Lanka. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than LKR 200,000.
• CAT 2 and CAT 3 Transactions—Chargebacks of CAT 2 and CAT 3 transactions are not
permitted under this reason code.
• ATM Transactions—Chargebacks of Mastercard ATM Network transactions are not
permitted under this reason code.
• Mastercard Biometric Card—The transaction occurred with a Mastercard Biometric Card
and biometric Cardholder authentication was successful. Refer to Appendix F for
Mastercard Biometric Card Program transaction identification information.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The table in this section details the conditions under which a Lost/Stolen/NRI Fraud Chip
Liability Shift chargeback may be processed.
Lost/Stolen/NRI Fraud Chip Liability Shift
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4871 (Lost/Stolen/NRI Fraud Chip Liability Shift) for Dual Message System transactions
• 71 (Lost/Stolen/NRI Fraud Chip Liability Shift) for Debit Mastercard transactions processed on the
Single Message System
Notes
A Dispute Resolution Form-Fraud (Form 0412) provided as Supporting Documentation must be the
result of contact with the cardholder.
The Dispute Resolution Form-Fraud (Form 0412) may only be used when the card account is closed.
Before processing the chargeback using this form, the issuer must block the account on its host; list
the account number on the Mastercard Stand in Account File with a “capture card” response until
card expiration, and report the transaction to the Fraud and Loss Database in the Fraud Center
application on Mastercard Connect.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Chip/PIN Liability Shift chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Two or More Previous Fraud-related Chargebacks
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 2 (Fraud Notification Service
Chargeback Counter) of the First Chargeback/1442 message is present and contains a chargeback
counter value that exceeds 15 (a value of 16 or more).
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database in the Fraud Center application on Mastercard Connect on or before the chargeback date.
Mastercard allows three days from the reporting date for the Fraud and Loss Database processing.
Mastercard considers the Fraud and Loss Database reporting within time when the transaction
reporting date in the Fraud and Loss Database is within three days of the chargeback date.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Supporting Documents. Documentation that supports the second presentment from one of the
following:
• The Daily Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide.
• Monthly Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide.
• The Acquirer Dashboard in Mastercard Connect > Fraud Center > Fraud Insights.
Technical Fallback
Second Presentment Condition The transaction was the result of technical fallback at a PIN-capable
terminal.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Second Presentment Condition. The transaction did not require online authorization and DE 55 was
not provided in the First Presentment/1240 message and one of the following:
• The acquirer can prove that the transaction was completed with chip and PIN.
• Completed with chip while the card was not PIN-preferring
• The result of CVM fallback
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
Second Presentment Condition. DE 55 was provided in the First Presentment/1240 message and
one of the following:
• The transaction was completed with chip and PIN.
• The transaction was completed with chip while the card was not PIN-preferring
• The transaction was the result of CVM fallback
Invalid Chargeback
Second Presentment Condition The transaction involved an issuer or acquirer located in a country
or region without an applicable domestic, intraregional, or interregional chip/PIN liability shift.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Arbitration Chargeback
This section detail the conditions under which an arbitration chargeback in response to an
acquirer’s second presentment may be processed.
Acquirer Reference Data (ARD) Does Not Match or is Invalid
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
• 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution Management staff will find the acquirer responsible when the
acquirer files an arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
• 4902—Documentation Received was Illegible Supporting documentation is illegible.
The issuer’s arbitration chargeback will be considered invalid should Mastercard Dispute Resolution
Management staff determine that the supporting documentation is legible during an arbitration
case filing.
• 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
Point-of-Interaction Error
This section provides information for handling a point-of-interaction error chargeback.
A point-of-interaction error chargeback may be submitted when the cardholder contacted the
issuer alleging one of the following:
• The cardholder paid twice for the same transaction using two different forms of payment
• The cardholder’s account has been debited more than once for the same transaction using
the same form of payment
• The cardholder was billed an incorrect amount
• Cash was not properly dispensed by an ATM
• The cardholder’s account has been debited more than once for the same ATM transaction
• The cardholder was billed for loss, theft, or damage in the same transaction as the
underlying initial service
• A dispute regarding POI Currency Conversion (Dynamic Currency Conversion)
• The cardholder was billed an unreasonable amount (Intra-EEA Transactions, domestic
transactions in EEA countries, transactions between an EEA country and Gibraltar or the
UK, Gibraltar domestic transactions, and UK domestic transactions).
Chargeback
The tables in this section detail the conditions under which a first chargeback under the point-
of-interaction error chargeback may be processed.
Cardholder Debited More than Once for the Same Goods or Services
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The cardholder’s account has been debited more than once for the same transaction.
• The cardholder paid for a transaction using one form of payment and was subsequently debited
for the same transaction using another form of payment.
Time Frame. 90 calendar days from the Central Site Business Date.
Supporting Documents.
A cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction (POI)
Errors (Form 1240) describing the cardholder’s complaint in sufficient detail to enable all parties to
understand the dispute.
The cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction
(POI) Errors (Form 1240) must specify the alternate means of payment providing sufficient transaction
details to allow the merchant to locate the alternate payment.
When a non-Mastercard method of payment was used, documentation detailing the payment by
other means. Examples include, but are not limited to:
• A bank statement documenting payment to the merchant
• A canceled check
• A receipt showing cash as the payment method
DE 72 (Data Record). When both transactions were processed through the Mastercard network:
FIRST REF NNNNNNNNNNNNNNNNNNNNNNN
Notes. Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the
first valid transaction.
Travel Vouchers
When the merchant accepted the travel voucher, the Supporting Documentation must state that
the merchant accepted the voucher.
When the merchant did not accept the travel voucher, the issuer should consider using the Cardholder
Dispute chargeback against the entity that issued the travel voucher.
Chargeback Condition. The cardholder contacted the issuer claiming the cardholder was billed an
incorrect amount.
Time Frame. 90 calendar days from the Central Site Business Date.
ATM Disputes
Chargeback Condition. The cardholder contacted the issuer alleging one of the following:
• Some or all of the funds debited from the cardholder’s account as the result of an ATM withdrawal
were not dispensed.
• The cardholder’s account has been debited more than once for the same transaction.
Time Frame. Between 5 and 120 calendar days of the transaction settlement date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions
• 59 (RS3=ATM dispute) for Debit Mastercard transactions processed on the Single Message System
Notes.
This chargeback is not available for fraud.
This chargeback is not available when the transaction occurred with a Mastercard Commercial
Payments Account. A Mastercard Commercial Payments Account transaction occurs when PDS 0002
(GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
The issuer may chargeback only the disputed amount.
When a chargeback is for the full amount of the original transaction, any ATM access fee may be
included in the chargeback amount.
Cardholder account debited more than once for the same ATM transaction
Mastercard recommends that an issuer charge back both ATM transactions individually under this
chargeback. This will allow for each second presentment to provide the information necessary to
remedy the dispute by showing each individual transaction that was completed.
Since ATM transactions are authorized using a PIN, Mastercard strongly recommends that before using
this chargeback, issuers verify their authorization records to ensure that they are not charging back
two separate transactions that were authorized individually using a PIN. The issuer would be correct in
using this chargeback when the authorization numbers are the same for both ATM transactions.
European Issuers and Acquirers
Refer to Appendix A, Chargebacks—Mastercard Europe ATM Transactions (Mastercard, Maestro, and
Cirrus) for more information about chargeback processing procedures for intra-European Mastercard
ATM transactions and interregional Mastercard ATM transactions.
Chargeback Condition. The cardholder contacted the issuer claiming the cardholder was billed for
loss, theft, or damage in the same transaction as the underlying initial service.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions
• 31 (Incorrect Transaction Amount) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Point-of-Interaction (POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute.
Optionally, documentation detailing the charge for the initial service as well as for the loss, theft, or
damage.
Late Presentment
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4842 (Late Presentment) for Dual Message System transactions
• 42 (Late Presentment) for Debit Mastercard transactions processed on the Single Message System
Notes.
This chargeback is not available when the transaction occurred with a Mastercard Commercial
Payments Account. A Mastercard Commercial Payments Account transaction occurs when PDS 0002
(GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Notes. The full amount of the disputed transaction must be charged back.
When a currency is not specified on the transaction receipt, the currency which is legal tender in the
country where the transaction took place is deemed the original transaction currency.
This chargeback is not available to address verbal agreements of transaction currency between a
cardholder and a merchant.
Chargeback Condition. The merchant processed a credit (instead of a reversal) to correct an error
which resulted in the cardholder experiencing a currency exchange loss.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4831 (Incorrect Transaction Amount) for Dual Message System transactions
• 31 (Incorrect Transaction Amount) for Debit Mastercard transactions processed on the Single
Message System
Chargeback Condition. An improper merchant surcharge was applied to the total transaction
amount.
Time Frame. One of the following:
• Within 90 calendar days of the Central Site Business Date.
• Within 90 calendar days of the delivery date of the goods or services.
Notes.
Only the amount reflecting the improper surcharge may be charged back. The total transaction
amount must not be charged back.
This chargeback is not available when the transaction occurred with a Mastercard Commercial
Payments Account. A Mastercard Commercial Payments Account transaction occurs when PDS 0002
(GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. 4834 for Dual Message System transactions
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Point of Interaction (POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute.
DE 72 (Data Record). UNREASONABLE AMOUNT
Notes.
This chargeback is not available when the transaction occurred with a Mastercard Commercial
Payments Account. A Mastercard Commercial Payments Account transaction occurs when PDS 0002
(GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a point-of-interaction error chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Cardholder Debited More than Once for the Same Goods or Services
Second Presentment Condition. The acquirer can provide evidence of proper processing in response
to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Cardholder Debited More than Once for the Same Goods or Services—PIN Transaction
Second Presentment Condition. The acquirer can substantiate that a PIN was present in the
Authorization Request/0100 message for both transactions.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2008 (Issuer authorized transaction) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents.
TIDs documenting two separate transactions.
The documentation must clearly establish that the cardholder was not debited more than once for the
same goods or services. A merchant explanation must be included when the documentation does not
clearly establish the above.
Second Presentment Condition. The acquirer can provide evidence that the cardholder was billed
the correct amount.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
ATM Disputes
Second Presentment Condition. The acquirer can provide evidence that the funds were correctly
dispensed.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents. Refer to the Single Message System Chargebacks chapter, Message Reason
Code 17—Cash Dispute-ATM Only.
Europe Customers refer to Appendix A, Chargebacks—Mastercard Europe ATM Transactions
(Mastercard, Maestro, and Cirrus).
Notes. No other IPM Second Presentment Message Reason Code is available for ATM disputes.
Refer to the Single Message System Chargebacks chapter, Message Reason Code 17—Cash Dispute-
ATM Only.
Europe Customers refer to Appendix A, Chargebacks—Mastercard Europe ATM Transactions
(Mastercard, Maestro, and Cirrus).
Second Presentment Condition. The acquirer can provide evidence of both of the following:
• The cardholder was notified of the charges for loss, theft, or damages.
• The cardholder authorized the charge for loss, theft, or damages.
Late Presentment
DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. AUTH MMDDYY NNNNNN
2. DELAYED PRESENTMENT
Notes.
Replace MMDDYY with the date the issuer authorized the transaction.
Account Open:
The acquirer can prove the account is open after the chargeback date by providing the date the issuer
authorized a transaction, with the same PAN, occurring after the chargeback date.
National Bank Holiday:
When a national bank holiday of at least four consecutive days occurred, which prevented the
acquirer from presenting a card-read or key-entered transaction within the applicable seven-calendar-
day time frame, official documentation from the banking regulator or other authority showing the
dates of the national bank holiday must be provided.
Determining the Transaction Date:
Traffic violations must be presented within 30 calendar days of receipt of the notification from the
local traffic authorities. To determine the Transaction Date for all other transactions refer to Appendix
F—Transaction Identification Requirements.
Second Presentment Condition. The acquirer can provide evidence of proper processing in response
to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Second Presentment Condition. The merchant can provide documentation showing the cardholder
agreed to an amount range as reasonable and the transaction amount did not exceed this amount
range.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents. Documentation supporting the merchant’s claim that the cardholder agreed
to a reasonable amount range. Examples include, but are not limited to:
• An itemized price list signed by the cardholder and an itemized transaction receipt showing that
the transaction amount was calculated on the basis of this price list.
• The cardholder’s written agreement to a recurring payment arrangement with the merchant in
which a maximum amount for each payment was specified.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Second Presentment Condition. The acquirer can provide specific evidence of proper processing in
response to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
Supporting Documents. The merchant’s explanation and documentation.
IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback
Required supporting documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code.
Mastercard will block the Arbitration Chargeback when an acquirer second presents with
message reason code 2002 after eight calendar days from the first chargeback and before the
issuer sends the supporting documentation.
The acquirer must accept supporting documentation as long as the acquirer has not processed
a second presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2704—Invalid Data Record Text
Text required to appear in the first chargeback’s DE 72 (Data Record) is missing or incomplete.
– 2709—Documentation Received was Illegible
Supporting documentation is illegible. The acquirer’s second presentment will be considered
invalid should Mastercard Dispute Resolution Management staff determine that the supporting
documentation is legible during an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
– 2713—Invalid Chargeback
The first chargeback does not meet the prerequisites for the message reason code.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The tables in this section detail the conditions under which an issuer may process an
arbitration chargeback in response to an acquirer’s second presentment.
Arbitration chargebacks are not available for ATM disputes. When the cardholder
continues to dispute an ATM transaction the issuer may file an arbitration case, refer to the
Single Message System Chargebacks chapter, Message Reason Code 17, Arbitration Case
Filing.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. 4834 (Errors in Processing)
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Point-of-Interaction (POI) Errors (Form 1240) dated after the second presentment and specifically
addressing the merchant’s explanation.
For disputes involving Charges for Loss, Theft, or Damages: When not provided with the first
chargeback, documentation detailing the charge for the initial service as well as for the loss, theft, or
damage.
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Code. One of the following corresponding to the
Arbitration Chargeback Condition:
1. When the second presentment used message reason code 2001: 4905—Invalid Acquirer
Reference Data; Documentation was Not Received or Not Required
2. When the second presentment used message reason code 2004: 4908—Invalid Acquirer
Reference Data; Documentation Received
Time Frame. Within 45 calendar days of the second presentment settlement date.
IPM Arbitration Chargeback Message Reason Codes and Arbitration Chargeback Conditions.
One of the following:
1. 4901—Required Documentation Not Received to Support Second Presentment
Required supporting documentation was not received.
An issuer must wait a minimum of eight calendar days from the second presentment before using
this message reason code.
An issuer can generate an arbitration chargeback with message reason code 4901 nine calendar
days from the second presentment and before the acquirer sends the supporting documentation.
Mastercard Dispute Resolution staff will find the acquirer responsible when the acquirer files an
arbitration case.
The issuer must accept supporting documentation as long as the issuer has not processed an
arbitration chargeback.
2. 4902—Documentation Received was Illegible
Supporting documentation is illegible. The issuer’s arbitration chargeback will be considered
invalid should Mastercard Dispute Resolution staff determine that the supporting documentation
is legible during an arbitration case filing.
3. 4903—Scanning error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
The acquirer must process the handling fee within 15 calendar days of receiving the IPM Fee
Collection/1740-700 message with message reason code 7622. In the IPM Fee Collection/
1740-700 message with message reason code 7627, the acquirer must include in DE 72 (Data
Record) the information it received in DE 72 of the original message with message reason
code 7622 and the code F2F for a face-to-face transaction or the code CT2 for a CAT Level 2
transaction.
Message reason code 7627 applies because an issuer is not entitled to a handling fee for a
face-to-face transaction or CAT Level 2 transaction. The acquirer must provide the values listed
in the table below in the First Presentment/1240 message to collect the handling fee as
described above.
For this type of transaction... Provide these values in the First Presentment/1240 message...
A face-to-face transaction In DE 22 (Point of Service Data Code):
Value of 1 (Attended Terminal) in subfield 4 (Terminal Operating
Environment)
Value of 0 (Cardholder Present) in subfield 5 (Cardholder Present Data)
Value of 1 (Card Present) in subfield 6 (Card Present Data)
The F2F or CT2 handling fee compensates the acquirer for the issuer’s invalid handling fee
and the cost of processing its reversal.
The acquirer cannot submit an IPM Fee Collection/1740-700 message with message reason
code 7627 when the original presentment was not properly identified as a face-to-face
transaction or CAT Level 2 transaction. However, when the acquirer can remedy the
chargeback, then the acquirer can collect the progressive handling fee associated with the
second presentment using message reason code 7623.
Customers must retain the information provided in DE 72 (Data Record) from the original Fee
Collection/1740-700 message. Customers must use the remaining positions to describe the
reason they are returning the Fee Collection/1740-700 message.
Reasons for returning a Fee Collection/1740 message may include:
• Primary Account Number (PAN) Missing
• Acquirer Reference Data Missing
• Data Record Missing
• Data Record Not Formatted Correctly
• Date Action Missing
• Fee Collection Time Frame Exceeded
• Incorrect Fee Amount
Technical Return
2001 Invalid Acquirer Reference Data; documentation was neither required nor received.
2004 Invalid Acquirer Reference Data on chargeback; documentation was received.
Documentation Return
Substance Return
Technical Return
Documentation Return
Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code
Usage
This section lists definitions for the Second Presentment/1240 IPM message reason codes.
2002—Non-receipt of Required An acquirer must use this message reason code when documentation
Documentation to Support that is required to support the chargeback is not received. Acquirers
Chargeback must wait a minimum of eight calendar days from the first chargeback
before using this message reason code. The acquirer may use this
message reason code between days 9 and 45.
The successful processing of a second presentment for this message
reason code will block any attempt by the issuer to process an
arbitration chargeback if the message reason code used during the first
chargeback always requires documentation to support the chargeback.
The acquirer must accept documentation received more than eight
calendar days after processing the first chargeback as long as the
acquirer has not yet processed a second presentment for this message
reason code as of the time the documentation is received.
2003—Correct Transaction Acquirers must use this message reason code in cases where the
Date Provided chargeback may be remedied by providing the correct transaction date.
For example, a first chargeback for message reason code 4807 (Warning
Bulletin File) may be remedied if the transaction date for the first
presentment was incorrect, and the acquirer may provide the correct
transaction date and show that the account was not listed in the
applicable Electronic Warning Bulletin.
2004—Invalid Acquirer The acquirer must use this message reason code to notify the issuer that
Reference Data on the combination of Acquirer Reference Data/Primary Account Number
Chargeback; Documentation on the chargeback message does not match the information contained
was Received in the first presentment and that documentation that was received to
support the issuer’s first chargeback.
2008—Issuer Authorized the The acquirer must use this message reason code when it can remedy the
Transaction first chargeback by providing information showing that the transaction
was properly authorized by the issuer, its agent, or Mastercard. For
example, an acquirer may remedy a chargeback for message reason
code 4808 (Authorization-related Chargeback) if it can show that the
transaction was authorized when the card was presented to the
merchant for payment (for example, check-in for hotel stay).
2011—Credit Previously Issued The acquirer must use this message reason code when it can remedy the
first chargeback by showing that the merchant issued a credit to the
cardholder’s account.
The Data Record must contain the date of the credit and, optionally, the
Acquirer’s Reference Data (ARD) of the credit.
2700—See Corresponding An acquirer must use this message reason code when the remedy to the
Documentation/Chargeback chargeback is included within the documentation supporting the second
Remedied presentment, and no other message reason code is applicable to
describe the remedy.
For example, if the only remedy the acquirer has to a first chargeback
for message reason code 4837 is providing compelling evidence, the
acquirer must use this message reason code. If the second presentment
is better described using another message reason then the message
reason code that best describes the remedy must be used (for example,
2011 Credit Previously Issued). When using 2700, the documentation
indicator must be 1 (Documentation Provided).
2701—Duplicate Chargeback The acquirer must use this message reason code to remedy situations
where the issuer has processed a first chargeback for the same
transaction more than once.
2702—Past Chargeback Time The acquirer must use this message reason code when the issuer’s first
Limit chargeback is processed past the time limit allowed for the chargeback.
2704—Invalid Data Record Text The acquirer must use this message reason code when information that
is required to appear in the first chargeback’s Data Record as stated in
this guide, and the required message text (DE 72 [Data Record]) is
missing or incomplete and the lack of such information renders the
chargeback invalid.
For example, the issuer processes a first chargeback for message reason
code 4834-Point-of-Interaction Error (Cardholder Debited More than
Once for the Same Goods or Services) without including the Acquirer’s
Reference Data of the transaction processed through the Mastercard
network in the chargeback’s Data Record. Without that information, the
acquirer is unable to investigate the case properly, and therefore, the
chargeback would become invalid.
2705—Correct MCC Provided The acquirer must use this message reason code when remedying a
chargeback by showing that the merchant business code (MCC)
assigned to the merchant is different from the MCC appearing on the
first presentment.
2706—Authorization Advised The acquirer must use this message reason code as described in the
Suspicious Suspicious Transaction table in section Proper Use for Acquirer’s Second
Presentment.
2707—No Authorization The acquirer must use this message reason code when the transaction
Required or Attempted amount was below the applicable floor limit, and the merchant did not
request an authorization.
2708—Account was Not Listed The acquirer must use this message reason code to remedy chargebacks
on the Applicable Electronic for message reason code 4807 when the acquirer’s investigation reveals
Warning Bulletin as of the that the issuer had not included the account number in the applicable
Transaction Date Electronic Warning Bulletin as of the date the card was first presented to
the merchant for payment.
2709—Documentation The acquirer must use this message reason code only when information
Received was Illegible that is relevant to the first chargeback is illegible to the point where it
cannot be established that the first chargeback is valid. Acquirers must
make every attempt to qualify the documentation before using this
message reason code. If an arbitration case is filed as the result of the
chargeback, and Mastercard Dispute Resolution Management staff can
validate that the documentation is legible, it will be determined that the
acquirer processed an invalid second presentment.
2713—Invalid Chargeback The acquirer may use this message reason code when the first
chargeback does not meet the prerequisites for that message reason
code stated in this guide.
For example, an issuer processes a chargeback for message reason code
4837 (No Cardholder Authorization), with a cardholder letter alleging
nonreceipt of merchandise. Since message reason code 4837 does not
address issues related to nonreceipt of merchandise, the issuer’s first
chargebac
Refer to Chip Liability Shifts in this guide for more information about the
Global Chip Liability Shift Program.
k was invalid, it does not meet the prerequisites of message reason code
4837, which require the chargeback to include a cardholder letter
stating that the transaction was not authorized.
Acquirers must use care when using this message reason code; this
message reason code is technical in nature and does not always address
the true nature of the dispute.
2870—Chip Liability Shift The acquirer must use this message reason code to invoke the chip
liability shift in response and as a final remedy to a first chargeback
submitted under message reason code 4837.
If the second presentment message reason code 2870 is valid, the issuer
is prohibited from pursuing the dispute with an arbitration chargeback.
2871—Chip/PIN Liability Shift The acquirer may use this message reason code to invoke the chip/PIN
liability shift in response and as a final remedy to a first chargeback
submitted under message reason code 4837.
If the second presentment message reason code 2871 is valid, the issuer
is prohibited from pursuing the dispute with an arbitration chargeback.
4902—Documentation The issuer must use this message reason code only when information
Received was Illegible that is relevant to the second presentment is illegible to the point where
it cannot be established that the second presentment is valid. Issuers
must make every attempt to try to qualify the documentation before
using this message reason code. If Mastercard Dispute Resolution
Management staff can validate that the documentation is sufficiently
legible to remedy the chargeback, the issuer will have processed an
invalid arbitration chargeback.
4903—Scanning error— This message reason code deals solely with the quality of the Mastercom
Unrelated Documents or scan of the documentation. Do not use this message reason code if
Partial Scan the substance of the documentation received shows that the
acquirer processed an invalid second presentment.
The issuer must use this message reason code when the second
presentment documentation does not correspond to the transaction
being charged back (for example, the documentation concerns a totally
different transaction) or when the documentation is incomplete because
of a scanning error.
For example, a partial scan of a larger document or the documentation
relates to another card or to another transaction.
4905—Invalid Acquirer’s The issuer must use this message reason code in response to a second
Reference Data; presentment using message reason code 2001. Refer to Arbitration
Documentation Not Received Chargeback for more information about this message reason code.
or not Required
4908—Invalid Acquirer’s The issuer must use this message reason code in response to a second
Reference Data; presentment using message reason code 2004. Refer to Arbitration
Documentation Received Chargeback for more information about this message reason code.
Overview.................................................................................................................................... 213
Authorization-related Chargeback.............................................................................................. 213
Chargeback............................................................................................................................214
Required Authorization Not Obtained................................................................................ 214
Expired Chargeback Protection Period................................................................................217
Multiple Authorization Requests........................................................................................ 218
CAT 3 Device..................................................................................................................... 219
Second Presentment...............................................................................................................220
Required Authorization Obtained.......................................................................................220
Expired Chargeback Protection Period................................................................................221
Multiple Authorization Requests........................................................................................ 222
One Authorization with Multiple Clearing Records............................................................. 223
CAT 3 Device .................................................................................................................... 223
Credit Previously Issued......................................................................................................224
Additional Second Presentment Options............................................................................ 226
Arbitration Chargeback.......................................................................................................... 226
Cardholder Dispute Chargeback ................................................................................................ 226
Chargeback............................................................................................................................229
Goods or Services Were Either Not as Described or Defective............................................. 229
Goods or Services Not Provided......................................................................................... 230
Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only.................... 234
Digital Goods Purchase of USD 25 or Less.......................................................................... 236
Credit Not Processed..........................................................................................................238
Counterfeit Goods.............................................................................................................240
Cardholder Dispute of a Recurring Transaction...................................................................240
Issuer Dispute of a Recurring Transaction........................................................................... 241
Addendum Dispute............................................................................................................243
“No-Show” Hotel Charge..................................................................................................244
Transaction Did Not Complete........................................................................................... 245
Timeshares........................................................................................................................ 246
Credit Posted as a Purchase............................................................................................... 246
Second Presentment...............................................................................................................247
General Second Presentment............................................................................................. 247
Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only.................... 248
Digital Goods Purchase of USD 25 or Less.......................................................................... 249
Credit Previously Issued......................................................................................................249
Additional Second Presentment Options............................................................................ 252
Arbitration Chargeback.......................................................................................................... 253
Fraud-related Chargebacks......................................................................................................... 253
No Cardholder Authorization................................................................................................. 253
Chargeback....................................................................................................................... 256
No Cardholder Authorization........................................................................................ 256
Second Presentment.......................................................................................................... 258
Two or More Previous Fraud-related Chargebacks..........................................................258
Fraud-related Chargeback Counter Exceeds Threshold...................................................259
Contactless Transaction Unattended Terminals...............................................................260
PIN Transaction..............................................................................................................260
Mastercard SecureCode SL1 (Merchant-only Liability Shift)............................................ 261
Mastercard SecureCode SL2 (Global Liability Shift).........................................................261
Account Takeover..........................................................................................................262
Addendum Charges...................................................................................................... 262
Address Verification Service (AVS) Transaction............................................................... 263
Compelling Evidence for Airline Transactions................................................................. 263
Compelling Evidence for Recurring Transactions............................................................ 264
Compelling Evidence for E-commerce and MO/TO Transactions..................................... 265
Invalid Chargeback........................................................................................................267
Guaranteed Reservation Service (“No-show")................................................................267
Chip Liability Shift......................................................................................................... 268
Chip/PIN Liability Shift................................................................................................... 268
Credit Previously Issued................................................................................................. 269
Additional Second Presentment Options........................................................................271
Arbitration Chargeback..................................................................................................... 271
Questionable Merchant Activity ............................................................................................. 271
Chargeback....................................................................................................................... 273
Global Merchant Audit Program (GMAP).......................................................................273
Questionable Merchant Audit Program (QMAP).............................................................274
Mastercard Rule 3.7 Violation for Coercion Claim..........................................................275
Second Presentment.......................................................................................................... 276
Not Considered in Violation of Mastercard Rule 3.7 for Coercion Claim.........................276
Late First Chargeback Submission..................................................................................276
Chargeback............................................................................................................................309
Cardholder Debited More than Once for the Same Goods or Services................................ 309
Transaction Amount Differs................................................................................................310
ATM Disputes.................................................................................................................... 312
Charges for Loss, Theft, or Damages..................................................................................313
Late Presentment .............................................................................................................. 314
POI Currency Conversion (Dynamic Currency Conversion).................................................. 315
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss............ 316
Improper Merchant Surcharge (Intra-European and Inter-European transactions only).........316
Unreasonable Amount (EEA, Gibraltar, United Kingdom)....................................................317
Second Presentment...............................................................................................................318
Cardholder Debited More than Once for the Same Goods or Services ............................... 318
Cardholder Debited More than Once for the Same Goods or Services—PIN Transaction..... 318
Transaction Amount Differs................................................................................................319
ATM Disputes.................................................................................................................... 320
Charges for Loss, Theft, or Damages..................................................................................320
Late Presentment............................................................................................................... 321
Late Presentment—Corrected Transaction Date..................................................................322
POI Currency Conversion (Dynamic Currency Conversion).................................................. 323
Unreasonable Amount (EEA, Gibraltar, United Kingdom)....................................................323
Credit Previously Issued......................................................................................................324
Improper Merchant Surcharge (Intra-European and Inter-European transactions only).........326
Additional Second Presentment Options............................................................................ 327
Arbitration Chargeback.......................................................................................................... 328
Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)............................................... 328
Installment Billing Dispute (Participating Countries Only)............................................................. 328
Domestic Chargeback Dispute (Europe Region Only)................................................................... 328
Requirements for Issuer’s First Chargeback and Acquirer’s Second Presentment...................... 328
Improper Use of Message Reason Code 4999.........................................................................328
Arbitration Case Filing............................................................................................................ 328
Additional Processing Notes........................................................................................................ 328
Progressive Handling Fees........................................................................................................... 329
Progressive Handling Fee Overview......................................................................................... 329
Issuer Use of Message Reason Code 7622.............................................................................. 329
Acquirer Use of Message Reason Code 7623..........................................................................329
Acquirer Use of Message Reason Code 7627—No MAC Provided...........................................330
Acquirer Use of Message Reason Code 7627—Face-to-Face or CAT Level 2 Transaction......... 330
Required Fields in Fee Collection Messages............................................................................. 331
Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)........................ 332
Overview
Authorization-related Chargeback
This section provides information in handling an authorization-related chargeback.
The issuer must attempt to honor the transaction before exercising this chargeback right.
An authorization-related chargeback may be submitted when one of the following occurred:
• Authorization was required, but not obtained.
• The primary account number (PAN) does not exist.
• The authorization chargeback protection time period had expired for the presentment
(meaning seven days for final or undefined authorizations and 30 calendar days for pre-
authorizations) and one of the following:
– For a transaction occurring at a merchant located in the Europe Region, the account
was permanently closed before the chargeback was processed.
– For a transaction occurring at a merchant located in any other region, the issuer deemed
the account not to be in good standing (a “statused” account) before filing the
chargeback.
• A card-not-present authorization was declined by the issuer and subsequently approved
through Stand-In processing or X-Code with an approval response as specified in the
Authorization Manual with the following exceptions:
– The issuer generated a decline response that included a value of 02 (Cannot approve at
this time, try again later) in DE 48 (Additional Data—Private Use), subelement 84
(Merchant Advice Code).
– The issuer generated an approval response after previously declining the transaction.
– The merchant can prove that the cardholder initiated the authorization request.
An authorization-related chargeback must not be submitted for any of the following:
• A properly identified Emergency Cash Advance transaction. A properly identified
Emergency Cash Advance transaction contains a value of “Emergency Cash Advance” in
DE 43 (Card Acceptor Name/Location) of the First Presentment/1240 message.
• A properly identified contactless transit aggregated transaction when all of the following
occurred:
– An Authorization Request/0100 message was generated for the transaction.
– The issuer approved the authorization request.
– The transaction amount was equal to or less than the contactless transit aggregated
transaction CVM limit amount as published in Appendix C, CVM Limit Amounts.
– There were 14 calendar days or less between the date of the first contactless tap and
the date the First Presentment/1240 message was generated.
• For Taiwan domestic in-flight transactions, refer to “AN 2491—Revised Standards—Taiwan
Domestic In-flight Transactions” regarding Authorization Related Chargeback
requirements.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The tables in this section detail the conditions under which an authorization-related
chargeback may be processed.
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Notes.
Multiple Authorizations Records. A transaction may have multiple authorization records.
Additionally, several airline ticket transactions may be combined into one authorization record.
Multiple Clearing Records. Multiple clearing records may have been or will be submitted in
connection with a single approved authorization.
10% Tolerance to Accommodate Currency Conversion Rates. This chargeback is not available for
transactions that were converted to a different currency and the cleared transaction amount exceeds
the authorized transaction amount by less than 10%. This tolerance allows for different currency
conversion rates that could have been applicable on the authorization and clearing dates.
15% Tolerance. The 15% tolerance does not apply to any transaction.
20% Tolerance. The 20% tolerance for gratuities does not apply to the following types of
transactions:
• Chip/PIN transactions
• Contactless transactions
• Card-not-present transactions (see below for a variation relating to U.S. region domestic restaurant
transactions)
• Mastercard Consumer-Presented Quick Response (QR) Transaction
• Transactions for which the authorization was not coded as a pre-authorization
A 20% tolerance for gratuities will continue to apply to any other transaction types.
20% Tolerance. A 20% tolerance for gratuities will apply to card-not-present transactions conducted
with a U.S. region-issued card at a U.S. region merchant and identified with either of the following
MCCs:
• MCC 5812 (Eating Places, Restaurants)
• MCC 5814 (Fast Food Restaurants)
20% Tolerances—Partial Approval. This tolerance does not apply when both of the following
occurred:
• The Authorization Request/0100 message contained a value of 1 (Merchant terminal supports
receipt of partial approvals) in DE 48 (Additional Data—Private Use), subelement 61 (POS Data,
Extended Condition Codes), subfield 1 (Partial Approval Terminal Support Indicator).
• The Authorization Response/0110 message contained a value of 10 (Partial Approval) in DE 39
(Response Code) and a partial approval amount in DE 6 (Amount, Cardholder Billing).
Contactless Transit Aggregated Transaction. When the transaction amount of a properly identified
contactless transit aggregated transaction exceeds the contactless transit aggregated transaction CVM
limit amount, the issuer may charge back only the difference between the transaction amount and the
contactless transit aggregated transaction CVM limit amount.
Automated Fuel Dispenser (MCC 5542). The issuer cannot charge back an automated fuel
dispenser transaction effected in the U.S. region with:
• A Mastercard Corporate Card®, Mastercard Corporate Executive Card®, Mastercard Corporate Fleet
Card®, or Mastercard Corporate Purchasing Card™ for any amount less than or equal to USD 150,
if the transaction was identified in the authorization request with MCC 5542 (Fuel Dispenser,
Automated), CAT 2 or CAT 6, and authorized by the issuer for USD 1.
If the transaction amount exceeds USD 150, the issuer may charge back only the difference
between the transaction amount and USD 150.
• Any other Mastercard card for any amount less than or equal to USD 100, if the transaction was
identified in the authorization request with MCC 5542 (Fuel Dispenser, Automated), CAT 2 or CAT
6, and authorized by the issuer for USD 1.
If the transaction amount exceeds USD 100, the issuer may charge back only the difference
between the transaction amount and USD 100.
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4808 for Dual Message System transactions
• 08 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System
transactions
• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on
the Single Message System
CAT 3 Device
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4808 for Dual Message System transactions
• 08 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4807 (Warning Bulletin) and 4812 (Account Number Not on File) for Dual Message System
transactions
• 07 (Warning Bulletin) and 12 (Account Not on File) for Debit Mastercard transactions processed on
the Single Message System
Supporting Documents.
None
DE 72 (Data Record). For Local Stoplist or Electronic Warning Bulletin File, one of the following:
• RX
• R X S NN
For Europe region cards with X2X service code: SC X2X
For all others one of the following:
• CAT 3
• CAT LEVEL 3
Notes.
Local Stoplist or Electronic Warning Bulletin File
For R X, replace X with the one character Electronic Warning Bulletin Region code in which the PAN is
listed.
For S NN, replace NN with the two character subregional code in which the PAN was listed.
• Unknown Transaction Date. When the issuer cannot determine the transaction date from DE 12
(Date and Time, Local Transaction), the issuer may assume the transaction date is within 15
calendar days before the Central Site Business Date.
• Unknown Face-to-Face Merchant Location. When the issuer cannot determine the merchant
location from DE 43 (Merchant Name/Location), subfield 5 (State, Province, or Region Code), the
issuer may reference any region of the Electronic Warning Bulletin File that listed the PAN on the
date of the transaction in DE 72.
• Unknown Non-Face-to-Face and Non-Fixed Merchant Location. For non–face-to-face or non-
fixed merchant location transactions, the issuer may reference any regional Electronic Warning
Bulletin File that listed the PAN on the date of the transaction in DE 72.
• Subregional. An issuer must use both the merchant location (DE 43) and the merchant category
code (DE 26 [Merchant Business Code (MCC)]) to determine whether the PAN was listed in the
applicable subregional Electronic Warning Bulletin File.
For information on the Local Stoplist or Electronic Warning Bulletin File, refer to the Account
Management System User Manual.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to an authorization-related chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The transaction was authorized and presented within the
applicable Chargeback Protection Period.
Time Frame. Within 45 calendar days of the chargeback settlement date
Notes.
Replace MMDDYY with the date the issuer authorized the transaction.
Replace NNNNNN with the actual authorization response code provided by the issuer, its agent or
Mastercard On-Behalf for the cleared transaction.
Offline Approved EMV Transaction
When DE 55 was provided in the First Presentment/1240 message respond with IPM Second
Presentment Message Reason Code 2713-Invalid Chargeback.
When DE 55 was not provided in the First Presentment/1240-200 message, DE 55 must be provided in
the Second Presentment Presentment/1240-205 message.
Notes. When the transaction authorization was identified as a preauthorization, use PREAUTH.
When the transaction authorization was not identified as a preauthorization, use AUTH.
Replace MMDDYY with the approval date of the disputed transaction.
Notes. When the transaction authorization was identified as a preauthorization, use PREAUTH.
When the transaction authorization was not identified as a preauthorization, use AUTH.
Replace MMDDYY with the approval date of the disputed transaction.
CAT 3 Device
Second Presentment Condition. The transaction was not a magnetic stripe transaction identified as
occurring at a CAT 3 device and the PAN was not listed in the applicable Local Stoplist or Electronic
Warning Bulletin File on the date of the transaction and one or both of the following:
• The transaction was properly identified in clearing as a CAT 3 terminal.
• The transaction amount was equal to or less than the applicable maximum transaction amount.
Notes. None.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes and Second Presentment Conditions. One of
the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2713—Invalid Chargeback
The first chargeback does not meet the prerequisites for the message reason code.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
• Goods or services were either not as described or defective, including shipped merchandise
was received damaged or not suitable for its intended purpose as well as the merchant
didn’t honor the terms and conditions of a contract
• Goods or services were not provided
• Digital goods were purchased totaling USD 25 or less and did not have adequate purchase
controls
• Credit not processed
• Counterfeit goods alleged to be authentic were purchased
• Recurring transaction canceled prior to billing
• Addendum dispute or “no-show” hotel charge was billed
• Purchase transaction did not complete
• Timeshare agreement or similar service provision was canceled within Mastercard time
frame, regardless of the contractual terms
• Credit posted as a purchase
A Cardholder Dispute chargeback must not be submitted for any of the following:
• Payment Transactions and MoneySend Payment Transactions
• The cash back amount or any portion of the cash back amount.
• Mastercard Commercial Payments Account transaction. A Mastercard Commercial
Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP
(Mastercard Commercial Payments Account) in the First Presentment/1240 message.
• Failure to credit shipping or handling charges for buyer’s remorse cancellations or returns.
• A retail sale processed as a cash disbursement. Customers must accept these transactions
and collect the difference in the interchange fee and cash directly from the acquirer. When
an issuer’s attempt to collect the difference directly from the acquirer proves unsuccessful,
the issuer should contact Global Customer Service.
Chargebacks are available to the issuer for transactions in which any value is purchased for
gambling, investment or similar purposes. However, issuers have no chargeback rights related
to the use of these chips or value, unspent chips, or withdrawal of such value, or on any
winnings, gains or losses resulting from the use of such chips or value.
Staged Digital Wallet.
• A transaction to fund a Staged Digital Wallet (SDW) may be charged back if the funds did
not appear in the SDW. Chargeback rights are not available for any subsequent purchase
of goods or service from a SDW. SDW transactions are identified with a wallet identifier in
DE 48 (Additional Data—Private Use), subelement 26 (Wallet Program Data), subfield 1
(Wallet Identifier) and in PDS 0207 (Wallet Identifier) of the First Presentment/1240
Message.
• Intra-European and Inter-European Transactions Only. This chargeback right is also
available for purchases of goods or services (excluding gambling, investments and similar
provision of services) made using a SDW, when the SDW funding transaction occurred
during the consumer’s purchase.
Such funding transactions are further identified with the SDW Operator name in
conjunction with the retailer name present in DE 43, subfield 1 (Card Acceptor Name) and
the MCC that most closely describes the primary business of the retailer in DE 18
(Merchant Type) of the Authorization Request/0100 message and in DE 26 (Card Acceptor
Business Code [MCC]) of the First Presentment/1240 message.
The issuer or the cardholder must have contacted or attempted to contact the SDW
Operator or retailer to resolve the dispute before raising the chargeback. The result of this
attempt must be explained in the support documentation.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The tables in this section detail the conditions under which a Cardholder Dispute chargeback
may be processed.
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in the transaction
• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the
dispute
Merchant contact is optional when the cardholder is a corporate entity with a contractual
relationship with the merchant and the transaction is for an amount in excess of what is specified
in the contract. In such event the chargeback may be only for the amount of the excessive charge.
• The merchant refused to adjust the price, repair or replace the goods or other things of value, or
issue a credit
• For disputes involving goods: The cardholder returned the goods or informed the merchant the
goods were available for pickup
And one of the following:
• When delivered from the merchant, the goods arrived broken or could not be used for the
intended purpose.
• Goods and services did not conform to their description. Examples include, but are not limited to:
– The cardholder claims that the quality or workmanship of the product is not as described.
– The cardholder claims that the specified color, size, or quantity is not as described.
• The merchant did not honor the terms and conditions of the contract with the cardholder
including, but not limited to, 100 percent money back guarantee, written promises, or return
policy.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute. This means that the cardholder email, letter, message
or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must document
how each Chargeback Conditions was met.
When the cardholder is a corporate entity with a contractual relationship with the merchant and the
transaction is for an amount in excess of what is specified in the contract, the contract must be
provided when the merchant wasn’t contacted in an effort to resolve the dispute.
Optionally, documentation from an expert or professional that supports the cardholder’s dispute about
the level of quality or misrepresentation.
Optionally, documentation that supports the cardholder’s dispute including, but not limited to, the
original receipt, invoice, work order, brochure, contract, or appraisal.
Notes. This chargeback is not available when proper disclosure of the conditions of the goods is made
at the time of the sale, such as when goods are sold in “as is” condition.
Time Frame.
• In cases involving delayed delivery of goods or services and the delivery or performance date was
not specified by the merchant: the issuer must wait 30 calendar days from the transaction date
before submitting a chargeback and not to exceed 120 calendar days from the transaction
settlement date.
However, the issuer may charge back the transaction immediately (and not wait the 30 calendar
days) upon learning the merchant will not provide the goods or services because, for example, for
the merchant is no longer in business.
• In cases involving delayed delivery of goods or services and the delivery or performance date was
specified by the merchant and the latest anticipated delivery or performance date was specified by
the merchant has passed: within 120 calendar days of the latest anticipated delivery or
performance date specified by the merchant.
However, the issuer may charge back the transaction immediately (and not wait until the latest
anticipated delivery or performance date has passed) upon learning the merchant will not provide
the goods or services because, for example, for the merchant is no longer in business.
• In cases involving interruption of ongoing services, within 120 calendar days of the date the
cardholder becomes aware that the service ceased. A chargeback must not be processed after 540
calendar days from the Central Site Business Date of the first presentment.
• In cases involving the purchase of a merchant-branded prepaid gift card without an expiration date
printed on the card and that merchant subsequently goes out of business, within 540 calendar
days from the Central Site Business Date of the first presentment.
• In cases involving the purchase of a merchant-branded prepaid gift card with an expiration date
printed on the card and that merchant subsequently goes out of business, within 120 calendar
days from the expiration date printed on the card.
• In all other cases: within 120 calendar days from the transaction settlement date.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must include both of the following:
• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute. This means that the cardholder email, letter, message or completed Dispute Resolution
Form—Cardholder Dispute Chargeback (Form 1221) must document how each of the
Chargeback Conditions was met.
• A reasonably specific description of the goods/services purchased.
For disputes involving a transaction performed by an online travel agency or tour operator that is no
longer in business at the time of the chargeback: an email, letter, or completed Dispute Resolution
Form—Cardholder Dispute Chargeback (Form 1221) provided by the individual or corporate entity
requesting the travel arrangements from the online travel agency or tour operator that includes all of
the following:
• A description of the complaint in sufficient detail to enable all parties to understand the dispute.
This means that the cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must document how each of the Chargeback
Conditions was met.
• A reasonably specific description of the goods/services purchased.
Notes.
This chargeback applies when the cardholder receives an empty box or a box containing worthless
items, such as a brick or a stack of paper.
Interruption of ongoing services
The issuer must only charge back an amount representing the services not received by the cardholder.
When an end date was not defined, then the issuer must calculate the prorated amount based upon
18 months.
For example, the cardholder purchased a lifetime membership for USD 1,000. The merchant goes out
of business after three months. The amount to be charged back is USD 833 (USD 1,000 divided by 18
months = USD 55 per month. 18 months minus 3 months = 15. USD 55 * 15 = USD 833.)
This chargeback does not apply when
• The cardholder has taken possession of the merchandise from the merchant and subsequently
makes arrangements to have the merchandise shipped by a third party.
• The goods are being held in customs for unpaid duty or customs fees. The cardholder is obligated
to pay the appropriate fees.
• The merchant delivered the merchandise and the cardholder refused to accept delivery.
• The cardholder signed a waiver absolving the merchant from responsibility when the merchandise
is not received.
For example: A cardholder purchases vases and arranges with the merchant to have the vases
shipped to the United States. At the time of purchase, the cardholder signs a waiver form that
states: “PROOF OF DISPATCH OF THE MERCHANDISE WILL BIND THE CARDHOLDER.” The vases
never arrive, and the cardholder contacts the merchant. The merchant provides documentation to
show that the merchandise was shipped. By signing the waiver, the cardholder absolved the
merchant of liability for merchandise that the cardholder did not receive.
• The cardholder declined insurance.
For example: The merchant provides the cardholder with an opportunity to purchase insurance on
the merchandise to be delivered. Normally, such insurance stipulates that the cardholder must
initiate claims that limit the merchant responsibility to the presenting documentation that verifies
shipment or dispatch. The merchant should provide a signed waiver of liability obtained from the
cardholder when the cardholder declined to purchase insurance, along with documentation that
shows that the merchant shipped the merchandise.
Chargeback Condition.
For Intra-EEA and domestic European Transactions, when the cardholder contacted the issuer claiming
a travel service has not, or will not, be provided, and when the merchant is seeking protection from
creditors, insolvent, bankrupt or in liquidation, at least one of the following conditions must be met:
1. The travel service was covered by a bonding authority or similar scheme according to local law,
and one of the following:
– The cardholder (or traveler) requested reimbursement from the bonding authority or similar
scheme and did not receive it, or the claim was declined.
– For Swedish Domestic Transactions: no additional requirement. The cardholder (or traveler) is
not obligated to request reimbursement from a bonding authority or similar scheme prior to
the issuer raising a chargeback.
The cardholder (or traveler) does not need to request reimbursement from the bonding
authority or similar scheme if the merchant, bonding authority or similar scheme publicly states
that the bond is insufficient prior to the chargeback.
2. The travel service was not covered by a bonding authority or similar scheme according to local
law, or neither the issuer nor the cardholder after reasonable effort can determine whether the
travel service was covered by a bonding authority or similar scheme according to local law.
Message Reason Code. 4853 (Cardholder Dispute—Defective/Not as Described) for Dual Message
System transactions.
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4855 (Goods or Services Not Provided) for Dual Message System transactions.
• 4859 (German Domestic Rule - Card Acceptor Unwilling or Unable to Render Services) for Dual
Message System transactions.
Supporting Documents.
Cardholder email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must include all of the following:
• A description of the cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute.
• A reasonably specific description of the travel services purchased. For example, for flights: relevant
airlines, flight numbers, origin/destination details, dates/times, passenger names, ticket/
confirmation numbers, and so on.
• If Chargeback Condition 1 is applicable (except Swedish Domestic Transactions): evidence of the
bonding authority or similar scheme’s response to the cardholder’s (or traveler’s) claim, or proof of
bond insufficiency. If the cardholder (or traveler) requested reimbursement and did not receive a
response, then a copy of the request for reimbursement. A detailed cardholder (or traveler)
explanation is permitted if such documentation is not available.
Notes.
When the transaction is neither Intra-EEA nor domestic European, the applicable global rules apply,
namely Cardholder Dispute - Services Not Provided (reason code 4853). Bonding authority
requirements do not apply to such chargebacks.
If partial travel services have already been provided, the chargeback amount should be prorated to
reflect only the travel services not provided. If the cardholder (or traveler) has received partial
reimbursement from a bonding authority or similar scheme, the chargeback should also be prorated
to reflect the reimbursement.
If the acquirer provides specific evidence of bond coverage in a second presentment, the issuer must
instruct the cardholder (or traveler) to request reimbursement prior to a pre-arbitration case. The pre-
arbitration case is permitted if the reimbursement claim is declined or there is no reimbursement after
30 calendar days from the date the request was sent. The reimbursement request does not extend the
pre-arbitration timeframe, so the issuer should make a good-faith effort to determine bond coverage
prior to the initial chargeback.
For the avoidance of doubt, Mastercard does not consider the following the equivalent of a bonding
authority or similar scheme: 1) reimbursement that an issuer is legally required to provide to their
cardholder, 2) a cardholder’s (or traveler’s) personal or corporate travel insurance policy, and/or 3)
legally required compensation already paid or due to the cardholder (or traveler) by the merchant that
is separate from the purchase price. This list is not exhaustive.
If the travel service was paid for by a travel agency or tour operator as the cardholder, a cardholder (or
traveler) request for reimbursement from a bonding authority or similar scheme is still required if a
bond exists.
Chargeback Condition. The cardholder contacted the issuer alleging both of the following:
• Digital goods were purchased in an e-commerce transaction that was less than or equal to USD 25
(or the local currency equivalent)
• The merchant did not offer the cardholder purchase control settings.
In addition, all of the following:
• The cardholder's account is not closed
• The cardholder's account is in good standing with no associated fraudulent transactions
• The issuer must determine, based on a challenge of the cardholder, that prior to the date(s) of the
disputed transaction(s), the cardholder had provided card information to the merchant in order to
establish an account that could be used for future digital goods purchases, but the merchant did
not offer or establish the following minimum purchase controls in connection with the use of that
account:
– The option, enabled as a default setting, for the cardholder to disable all digital goods
purchases;
– The time period during which a digital goods purchase can be made on the cardholder’s
account with the merchant (the “account open” period) must not exceed 15 minutes from the
time at which the cardholder enters account authentication credentials; and
– Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount
of each pending digital goods purchase before completion of the transaction.
The issuer is advised to ask the following questions when challenging the cardholder and to educate
the cardholder on the use of purchase control settings:
1. Was the cardholder given the option to disable all digital goods purchases on the account?
2. Did the cardholder agree (such as by checking a box) to permit digital goods purchases to be
made without the entry of a password or other form of authentication?
3. When the cardholder was required to enter authentication credentials to use the account, was the
cardholder prompted to re-enter the credentials after a period of inactivity? When known, did
that period exceed 15 minutes?
4. Did the merchant site afford the cardholder the option to confirm or to cancel each purchase?
5. Did the cardholder receive notification (such as using email, text, or other means) promptly after
each purchase was completed?
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s purchase control complaint in
sufficient detail to enable all parties to understand the dispute. This means that the cardholder email,
letter, message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221)
must document how each Chargeback Conditions was met.
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The merchant failed to disclose its refund policy at the time of the transaction and is unwilling to
accept a return or cancellation of goods or services.
• The merchant has not responded to the return or the cancellation of goods or services.
• The merchant posted a credit for a reduced amount without proper disclosure.
• The merchant failed to issue a Value Added Tax (VAT) credit.
Notes.
Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the credit
transaction.
Proper Disclosure
Merchants that are unwilling to accept buyer’s remorse returns and cancellations or that want to have
special terms including (but not limited to) restocking fees or in-store credits, must disclose these
terms at the time of the transaction. The cardholder must be informed of the refund policy as
described in the Transaction Processing Rules, section 3.11 Specific Terms of Transaction. Failure to
disclose a refund policy will result in the merchant’s requirement to accept the goods for return and
issue a credit.
When the merchant informed the cardholder of its refund policy at the time of purchase, the
cardholder must abide by that policy. For example, the cardholder’s sales slip clearly indicates that the
refund policy is “in-store credit only” or “no refunds.”
Counterfeit Goods
“Counterfeit” means that the goods were not produced by an authorized manufacturer of
the goods and therefore infringe on intellectual property rights.
Chargeback Condition. The cardholder contacted the issuer claiming both of the following:
• The cardholder engaged in the transaction.
• The cardholder claims that the goods were purported to be genuine, but were counterfeit.
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute and the disposition of the goods. This means that
the cardholder email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must document how each Chargeback Conditions was met.
Examples of disposition include but are not limited to:
• The goods are in the possession of a governmental agency, such as customs.
• The goods are in the possession of the cardholder.
• The cardholder discarded the goods.
• The cardholder returned the goods to the merchant.
Notes. None
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The cardholder notified the merchant to cancel the recurring transaction and the merchant
continued to bill the cardholder.
• The cardholder was not aware that the cardholder was agreeing to a recurring transaction.
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute. This means that the cardholder email, letter,
message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must
document how each Chargeback Conditions was met.
Time Frame. Within 120 calendar days of the transaction settlement date.
Notes.
One of the following correspond to the Chargeback Condition:
1. Replace MMDDYY with the date the PAN was listed in the Payment Cancellation Service (PCS).
2. Replace MMDDYY with the date of the original chargeback for Cardholder Dispute of a
Recurring Transaction (refer to the previous table) which contained the cardholder’s letter, email,
message or completed Dispute Resolution Form describing the cardholder’s dispute.
Replace XXXXXXXXXXXXXXXXXXXXXXX with the Acquirer Reference Data (ARD) of the
original chargeback for Cardholder Dispute of a Recurring Transaction (refer to the previous table)
which contained the cardholder’s letter, email, message or completed Dispute Resolution Form
describing the cardholder’s dispute.
3. None
Addendum Dispute
An addendum dispute is the dispute of a separate transaction that occurs after a valid
transaction involving the same merchant and the same cardholder.
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in a valid transaction with the merchant.
• A subsequent transaction occurred with that same merchant without the cardholder’s consent.
• The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the
dispute.
Merchant contact is optional when the cardholder is a corporate entity with a contractual
relationship with the merchant and the transaction is for an amount in excess of what is specified
in the contract. In such event the chargeback may be only for the amount of the excessive charge.
Time Frame. Within 120 calendar days of the Central Site Business Date of the disputed subsequent
transaction.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute. This means that the cardholder email, letter,
message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must
document how each Chargeback Conditions was met.
When the cardholder is a corporate entity with a contractual relationship with the merchant and the
transaction is for an amount in excess of what is specified in the contract, the contract must be
provided when the merchant wasn’t contacted in an effort to resolve the dispute.
Notes.
The right to charge back the disputed amount is not dependent on the method of payment for the
original transaction. For example, the cardholder may have paid cash for the accepted transaction, but
the disputed subsequent transaction was applied to the Mastercard card because the cardholder
presented the Mastercard card to the merchant to guarantee the service.
A cardholder is not responsible for a charge representing loss, theft, or damage unless the transaction
was completed as described in the Transaction Processing Rules, section 3.12 Charges for Loss, Theft,
or Damage—Mastercard POS Transactions Only.
Cardholders are responsible for valid addendum charges. Examples include, but are not limited to:
meals that were signed for by the cardholder but not included in the final hotel folio or for parking
tickets/traffic fines issued while the vehicle was in the cardholder’s possession.
Chargeback Condition. The cardholder contacted the issuer to dispute a “no-show” hotel charge
from a merchant that participates in the Mastercard Guaranteed Reservations Service (described in
Appendix E, Lodging Merchant Services) and alleged one of the following:
1. The cardholder canceled the reservation
2. The cardholder used the accommodations
3. The merchant provided alternate accommodations. For example, the cardholder arrived at the
hotel and no room was available. Although the hotel arranged for accommodations at another
hotel, the merchant billed the cardholder in error.
4. The “no-show” charge differed from the rate quoted to the cardholder. Under these
circumstances, only the difference between the two charges can be charged back.
5. The merchant did not advise the cardholder that the merchant would charge a “no-show” fee.
Time Frame. Within 120 calendar days of the Central Site Business Date.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute and one of the following corresponding to the
Chargeback Condition:
1. When available, cancellation number.
2. The issuer must provide the ARD of the transactions that represent the actual use of the
accommodations. When the cardholder used the accommodations but did not use his or her
credit card for payment, the issuer must provide verification of the alternate form of payment,
such as a cash receipt or canceled check.
3. No additional documentation is required.
4. No additional documentation is required.
5. No additional documentation is required.
DE 72 (Data Record). When the “no-show” charge differed from the rate quoted to the cardholder,
one of the following:
• NO SHOW XXX NNNN
• RS5 XXX NNNN
Notes
When the “no-show” charge differed from the rate quoted to the cardholder, the issuer must:
• Replace XXX with the three-digit ISO currency code of the transaction currency in which the rate
was quoted.
• Replace NNNN with the rate quoted expressed in that currency.
Chargeback Condition. The cardholder contacted the issuer claiming all of the following:
• The cardholder engaged in the transaction.
• The cardholder claims the disputed transaction failed to complete.
• The cardholder did not use the goods or services.
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-
Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute. This means that the cardholder email, letter, message
or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must document
how each Chargeback Conditions was met.
Notes. None
Timeshares
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder canceled
the timeshare or similar provision of services within the Mastercard time frame, regardless of the
contractual terms.
Notes. None
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder account
has been inaccurately posted with a debit instead of a credit.
Time Frame. Within 120 calendar days of the transaction settlement date.
Notes. The chargeback amount can be up to twice the original transaction amount to offset the error.
The issuer should then correctly credit the cardholder’s account.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Cardholder Dispute chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s
claims.
Notes. A merchant or acquirer statement that the cardholder never contacted the merchant to cancel
the recurring transaction is not a valid second presentment.
Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s
claims.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied) for Dual Message System transactions.
Notes. A merchant or acquirer statement that the cardholder never contacted the bonding authority
or similar scheme to request reimbursement is not a valid basis for a second presentment.
Second Presentment Condition. The acquirer can substantiate that the merchant offered at least
the following minimum purchase controls at the time of the transaction or transactions.
• The option, enabled as a default setting, for the cardholder to disable all digital goods purchases;
• The time period during which a digital goods purchase can be made on the cardholder’s account
with the merchant (the “account open” period) must not exceed 15 minutes from the time at
which the cardholder enters account authentication credentials; and
• Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount of
each pending digital goods purchase before completion of the transaction.
Supporting Documents. Documentation to support that the chargeback is remedied or invalid (for
example, website screen images).
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Notes. None
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Notes.
This second presentment is not available for ATM transactions.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace ARD with the Acquirer Reference Data (ARD) of the credit transaction.
Replace XXXXXXXXXXXX with the means by which the credit was processed. Examples include, but
are not limited to: bank transfer, store credit, check, cash, prepaid card.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes and Second Presentment Conditions. One of
the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback Required supporting
documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code. Mastercard will block the Arbitration Chargeback when an acquirer
second presents with message reason code 2002 after eight calendar days from the first
chargeback and before the issuer sends the supporting documentation. The acquirer must
accept supporting documentation as long as the acquirer has not processed a second
presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2704—Invalid Data Record Text
Text required to appear in the first chargeback’s DE 72 (Data Record) is missing or incomplete.
– 2709—Documentation Received was Illegible Supporting documentation is illegible.
The acquirer’s second presentment will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during
an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
– 2713—Invalid Chargeback
The first chargeback does not meet the prerequisites for the message reason code.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes. None
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Fraud-related Chargebacks
For purposes of the chargeback Standards, the following message reason codes are deemed
to be fraud-related.
• 4837—No Cardholder Authorization
• 4849—Questionable Merchant Activity
• 4870—Chip Liability Shift
• 4871—Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud
No Cardholder Authorization
This section provides information in handling a dispute when the cardholder states that the
cardholder did not engage in the transaction.
A No Cardholder Authorization chargeback must not be processed for any of the following:
• Face-to-face card-read transactions. A face-to-face transaction at an attended terminal
with card-read (not key-entered) account information.
• Mastercard Consumer-Presented Quick Response (QR) transactions. A Mastercard
Consumer-Presented QR transaction that was properly identified in the Authorization
Request/0100 message or Financial Transaction Request/0200 message. Refer to Appendix
F for Mastercard Consumer-Presented QR transactions identification requirements.
• Authorization Approval after the FNS Date. The issuer approved the transaction after
submitting two or more chargebacks involving the same Mastercard card account (for this
purpose, “account” means primary account number [PAN] and expiration date) for any of
the following message reason codes: 4837, 4840, 4870, or 4871. Message reason code
4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback
count is two or greater.
• FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than
15 chargebacks in aggregate involving the same account (as defined above) for message
reason codes 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will
be included in the FNS count once the FNS fraud chargeback count is two or greater.
• Emergency cash disbursements or emergency travelers check refunds.
• ATM transactions.
• Transactions that occurred at a cardholder-activated terminal (CAT) that were
properly identified in the authorization messages and clearing records as CAT Level 1
(where a PIN is required) or when properly identified in the clearing records as CAT Level 3.
• Counterfeit card transactions that occurred at a CAT Level 2 where the acquirer
transmitted the full unedited card-read data in the Authorization Request/0100 message
and obtained an authorization approval or valid transaction certificate.
• Effective 16 October 2020: Automated Fuel Dispenser (MCC 5542). An automated
fuel dispenser transaction alleged to be lost/stolen/never received issue (NRI) fraud that was
identified with MCC 5542 and CAT 2 and occurred at a hybrid (EMV contactless and/or
contact chip-enabled) terminal.
• Transactions resulting from an account takeover and subsequently reported to the
Fraud and Loss Database as such. An account takeover occurs when the transaction posts
to an account that was fraudulently taken over from the authorized cardholder that
opened the account.
• Addendum Disputes. An addendum dispute is the dispute of a separate transaction that
occurs after a valid transaction involving the same merchant and the same cardholder. The
issuer must process a chargeback for message reason code 4853—Cardholder Dispute
when the cardholder acknowledges participation in the original transaction.
• Properly identified Mastercard SecureCode, Masterpass by Mastercard, and Digital
Secure Remote Payment (DSRP) transactions (including any subsequent transaction
related to the original DSRP transaction, such as a partial shipment or recurring payment)
identified in authorization (DE 48, subelement 42 [Electronic Commerce Indicators],
subfield, 1 (Electronic Commerce Security Level Indicator and UCAF Collection Indicator),
positions 1, 2, and 3) with the values of 211, 212, 215, 221, 222, 225, 241, 242, 245,
911, 912, or 915.
• Mastercard Commercial Payments Account. The transaction was a Mastercard
Commercial Payments Account transaction. A Mastercard Commercial Payments Account
transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP (Mastercard
Commercial Payments Account) in the First Presentment/1240 message.
• Digital Goods. An e-commerce transaction that was less than or equal to USD 25 (or the
local currency equivalent) for the purchase of digital goods resulted because the merchant
did not offer purchasing control settings to the cardholder when the cardholder created an
account with the merchant.
Digital goods are goods that are stored, delivered, and used in electronic format, such as,
by way of example but not limitation, books, newspapers, magazines, music, games, game
pieces, and software (excludes gift cards).
Refer to Message Reason Code 4853—Cardholder Dispute regarding chargeback
requirements for non-fraud digital goods transactions.
• Brazil only—The transaction was a Mastercard Agro Card transaction occurring in Brazil
with a Mastercard Agro Card issued in Brazil. A Mastercard Agro Card transaction occurs
when PDS 0002 (GCMS Product Identifier) was MLF (Mastercard Agro Card) in the First
Presentment/1240 message.
• Bangladesh only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Bangladesh with a Mastercard MCP card issued in Bangladesh. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than BDT 100,000.
• India only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in India with a Mastercard MCP card issued in India. A Mastercard
MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was MCP
(Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when the
value of the transaction is equal to or greater than INR 100,000.
• Sri Lanka only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Sri Lanka with a Mastercard MCP card issued in Sri Lanka. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than LKR 200,000.
• Taiwan only—The transaction was chip-initiated domestic transaction occurring at a
cardholder-activated terminal (CAT) that was properly identified as a CAT Level 2 in Taiwan
under one of the below MCCs.
– 4011—Railroads – Freight
– 4111—Transportation – Suburban and Local Commuter Passenger, including Ferries
– 4225—Public Warehousing-Farm Products Refrigerated Goods, Household Goods, and
Storage
– 5399—Miscellaneous General Merchandise
– 5411—Grocery Stores and Supermarkets
– 5422—Freezer and Locker Meat Provisioners
– 5542—Automated Fuel Dispensers
– 5812—Eating Places and Restaurants
– 5814—Fast Food Restaurants
– 5999—Miscellaneous and Specialty Retail Stores
– 7011—Lodging- Hotels, Motels, and Resorts
– 7012—Timeshares
– 7210—Laundry, Cleaning, and Garment Services
– 7278—Buying and Shopping Services and Clubs
– 7512—Automobile Rental Agency
– 7523—Parking Lots and Garages
– 7832—Motion Picture Theaters
– 8062—Hospitals
– 9402—Postal Services- Government Only
Chargeback
The tables in this section detail the conditions under which an issuer may process a first
chargeback under the No Cardholder Authorization chargeback.
No Cardholder Authorization
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder did not
authorize the transaction.
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4837 (No Cardholder Authorization) for Dual Message System transactions
• 37 (No Cardholder Authorization) for Debit Mastercard transactions processed on the Single
Message System
Notes.
Fraud Reporting
The transaction must be reported to the Fraud and Loss Database as required in the Fraud and Loss
Database User Guide.
Dispute Resolution Form-Fraud (Form 0412)
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before processing the chargeback:
• The Mastercard card account is closed.
• The issuer blocked the account on its host.
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration.
• Report the transaction to the Fraud and Loss Database.
CAT 2 Transactions
This chargeback is not available for counterfeit transactions occurring at a cardholder-activated
terminal (CAT) that was properly identified as a CAT Level 2 in the authorization and clearing
messages.
The chargeback is also not available for chip-initiated domestic transactions occurring at a cardholder-
activated terminal (CAT) that was properly identified as a CAT Level 2 in Taiwan under one of the
below MCCs.
• 4011—Railroads – Freight
• 4111—Transportation – Suburban and Local Commuter Passenger, including Ferries
• 4225—Public Warehousing-Farm Products Refrigerated Goods, Household Goods, and Storage
• 5399—Miscellaneous General Merchandise
• 5411—Grocery Stores and Supermarkets
• 5422—Freezer and Locker Meat Provisioners
• 5542—Automated Fuel Dispensers
• 5812—Eating Places and Restaurants
• 5814—Fast Food Restaurants
• 5999—Miscellaneous and Specialty Retail Stores
• 7011—Lodging- Hotels, Motels, and Resorts
• 7012—Timeshares
• 7210—Laundry, Cleaning, and Garment Services
• 7278—Buying and Shopping Services and Clubs
• 7512—Automobile Rental Agency
• 7523—Parking Lots and Garages
• 7832—Motion Picture Theaters
• 8062—Hospitals
• 9402—Postal Services Government Only
This chargeback is available for lost, stolen, never received (NRI) contact and contactless transactions
when all of the following occurs:
• Before processing the chargeback, the issuer must block the account on its host and list the
primary account number (PAN) on the Mastercard Stand-in Account File with a “capture card”
response until card expiration or for contactless transactions involving a Mastercard token, the
issuer must deactivate the token.
• The cardholder email, letter, message or completed Dispute Resolution Form—Fraud (Form 0412)
alleging that the transaction is fraudulent also must state, or the issuer must otherwise certify by
means of a separate document accompanying the cardholder letter, that the card was lost, stolen,
or never received (NRI) at the time of the transaction.
Aggregated Contactless Transit Transactions
The issuer may only charge back the disputed amount of an Aggregated Contactless Transit
transaction when the Aggregated Contactless Transit transaction cleared for an amount above the
applicable CVM Limit.
Domestic Installment Billing
This chargeback may be used to charge back the first installment submitted under a domestic
installment payment arrangement for a fraud-related reason. In order to keep the integrity of the
Fraud Notification Service chargeback counters, the issuer must use message reason code 4850—
Installment Billing Dispute to charge back any subsequent installment payments.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a No Cardholder Authorization chargeback may be processed.
CAT 3. When the disputed transaction occurred at a CAT 3 device, the terminal must have
been properly identified as a CAT 3 device in the First Presentment/1240 message in order for
the acquirer to second present.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
New Information. New information regarding the merchant name and/or transaction date is
not a valid second presentment.
Two or More Previous Fraud-related Chargebacks
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Notes.
Replace NN with the chargeback count value provided by the Fraud Notification Service in PDS 0200,
subfield 2 of the First Chargeback/1442 message. The chargeback count value must be 16 or greater.
Second Presentment Condition. The transaction was a contactless transaction equal to or less than
the applicable CVM limit.
Refer to Appendix C for the CVM limits.
PIN Transaction
Second Presentment Condition. A PIN was present in the Authorization Request/0100 message.
IPM Second Presentment Message Reason Code. One of the following:
• 2008 (Issuer Authorized Transaction) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Account Takeover
Second Presentment Condition. The acquirer can provide evidence that the transaction resulted
from an account takeover.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Addendum Charges
Second Presentment Condition. The acquirer can substantiate that the addendum transaction is the
cardholder’s responsibility.
IPM Second Presentment Message Reason Code 2700 (See Corresponding Documentation/
Chargeback Remedied) for Dual Message System transactions.
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to non-face-to-face airline transactions.
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to non–face-to-face recurring transactions.
Second Presentment Condition. The acquirer can provide specific documentation to support
cardholder participation in the transaction.
This second presentment is limited to e-commerce, mail order, and telephone order transactions.
Supporting Documents. At least one of the following documents and, when necessary, an
explanation:
• A receipt, work order, or other document signed by the cardholder substantiating that the goods
or services were received by the cardholder (commonly referred to as “will call” and “in-store
pickup”)
• The cardholder’s written confirmation of registration to receive electronic delivery of goods or
services
• Copies of written correspondence exchanged between the merchant and the cardholder (such as
letter, email, or fax) showing that the cardholder participated in the transaction.
• A merchant statement documenting all of the following when, after completing an authenticated
e-commerce transaction, the merchant obtained authorization for a related transaction involving a
partial shipment or the payment of a balance due:
– The initial transaction was a Digital Secure Remote Payment (DSRP) transaction, DE 48,
subelement 42 (Electronic Commerce Indicators), subfield 1 (Electronic Commerce Security
Level Indicator and UCAF Collection Indicator), position 3 (UCAF Collection Indicator) is set to 2
in authorization, or was SecureCode-initiated;
– Description of the goods or services purchased in the initial transaction;
– Date and authorization approval code for the initial transaction; and
– The initial transaction was not disputed.
• When a merchant requires a cardholder to register prior to completing a purchase, the merchant
must provide documentation confirming the cardholder or authorized user is registered to
purchase goods with a password and must provide one or more of the following documentation:
– The cardholder or authorized user completed other undisputed purchases prior to, or after, the
alleged fraudulent transaction
– The cardholder or authorized user completed the disputed transaction from a registered device
and IP address
– Details of the purchase
– Signed proof of delivery
– Email addresses to support digital download delivery
– The cardholder or authorized user registered the disputed goods or services. For example,
registration for purposes of warranty or future software updates.
– The disputed goods or services were used
– A fully enabled SecureCode transaction was used to register a PAN for future transactions
Invalid Chargeback
Second Presentment Condition The issuer’s chargeback was invalid. For example, the issuer
submitted documentation that failed to support the chargeback.
IPM Second Presentment Message Reason Code. One of the following:
• 2713 (Invalid Chargeback) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Second Presentment Condition. The transaction was the result of a “no show” as described in the
Guaranteed Reservations section of the Lodging Merchant Service appendix of this manual.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date the transaction was authorized.
Replace NNNNNN with the authorization approval code.
Second Presentment Condition. A transaction between Customers that participate in the Global
Chip Liability Shift Program Level 2 and the acquirer can show that the transaction occurred at a
hybrid terminal equipped with a PIN pad, while the card was not PIN-preferring.
This is a final remedy.
Notes
Replace MMDDYY with the date the transaction was authorized.
Replace NNNNNN with the authorization approval code.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once. Mastercard
recommends that the Acquirer provides the processing date and chargeback reference number
of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback was processed past the time frame specified for the chargeback.
– 2704—Invalid Data Record Text
Text required to appear in the first chargeback’s DE 72 (Data Record) is missing or incomplete.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
• The merchant is listed in a Mastercard Announcement for violating the Global Merchant
Audit Program (GMAP). Refer to section 8.2 of the Security Rules and Procedures Manual
for more information about the GMAP.
• The merchant is listed in a Mastercard Announcement for violating the Questionable
Merchant Audit Program (QMAP). Refer to section 8.4 of the Security Rules and Procedures
Manual for more information about the QMAP.
• The merchant is determined by Mastercard as violating Rule 3.7, “Integrity of Brand and
Network”, for claims of coercion.
For purposes of this message reason code, coercion means the cardholder or the
cardholder’s immediate family member is threatened with physical harm or the unlawful
taking of property when the cardholder refuses to complete the transaction.
The issuer may not use this message reason code in the following situations.
• The merchant was determined by Mastercard to have not violated Rule 3.7.
• The issuer did not receive a noncompliance confirmation letter for a coercive transaction.
• The issuer did not properly report the transaction to the Fraud and Loss Database within
the applicable time frame in accordance with the Fraud and Loss Database User Guide.
• The transaction reported to the Fraud and Loss Database is not a fraud type eligible for
chargeback under the applicable program.
• Under GMAP, issuers may not use message reason code 4849 when the transaction was
reported to the Fraud and Loss Database with a fraud type code of Never Received Issue
(02), Fraudulent Application (03), Account Takeover Fraud (05), or Bust-out Collusive
Merchant (51).
• The transaction was a Mastercard Commercial Payments Account transaction. A
Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS
Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
• Brazil only—The transaction was a Mastercard Agro Card transaction occurring in Brazil
with a Mastercard Agro Card issued in Brazil. A Mastercard Agro Card transaction occurs
when PDS 0002 (GCMS Product Identifier) was MLF (Mastercard Agro Card) in the First
Presentment/1240 message.
• Bangladesh only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Bangladesh with a Mastercard MCP card issued in Bangladesh. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than BDT 100,000.
• India only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in India with a Mastercard MCP card issued in India. A Mastercard
MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was MCP
(Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when the
value of the transaction is equal to or greater than INR 100,000.
• Sri Lanka only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Sri Lanka with a Mastercard MCP card issued in Sri Lanka. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than LKR 200,000.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The tables in this section detail the conditions under which an issuer may process a first
chargeback under the Questionable Merchant Activity chargeback.
Global Merchant Audit Program (GMAP)
Time Frame. Within 30 calendar days of the date of the noncompliance confirmation letter.
Message Reason Code. One of the following:
• 4849 (Questionable Merchant Activity) for Dual Message System transactions
• 49 (Questionable Merchant Activity) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents. A copy of the noncompliance confirmation letter from Mastercard that the
acquirer’s merchant violated Rule 3.7 two or more times based on coercive transactions within the
case scope period.
DE 72 (Data Record). BRAM CASE NO. NNNNN
Notes.
Replace NNNNN with the Business Risk Assessment and Mitigation (BRAM) program case number
stated in the noncompliance confirmation letter from Mastercard.
A new first chargeback is allowed under this message reason code when a previous chargeback was
not successful and all requirements under this message reason code have been met.
Second Presentment
The tables in this section detail the conditions under which an acquirer may process a second
presentment in response to a Questionable Merchant Activity chargeback.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Not Considered in Violation of Mastercard Rule 3.7 for Coercion Claim
DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. MERCHANT NOT IN VIOLATION
2. MISSING CONFIRMATION LETTER
Notes. None
Second Presentment Condition. The issuer submitted the first chargeback more than 30 calendar
days after the date of the noncompliance confirmation letter from Mastercard for claims of coercion.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Notes. None
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database on or before the chargeback date. Mastercard allows three days from the reporting date for
the Fraud and Loss Database processing. Mastercard considers the Fraud and Loss Database reporting
within time when the transaction reporting date in the Fraud and Loss Database is within three days
of the chargeback date.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
Ineligible Fraud
Second Presentment Condition. The fraud type under which the transaction was reported in the
Fraud and Loss Database is not eligible for chargeback.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)
DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. MERCHANT NOT LISTED
2. INVALID TRANSACTION DATE
Notes. None
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes.
Replace MMDDYY with the date of the credit transaction. Optionally, replace
NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the credit
transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19 of the Global Clearing Management System Reference
Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19 of the Global Clearing Management System Reference Manual. In the event an
arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of the issuer
provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record did not match the information contained in the first presentment record.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback was processed past the time frame specified for the chargeback.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Intraregional/domestic transactions:
• Excluding transactions at 1 October 2015
automated fuel dispensers (MCC
5542)
The issuer may not use this message reason code when the following occur:
• A Digital Secure Remote Payment (DSRP) transaction or any subsequent transaction
for a related partial shipment or recurring payment. Refer to Appendix F for Digital Secure
Remote Payment transaction identification requirements.
• Authorization Approval after the FNS Date. The issuer approved the transaction after
submitting two or more chargebacks involving the same Mastercard card account (for this
purpose, “account” means primary account number [PAN], or PAN and expiration date) for
any of the following message reason codes: 4837, 4840, 4870, or 4871. Message reason
code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
• FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than
15 chargebacks in aggregate involving the same account (as defined above) for message
reason codes 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will
be included in the FNS count once the FNS fraud chargeback count is two or greater.
• A valid EMV chip transaction occurred and DE 55 and related data was provided in the
Authorization Request/0100 message or Financial Transaction Request/0200 message
(when online-authorized) and the First Presentment/1240 message.
• A valid Mastercard Consumer-Presented Quick Response (QR) transactions. A
Mastercard Consumer-Presented QR transaction that was properly identified in the
Authorization Request/0100 message or Financial Transaction Request/0200 message.
Refer to Appendix F for Mastercard Consumer-Presented QR transactions identification
requirements.
• A magnetic stripe-read or key-entered transaction occurred and was properly
identified as the result of technical fallback in the Authorization Request/0100
message and in the First Presentment/1240 message.
• The Authorization Request/0100 message contained a service code value other
than 2xx or 6xx in DE 35 (Track 2 Data) or DE 45 (Track 1 Data), either because:
– The card was not an EMV chip card (issuers approve such transactions at their own risk).
– A counterfeit card transaction occurred in which the service code was altered from that
of the valid EMV chip card.
• The transaction was a mail order, phone order, e-commerce, or recurring payment
transaction.
• Properly identified and authorized contactless transactions.
• The transaction was a Mastercard Commercial Payments Account transaction. A
Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS
Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
• Brazil only—The transaction was a Mastercard Agro Card transaction occurring in Brazil
with a Mastercard Agro Card issued in Brazil. A Mastercard Agro Card transaction occurs
when PDS 0002 (GCMS Product Identifier) was MLF (Mastercard Agro Card) in the First
Presentment/1240 message.
• Bangladesh only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Bangladesh with a Mastercard MCP card issued in Bangladesh. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than BDT 100,000.
• India only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in India with a Mastercard MCP card issued in India. A Mastercard
MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was MCP
(Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when the
value of the transaction is equal to or greater than INR 100,000.
• Sri Lanka only—The transaction was a Mastercard Corporate Purchasing Card (MCP)
transaction occurring in Sri Lanka with a Mastercard MCP card issued in Sri Lanka. A
Mastercard MCP card transaction occurs when PDS 0002 (GCMS Product Identifier) was
MCP (Mastercard Corporate Purchasing Card) in the First Presentment/1240 message when
the value of the transaction is equal to or greater than LKR 200,000.
• Mastercard Biometric Card—The transaction occurred with a Mastercard Biometric Card
and biometric Cardholder authentication was successful. Refer to Appendix F for
Mastercard Biometric Card Program transaction identification information.
Term Definition
Technical Fallback Transaction In a technical fallback transaction, either the chip or the merchant
device (CAD) failed, as shown by the presence of:
• A value of 79 or 80 is present in DE 22 (Point-of-Service [POS] Entry
Mode), subfield 1 (POS Terminal PAN Entry Mode) of the
Authorization Request 0100 message or:
• A value of 01 in DE 22, subfield 1 of the Authorization Request/
0100 message, when the authorization and clearing messages
indicate that the transaction occurred at a hybrid terminal.
For information about DE 22, Subfield 1 values, refer to the Customer
Interface Specification manual.
Chargeback
The tables in this section detail the conditions under which a first chargeback under the Chip
Liability Shift chargeback may be processed.
The issuer may charge back a Mastercard ATM Network transaction using this message reason
code only when the transaction was conducted with an EMV chip card at a magnetic
stripereading-only ATM and both Customers are located in countries or regions participating
in the Chip Liability Shift for ATM transactions. Refer to the Single Message System
Chargebacks chapter, message reason code 70—Chip Liability Shift. Europe region Customers
should refer to Appendix A, Message Reason Code 4870—Chip Liability Shift for more details.
Chip Liability Shift
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Chip Liability Shift chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 2 (Fraud Notification Service
Chargeback Counter) of the First Chargeback/1442 message is present and contains a chargeback
counter value that exceeds 15 (a value of 16 or more).
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database in the Fraud Center application on Mastercard Connect on or before the chargeback date.
Mastercard allows three days from the reporting date for the Fraud and Loss Database processing.
Mastercard considers the Fraud and Loss Database reporting within time when the transaction
reporting date in the Fraud and Loss Database is within three days of the chargeback date.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Supporting Documents. Documentation that supports the second presentment from one of the
following:
• The Daily Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide
• Monthly Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide
• The Acquirer Dashboard in Mastercard Connect > Fraud Center > Fraud Insights
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Second Presentment Condition. The transaction was authorized online and did not involve a valid
EMV chip card as evidenced by the service code in DE 35 (Track 2 Data) or DE 45 (Track 1 Data) of the
Authorization Request/0100 message.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Notes
Replace X with the value contained in position 1 of the three-digit service code transmitted by the
card to the terminal.
X must be a value other than 2 or 6.
Technical Fallback
Second Presentment Condition. The transaction was the result of technical fallback.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a No Cardholder Authorization chargeback may be processed.
CAT 3. When the disputed transaction occurred at a CAT 3 device, the terminal must have
been properly identified as a CAT 3 device in the First Presentment/1240 message in order for
the acquirer to second present.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
New Information. New information regarding the merchant name and/or transaction date is
not a valid second presentment.
Chip Transaction—DE 55 Not Provided—Did Not Require Online Authorization
Second Presentment Condition. The transaction did not require online authorization and DE 55 was
not provided in the First Presentment/1240 message and one of the following:
• The acquirer can prove that the transaction was completed with chip and PIN.
• Completed with chip while the card was not PIN-preferring
• The result of CVM fallback
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied).
Second Presentment Condition. DE 55 was provided in the First Presentment/1240 message and
one of the following:
• The transaction was completed with chip and PIN.
• The transaction was completed with chip while the card was not PIN-preferring
• The transaction was the result of CVM fallback
Notes.
When the transaction was the result of CVM fallback, this second presentment is not available when
the transaction data in DE 55 indicates “PIN Entry Required and PIN Pad Not Present or Not Working”.
Invalid Chargeback
Second Presentment Condition The transaction involved an issuer or acquirer located in a country
or region without an applicable domestic, intraregional, or interregional chip/PIN liability shift.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Clearing Management System Reference Manual. In the event an
arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of the issuer
provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback Required supporting
documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code. Mastercard will block the Arbitration Chargeback when an acquirer
second presents with message reason code 2002 after eight calendar days from the first
chargeback and before the issuer sends the supporting documentation. The acquirer must
accept supporting documentation as long as the acquirer has not processed a second
presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2709—Documentation Received was Illegible Supporting documentation is illegible.
The acquirer’s second presentment will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during
an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Term Definition
PIN-preferring chip card, Offline PIN means the PIN is verified “offline” by the chip prior to
hybrid PIN-preferring card authorization of the transaction by the issuer or the chip. Online PIN
means the PIN is passed in the authorization request message and verified
“online” by the issuer during authorization.
When issued in the Asia/Pacific, Canada, Europe, Latin America and the
Caribbean, or Middle East/Africa region—An EMV chip card that has
been personalized so that the offline PIN CVM option appears in the
card’s CVM list with higher priority than the signature option.
When issued in the United States region—An EMV chip card that has
been personalized so that a PIN CVM option (online PIN or offline PIN)
appears in the card’s CVM list with a higher priority than the signature
option.
NOTE: This message reason code does not apply to U.S. region
automated fuel dispenser [MCC 5542] transactions until 1 October
2020.
Contactless-enabled hybrid An EMV chip card with contactless payment functionality that has been
PIN-preferring card personalized so that the online PIN CVM option appears on the card’s
contactless CVM list with a higher priority than the signature option.
Contactless-enabled secure An access device, including any mobile payment device or contactless
CVM-preferring access device payment device, with contactless payment functionality that:
• Has been personalized so that the online PIN CVM option appears on
the CVM list with a higher priority than the signature option, and may
also support on-device cardholder verification; or
• Always performs on-device cardholder verification.
PIN-capable hybrid POS When located in the Asia/Pacific, Canada, Europe, Latin America and the
terminal Caribbean, or Middle East/Africa region—A hybrid POS terminal that is
capable at a minimum of performing offline PIN verification when a PIN-
preferring chip card is presented. It also may be capable of online PIN
verification and, when attended, must support signature.
When located in the United States region—A hybrid POS terminal capable
of performing both online and offline PIN verification when a PIN-
preferring chip card is presented and which, when attended, also
supports signature.
A PIN-capable hybrid POS terminal is indicated when DE 22, subfield 2
(Terminal Data: Cardholder Authentication Capability), of the First
Presentment/1240 message contains a value of 1.
Term Definition
Hybrid POS Terminal A POS Terminal that:
1. Is capable of processing both contact chip transactions and magnetic
stripe-based transactions;
2. Has the equivalent hardware, software, and configuration as a hybrid
POS terminal with full EMV Level 1 and Level 2 type approval status
with regard to the chip technical specifications; and
3. Has satisfactorily completed the Mastercard Terminal Integration
Process (TIP) in the appropriate environment of use.
A Hybrid POS Terminal is identified in transaction messages with the
following values:
• A value of 3, 5, 8, or 9 in DE 61 (Point-of-Service Data), subfield 11
(POS Card Data Terminal Input Capability Indicator) in the
Authorization Request/0100 or Financial Transaction Request/0200
message, as described in Customer Interface Specification and Single
Message System Specifications; and
• A value of 5, C, D, E, or M in DE 22 (Point of Service Data Code),
subfield 1 (Terminal Data: Card Data Input Capability) of the First
Presentment/1240 message, as described in IPM Clearing Formats.
Technical fallback transaction In a technical fallback transaction, either the chip or the merchant device
(CAD) failed, as shown by the presence of:
• A value of 79 or 80 is present in DE 22 (Point-of-Service [POS] Entry
Mode), subfield 1 (POS Terminal PAN Entry Mode) of the Authorization
Request/0100 message or
• A value of 01 in DE 22, subfield 1 of the Authorization Request/0100
message, when the authorization and clearing messages indicate that
the transaction occurred at a hybrid terminal.
For information on DE 22, subfield 1 values, refer to the Customer
Interface Specification manual.
Valid EMV chip cards When a transaction involves a valid EMV chip card, a value of 2 or 6 is
present in position 1 of the three-digit service code in DE 35 (Track 2
Data) or DE 45 (Track 1 Data) of the Authorization Request/0100
message.
Contactless-enabled POS A POS terminal enabled with contactless payment functionality, including
terminal but not limited to a hybrid POS terminal or contactless-only POS terminal.
Chip/PIN transaction Either of the following:
• A contact chip transaction effected with a valid EMV chip card at a
PIN-capable hybrid POS terminal using the chip and with offline or
online PIN as the CVM.
• A contactless transaction effected with a contactless-enabled secure
CVM-preferring card or access device at a contactless-enabled POS
terminal using contactless payment functionality and with online PIN
or successful on-device cardholder verification as the CVM.
Term Definition
CVM fallback A chip transaction in which a lower priority Cardholder Verification
Method (CVM) is performed (for example, signature or none), because
the higher priority CVM (PIN) is temporarily unavailable. CVM fallback
from PIN to signature or no CVM is indicated in DE 55 (Integrated Circuit
Card [ICC] System-Related Data) of the First Presentment/1240 message
by data showing that in Byte 3 of the Terminal Verification Result (tag 95),
any or all of bits 4, 5, or 6 were set.
The issuer may not use this message reason code under the following conditions.
• The transaction occurred with an online PIN-preferring card and PIN data was
provided in the Authorization Request/0100 or Financial Transaction Request/0200
message.
• The transaction occurred at a PIN-enabled hybrid POS terminal and was approved
although PIN was not present due to the use of PIN bypass functionality.
• A counterfeit card transaction occurred with an unaltered service code (reason code
4870 [Chip Liability Shift—Counterfeit Fraud] should be used).
• A Digital Secure Remote Payment (DSRP) transaction or any subsequent transaction
for a related partial shipment or recurring payment occurred. Refer to Appendix F for
Digital Secure Remote Payment transaction identification requirements.
• A contactless transaction occurred at a contactless-enabled POS terminal with a
successful Consumer Device Cardholder Verification Method (CDCVM), as indicated by the
data provided in “CVM Results” or the “Issuer Application Data” within DE 55
• A properly identified contactless transaction occurred and one of the following:
– The transaction amount was equal to or less than the CVM limit (found in Appendix C)
– The transaction amount exceeded the CVM limit and was completed with online PIN or
successful on-device cardholder verification
– The validly issued card or access device was issued with magstripe mode-only
contactless functionality and did not support on-device cardholder verification, the
transaction amount exceeded the CVM limit and signature was selected as the CVM.
• Authorization Approval after the FNS Date. The issuer approved the transaction after
submitting two or more chargebacks involving the same Mastercard card account (for this
purpose, “account” means primary account number [PAN], or PAN and expiration date) for
any of the following message reason codes: 4837, 4840, 4870, or 4871. Message reason
code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
• FNS Counter Exceeds 15 Fraud-Related Chargebacks. The issuer submitted more than
15 chargebacks in aggregate involving the same account (as defined above) for message
reason codes 4837, 4840, 4870, or 4871. Message reason code 4863 first chargebacks will
be included in the FNS count once the FNS fraud chargeback count is two or greater.
• A valid EMV chip/PIN transaction occurred and DE 55 and related data were provided
in the Authorization Request/0100 message or Financial Transaction Request/0200 message
(when online-authorized) and the First Presentment/1240 message.
Chargeback
The table in this section details the conditions under which a Lost/Stolen/NRI Fraud Chip
Liability Shift chargeback may be processed.
Lost/Stolen/NRI Fraud Chip Liability Shift
Time Frame. Within 120 calendar days of the Central Site Business Date of the transaction.
Message Reason Code. One of the following:
• 4871 (Lost/Stolen/NRI Fraud Chip Liability Shift) for Dual Message System transactions
• 71 (Lost/Stolen/NRI Fraud Chip Liability Shift) for Debit Mastercard transactions processed on the
Single Message System
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a Chip/PIN Liability Shift chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Second Presentment Condition. The issuer approved the transaction after submitting two or more
chargebacks involving the same Mastercard card account (for this purpose, “account” means primary
account number [PAN], or PAN and expiration date) for message reason codes 4837, 4840, 4870,
and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 1 (Fraud NTF Date) of the First
Chargeback/1442 message is present and contains a date value that is earlier than the authorization
approval date of the disputed transaction.
Second Presentment Condition. The issuer submitted more than 15 chargebacks involving the same
card account (for this purpose, “account” means primary account number [PAN], or PAN and
expiration date) for message reason codes 4837, 4840, 4870, and/or 4871.
Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud
chargeback count is two or greater.
This condition has been met when PDS 0200 (Fraud Counter), subfield 2 (Fraud Notification Service
Chargeback Counter) of the First Chargeback/1442 message is present and contains a chargeback
counter value that exceeds 15 (a value of 16 or more).
Second Presentment Condition. The transaction was not properly reported to the Fraud and Loss
Database on or before the chargeback date. Mastercard allows three days from the reporting date for
the Fraud and Loss Database processing. Mastercard considers the Fraud and Loss Database reporting
within time when the transaction reporting date in the Fraud and Loss Database is within three days
of the chargeback date.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Supporting Documents. Documentation that supports the second presentment from one of the
following:
• The Daily Acquirer’s Loss Data File. For more information, refer to the SAFE Products User Guide
• Monthly Acquirer Loss Data File. For more information, refer to the SAFE Products User Guide
• The Acquirer Dashboard in Mastercard Connect > Fraud Center > Fraud Insights
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Time Frame. Within 45 calendar days of the chargeback settlement date.
Supporting Documents. None
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Notes. Replace X with the value contained in position 1of the three-digit service code transmitted by
the card to the terminal. X must be a value other than 2 or 6.
Technical Fallback
Second Presentment Condition The transaction was the result of technical fallback at a PIN-capable
terminal.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)
Second Presentment Condition. The transaction did not require online authorization and DE 55 was
not provided in the First Presentment/1240 message and one of the following:
• The acquirer can prove that the transaction was completed with chip and PIN.
• Completed with chip while the card was not PIN-preferring
• The result of CVM fallback
Second Presentment Condition. DE 55 was provided in the First Presentment/1240 message and
one of the following:
• The transaction was completed with chip and PIN.
• The transaction was completed with chip while the card was not PIN-preferring.
• The transaction was the result of CVM fallback.
Invalid Chargeback
Second Presentment Condition. The transaction involved an issuer or acquirer located in a country
or region without an applicable domestic, intraregional, or interregional chip/PIN liability shift.
IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Time Frame. Within 45 calendar days of the chargeback settlement date.
Supporting Documents. None
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2011 (Credit Previously Issued)
Notes.
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Clearing Management System Reference Manual. In the event an
arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of the issuer
provided the first chargeback was timely and valid.
IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback Required supporting
documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code. Mastercard will block the Arbitration Chargeback when an acquirer
second presents with message reason code 2002 after eight calendar days from the first
chargeback and before the issuer sends the supporting documentation. The acquirer must
accept supporting documentation as long as the acquirer has not processed a second
presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
Mastercard recommends that the acquirer provides the processing date and chargeback
reference number of the original chargeback with its second presentment.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2709—Documentation Received was Illegible Supporting documentation is illegible.
The acquirer’s second presentment will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during
an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Point-of-Interaction Error
This section provides information for handling a point-of-interaction error chargeback.
A point-of-interaction error chargeback may be submitted when the cardholder contacted the
issuer alleging one of the following:
• The cardholder paid twice for the same transaction using two different forms of payment .
• The cardholder’s account has been debited more than once for the same transaction using
the same form of payment.
• The cardholder was billed an incorrect amount.
• Cash was not properly dispensed by an ATM.
• The cardholder’s account has been debited more than once for the same ATM transaction.
• The cardholder was billed for loss, theft, or damage in the same transaction as the
underlying initial service.
• A dispute regarding POI Currency Conversion (Dynamic Currency Conversion).
• The cardholder was billed an unreasonable amount (Intra-EEA Transactions, domestic
transactions in EEA countries, transactions between an EEA country and Gibraltar or the
UK, Gibraltar domestic transactions, and UK domestic transactions).
• The cardholder paid an improper merchant surcharge (intra-European and inter-European
transactions only).
• The merchant processed a credit (instead of a reversal) to correct an error which resulted in
the cardholder experiencing a currency exchange loss.
• The acquirer presented a transaction past the applicable time frame.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the issuer and the acquirer share a common language.
Supporting Documents must provide sufficient detail to enable all parties to understand the
nature of the dispute or rebuttal. Mastercard will determine whether the Supporting
Documents contain sufficient detail. Supporting Documents must be provided using the
Mastercom application.
Although Supporting Documents can be entered into Mastercom at any time before the next
cycle is processed, Supporting Documents must be entered into the Mastercom system within
eight calendar days of generating a chargeback or second presentment requiring Supporting
Documents to avoid liability for the disputed transaction solely for failing to provide
Supporting Documents (codes 2002 or 4901).
The cardholder email, cardholder letter, and/or cardholder message (including through a
password-protected website) must come directly from the cardholder or, in the case of a
commercial card, the corporate entity. A completed Dispute Resolution Form must be the
direct result of a conversation with the cardholder.
Chargeback
The tables in this section detail the conditions under which a first chargeback under the point-
of-interaction error chargeback may be processed.
Cardholder Debited More than Once for the Same Goods or Services
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The cardholder’s account has been debited more than once for the same transaction.
• The cardholder paid for a transaction using one form of payment and was subsequently debited
for the same transaction using another form of payment.
Time Frame. 90 calendar days from the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4831 (Transaction Amount Differs) for Dual Message System transactions
• 31 (Transaction Amount Differs) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents.
A cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction (POI)
Errors (Form 1240) describing the cardholder’s complaint in sufficient detail to enable all parties to
understand the dispute.
The cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction
(POI) Errors (Form 1240) must specify the alternate means of payment providing sufficient transaction
details to allow the merchant to locate the alternate payment.
When a non-Mastercard method of payment was used, documentation detailing the specific non-
Mastercard method of payment. Examples include, but are not limited to:
• A bank statement documenting payment to the merchant
• A canceled check
• A receipt showing cash as the payment method
DE 72 (Data Record).
When both transactions were processed through the Mastercard network:
FIRST REF NNNNNNNNNNNNNNNNNNNNNNN
Notes.
Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the first
valid transaction.
Travel Vouchers
When the merchant accepted the travel voucher, the Supporting Documentation must state that the
merchant accepted the voucher. When the merchant did not accept the travel voucher, the issuer
should consider using the Cardholder Dispute chargeback against the entity that issued the travel
voucher.
Chargeback Condition. The cardholder contacted the issuer claiming the cardholder was billed an
incorrect amount.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4831 (Transaction Amount Differs) for Dual Message System transactions
• 31 (Transaction Amount Differs) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents.
For disputes involving gratuity amounts: A cardholder letter, email, message or completed
Dispute Resolution Form—Point-of-Interaction (POI) Errors (Form 1240) describing the cardholder’s
complaint in sufficient detail to enable all parties to understand the dispute, including the transaction
amount that should have been billed.
• When the transaction occurred at a merchant not identified with one of the following
MCCs: A copy of the receipt or similar document detailing the correct gratuity amount.
• When the transaction occurred at a merchant identified with one of the following MCCs:
Optionally, a copy of the receipt or similar document detailing the correct gratuity amount.
• The following list provides the MCCs referred to in the above bullets:
– MCCs 3501 through 3999—Lodging—Hotels, Motels, Resorts
– MCC 4121—Limousines and Taxicabs
– MCC 4411—Cruise Lines
– MCC 5811—Caterers
– MCC 5812—Eating Places, Restaurants
– MCC 5813—Bars, Cocktail Lounges, Discotheques, Nightclubs, and Taverns—Drinking Places
(Alcoholic Beverages)
– MCC 5814—Fast Food Restaurants
– MCC 7011—Lodging—Hotels, Motels, Resorts—not elsewhere classified
– MCC 7230—Barber and Beauty Shops
– MCC 7297—Massage Parlors
– MCC 7298—Health and Beauty Spas
– MCC 7299—Other Services—not elsewhere classified
– MCC 7992—Golf Courses, Public
– MCC 7997—Clubs—Country Clubs, Membership (Athletic, Recreation, Sports), Private Golf
Course
For all other disputes: Both of the following:
• A cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction
(POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient detail to enable all
parties to understand the dispute, including the transaction amount that should have been billed.
• Documentation detailing the correct transaction amount. Examples include, but are not limited to:
– A receipt or invoice including the correct transaction amount
– The final hotel or car rental bill
– Merchant email confirming price
ATM Disputes
Chargeback Condition. The cardholder contacted the issuer alleging one of the following:
• Some or all of the funds debited from the cardholder’s account as the result of an ATM withdrawal
were not dispensed.
• The cardholder’s account has been debited more than once for the same transaction.
Time Frame. Between 5 and 120 calendar days of the transaction settlement date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions
• 59 (RS3=ATM dispute) for Debit Mastercard transactions processed on the Single Message System
Chargeback Condition. The cardholder contacted the issuer claiming the cardholder was billed for
loss, theft, or damage in the same transaction as the underlying initial service.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions
• 31 (Incorrect Transaction Amount) for Debit Mastercard transactions processed on the Single
Message System
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Point-of-Interaction (POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute.
Optionally, documentation detailing the charge for the initial service as well as for the loss, theft, or
damage.
Late Presentment
Time Frame. Within 90 calendar days of the Central Site Business Date.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Notes. The full amount of the disputed transaction must be charged back.
When a currency is not specified on the transaction receipt, the currency which is legal tender in the
country where the transaction took place is deemed the original transaction currency.
This chargeback is not available to address verbal agreements of transaction currency between a
cardholder and a merchant.
Chargeback Condition. The merchant processed a credit (instead of a reversal) to correct an error
which resulted in the cardholder experiencing a currency exchange loss.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. One of the following:
• 4834 for Dual Message System transactions
• 34 for Debit Mastercard transactions processed on the Single Message System
The following message reason codes may continue to be used, however, they will eventually be
eliminated:
• 4831 (Incorrect Transaction Amount) for Dual Message System transactions
• 31 (Incorrect Transaction Amount) for Debit Mastercard transactions processed on the Single
Message System
Chargeback Condition. An improper merchant surcharge was applied to the total transaction
amount.
Time Frame. Within 90 calendar days of the Central Site Business Date.
Message Reason Code. 4834 for Dual Message System transactions
Supporting Documents. A cardholder letter, email, message or completed Dispute Resolution Form
—Point of Interaction (POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient detail
to enable all parties to understand the dispute.
DE 72 (Data Record). UNREASONABLE AMOUNT
Notes.
This chargeback is not available when the transaction occurred with a Mastercard Commercial
Payments Account. A Mastercard Commercial Payments Account transaction occurs when PDS 0002
(GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First
Presentment/1240 message.
Second Presentment
The tables in this section detail the conditions under which a second presentment in response
to a point-of-interaction error chargeback may be processed.
PAN Mismatch. The Primary Account Number (PAN) in chargeback supporting
documentation may differ from the PAN included by the acquirer in the clearing record. As a
result, a difference in PANs must not be the sole reason for an acquirer’s second presentment.
Cardholder Debited More than Once for the Same Goods or Services
Second Presentment Condition. The acquirer can provide evidence of proper processing in response
to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents.
TIDs documenting two separate transactions.
The documentation must clearly establish that the cardholder was not debited more than once for the
same goods or services. A merchant explanation must be included when the documentation does not
clearly establish the above.
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Cardholder Debited More than Once for the Same Goods or Services—PIN Transaction
Second Presentment Condition. The acquirer can substantiate that a PIN was present in the
Authorization Request/0100 message for both transactions.
Time Frame. Within 45 calendar days of the chargeback settlement date.
Supporting Documents.
TIDs documenting two separate transactions.
The documentation must clearly establish that the cardholder was not debited more than once for the
same goods or services. A merchant explanation must be included when the documentation does not
clearly establish the above.
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Second Presentment Condition. The acquirer can provide evidence that the cardholder was billed
the correct amount.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
ATM Disputes
Second Presentment Condition. The acquirer can provide evidence that the funds were correctly
dispensed.
Time Frame. Within 45 calendar days of the chargeback settlement date
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Supporting Documents. Refer to the Single Message System Chargebacks chapter, Message Reason
Code 17—Cash Dispute-ATM Only.
Europe Customers refer to Appendix A, Chargebacks—Mastercard Europe ATM Transactions
(Mastercard, Maestro, and Cirrus).
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Second Presentment Condition. The acquirer can provide evidence of both of the following:
• The cardholder was notified of the charges for loss, theft, or damages.
• The cardholder authorized the charge for loss, theft, or damages.
Notes. None
Late Presentment
DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. AUTH MMDDYY NNNNNN
2. DELAYED PRESENTMENT
Notes
Replace MMDDYY with the date the issuer authorized the transaction.
Account Open:
The acquirer can prove the account is open after the chargeback date by providing the date the issuer
authorized a transaction, with the same PAN, occurring after the chargeback date.
National Bank Holiday:
When a national bank holiday of at least four consecutive days occurred, which prevented the
acquirer from presenting a card-read or key-entered transaction within the applicable seven-calendar-
day time frame, official documentation from the banking regulator or other authority showing the
dates of the national bank holiday must be provided.
Determining the Transaction Date:
Traffic violations must be presented within 30 calendar days of receipt of the notification from the
local traffic authorities. To determine the Transaction Date for all other transactions refer to Appendix
F, Transaction Identification Requirements.
Second Presentment Condition. The acquirer can provide evidence of proper processing in response
to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. One of the following:
• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Second Presentment Condition. The merchant can provide documentation showing the cardholder
agreed to an amount range as reasonable and the transaction amount did not exceed this amount
range.
Time Frame. Within 45 calendar days of the chargeback settlement date.
Supporting Documents. Documentation supporting the merchant’s claim that the cardholder agreed
to a reasonable amount range. Examples include, but are not limited to:
• An itemized price list signed by the cardholder and an itemized transaction receipt showing that
the transaction amount was calculated on the basis of this price list.
• The cardholder’s written agreement to a recurring payment arrangement with the merchant in
which a maximum amount for each payment was specified.
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
IPM Second Presentment Message Reason Code. One of the following:
• 2011 (Credit Previously Issued) for Dual Message System transactions
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes
Replace MMDDYY with the date of the credit transaction.
Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of
the credit transaction.
Refunds. When a cardholder is credited twice (once by the issuer as a result of a chargeback and
again through a refund processed by the merchant), the acquirer must process a timely second
presentment which identified a refund was previously processed. A compliance case is invalid. When a
second presentment is not processed within the required second presentment timeframe, an acquirer
seeking return of the refund amount must do so outside of the chargeback and compliance process.
An example of outside of the chargeback and compliance process includes, but is not limited to, a
good faith collection letter. In this example, a good faith collection letter is written correspondence
from the acquirer to the issuer requesting the return of the refunded amount. When a good faith
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
processed in accordance with chapter 19-Fee Collection of the Global Clearing Management System
Reference Manual.
For the avoidance of doubt:
• Refund properly documented in second presentment and within timeframe: When a
refund was processed before the second presentment and the timely second presentment properly
documented the refund, the issuer must not continue the dispute for the refunded amount as the
refund resolved the chargeback. Upon completion of all of the chargeback cycles, if a properly
documented pre-arbitration/arbitration case is filed, Mastercard will likely rule in favor of the
acquirer.
The two exceptions to the above are when:
– The issuer or cardholder can clearly document that the refund applied to a different transaction.
With proper documentation from the cardholder, the issuer may continue with the dispute.
– The refund that was processed before the second presentment was for a partial amount of the
disputed transaction and the acquirer failed to provide a valid remedy for the remainder of the
disputed amount. The issuer may continue with the dispute for the amount that was not
refunded, when applicable.
• Refund before second presentment and within timeframe, but not properly documented
in second presentment: A refund is required to be documented in the second presentment and
not in the pre-arbitration/arbitration case filing. When the first chargeback is valid and timely, if a
case is filed with Mastercard involving a refund that was processed before the second presentment
but the second presentment did not properly document the refund, Mastercard will likely hold the
issuer responsible for the refunded amount and hold the acquirer responsible for the fines and fees
associated with the case.
• Refund after second presentment: A refund is required to be documented in a timely manner in
the second presentment and not in the pre-arbitration/arbitration case filing. When a refund was
processed after the second presentment, an acquirer seeking return of the refund amount must do
so outside of the arbitration and compliance process. An example of outside of the chargeback
and compliance process includes, but is not limited to, a good faith collection letter. In this
example, a good faith collection letter is written correspondence from the acquirer to the issuer
requesting the return of the refunded amount. When a good faith collection letter is accepted by
the issuer in writing, the Fee Collection/1740 message must be processed in accordance with
chapter 19-Fee Collection of the Global Clearing Management System Reference Manual. In the
event an arbitration case is submitted concerning the refund, Mastercard will likely rule in favor of
the issuer provided the first chargeback was timely and valid.
Second Presentment Condition. The acquirer can provide specific evidence of proper processing in
response to the cardholder’s claims.
Time Frame. Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied)
Supporting Documents. The merchant’s explanation and documentation.
Mastercard will not consider in its ruling decision second presentment supporting documentation
received on or after a pre-arbitration or an arbitration case filing submission.
IPM Second Presentment Message Reason Codes and Second Presentment Conditions. One of
the following:
• One of the following for Dual Message System transactions:
– 2001—Invalid Acquirer Reference Data; Documentation was Received or was Not Required
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2002—Non-receipt of Required Documentation to Support Chargeback Required supporting
documentation not received.
An acquirer must wait a minimum of eight calendar days from the first chargeback before using
this message reason code. Mastercard will block the Arbitration Chargeback when an acquirer
second presents with message reason code 2002 after eight calendar days from the first
chargeback and before the issuer sends the supporting documentation. The acquirer must
accept supporting documentation as long as the acquirer has not processed a second
presentment.
– 2004—Invalid Acquirer Reference Data on Chargeback; Documentation was Received
The combination of Primary Account Number and Acquirer Reference Data contained in the
chargeback record does not match the information contained in the first presentment record.
– 2701—Duplicate Chargeback
The issuer processed a first chargeback for the same transaction more than once.
– 2702—Past Chargeback Time Limit
The issuer’s first chargeback is processed past the time frame specified for the chargeback.
– 2704—Invalid Data Record Text
Text required to appear in the first chargeback’s DE 72 (Data Record) is missing or incomplete.
– 2709—Documentation Received was Illegible Supporting documentation is illegible.
The acquirer’s second presentment will be considered invalid should Mastercard Dispute
Resolution Management staff determine that the supporting documentation is legible during
an arbitration case filing.
– 2710—Scanning Error—Unrelated Documents or Partial Scan
Supporting documentation does not correspond to the transaction being charged back (for
example, the documentation concerns a different transaction) or is incomplete.
– 2713—Invalid Chargeback
The first chargeback does not meet the prerequisites for the message reason code.
• 13 (Representment) for Debit Mastercard transactions processed on the Single Message System
Notes. None
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Mastercard will determine responsibility for the progressive handling fee when the chargeback
is filed as an arbitration case.
in the table below in the First Presentment/1240 message to collect the handling fee as
described above.
For this type of transaction... Provide these values in the First Presentment/1240 message...
A face-to-face transaction In DE 22 (Point of Service Data Code):
Value of 1 (Attended Terminal) in subfield 4 (Terminal Operating
Environment)
Value of 0 (Cardholder Present) in subfield 5 (Cardholder Present Data)
Value of 1 (Card Present) in subfield 6 (Card Present Data)
The F2F or CT2 handling fee compensates the acquirer for the issuer’s invalid handling fee
and the cost of processing its reversal.
The acquirer cannot submit an IPM Fee Collection/1740-700 message with message reason
code 7627 when the original presentment was not properly identified as a face-to-face
transaction or CAT Level 2 transaction. However, when the acquirer can remedy the
chargeback, then the acquirer can collect the progressive handling fee associated with the
second presentment using message reason code 7623.
Technical Return
2001 Invalid Acquirer Reference Data; documentation was neither required nor received.
2004 Invalid Acquirer Reference Data on chargeback; documentation was received.
Documentation Return
Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code
Usage
This section lists definitions for the Second Presentment/1240 IPM message reason codes.
2003—Correct Transaction Acquirers must use this message reason code in cases where the
Date Provided chargeback may be remedied by providing the correct transaction date.
For example, a first chargeback for message reason code 4807 (Warning
Bulletin File) may be remedied if the transaction date for the first
presentment was incorrect, and the acquirer may provide the correct
transaction date and show that the account was not listed in the
applicable Electronic Warning Bulletin.
2004—Invalid Acquirer The acquirer must use this message reason code to notify the issuer that
Reference Data on the combination of Acquirer Reference Data/Primary Account Number
Chargeback; Documentation on the chargeback message does not match the information contained
was Received in the first presentment and that documentation that was received to
support the issuer’s first chargeback.
2005—Corrected Merchant The acquirer must use this message reason code when it can remedy the
Location/Description Provided first chargeback by providing new information in the form of a different
merchant name or location.
For example, to remedy a chargeback for message reason code 4808
(Authorization-related Chargeback), an acquirer provides information
confirming that the merchant’s location is different from the location
that appeared on the first presentment of the transaction. The new
location may reveal that a different floor limit applies to the transaction
and that authorization was not required, therefore remedying an issuer’s
initial chargeback.
2011—Credit Previously Issued The acquirer must use this message reason code when it can remedy the
first chargeback by showing that the merchant issued a credit to the
cardholder’s account.
The Data Record must contain the date of the credit and, optionally, the
Acquirer’s Reference Data (ARD) of the credit.
2700—See Corresponding An acquirer must use this message reason code when the remedy to the
Documentation/Chargeback chargeback is included within the documentation supporting the second
Remedied presentment, and no other message reason code is applicable to
describe the remedy.
For example, if the only remedy the acquirer has to a first chargeback
for message reason code 4837 is providing compelling evidence, the
acquirer must use this message reason code. If the second presentment
is better described using another message reason then the message
reason code that best describes the remedy must be used (for example,
2011 Credit Previously Issued). When using 2700, the documentation
indicator must be 1 (Documentation Provided).
2701—Duplicate Chargeback The acquirer must use this message reason code to remedy situations
where the issuer has processed a first chargeback for the same
transaction more than once.
2702—Past Chargeback Time The acquirer must use this message reason code when the issuer’s first
Limit chargeback is processed past the time limit allowed for the chargeback.
2703—Requested Transaction The acquirer must use this message reason code when processing a
Documentation Provided second presentment within the guidelines of a Hardship Variance that
(Hardship Variance) has been approved by Mastercard. A Hardship Variance may be granted
in case of a natural disaster, and must be applied for by the acquirer,
and approved by Mastercard.
2704—Invalid Data Record Text The acquirer must use this message reason code when information that
is required to appear in the first chargeback’s Data Record as stated in
this guide, and the required message text (DE 72 [Data Record]) is
missing or incomplete and the lack of such information renders the
chargeback invalid.
2706—Authorization Advised The acquirer must use this message reason code as described in the
Suspicious Suspicious Transaction table in section Proper Use for Acquirer’s Second
Presentment.
2707—No Authorization The acquirer must use this message reason code when the transaction
Required or Attempted amount was below the applicable floor limit, and the merchant did not
request an authorization.
2708—Account was Not Listed The acquirer must use this message reason code to remedy chargebacks
on the Applicable Electronic for message reason code 4807 when the acquirer’s investigation reveals
Warning Bulletin as of the that the issuer had not included the account number in the applicable
Transaction Date Electronic Warning Bulletin as of the date the card was first presented to
the merchant for payment.
2709—Documentation The acquirer must use this message reason code only when information
Received was Illegible that is relevant to the first chargeback is illegible to the point where it
cannot be established that the first chargeback is valid. Acquirers must
make every attempt to qualify the documentation before using this
message reason code. If an arbitration case is filed as the result of the
chargeback, and Mastercard Dispute Resolution Management staff can
validate that the documentation is legible, it will be determined that the
acquirer processed an invalid second presentment.
2710—Scanning Error— This message reason code deals solely with the quality of the
Unrelated Documents or MasterCom scan of the documentation. Do not use this message
Partial Scan reason code if the substance of the documentation received
shows that the issuer processed an invalid first chargeback. The
acquirer must use this message reason code when the first chargeback
documentation does not correspond to the transaction being charged
back (for example, the documentation concerns a different transaction)
or when the documentation is incomplete because of a scanning error.
For example, the documentation provided is a partial scan with missing
information, or it relates to another card or to another transaction.
2870—Chip Liability Shift The acquirer must use this message reason code to invoke the chip
liability shift in response and as a final remedy to a first chargeback
submitted under message reason code 4837.
If the second presentment message reason code 2870 is valid, the issuer
is prohibited from pursuing the dispute with an arbitration case.
2871—Chip/PIN Liability Shift The acquirer may use this message reason code to invoke the chip/PIN
liability shift in response and as a final remedy to a first chargeback
submitted under message reason code 4837.
If the second presentment message reason code 2871 is valid, the issuer
is prohibited from pursuing the dispute with an arbitration case.
Arbitration Chargeback
The arbitration chargeback cycle is no longer available for chargebacks initiated on and after
17 July 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
Overview.................................................................................................................................... 340
Exception Transaction Types........................................................................................................ 340
Supporting Documentation.........................................................................................................341
Acquirer Adjustment Reason Codes............................................................................................ 341
Message Reason Code 06—Correction of a Representment....................................................341
Acquirer Correction........................................................................................................... 341
Issuer Chargeback............................................................................................................. 342
Message Reason Code 10—Correct a Terminal Malfunction................................................... 342
Acquirer Correction........................................................................................................... 342
Issuer Chargeback............................................................................................................. 344
Message Reason Code 20—Returned Item (U.S. Shared Deposits Only).................................. 344
Message Reason Code 24—Empty Deposit Envelope (U.S. Shared Deposits Only)................... 344
Message Reason Code 25—Error in Addition (U.S. Shared Deposits Only)...............................344
Message Reason Code 26—Error in Settlement (U.S. Shared Deposits Only)........................... 344
Message Reason Code 28—Non-Cash Item Deposited (U.S. Shared Deposits Only).................344
Message Reason Code 29—Foreign/Counterfeit Currency Deposited (U.S. Shared Deposits
Only)...................................................................................................................................... 344
Message Reason Code 30—Cardholder Disputed Amount (U.S. Shared Deposits Only)...........344
Message Reason Code 85—Adjustment Reversal....................................................................344
Acquirer Adjustment..........................................................................................................344
Issuer Chargeback............................................................................................................. 345
Chargeback Reason Codes..........................................................................................................345
Correction of a Chargeback................................................................................................... 346
Issuer Correction................................................................................................................346
Acquirer Representment.................................................................................................... 346
Cash Dispute-ATM Only......................................................................................................... 346
Issuer Chargeback............................................................................................................. 346
Acquirer Representment (Second Presentment).................................................................. 347
Mastercard Automated Reversal.........................................................................................348
Cardholder Disputed Amount (U.S. Shared Deposits Only)...................................................... 348
Defective/Not as Described—Intra-U.S. Region and U.S. Territories Only..................................348
Chip Liability Shift.................................................................................................................. 348
Issuer Chargeback............................................................................................................. 348
Counterfeit Fraud..........................................................................................................348
Overview
The Single Message System (formerly known as the Mastercard® Debit Switch [MDS])
processes financial transactions. Authorization, clearing, and settlement occur in a single
message.
This section contains information about exception processing of financial transactions
processed on the Single Message System. Exception processing occurs:
• When an acquirer determines an error has been made, the acquirer can correct the error
through an adjustment. An issuer may have the option of a chargeback.
• When the issuer determines a transaction may be invalid, the issuer may return the
transaction to the acquirer as a chargeback.
The Single Message System will process a reversal transaction for the amount of the exception
which will transfer the disputed funds between the two parties.
Issuers and acquirers that are connected to the Single Message System process exceptions
using the Single Message Transaction Manager. Refer to the Single Message Transaction
Manager User Guide for information.
Supporting Documentation
For procedures to process supporting documentation, refer to Mastercard Connect™ >
Publications > Mastercom System.
85 Adjustment Reversal
Acquirer Correction
The table shown below details the requirements for this adjustment message reason code.
Time Frame Between 1 and 10 calendar days after the representment settlement
date.
Issuer Chargeback
An issuer chargeback is not available for this message reason code.
Acquirer Correction
The table shown below details the requirements for this adjustment message reason code.
Time Frame For debit adjustments, between 1 and 45 calendar days after the
transaction settlement date.
For credit adjustments, between 1 and 120 calendar days after the
transaction settlement date.
Notes For ATM transactions: When an adjustment is for the full amount of
the original transaction, any ATM access fee must be included in the
adjustment amount.
An Issuer must accept a debit adjustment providing the adjustment
was processed within 10 calendar days of the settlement date of the
original transaction.
An Issuer must accept a credit adjustment, regardless of the time
frame.
Single Message Transaction Manager only allows one correction per
adjustment. When the acquirer determines an error occurred with the
corrected adjustment, the acquirer must submit the MDS Exception
Item Processing Request (Form 500) with a Single Message
Transaction Manager screen print of the Adjustment History window
within 10 calendar days of the original adjustment settlement date.
When the acquirer determines an error occurred with processing this message reason code
10, the acquirer may process a message reason code 85–Adjustment Reversal.
After performing a message reason code 85–Adjustment Reversal the acquirer has the option
of submitting a new adjustment message reason code 10.
Issuer Chargeback
Refer to the individual chargeback message reason codes later in this section for chargeback
requirements.
Message Reason Code 24—Empty Deposit Envelope (U.S. Shared Deposits Only)
Chargeback rules on this subject appear in the “Domestic Chargeback” appendix.
Message Reason Code 28—Non-Cash Item Deposited (U.S. Shared Deposits Only)
Chargeback rules on this subject appear in the “Domestic Chargeback” appendix.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Time Frame Between 1 and 10 calendar days after the original adjustment
settlement date.
Adjustment Message Reason 85
Code
Notes The Single Message Transaction Manager only allows one correction
per adjustment. When the acquirer determines an error occurred with
the corrected adjustment, the acquirer must submit the MDS
Exception Item Processing Request (Form 500) with a Single Message
Transaction Manager screen print of the Adjustment History window
within 10 calendar days of the original adjustment.
Issuer Chargeback
An issuer chargeback is not available for this message reason code.
73 Duplicate Transaction
74 No Cardholder Authorization
80 Late Presentment
Correction of a Chargeback
The issuer may use this message reason code to reverse a chargeback.
Issuer Correction
The table shown below details the requirements for this chargeback message reason code.
Time Frame Between 1 and 10 calendar days after the chargeback settlement
date.
Acquirer Representment
An acquirer representment is not available for this message reason code.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition The cardholder contacted the issuer alleging that some or all of the
funds debited from the cardholder’s account as the result of an ATM
withdrawal were not dispensed.
Time Frame Between 5 and 120 calendar days from the transaction settlement
date
Chargeback Message Reason 17
Code
Second Presentment Condition The acquirer can provide evidence that the funds were correctly
dispensed.
Time Frame 45 calendar days from the chargeback settlement date
Notes Mastercard will credit the issuer and debit the acquirer.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Counterfeit Fraud
Time Frame For Maestro ATM transactions: Between 5 and 90 calendar days from the
transaction settlement date.
For all other transactions: Between 5 and 120 calendar days from the
transaction settlement date.
Time Frame For Maestro ATM transactions: Between 5 and 90 calendar days from the
transaction settlement date.
For all other transactions: Between 5 and 120 calendar days from the
transaction settlement date.
Supporting Documents • Cardholder letter, email, message or completed Dispute Resolution Form-
Fraud (Form 412) stating:
– Neither the cardholder nor anyone authorized by the cardholder
engaged in the transaction.
– The card was lost, stolen, or never received at the time of the
transaction.
• Cardholder letter, email, message or completed Dispute Resolution Form-
Fraud (Form 412) stating that neither the cardholder nor anyone authorized
by the cardholder engaged in the transaction and an issuer certification
letter that the card was lost, stolen, or never received at the time of the
transaction.
Europe region (all countries in region) 1 January 2005 for all transactions
Intraregional Programs
Asia Pacific region—For the following countries and territories only:
Australia, Christmas Island, Cocos 13 April 2012 for Mastercard ATM
(Keeling) Islands, Cook Islands, transactions
New Zealand, Niue, Norfolk Island, 12 April 2019 for Maestro and
and Tokelau Cirrus ATM transactions
Intraregional Programs
Latin America and the Caribbean 1 January 2005 for all transactions
region
Intercountry Programs
Germany and United States 1 January 2015 through 20 October 2016 for Debit
Mastercard ATM transactions
Germany and Puerto Rico
Germany and U.S. Virgin Islands
Puerto Rico and U.S. Virgin • 19 April 2013 for Maestro ATM
Islands transactions
• 21 October 2016 for Mastercard and
Cirrus ATM transactions
expiration date) for reason code 70 or 74, and the issuer has already met or exceeded this
amount for the account in question.
• The transaction was a properly identified contactless transaction.
• A Digital Secure Remote Payment (DSRP) transaction or any subsequent transaction for
related partial shipment or recurring payment. Refer to Appendix F for Digital Secure
Remote Payment transaction identification requirements.
• Effective 1 October 2015 (1 October 2020 for automated fuel dispenser [MCC 5542]
transactions), for United States issuers only—A U.S. issuer must not initiate a chargeback
for lost, stolen, or never received card fraud when a chip transaction occurred with
signature as the CVM outside of the U.S. region at a hybrid POS terminal supporting offline
PIN as the only PIN CVM, with a U.S.-issued chip card personalized with online PIN as the
only PIN CVM.
• Technical fallback occurred.
Term Definition
Technical Fallback In a technical fallback transaction, either the chip or the Hybrid POS Terminal
Transaction failed, as shown by the presence of a value of 01, 79, or 80 in DE 22 (Point-
of-Service Entry Mode), subfield 1 (POS Terminal PAN Entry Mode) in the
Financial Transaction Request/0200 message and authorized online. Refer to
the Single Message System Specifications manual for Data Element values.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition The billing discrepancy could be for one of the following reasons:
• The merchant’s addition error that resulted in an incorrect total on
the TID or other documentation.
• The merchant increased the transaction amount without the
cardholder’s permission.
• The imprinted amount or printed amount on the TID was
processed instead of the correct transaction amount as evidenced
by other information on the TID or documentation.
• The cardholder paid for goods or services by other means. “Other
means” may include the same card.
Time Frame Between 5 and 120 calendar days from the transaction settlement
date
Notes Mastercard will credit the issuer and debit the acquirer.
Duplicate Transaction
The issuer may use reason code 73 when the cardholder contacted the issuer alleging that the
cardholder’s account has been debited more than once for the same transaction.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition An issuer can determine that the transaction is a duplicate when the
ATM or POS terminal number, transaction amount, transaction date,
and authorization response code are identical for the transactions
in question.
Time Frame Between 5 and 120 calendar days from the transaction settlement
date
Notes Mastercard strongly recommends the issuer use message reason code
17–Cash Disputes–ATM Only for ATM transactions.
Mastercard strongly recommends the issuer use message reason code
71–Disputed Amount for Maestro POS transactions to charge back
the transaction as paid by other means. “Other means” may include
the same card.
Notes Mastercard will credit the issuer and debit the acquirer.
No Cardholder Authorization
The issuer may use reason code 74 when the cardholder contacted the issuer alleging that the
cardholder did not participate in or authorize the transaction.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Time Frame Between 5 and 120 calendar days from the transaction settlement
date
Notes This message reason code must not be used for Mastercard
Consumer-Presented Quick Response (QR) transactions.
Supporting Documents The merchant’s explanation and documentation supporting the Second
Presentment Condition.
Notes Mastercard will credit the issuer and debit the acquirer.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition The cardholder contacted the issuer alleging that the cardholder’s
account was not credited for a refund from a merchant or was
inaccurately debited instead of credited.
Time Frame Between 5 and 120 calendar days from the transaction settlement
date
The 120 calendar days begin on one of the following:
• The date the service was canceled or the goods were returned.
• The date on the credit documentation.
• The date on the cardholder letter when the credit documentation
was undated.
• The date the issuer receives an undated cardholder letter.
• The date the Timeshare was canceled.
Notes This chargeback should be for the amount of the refund, or when the
account is debited instead of credited, twice the amount of the
refund.
Staged Digital Wallet. A transaction to fund a Staged Digital Wallet
(SDW) may be charged back if the funds did not appear in the SDW.
Chargeback rights are not available for any subsequent purchase of
goods or service from a SDW. SDW transactions are identified with a
wallet identifier in DE 48 (Additional Data—Private Use), subelement
26 (Wallet Program Data), subfield 1—Wallet Identifier and in PDS
0207—Wallet Identifier of the First Presentment/1240 Message.
Second Presentment Condition The acquirer can provide evidence to support one of the following:
• The credit was processed to the cardholder’s account.
• The timeshare cancellation occurred more than 14 calendar days
from the timeshare agreement date.
• The transaction was correctly processed.
• The chargeback was invalid.
Notes Mastercard will credit the issuer and debit the acquirer.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition The cardholder contacted the issuer alleging the cardholder’s account has been
debited for goods or services that were to be shipped, delivered or otherwise
provided and were not received by the expected delivery date.
Time Frame Between 5 and 120 calendar days from the transaction settlement date or the
date the goods or services were to be provided. One of the following conditions
must be met before processing the chargeback:
• When the date the goods or services were to be provided as agreed upon by
the merchant and the cardholder has passed.
• When a specific delivery date is not provided, the issuer must wait 30
calendar days from the transaction settlement date.
• When the determination has been made that the merchant will not provide
the goods or services because, for example, the merchant is no longer in
business.
• When the cardholder canceled the order for goods or services, the goods or
services were not provided, and the cardholder did not receive a credit.
After 120 calendar days from the transaction settlement date or the date the
goods or services were to be provided, the issuer may file a precompliance,
followed by a compliance case (when applicable), when a system limitation
prevents a valid chargeback.
Chargeback Message 79
Reason Code
Second Presentment Condition The acquirer can provide evidence to support one of the following:
• The goods or services were provided.
• The merchant was willing and able to provide the goods or
services and the cardholder refused to accept the goods or
services.
• The merchant and the cardholder agreed to provide the goods or
services at a later date.
• The chargeback was invalid.
Notes Mastercard will credit the issuer and debit the acquirer.
Late Presentment
An issuer may use reason code 80 when the transaction was authorized offline by the chip
and submitted into clearing more than seven calendar days after the transaction date.
Issuer Chargeback
The table shown below details the requirements for this message reason code.
Chargeback Condition The issuer must use good-faith efforts to collect the transaction amount from
the cardholder before the issuer exercises this chargeback.
The issuer may use reason code 80 when all of the following conditions are
met:
• The transaction was authorized offline by the chip.
• The transaction was submitted into clearing more than seven calendar days
after the transaction date.
• The cardholder’s account is closed or the cardholder’s account does not
contain sufficient funds to cover the transaction amount.
Time Frame Between 5 and 120 calendar days from the transaction settlement date
Chargeback Message 80
Reason Code
Notes None
Second Presentment Condition The acquirer can provide evidence to support one of the following:
• The transaction date is within the seven-calendar-day time limit.
• The cardholder’s account is open.
• The chargeback was invalid.
Notes Mastercard will credit the issuer and debit the acquirer.
Issuer Chargeback
The table shown below details the requirements for this chargeback message reason code.
Time Frame Between 1 and 20 calendar days after the adjustment settlement
date.
Notes None
Issuer Chargeback
The table shown below details the requirements for this chargeback message reason code.
Time Frame Between 1 and 20 calendar days after the adjustment settlement
date.
Notes None
Overview.................................................................................................................................... 370
Mastercom................................................................................................................................. 370
Time Frames and Requirements...................................................................................................370
Mastercard Review Process..........................................................................................................373
Fees............................................................................................................................................ 373
Intra-European and Inter-European Domestic Disputes................................................................ 375
Third Party Processed Disputes (Europe Only)...............................................................................376
Appeals...................................................................................................................................... 376
Time Frames...........................................................................................................................376
How to File an Appeal............................................................................................................ 376
Appeal Review Process........................................................................................................... 377
Overview
After the chargeback cycles have been completed, a Customer may ask Mastercard to resolve
a chargeback dispute through an arbitration case.
A Customer may file an arbitration case when one of the following occurs:
• The chargeback cycles have been completed and the Customer continues to believe the
dispute is invalid.
• An issuer in Europe did not receive the required second presentment Supporting
Documentation (as described in the individual reason codes within the Single Message
System Chargebacks chapter) for an ATM dispute within 10 calendar days of the Central
Site Business Date of the second presentment.
The number of cycles in the chargeback will determine when the issuer or the acquirer is the
Customer filing the case, therefore this chapter uses the term “Filing Customer” to refer to
the Customer submitting the case against another Customer; the second Customer is referred
to as the “Filed-Against” Customer.
Mastercom
All arbitration cases must be submitted and managed through the Case Filing application
within Mastercom. Mastercard strongly recommends daily review of the Case Filing
application to manage cases within applicable timeframes.
For more information, refer to the Mastercom manuals available on Mastercard Connect >
Publications > Mastercom System.
Time Frame 45 calendar days from the Central Site Business Date of the last applicable chargeback
cycle.
Notes. A completed Dispute Resolution Form-Fraud (Form 412) or Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must be the result of contact with the
cardholder.
An arbitration case filing may include multiple chargebacks, however, this option is
only available when the Acquirer, Issuer, PAN, merchant and chargeback message
reason code are the same.
Information relevant to the case must be in English or the original non-English
documentation must be accompanied by an English translation.
When applicable, domestic rules must be provided.
Fees
Mastercard will process fees as billing events though the Mastercard Consolidated Billing
System (MCBS) at the end of the month. Refer to the applicable country or region Mastercard
Consolidated Billing System (MCBS) manual for more information.
A Customer withdrawing or accepting the case before Dispute Resolution Management issues
a ruling is responsible for the following fees.
• Filing fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
• Withdrawal/Accept fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
When Dispute Resolution Management declines to rule on a case, the Filing Customer is
responsible for the following Filing fees:
Definition
A domestic dispute is a disagreement between two or more Customers concerning a
transaction effected under one of the brands within the country where they are established,
pertaining exclusively to intra-country matters, such as but not limited to clearing or
settlement of transactions made in local currency.
Arbitration
When two or more Customers are opposed in a domestic dispute (as defined above), they
have full recourse to the exclusive arbitration of Mastercard, in accordance with one of the
following conditions:
• All Customers involved in the domestic dispute have expressly designated, Mastercard as
arbitrator.
• All Customers involved in a domestic dispute agreed to be bound by the Standards
concerning the matter of the dispute.
• The Customers involved in a domestic dispute have no agreement to regulate their
relationship, did not stipulate either a procedure for resolution of disputes, or rules
applicable to the matter of the dispute, in the agreement or rules which regulate their
relationship or there is no such agreement or rules and at least one Customer requests
Mastercard to arbitrate the dispute. A solution must be sought through bilateral discussion
between the Customers involved, before investigating such arbitration request.
Mastercard will arbitrate according to any agreement between the parties, but where there is
no such agreement or the agreement is silent or unclear in the opinion of Mastercard Europe,
Mastercard will arbitrate in accordance with the Standards. The decision of Mastercard is
binding on both parties.
Arbitration Procedure
The arbitration procedure defined for international disputes will apply for domestic disputes.
Definition
A third party processed dispute is a dispute between Customers concerning one or more intra-
EEA transactions or transactions between an EEA country and Gibraltar or the United
Kingdom that were processed using a registered third party processor.
Arbitration
The Customers involved in the dispute may have recourse to arbitration by Mastercard when
they have not agreed to any other dispute resolution procedure and at least one Customer
requests Mastercard to arbitrate the dispute. The Customers must provide all information
required by Mastercard to rule on the dispute. The case must be filed via Mastercom. The
other party may reject the case filing when it can provide evidence that another dispute
resolution procedure was agreed between the parties.
Mastercard will arbitrate in accordance with the Standards. The decision of Mastercard is
binding on both parties.
Arbitration Procedure
The arbitration procedure defined for international disputes will apply for Intra-EEA third party
processed disputes.
Appeals
An appeal is a written request from a Customer to Mastercard asking Mastercard to
reconsider a ruling decision.
Time Frames
An appeal must be postmarked within 45 calendar days of the Mastercard ruling decision.
When the appeal is sent by:
• Postal mail, the date included in the postmark must be within the 45 day time frame
• Courier, the tracking information must show that the courier received the appeal within
the 45 day time frame
The Principal or Compliance contact of the other Customer involved in the case as detailed in
Member Info—Mastercard or Member Information—Cirrus/Maestro on Mastercard Connect™.
In addition, the both appeals provided to Mastercard must include all of the following
regarding the copy of the appeal sent to the other Customer:
• Delivery method
• Proof of the date the appeal was received by the post office or courier
• Principal or Compliance contact name and address
promptly and fully. If the Chief Franchise Officer or his or her designee makes a
recommendation of action to resolve the matter, such recommendation is final and not
subject to further appeal or other action.
Overview.................................................................................................................................... 381
Mastercom................................................................................................................................. 381
Time Frames and Requirements...................................................................................................381
Single Message System Arbitration Case Filing........................................................................383
Dual Message System Pre-Arbitration and Arbitration Case Filing........................................... 387
Authorization-related.........................................................................................................387
Invalid Second Presentment...........................................................................................387
Documentation Received with Second Presentment was Illegible or Scanning Error....... 389
Required Documentation Not Received to Support Second Presentment........................391
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................392
Cardholder Dispute............................................................................................................395
Cardholder Reasserts Their Claim.................................................................................. 395
Invalid Second Presentment...........................................................................................401
Documentation Received with Second Presentment was Illegible or Scanning Error....... 405
Required Documentation Not Received to Support Second Presentment........................407
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................410
Change of Reason within the Cardholder Dispute Chargeback...................................... 414
Change of Reason within the Cardholder Dispute Chargeback...................................... 417
No Cardholder Authorization............................................................................................. 420
Invalid Second Presentment...........................................................................................420
Compelling Evidence for Airline, Recurring, E-Commerce, and MO/TO Transactions.......423
Addendum Disputes......................................................................................................427
Address Verification Services (AVS) Transaction.............................................................. 432
Guaranteed Reservation Service (“No-show”)................................................................437
New Merchant Location................................................................................................ 442
Questionable Merchant Activity ........................................................................................ 447
Invalid Second Presentment...........................................................................................447
Documentation Received with Second Presentment was Illegible or Scanning Error....... 451
Required Documentation Not Received to Support Second Presentment........................453
Acquirer Reference Data (ARD) Does Not Match or is Invalid..........................................456
Change of Chargeback Reason to an Questionable Merchant Chargeback.................... 460
Overview
Mastercard is changing the Point-of-Interaction Error chargeback rules regarding when the
cardholder receipt must be provided in a chargeback dispute involving gratuities for certain
card acceptor business codes (MCCs).
A pre-arbitration case filing is required prior to escalation to an arbitration case for all disputes
with the exception of the following chargebacks. A pre-arbitration case is optional for the
disputes listed below; the only exception is when an issuer validly changes its chargeback
reason as described in the Change of Chargeback Reason section later in this chapter.
• Chapter 3—Dual Message System Chargebacks-Initiated On or After 17 July 2020 disputes
for the following reasons:
– ATM Disputes
– Authorization-related Chargebacks
– Chip Liability Shift Chargebacks
– Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud Chargebacks
• Chapter 4—Single Message System Chargebacks
• Appendix A—Chargebacks-Mastercard Europe ATM Transactions (Mastercard, Maestro,
and Cirrus)
• Appendix B—Chargebacks-Maestro POS Transactions
When pre-arbitration is optional and an issuer chooses to file a pre-arbitration case, the time
frame for the arbitration case filing is unchanged.
Detailed information can be found in the Timeframes and Requirements section later in
this chapter.
Mastercom
All arbitration cases must be submitted and managed through the Mastercom Case Filing
Application. Mastercard strongly recommends daily review of the Mastercom Case Filing
Application to manage cases within applicable timeframes.
For more information, refer to the Mastercom manuals available on Mastercard Connect >
Publications > Mastercom System.
arbitration case to continue an authorization-related dispute, the issuer must file the
arbitration case within 45 calendar days from the Second Presentment. This also means that
the issuer does not have to allow the acquirer a full 30 calendar days to respond to the pre-
arbitration case filing.
– An incorrect amount when the merchant accepted an alternative form of payment to complete the
transaction
• Documentation supporting the cardholder’s claim
For cases involving 73-Duplicate Transaction the following must also be included:
• A cardholder letter, email, message, or completed Dispute Resolution Form—Point of Interaction (POI)
Errors (Form 1240)
• When applicable, documentation supporting the cardholder’s claim
For cases involving 74-No Cardholder Authorization the cardholder letter, email, message or completed
Dispute Resolution Form-Fraud (Form 412) stating the cardholder did not participate in or authorize the
transaction.
For cases involving 75-Credit Not Received the following must also be included:
• The cardholder letter, email, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) stating one of the following:
– The cardholder’s account has not been credited for a refund from a merchant
– The cardholder’s account has not been credited for a canceled timeshare agreement and the
cancellation occurred within the applicable time frame
– The cardholder’s account has been inaccurately debited instead of credited
• A cardholder letter, email, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) is not required when the cardholder’s documentation is one of the following:
– A credit slip
– Credit advice
– TID voided by the merchant
– Merchant letter advisement to obtain credit from the issuer via chargeback
• Documentation supporting the cardholder’s claim
For cases involving 79-Goods or Services Not Provided the following must also be included:
• The cardholder letter, email, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) stating all of the following:
– The cardholder engaged in the transaction
– The date the goods or services were to be provided as agreed upon by the merchant and the
cardholder.
– A reasonably specific description of the goods or services purchased.
Mastercard will determine whether the documentation presented for the chargeback cycle contains
sufficient detail.
– When applicable, the reason the cardholder believes the merchant will not provide the goods or
services.
– When applicable, the cardholder canceled the order for goods or services, the goods or services were
not provided, and the cardholder did not receive a credit.
• Documentation supporting the cardholder’s claim
For all cases the issuer must include the reason why the issuer believes the second presentment to be invalid
in either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Mastercard will not consider any Supporting Documentation provided in the arbitration case filing that was
required (but not provided) in the chargeback or second presentment.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
arbitration case filing at the time the case is filed. This means entering the chargeback reference number
and confirming that all previously provided Supporting Documentation (as described in the individual reason
codes) links to the case. When a chargeback reference number does not exist or does not link all previously
provided Supporting Documentation, a thorough description of the circumstances of the case in
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
Notes.
A completed Dispute Resolution Form-Fraud (Form 412) or Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must be the result of contact with the cardholder.
An arbitration case filing may include multiple chargebacks, however, this option is only available when the
acquirer, issuer, PAN, merchant and chargeback message reason code are the same.
Information relevant to the case must be in English or the original non-English documentation must be
accompanied by an English translation.
When applicable, domestic rules must be provided.
Authorization-related
This section describes the process for continuing an authorization-related dispute after the
chargeback cycles have completed.
Invalid Second Presentment
This section describes the process for filing, and responding to, an arbitration case when the
issuer claims that the second presentment was invalid.
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Pre-Arbitration Case Filing Pre-arbitration is optional. When an issuer chooses to file a pre-
arbitration case, the time frame for the arbitration case filing is unchanged.
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Cardholder Dispute
This section describes the process for continuing a cardholder dispute after the chargeback
cycles have completed.
Cardholder Reasserts Their Claim
This section describes the process for filing, and responding to, a pre-arbitration and, when
applicable, an arbitration case when the cardholder reasserts their claim.
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
In addition:
• For Disputes Involving Goods or Services were Not as Described or Defective:
When not provided with the chargeback, documentation from an expert or professional (on their
business letterhead, with a business card attached, or validated by other information demonstrating that
the opinion expressed is that of an expert) that supports the cardholder’s dispute about the level of
quality or misrepresentation may be required when the validity of the dispute is challenged by the
merchant. Other documentation necessary to support the validity of the dispute may include, but is not
limited to, the original receipt, invoice, work order, brochure, contract, or appraisal.
• For Disputes Involving Counterfeit: When not provided with the chargeback, one of the following:
– Documentation provided by a person purporting to be the owner or authorized representative of the
owner of intellectual property rights for the goods purported to be counterfeit (which documentation
may be available from a website, on business letterhead, with a business card attached, or validated
by other information demonstrating that the opinion expressed is that of an expert) substantiating
that the goods purchased are counterfeit
– Documentation substantiating that the merchant that sold the purported counterfeit goods was
closed by a governmental agency for selling counterfeit goods now purported by the cardholder to
be counterfeit
– Documentation from a bona fide expert substantiating that the disputed goods are counterfeit,
which documentation is on the expert’s letterhead or validated by other information demonstrating
that the opinion expressed is that of an expert
Additionally, Mastercard requests that the issuer report the cardholder’s allegation of an intellectual
property rights infringement with an email to: [email protected].
• For Disputes Involving Credit Not Processed: When the original cardholder letter, email, message, or
Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) included in the chargeback
states that the cardholder returned the merchandise and the merchant denies receiving the merchandise
in the second presentment, the issuer must then provide proof that the merchandise was returned to
and received by the merchant to accompany the pre-arbitration case.
• For Disputes Involving Goods or Services Were Not Provided: One of the following:
– When the second presentment documentation includes a signed delivery receipt, the new cardholder
letter, email, message, or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form
1221) must state the signature on the delivery receipt is not the cardholder’s signature or the
signature of any person authorized by the cardholder.
– When the second presentment documentation stated that paper airline tickets were issued, the new
cardholder letter, email, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must explain the disposition of the paper airline tickets by clearly stating
that the airline tickets are no longer in the cardholder’s possession and how the airline tickets were
disposed (for example, the airline tickets were discarded, destroyed, returned to the issuer, returned
to the travel agency, or disposed in some other manner).
– None, when all of the following:
– The dispute was not for paper airline tickets
– The second presentment documentation included a delivery receipt dated before the original
cardholder letter
– The delivery receipt was not signed by the cardholder, or a person authorized by the cardholder.
• For Disputes Involving a “No-show” Hotel Charge: When the original cardholder letter, email,
message, or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) included
in the chargeback did not include a cancellation number and the acquirer processed a second
presentment that states one the following:
– The hotel has a formal Guaranteed Reservation Program that includes the issuance of confirmation
and cancellation numbers.
– The hotel has no record of the cancellation. The cardholder must provide proof of merchant contact
within the cancellation time frame required by the Guaranteed Reservation Service program (such as
a copy of a phone bill indicating that a call was made to the merchant before 18:00 [merchant’s local
time] on the date of the reservation).
• For Disputes Involving Addendum Transactions
An addendum transaction is a separate transaction that occurs after a valid transaction involving the
same merchant and the same cardholder. An example includes, but is not limited to, a charge for
breakfast after the cardholder checked out of the hotel.
The new cardholder letter, email, message, or Dispute Resolution Form-Cardholder Dispute (Form 1221)
form dated after the second presentment must also specifically state:
– The cardholder has reviewed the documentation provided by the merchant in the second
presentment
– The cardholder engaged in a valid transaction with the merchant.
– A subsequent transaction occurred with that same merchant without the cardholder’s consent.
– The cardholder contacted the merchant, or attempted to contact the merchant, to resolve the
dispute.
Merchant contact is optional when the cardholder is a corporate entity with a contractual relationship
with the merchant and the transaction is for an amount in excess of what is specified in the contract.
In such event the chargeback may be only for the amount of the excessive charge.
• For Disputes Involving a Failed Travel Merchant--Intra-EEA and Domestic European
Transactions Only
When the acquirer fulfilled the requirements for a valid second presentment, in particular by
documenting that the travel services were covered by a bonding authority or similar scheme according to
local law, then evidence of the bonding authority or similar scheme’s response to the cardholder’s (or
traveler’s) claim, or proof of bond insufficiency must be provided. If the cardholder (or traveler) requested
reimbursement and did not receive a response after 30 calendar days from the date the request was
sent, then a copy of the request for reimbursement must be provided. A detailed cardholder (or traveler)
explanation is permitted if such documentation is not available.
A request for reimbursement from a bonding authority or similar scheme is not required for Swedish
domestic transactions.
and confirming that all previously provided Supporting Documentation (as described in the individual reason
codes) links to the case. When a chargeback reference number does not exist or does not link all previously
provided Supporting Documentation, a thorough description of the circumstances of the case in
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
No Cardholder Authorization
This section describes the process for continuing a No Cardholder Authorization dispute after
the chargeback cycles have completed.
Invalid Second Presentment
This section describes the process for filing, and responding to, a pre-arbitration and, when
applicable, an arbitration case when the issuer believes the second presentment did not
remedy the chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the pre-
arbitration case filing at the time the case is filed. This means entering the chargeback reference number
and confirming that all previously provided Supporting Documentation (as described in the individual reason
codes) links to the case. When a chargeback reference number does not exist or does not link all previously
provided Supporting Documentation, a thorough description of the circumstances of the case in
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
by the merchant in the second presentment and the cardholder continues to maintain that the disputed
transaction was not authorized by the cardholder.
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following occur
before filing the pre-arbitration case:
• The Mastercard card account is closed
• The issuer blocked the account on its host
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture card”
response until card expiration
• Report the transaction to the Fraud and Loss Database
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in either
the Sender Memo field within the Mastercom Case Filing Application or as Supporting Documentation.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any Supporting
Documentation provided in the pre-arbitration that was required (but not provided) in the chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the pre-
arbitration case filing at the time the case is filed. This means entering the chargeback reference number
and confirming that all previously provided Supporting Documentation (as described in the individual reason
codes) links to the case. When a chargeback reference number does not exist or does not link all previously
provided Supporting Documentation, a thorough description of the circumstances of the case in
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
Addendum Disputes
This section describes the process for filing, and responding to, a pre-arbitration and, when
applicable, an arbitration case when the issuer provided the second presentment supporting
documentation identifying the transaction as an addendum transaction to the cardholder, the
cardholder reviewed that information, and the cardholder reasserts fraud.
An addendum transaction is a separate transaction that occurs after a valid transaction
involving the same merchant and the same cardholder. An example includes, but is not limited
to, a charge for breakfast after the cardholder checked out of the hotel.
The issuer must include in the Sender Memo field within the Mastercom Case Filing Application that
the reason for the filing is “No Cardholder Authorization”, “4837”, or similar phrase describing the
issue.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Supporting Documentation.
A new cardholder letter, email, message, or Dispute Resolution Form-Fraud (Form 0412) form dated
after the second presentment specifically stating that the cardholder has reviewed the documentation
provided by the merchant in the second presentment and the cardholder continues to maintain that
the disputed transaction was not authorized by the cardholder.
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before filing the pre-arbitration case:
• The Mastercard card account is closed.
• The issuer blocked the account on its host.
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration.
• Report the transaction to the Fraud and Loss Database.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
• The reason for the filing is “No Cardholder Authorization”, “4837”, or similar phrase describing
the issue.
• One of the following, as applicable:
– INVALID AVS REMEDY
– CONFIRMED AVS
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Supporting Documentation.
For Invalid AVS: None
For Confirmed AVS: One of the following:
• A new cardholder letter, email, message, or Dispute Resolution Form-Fraud (Form 0412) form
dated after the second presentment specifically stating that the cardholder has reviewed the
documentation provided by the merchant in the second presentment and the cardholder continues
to maintain that the disputed transaction was not authorized by the cardholder.
• A new cardholder letter, email, message, or Dispute Resolution Form-Fraud (Form 0412) dated
after the second presentment from a company or government agency representative on behalf of
a corporate card cardholder when the company or government agency no longer employs the
authorized cardholder and the issuer has closed the account.
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before filing the pre-arbitration case:
• The Mastercard card account is closed
• The issuer blocked the account on its host
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration
• Report the transaction to the Fraud and Loss Database
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
• A new cardholder letter, email, message, or Dispute Resolution Form-Fraud (Form 0412) form
dated after the second presentment specifically stating that the cardholder has reviewed the
documentation provided by the merchant in the second presentment and the cardholder continues
to maintain that the disputed transaction was not authorized by the cardholder.
• A statement by the issuer that the primary account number (PAN), cardholder name present on the
card, and/or the confirmation number provided at the time the reservation was made and provided
by the merchant in the second presentment is not accurate and, in particular, which information is
not accurate (for example, incorrect cardholder name or incorrect cardholder address).
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before processing the chargeback:
• The Mastercard card account is closed.
• The issuer blocked the account on its host.
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration.
• Report the transaction to the Fraud and Loss Database.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
A new cardholder letter, email, message, or Dispute Resolution Form-Fraud (Form 0412) form dated
after the second presentment specifically stating that the cardholder has reviewed the documentation
provided by the merchant in the second presentment, the cardholder must specifically address the
new information, and the cardholder must continue to maintain that the disputed transaction was not
authorized by the cardholder.
The Dispute Resolution Form-Fraud (Form 0412) form may only be used when all of the following
occur before processing the chargeback:
• The Mastercard card account is closed.
• The issuer blocked the account on its host.
• The issuer listed the account number on the Mastercard Stand-in Account File with a “capture
card” response until card expiration.
• Report the transaction to the Fraud and Loss Database.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Should the issuer escalate the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
and confirming that all previously provided Supporting Documentation (as described in the individual reason
codes) links to the case. When a chargeback reference number does not exist or does not link all previously
provided Supporting Documentation, a thorough description of the circumstances of the case in
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
If the issuer escalates to a pre-arbitration case to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Point-of-Interaction Error
This section describes the process for continuing a Point-of-Interaction Error dispute after the
chargeback cycles have completed.
Transaction Amount Differs (Gratuity Disputes Only)
This section describes the process for filing, and responding to, a pre-arbitration and, when
applicable, an arbitration case when the issuer believes the second presentment did not
remedy the chargeback regarding the gratuity amount.
Issuer Submission of a Pre-Arbitration Case. An issuer may submit a pre-arbitration case when all
of the following:
• The original chargeback was valid
• The second presentment supporting documentation was reviewed by the cardholder and the
cardholder reasserts their dispute
A pre-arbitration case must be filed within 45 calendar days of the second presentment with the
following conditions:
• When second presentment supporting documentation will not be provided as indicated by the
second presentment supporting documentation indicator code of 0 (Supporting Documentation is
not required), the issuer must file the pre-arbitration case between 0 and 45 calendar days of the
second presentment.
Mastercard strongly recommends submitting the pre-arbitration case as soon as possible
(to allow sufficient time to escalate to an arbitration case, when necessary, in light of
time zone differences, weekends, and holidays).
• When second presentment supporting documentation will be provided as indicated by the second
presentment supporting documentation indicator code of 1 (Supporting Documentation will
follow), the issuer must wait at least eight calendar days for the supporting documentation before
filing the pre-arbitration case.
When second presentment supporting documentation is provided earlier than eight calendar days
from the Central Site Business Date of the second presentment, the issuer may file the pre-
arbitration case as soon as the second presentment supporting document is received.
Mastercard will consider the pre-arbitration case invalid if the issuer files a pre-arbitration case
before the applicable second presentment supporting documentation time frame has expired.
The issuer must accept supporting documentation as long as the issuer has not processed a pre-
arbitration case filing. If the second presentment supporting documentation is received after the
“protected” eight calendar day time frame and on the same day as the pre-arbitration case filing,
Mastercard will not consider the second presentment supporting documentation.
Sender Memo.
The issuer must include in the Sender Memo within the Mastercom Case Filing Application that the
reason for the filing is “POI Error”, “31”, “34”, “42”, “46”, “4831”, “4834”, “4842”, “4846”,
“4880”, or similar phrase describing the issue.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in
either the Sender Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Supporting Documents.
A new cardholder letter, email, message, or completed Dispute Resolution Form—Point-of-Interaction
(POI) Errors (Form 1240) dated after the second presentment and specifically addressing the
merchant’s rebuttal provided with the second presentment.
A copy of the receipt or similar document detailing the correct gratuity amount.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
ATM Disputes
This section describes the process for filing, and responding to, an arbitration case when the
issuer believes the second presentment did not remedy the ATM chargeback.
chronological order and all previously provided Supporting Documentation must be manually attached into
the Mastercom Case Filing Application at the time the case is filed.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Fees
Mastercard will process fees as billing events though the Mastercard Consolidated Billing
System (MCBS) at the end of the month.
Refer to the applicable country or region Mastercard Consolidated Billing System (MCBS)
manual for more information.
A Customer withdrawing or accepting the case before Dispute Resolution Management issues
a ruling is responsible for the following fees.
• Filing fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
• Withdrawal/Accept fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
When Dispute Resolution Management declines to rule on a case, the Filing Customer is
responsible for the following Filing fees:
• For intra-European and inter-European cases: EUR 150
• For all other cases: USD 150
When Dispute Resolution Management rules on a case:
• The Customer found responsible for the case is also responsible for the following fees:
– Filing Fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
– Administrative Fee:
– For intra-European and inter-European cases: EUR 250
– For all other cases: USD 250
– Technical Violation Fee per violation of the dispute processing rules:
– For intra-European and inter-European cases: EUR 100
– For all other cases: USD 100
• The Customer not found responsible for the case may be responsible for a Technical
Violation Fee per violation of the dispute processing rules:
– For intra-European and inter-European cases: EUR 100
– For all other cases: USD 100
Mastercard will assess the Customer requesting an appeal the following fee:
• For intra-European and inter-European cases: EUR 500
• For all other cases: USD 500
Definition
A domestic dispute is a disagreement between two or more Customers concerning a
transaction effected under one of the brands within the country where they are established,
pertaining exclusively to intra-country matters, such as but not limited to clearing or
settlement of transactions made in local currency.
Arbitration
When two or more Customers are opposed in a domestic dispute (as defined above), they
have full recourse to the exclusive arbitration of Mastercard, in accordance with one of the
following conditions:
• All Customers involved in the domestic dispute have expressly designated, Mastercard as
arbitrator.
• All Customers involved in a domestic dispute agreed to be bound by the Standards
concerning the matter of the dispute.
• The Customers involved in a domestic dispute have no agreement to regulate their
relationship, did not stipulate either a procedure for resolution of disputes, or rules
applicable to the matter of the dispute, in the agreement or rules which regulate their
relationship or there is no such agreement or rules and at least one Customer requests
Mastercard to arbitrate the dispute. A solution must be sought through bilateral discussion
between the Customers involved, before investigating such arbitration request.
Mastercard will arbitrate according to any agreement between the parties, but where there is
no such agreement or the agreement is silent or unclear in the opinion of Mastercard Europe,
Mastercard will arbitrate in accordance with the Standards. The decision of Mastercard is
binding on both parties.
Arbitration Procedure
The arbitration procedure defined for international disputes will apply for domestic disputes.
Definition
A third party processed dispute is a dispute between Customers concerning one or more Intra-
EEA transactions or transactions between an EEA country and Gibraltar or the United
Kingdom that were processed using a registered third party processor.
Arbitration
The Customers involved in the dispute may have recourse to arbitration by Mastercard when
they have not agreed to any other dispute resolution procedure and at least one Customer
requests Mastercard to arbitrate the dispute. The Customers must provide all information
required by Mastercard to rule on the dispute. The case must be filed via the Mastercom Case
Filing Application. The other party may reject the case filing when it can provide evidence that
another dispute resolution procedure was agreed between the parties.
Mastercard will arbitrate in accordance with the Standards. The decision of Mastercard is
binding on both parties.
Arbitration Procedure
The arbitration procedure defined for international disputes will apply for Intra-EEA third party
processed disputes.
Appeals
An appeal is a written request from a Customer to Mastercard asking Mastercard to
reconsider a ruling decision.
Time Frames
An appeal must be postmarked within 45 calendar days of the Mastercard ruling decision.
When the appeal is sent by:
• Postal mail, the date included in the postmark must be within the 45 calendar day time
frame.
• Courier, the tracking information must show that the courier received the appeal within
the 45 calendar day time frame.
In addition, the both appeals provided to Mastercard must include all of the following
regarding the copy of the appeal sent to the other Customer:
• Delivery method
• Proof of the date the appeal was received by the post office or courier
• Principal or Compliance contact name and address
Overview.................................................................................................................................... 505
Mastercom................................................................................................................................. 505
How to File, and Respond to, a Compliance Case........................................................................506
Time Frames and Requirements...................................................................................................507
Missing, Invalid, or Inaccurate Authorization Data.................................................................. 507
Inaccurate Clearing Data That Restricts Chargeback Cycles.....................................................508
Fee Collection/1740 Message................................................................................................. 509
Failure to Provide the TID........................................................................................................510
Merchant Not Listed or Improperly Listed on MATCH..............................................................510
Unspent Gift Card Funds........................................................................................................ 511
Acquirer Request for Cardholder Statement of Fraud..............................................................512
Issuer Listed in Mastercard Announcement............................................................................. 513
Payment Transactions............................................................................................................. 513
All Other Rules Violations....................................................................................................... 514
Mastercard Review Process..........................................................................................................514
Fees............................................................................................................................................ 515
Appeals...................................................................................................................................... 516
Time Frames...........................................................................................................................516
How to File an Appeal............................................................................................................ 517
Appeal Review Process........................................................................................................... 518
Overview
A Customer may ask Mastercard to resolve a rules violation causing financial loss through a
compliance case.
Depending on the case, the issuer or the acquirer may be the Customer filing the case,
therefore this chapter uses the term “Filing Customer” to refer to the Customer submitting
the case against another Customer; the second Customer is referred to as the “Filed-Against”
Customer.
A compliance case must not be filed:
• When a chargeback is available
• When a chargeback is prohibited
• To circumvent the Fraud Notification Service (FNS)
• For claims that a cardholder was credited twice (once by the issuer as a result of a
chargeback and again through a refund processed by the merchant); the matter must be
resolved during the second presentment and arbitration case filing process.
A Customer may file a compliance case when all of the following conditions have been met.
• Another Customer, whether directly or indirectly, has violated any of the Mastercard Rules
or Standards directly causing another Customer to experience a financial loss.
The Filing Customer must document a financial loss because of the violation and not simply
assert a violation as a basis for filing the case. In other words, the loss could have been
avoided had the Filed-Against Customer followed the rules.
• The Filing Customer submitted a pre-compliance case, with the exception of a Fee
Collection/1740 message case.
• The Filed-Against Customer did not accept responsibility for the pre-compliance case (when
pre-compliance was required).
Mastercom
All compliance cases must be submitted and managed through the Mastercom Case Filing
Application. Mastercard strongly recommends daily review of the Case Filing application to
manage cases within applicable timeframes.
For more information, refer to the Mastercom manuals available on Mastercard Connect >
Publications > Mastercom System.
Pre-compliance Condition An issuer may file a pre-compliance case against an acquirer when both
of the following:
• Any of the mandatory or optional data elements supplied in the
authorization request message are missing, invalid or inaccurate.
• The issuer suffered a financial loss directly due to the violation.
Pre-compliance Time Frame At least 30 calendar days prior to escalating the pre-compliance case to
a compliance case.
Pre-compliance Supporting All the following:
Documentation
• The specific authorization data asserted to be missing, invalid, or
inaccurate.
• Documentation confirming that the authorization data, as received,
misrepresented the nature of the transaction
• Documentation explaining why the missing, invalid, or inaccurate
authorization data resulted in the transaction being authorized.
• Documentation explaining why the transaction would not have
been authorized if complete, valid, and accurate data had been
received
• Documentation proving, to the satisfaction of Mastercard, that the
issuer would not have suffered the financial loss had the mandatory
authorization data been present, valid, and accurate and that the
filing was not based solely on the data being missing, invalid, or
inaccurate.
• For a transaction containing an Original Switch Serial Number: a
completed Dispute Resolution Management Case Filing Form-SMS
Linked Case Filing (Form 682a).
Compliance Condition An issuer may escalate the pre-compliance case to a compliance case
when the pre-compliance case is rejected.
Compliance Time Frame Within 120 calendar days of the Central Site Business Date of the
transaction.
Notes Information relevant to the case must be in English or the original non-
English documentation must be accompanied by an English translation.
This compliance case is not valid for a MoneySend Payment Transaction
in which Mastercard and the issuer (as the Receiving Institution) agreed
in writing to replace the MCC that reflects the primary business of the
merchant with the generic MoneySend MCC (6536 or 6537) only in the
authorization network messages.
Pre-compliance Time Frame At least 30 calendar days prior to escalating the pre-compliance case to
a compliance case.
Pre-compliance Supporting When the Filing Customer is the issuer:
Documentation
• Document the data elements causing, or that will cause, the
chargeback to be rejected.
• Identity the values the issuer believes should have been provided in
the authorization or clearing messages.
• Specify the chargeback reason and provide the supporting
documentation as set forth in the applicable message reason code.
When the Filing Customer is the acquirer:
• Document the data elements causing the reject and provide the
valid values as submitted in the authorization or clearing message.
• Provide a valid remedy to the chargeback as set forth in the
applicable message reason code.
For transactions assigned an Original Switch Serial Number: a
completed Dispute Resolution Management Case Filing Form-SMS
Linked Case Filing (Form 682a).
Compliance Condition The Filing Customer may escalate the pre-compliance case to a
compliance case when the pre-compliance case is rejected.
Compliance Time Frame When the Filing Customer is the issuer and the chargeback was, or will
be, rejected one of the following:
• The first chargeback time frame
• 45 calendar days from the date that the chargeback was rejected
When the Filing Customer is the acquirer: 45 calendar days from the
date that the second presentment was rejected.
Notes Information relevant to the case must be in English or the original non-
English documentation must be accompanied by an English translation.
This compliance case includes claims of Improper UCAF Data.
Pre-compliance Condition Pre-compliance is optional, Customer may direct file a compliance case.
A Customer choosing pre-compliance must meet all of the
Compliance Conditions.
Consider skipping the optional pre-compliance step, especially when
the pre-compliance timeframe will cause the compliance timeframe to
be exceeded.
Pre-compliance Time Frame 30 calendar days prior to escalating the pre-compliance case to a
compliance case
Pre-compliance Supporting A Customer choosing pre-compliance must provide the Compliance
Documentation Supporting Documentation.
Compliance Condition An issuer or an acquirer may file a compliance case in response to an
invalid Arbitration Return Fee Collection/1740-782 message
Time Frame Within 45 calendar days of the invalid Arbitration Return Fee
Collection/1740-782 message
Supporting Documentation A thorough description of the circumstances of the case in
chronological order.
Notes Refer to Chapter 15, Fee Collection, of the GCMS Reference manual
for more information.
Information relevant to the case must be in English or the original non-
English documentation must be accompanied by an English translation.
Pre-compliance Condition An issuer may file a pre-compliance case against an acquirer when both
of the following occurred:
• The acquirer did not provide the transaction information document
(TID) in response to a Retrieval Request/1644 message in
accordance with 3.11.1 Retention of Transaction Records of the
Transaction Processing Rules.
• The issuer suffered a financial loss directly due to the violation
Pre-compliance Time Frame At least 30 calendar days prior to escalating the pre-compliance case to
a compliance case
Pre-compliance Supporting All of the following:
Documentation
• The information from the Retrieval Request/1644 message
• Any other documentation the issuer believes to be relevant
• Sufficient documentation to prove a financial loss occurred because
the acquirer failed to provide the TID. Examples include, but are not
limited to:
– A judicial request for the TID to substantiate the collection of a
debt.
– A copy of the national law (and an English translation when
needed) requiring the issuer to provide a copy of the transaction
receipt to the cardholder upon request, along with the
cardholder letter containing the request.
Compliance Condition An issuer may escalate the pre-compliance case to a compliance case
when the pre-compliance case was rejected.
Time Frame Within 120 calendar days of the Central Site Business Date of the
Retrieval Request/1644 message
Notes None
Pre-compliance Condition An acquirer may file a compliance case against an acquirer when all of the
following occurred:
• An acquirer signed a merchant agreement with a merchant
• That same merchant was previously terminated by a previous acquirer
• That previous acquirer failed to list or properly list the merchant on MATCH™
• The acquirer experienced a financial loss directly caused by the failure of a
previous acquirer to list or properly list the merchant on MATCH™
Pre-compliance Time At least 30 calendar days prior to escalating the pre-compliance case to a
Frame compliance case
Compliance Condition An acquirer may escalate the pre-compliance case to a compliance case when
the pre-compliance case was rejected.
Compliance Time Frame One of the following:
• Within 120 calendar days of the acquirer terminating the merchant’s
merchant agreement
• When beyond 120 calendar days, 45 calendar days from the date the
violation was, or should have been, detected
Notes Refer to Chapter 11, MATCH System, of the Security Rules and Procedures
manual for more information on the MATCH ™ system.
Information relevant to the case must be in English or the original non-English
documentation must be accompanied by an English translation.
Pre-compliance Time At least 30 calendar days prior to escalating the pre-compliance case to a
Frame compliance case
Pre-compliance Supporting Both of the following:
Documentation
• For transactions assigned an Original Switch Serial Number: a completed
Dispute Resolution Management Case Filing Form-SMS Linked Case Filing
(Form 682a)
• Documentation to support the Pre-Compliance Condition.
Compliance Condition An issuer may escalate the pre-compliance case to a compliance case when the
pre-compliance case was rejected.
Time Frame Within 120 calendar days of the Central Site Business Date of the transaction.
Notes Information relevant to the case must be in English or the original non-English
documentation must be accompanied by an English translation.
Pre-compliance Condition An acquirer may file a pre-compliance case against an issuer to obtain a copy of
the cardholder’s letter, email, or message when all of the following occurred:
• The issuer charged back a transaction for fraud
• The Supporting Documentation provided for the fraud chargeback included
the Dispute Resolution Form-Fraud (Form 412), rather than a cardholder
letter, email, or message.
• The acquirer’s request is the result of a judicial request, law enforcement
investigation, other legal action, or as required by applicable law or
regulation.
• The Filing Customer suffered a financial loss directly due to the violation.
Pre-compliance Time At least 30 calendar days prior to escalating the pre-compliance case to a
Frame compliance case
Pre-Compliance One of the following:
Supporting
• Evidence of legal reason requiring the cardholder letter, email, or message.
Documentation
Examples included, but are not limited to, court order or subpoena.
• The acquirer’s certification describing the legal reason for which the
cardholder letter, email or message of fraud is required.
Compliance Condition An acquirer may escalate the pre-compliance case to a compliance case when
the pre-compliance case was rejected.
Compliance Time Frame One of the following:
• Within 90 calendar days of the date on which the merchant notified the
acquirer
• Within 90 calendar days of the date on which the acquirer became aware
that the cardholder letter, email, or message is required for legal reasons.
Notes Information relevant to the case must be in English or the original non-English
documentation must be accompanied by an English translation.
Pre-compliance Condition The acquirer may file a pre-compliance case when the issuer was listed
in a Mastercard Announcement as one of the following:
• Ineligible to participate in the Global Chip Liability Shift Program for
interregional Maestro ATM transactions
• Limited to seven chargebacks for reason code 70 or 74 involving the
same Maestro card account, and the transaction charged back
contains an FNS counter value that is greater than seven (a value of
eight or more).
Pre-compliance Time Frame 30 calendar days prior to escalating the pre-compliance case to a
compliance case
Pre-compliance Supporting The date of the Mastercard Announcement listing the issuer.
Documentation
Compliance Condition The Filing Customer may escalate the pre-compliance case to a
compliance case when the pre-compliance case is rejected.
Compliance Time Frame Within 180 calendar days of the processing date of the invalid Maestro
chargeback
Notes Refer to the Security Rules and Procedures manual, Chapter 6, Fraud
Loss Control Standards.
Information relevant to the case must be in English or the original non-
English documentation must be accompanied by an English translation.
Payment Transactions
Pre-compliance Condition The issuer (as the Receiving Institution (RI)) did not receive a clearing
record within one Central Site business day of the authorization
approval date of the Payment Transaction authorization request.
Pre-compliance Time Frame 30 calendar days prior to escalating the pre-compliance case to a
compliance case
Pre-compliance Supporting Both of the following:
Documentation • The authorization request approval date; and
• The transaction amount indicated in the authorization request
message.
Compliance Condition The Filing Customer may escalate the pre-compliance case to a
compliance case when the pre-compliance case is rejected.
Compliance Time Frame Within 45 calendar days after approval of the Payment Transaction
authorization request.
Pre-compliance Time Frame At least 30 calendar days prior to escalating the pre-compliance case to a
compliance case
Pre-compliance Supporting Both of the following:
Documentation
• Documentation to support the Pre-Compliance Condition.
• For transactions assigned an Original Switch Serial Number: a completed
Dispute Resolution Management Case Filing Form-SMS Linked Case Filing
(Form 682a)
Compliance Condition An issuer or acquirer may escalate the pre-compliance case to a compliance
case when the pre-compliance case was rejected.
Compliance Time Frame Within 120 calendar days of the violation
Notes Information relevant to the case must be in English or the original non-
English documentation must be accompanied by an English translation.
• The Customer filed the case beyond the appropriate filing period.
• Documentation was not in English or accompanied by an English translation.
The Filing Customer may resubmit a case that has been declined for ruling when the Filing
Customer can correct the deficiency that caused the case to be declined within the applicable
filing time frames. A new filing fee will apply.
Mastercard will review the case, the applicable rules, and render a decision. Mastercard will
post the decision in the Mastercom Case Filing application and generate Global Clearing
Management System (GCMS) “On-Behalf” Fee Collection/1740 messages using message
reason code 7800 or an MCBS Billing Event to debit and credit the disputed amount to the
appropriate Customers.
During the review process, when Mastercard Dispute Resolution staff requests specific
documentation from a Customer that documentation must be provided.
Fees
Mastercard will process fees as billing events though the Mastercard Consolidated Billing
System (MCBS) at the end of the month. Refer to the applicable country or region Mastercard
Consolidated Billing System (MCBS) manual for more information.
A Customer withdrawing or accepting the case before Dispute Resolution Management issues
a ruling is responsible for the following fees.
• Filing fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
• Withdrawal/Accept fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
When Dispute Resolution Management declines to rule on a case, the filing Customer is
responsible for the Filing fees:
• For intra-European and inter-European cases: EUR 150
• For all other cases: USD 150
When Dispute Resolution Management rules on a case:
• The Customer found responsible for the case is also responsible for the following fees:
– Filing Fee:
– For intra-European and inter-European cases: EUR 150
– For all other cases: USD 150
– Administrative Fee:
– For intra-European and inter-European cases: EUR 250
– For all other cases: USD 250
– Technical Violation Fee per violation of the dispute processing rules:
Appeals
An appeal is a written request from a Customer to Mastercard asking Mastercard to
reconsider a ruling decision.
Ruling decisions for compliance cases citing either the Missing, Invalid, or Inaccurate
Authorization Data or the Inaccurate Clearing Data that Restricts Chargeback sections of this
chapter are final and binding and may not be appealed.
Time Frames
An appeal must be postmarked within 45 calendar days of the Mastercard ruling decision.
When the appeal is sent by:
• Postal mail, the date included in the postmark must be within the 45 day time frame
• Courier, the tracking information must show that the courier received the appeal within
the 45 day time frame
Overview.................................................................................................................................... 520
How to File, and Respond to, Disputes through the Compliance Case Filing Process.................... 520
Dispute Reasons..........................................................................................................................522
Goods or Services were Either not as Described or Defective...................................................522
Pre-Compliance Case......................................................................................................... 522
Compliance Case...............................................................................................................524
Goods or Services were not Provided...................................................................................... 525
Pre-Compliance Case......................................................................................................... 525
Compliance Case...............................................................................................................529
Credit not Processed...............................................................................................................532
Pre-Compliance Case......................................................................................................... 532
Compliance Case...............................................................................................................535
Paid by Other Means.............................................................................................................. 537
Pre-Compliance Case......................................................................................................... 537
Compliance Case...............................................................................................................538
Billed an Incorrect Amount..................................................................................................... 540
Pre-Compliance Case......................................................................................................... 540
Compliance Case...............................................................................................................541
Duplicate Transaction............................................................................................................. 542
Pre-Compliance Case......................................................................................................... 542
Compliance Case...............................................................................................................544
Overview
An Originating Institution (OI) may dispute a Merchant Presented QR transaction through the
pre-compliance and compliance case filing process when the consumer contacted the OI
alleging one of the following dispute reasons:
1. Goods or Services Were Either Not as Described or Defective
2. Goods or Services Were Not Provided
3. Credit Not Processed
4. Paid by Other Means
5. Billed an Incorrect Amount
6. Duplicate Transaction
A dispute must not be submitted for failure to refund shipping or handling charges for buyer’s
remorse cancellations or returns.
Disputes are available to the OI for transactions in which any value is purchased for gambling,
investment or similar purposes. However, OIs have no dispute rights related to the use of
these chips or value, unspent chips, or withdrawal of such value, or on any winnings, gains or
losses resulting from the use of such chips or value.
How to File, and Respond to, Disputes through the Compliance Case
Filing Process
The Originating Institution (OI) must submit a pre-compliance case correctly, completely, and
in compliance with the requirements described later in this chapter and in the Case Filing
Procedures for Merchant Presented QR Pre-compliance.
The OI is responsible for ensuring that legible copies of all relevant documentation are
manually attached to the Mastercom pre-compliance case.
At any time prior to the Receiving Institution (RI) rejecting or accepting the case, the OI may
withdraw the case for any reason.
The RI, using the Case Filing application within Mastercom, may:
• Reject the pre-compliance case with a rebuttal and any relevant documentation within 25
calendar days (5 business days for domestic Nigeria POS transactions) of the date the pre-
compliance case was submitted into Mastercom.
• Accept the pre-compliance case within 25 calendar days (5 business days for domestic
Nigeria POS transactions) of the date the pre-compliance case was submitted into
Mastercom.
Mastercard will automatically move funds for an accepted case by either generating a
Global Clearing Management System (GCMS) “On-Behalf” Fee Collection/1740 message
using message reason code 7800 or a MCBS Billing Event.
• Take no action and thereby accept liability for the disputed transaction should the pre-
compliance case subsequently be escalated to a compliance case. After 30 calendar days
the Mastercom system will automatically reject the pre-compliance case.
The OI may escalate the pre-compliance case to a compliance case when:
• The RI rejected the pre-compliance case within the 25 calendar day (5 business days for
domestic Nigeria POS transactions) timeframe. The case can be escalated immediately upon
rejection by the RI.
• The Mastercom system rejected the pre-compliance case.
When escalating a pre-compliance case to a compliance case, the OI may, when applicable,
add a response to the RI's rebuttal.
An OI failing to escalate the pre-compliance to a compliance case within timeframe is
choosing to accept liability for the disputed transaction.
At any time prior to a Mastercard decision on the escalated compliance case, the OI may
withdraw the compliance case for any reason.
The RI, using the Case Filing application within Mastercom, may:
• Accept the compliance case at any time prior to a Mastercard decision on the case. The RI
must not attach documentation or add a memo.
Mastercard will rule the case in favor of the OI when the RI attaches
documentation or adds a memo.
• Within 10 calendar days of the case escalation date, take no action.
“Rejecting” a compliance case filing is prohibited even though the Mastercom button
may appear. Mastercard will rule the case in favor of the OI when the RI rejects the
case.
Mastercard may begin review of the case fifteen days after a pre-compliance case is escalated
to compliance and determine responsibility according the dispute rules applicable to the
dispute reason.
Supporting Documents. Supporting Documents must be in English or accompanied by an
English translation unless both the Originating Institution (OI) and the Receiving Institution (RI)
share a common language. Supporting Documents must provide sufficient detail to enable all
parties to understand the nature of the dispute or rebuttal. Mastercard will determine whether
the Supporting Documents contain sufficient detail.
Supporting Documents must be provided using the Mastercom application.
The consumer email, consumer letter, and consumer message (including through a password-
protected website) must come directly from the consumer or, in the case of a commercial
card, the corporate entity. A completed Dispute Resolution Form must be the direct result of a
conversation with the consumer.
Dispute Reasons
The following sections provide information in handling Merchant Presented QR disputes.
Pre-Compliance Case
This table details the conditions under which an Originating Institution (OI) may initiate a pre-
compliance case filing.
Pre-Compliance Condition. The consumer contacted the Originating Institution (OI) claiming all of
the following:
• The consumer engaged in the transaction.
• The consumer contacted the merchant, or attempted to contact the merchant, to resolve the
dispute.
• The merchant refused to adjust the price, repair or replace the goods or other things of value, or
issue a refund.
• For disputes involving goods: The consumer returned the goods or informed the merchant the
goods were available for pickup.
And one of the following:
• When delivered from the merchant, the goods arrived broken or could not be used for the
intended purpose.
• Goods and services did not conform to their description. Examples include, but are not limited to:
– The consumer claims that the quality or workmanship of the product is not as described.
– The consumer claims that the specified color, size, or quantity is not as described.
• The merchant did not honor the terms and conditions of the contract with the consumer including,
but not limited to, 100 percent money back guarantee, written promises, or return policy.
Time Frame. A pre-compliance case must be submitted a minimum of 30 calendar days prior to
escalation as a compliance case. The pre-compliance case must be submitted within one of the
following time frames:
• Between 15 and 90 calendar days from the transaction settlement date.
• Between 15 and 90 calendar days from the delivery date of the goods or services.
• 90 calendar days from when the services ceased with a maximum of 540 calendar days from the
transaction settlement date for issues of interruption of ongoing services.
Notes. This pre-compliance is not available when proper disclosure of the conditions of the goods is
made at the time of the sale, such as when goods are sold in “as is” condition.
Pre-Compliance Response The Receiving Institution (RI) can provide evidence in response to
Condition. the consumer’s claims.
Pre-Compliance Response The Originating Institution (OI) pre-compliance filing was invalid.
Condition. For example, the pre-compliance case was filed after the applicable
timeframe.
Compliance Case
The OI may escalate a pre-compliance case to a compliance case filing within the required
time frame when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the applicable time frame.
Time Frame. Escalate within 120 calendar days of one of the following:
• The delivery date of the goods or services.
• The transaction settlement date.
• For interrupted services, the date the services ceased.
Supporting Documents. A new consumer letter, email, message, or Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) dated after the
merchant’s documentation and specifically addressing the
merchant’s explanation.
The supporting documentation must be attached upon escalation
or within 10 calendar days of escalation.
Table 5: The RI’s Response to the Pre-Compliance Case was Invalid or not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 120 calendar days of one of the following:
• The delivery date of the goods or services.
• The transaction settlement date.
• For interrupted services, the date the services ceased.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid.
When applicable , the supporting documentation must be attached
upon escalation or within 10 calendar days of escalation.
Notes. None.
Pre-Compliance Case
This table details the conditions under which an Originating Institution (OI) may initiate a
dispute.
Supporting Documents. An OI statement within the pre-compliance case filing stating that
the pre-compliance case is for “GOODS OR SERVICES WERE NOT
PROVIDED”.
Additionally, one of the following:
• Consumer email, letter, message or completed Dispute
Resolution Form—Cardholder Dispute Chargeback (Form 1221)
must include both of the following:
– A description of the consumer’s complaint in sufficient detail
to enable all parties to understand the dispute.
– A reasonably specific description of the goods/services
purchased.
• For disputes involving a transaction performed by an online
travel agency or tour operator that is no longer in business at
the time of the dispute: an email, letter, or completed Dispute
Resolution Form—Cardholder Dispute Chargeback (Form 1221)
provided by the individual or corporate entity requesting the
travel arrangements from the online travel agency or tour
operator that includes all of the following:
– A description of the complaint in sufficient detail to enable
all parties to understand the dispute.
– A reasonably specific description of the goods/services
purchased.
Notes. This dispute applies when the consumer receives an empty box or a
box containing worthless items, such as a brick or a stack of paper.
Interruption of Ongoing Services
The OI must only charge back an amount representing the services
not received by the consumer.
When an end date was not defined, then the OI must calculate the
prorated amount based upon 18 months.
For example, the consumer purchased a lifetime membership for
USD 1,000. The merchant goes out of business after three months.
The amount to be charged back is USD 833 (USD 1,000 divided by
18 months = USD 55 per month. 18 months minus 3 months = 15.
USD 55 * 15 = USD 833).
This dispute does not apply when:
• The consumer has taken possession of the merchandise from
the merchant and subsequently makes arrangements to have
the merchandise shipped by a third party.
• The goods are being held in customs for unpaid duty or customs
fees. The consumer is obligated to pay the appropriate fees.
• The merchant delivered the merchandise and the consumer
refused to accept delivery.
• The consumer signed a waiver absolving the merchant from
responsibility when the merchandise is not received.
For example: A consumer purchases vases and arranges with the
merchant to have the vases shipped to the United States. At the
time of purchase, the consumer signs a waiver form that states:
“PROOF OF DISPATCH OF THE MERCHANDISE WILL BIND THE
CONSUMER.” The vases never arrive, and the consumer
contacts the merchant. The merchant provides documentation
to show that the merchandise was shipped. By signing the
waiver, the consumer absolved the merchant of liability for
merchandise that the consumer did not receive.
• The consumer declined insurance.
For example: The merchant provides the consumer with an
opportunity to purchase insurance on the merchandise to be
delivered. Normally, such insurance stipulates that the consumer
must initiate claims that limit the merchant responsibility to the
presenting documentation that verifies shipment or dispatch.
The merchant should provide a signed waiver of liability
obtained from the consumer when the consumer declined to
purchase insurance, along with documentation that shows that
the merchant shipped the merchandise.
Pre-Compliance Response
A Receiving Institution (RI) may respond to a pre-compliance case filing when:
Pre-Compliance Response The Receiving Institution can provide evidence in response to the
Condition. consumer’s claims.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The merchant’s explanation and documentation showing the goods
or services were provided.
Notes. None.
Pre-Compliance Condition. The Originating Institution (OI) pre-compliance filing was invalid.
For example, the pre-compliance case was filed after the applicable
timeframe.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The RI’s explanation of why they believe the pre-compliance filing
was invalid.
Notes. None.
Compliance Case
The Originating Institution (OI) may escalate a pre-compliance case within the required time
frame to a compliance case filing when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the required time frame.
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
Time Frame. Escalate within 120 calendar days of one of the following:
• The transaction settlement date.
• The latest anticipated delivery or performance date specified by
the merchant.
• For interrupted ongoing services, the date the consumer
became aware that the service ceased.
• For merchant-branded prepaid gift cards where the merchant is
out of business, the case must be escalated within 120 calendar
days from the expiration date printed on the card or 540
calendar days from the transaction settlement of the first
presentment if there is no expiration date on the card.
Supporting Documents. A new consumer letter, email, message, or Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) dated after the
merchant’s documentation and specifically addressing the
merchant’s explanation provided with the pre-compliance case
response.
In addition:
• When the pre-compliance case response documentation
includes a signed delivery receipt, the new consumer letter,
email, message, or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must state the
signature on the delivery receipt is not the consumer’s signature
or the signature of any person authorized by the consumer.
• When the pre-compliance case response documentation stated
that paper airline tickets were issued, the new consumer letter,
email, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must explain the
disposition of the paper airline tickets by clearly stating that the
airline tickets are no longer in the consumer’s possession and
how the airline tickets were disposed (for example, the airline
tickets were discarded, destroyed, returned to the Originating
Institution, returned to the travel agency, or disposed in some
other manner).
• None, when all of the following:
– The dispute was not for paper airline tickets.
– The pre-compliance case response documentation included a
delivery receipt dated before the original consumer letter.
– The delivery receipt was not signed by the consumer, or a
person authorized by the consumer.
Supporting documentation must be attached upon escalation or
within 10 calendar days of escalation.
Table 10: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 120 calendar days of one of the following:
• The transaction settlement date.
• The latest anticipated delivery or performance date specified by
the merchant.
• For interrupted services, the date the consumer became aware
that the service ceased.
• For merchant-branded prepaid gift cards where the merchant is
out of business, the case must be escalated within 120 calendar
days from the expiration date printed on the card or 540
calendar days from the Central Site Business Date of the first
presentment if there is no expiration date on the card.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid.
When applicable , the supporting documentation must be attached
upon escalation or within 10 calendar days of escalation.
Notes. None.
Pre-Compliance Case
This table details the conditions under which an Originating Institution may initiate a dispute.
Pre-compliance Condition. The consumer contacted the Originating Institution (OI) claiming
one of the following:
• The merchant failed to disclose its refund policy at the time of
the transaction and is unwilling to accept a return or
cancellation of goods or services.
• The merchant has not responded to the return or the
cancellation of goods or services.
• The merchant posted a refund for a reduced amount without
proper disclosure.
• The merchant failed to issue a Value Added Tax (VAT) refund.
Supporting Documents. An OI statement within the Pre-compliance case filing stating that
the dispute reason is for “CREDIT NOT PROCESSED”.
Additionally, one of the following:
• A consumer letter, email, message, or Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the
consumer’s complaint in sufficient detail to enable all parties to
understand the dispute.
• Merchant documentation to support a refund is due to the
consumer.
• Proof of an improperly disclosed in-store credit and consumer
explanation.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. Compelling evidence showing the means by which the refund was
processed. Examples include, but are not limited to: bank transfer,
store credit, check.
The Acquirer Reference Data (ARD) or transaction information of
the refund transaction.
Pre-compliance Condition. The Originating Institution (OI) pre-compliance filing was invalid.
For example, the pre-compliance case was filing after the applicable
time frame.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The RI’s explanation of why they believe the pre-compliance filing
was invalid.
Notes. None.
Compliance Case
The Originating Institution (OI) may escalate a pre-compliance case within the required time
frame to a compliance case filing when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the required time frame.
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
Time Frame. Escalate within 120 calendar days of one of the following:
• The date on the refund documentation.
• The date the services were canceled or the goods were
returned.
• The transaction date for a VAT refund.
Supporting Documents. A new consumer letter, email, message, or Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) dated after the pre-
compliance case response and specifically addressing the
merchant’s explanation.
When the original consumer letter, email, message, or Dispute
Resolution Form—Cardholder Dispute Chargeback (Form 1221)
included in the pre-compliance case filing states that the consumer
returned the merchandise and the merchant denies receiving the
merchandise in the pre-compliance case response, the Originating
Institution must then obtain proof that the merchandise was
returned to and received by the merchant to accompany the pre-
compliance case.
Supporting documentation must be attached upon escalation or
within 10 calendar days of escalation.
Table 15: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 120 calendar days of one of the following:
• The date on the refund documentation.
• The date the services were canceled or the goods were
returned.
• The transaction date for a VAT refund.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid. When applicable , the supporting
documentation must be attached upon escalation or within 10
calendar days of escalation.
Notes. None.
Pre-Compliance Case
This table details the conditions under which an Originating Institution may initiate a dispute.
Pre-compliance Condition. The consumer contacted the Originating Institution (OI) alleging
that the consumer paid for a transaction using one form of
payment and subsequently paid for the same transaction using
another form of payment. Either the original or subsequent
transaction must have been a Merchant Presented QR transaction.
In addition, both transactions may have been Merchant Presented
QR transactions.
Time Frame. A pre-compliance case must be submitted a minimum of 30
calendar days prior to escalation as a compliance case. The pre-
compliance must be submitted between 5 and 60 calendar days
from the transaction settlement date.
Supporting Documents. All of the following:
• An OI statement within the pre-compliance case filing stating
that the dispute reason is for “PAID BY OTHER MEANS”.
• A consumer letter, email, message or completed Dispute
Resolution Form—Point-of-Interaction (POI) Errors (Form 1240)
describing the consumer’s complaint in sufficient detail to
enable all parties to understand the dispute.
The consumer letter, email, message or completed Dispute
Resolution Form—Point-of-Interaction (POI) Errors (Form 1240)
must specify the alternate means of payment providing
sufficient transaction details to allow the merchant to locate the
alternate payment.
• Documentation detailing the specific method of payment.
Examples include, but are not limited to:
– A bank statement documenting payment to the merchant.
– A canceled check.
– A receipt showing cash as the payment method.
Notes. The OI may file a pre-compliance case for only the disputed
amount.
Pre-Compliance Case The Receiving Institution can provide evidence that both
Response Condition. transactions were valid and that the cardholder was not debited
more than once for the same goods or services.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The merchant’s explanation and documentation supporting that
both transactions were valid and the cardholder was not debited
more than once for the same goods or services.
Notes. None.
Pre-compliance Condition. The Originating Institution (OI) pre-compliance filing was invalid.
For example, the pre-compliance case was filing after the applicable
time frame.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The RI’s explanation of why they believe the pre-compliance filing
was invalid.
Notes. None.
Compliance Case
The Originating Institution (OI) may escalate a pre-compliance case within the required time
frame to a compliance case filing when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the required time frame.
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
Table 20: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 90 calendar days of the transaction settlement date.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid.
When applicable, the supporting documentation must be attached
upon escalation or within 10 calendar days of escalation.
Notes. None.
Pre-Compliance Case
Pre-compliance Condition. The consumer contacted the Originating Institution (OI) claiming
the consumer was billed an incorrect amount. The billing
discrepancy could be due to the merchant’s addition error that
resulted in an incorrect total on the TID or other documentation.
Time Frame. A pre-compliance case must be submitted a minimum of 30
calendar days prior to escalation as a compliance case. The pre-
compliance must be submitted within 60 calendar days from the
transaction settlement date.
Supporting Documents. All of the following:
• An OI statement within the pre-compliance case filing stating
that the dispute reason is for “BILLED AN INCORRECT
AMOUNT”.
• A consumer letter, email, message or completed Dispute
Resolution Form —Point-of-Interaction (POI) Errors (Form 1240)
describing the consumer’s complaint in sufficient detail to
enable all parties to understand the dispute. The consumer
letter, email, message or completed Dispute Resolution Form—
Point-of-Interaction (POI) Errors (Form 1240) must specify the
transaction amount that should have been billed.
• Documentation detailing the correct transaction amount.
Examples include, but are not limited to:
– A receipt including the correct transaction amount.
– The final hotel or car rental bill.
– Merchant email confirming price.
This table details the conditions under which an Originating Institution may initiate a dispute.
Pre-Compliance Case The RI can provide evidence that the consumer was billed the
Response Condition. correct amount.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The merchant’s explanation and documentation.
Notes. None.
Pre-compliance Condition. The Originating Institution (OI) pre-compliance filing was invalid.
For example, the pre-compliance case was filing after the applicable
time frame.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The RI’s explanation of why they believe the pre-compliance filing
was invalid.
Notes. None.
Compliance Case
The Originating Institution (OI) may escalate a pre-compliance case within the required time
frame to a compliance case filing when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the disputed transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the required time frame.
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
Time Frame. Escalate within 90 calendar days of the transaction settlement date.
Supporting Documents. A new consumer letter, email, message, or Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) dated after the pre-
compliance case response and specifically addressing the
merchant’s explanation.
Supporting documentation must be attached upon escalation or
within 10 calendar days of escalation.
Table 25: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 90 calendar days of the transaction settlement date.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid.
When applicable, the supporting documentation must be attached
upon escalation or within 10 calendar days of escalation.
Notes. None.
Duplicate Transaction
This section details the requirements for claims that a duplicate transaction was processed.
Pre-Compliance Case
This table details the conditions under which an Originating Institution may initiate a dispute.
Pre-compliance Condition. An Originating Institution (OI) can determine that the transaction is
a duplicate when the merchant PAN, transaction amount,
transaction date, and authorization response code are identical
for the transactions in question.
Time Frame. A pre-compliance case must be submitted a minimum of 30
calendar days prior to escalation as a compliance case. The pre-
compliance must be submitted between 5 and 60 calendar days
from the transaction settlement date.
Notes. The OI may file a pre-compliance case for only the disputed
amount.
Pre-Compliance Case The Receiving Institution can provide evidence to support two
Response Condition. separate transactions, or proof that a refund was issued.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The merchant’s explanation and documentation supporting two
separate transactions or proof that a refund was issued.
Notes. When a credit was not processed to correct duplication, proof must
clearly support that a duplication has not occurred. For example,
different authorization codes or different TIDs.
Pre-compliance Condition. The Originating Institution (OI) pre-compliance filing was invalid.
For example, the pre-compliance case was filing after the applicable
time frame.
Time Frame. Within 25 calendar days (5 business days for domestic Nigeria POS
transactions) of the pre-compliance Submitted Date as shown in
the Mastercom Case Filing application.
Supporting Documents. The RI’s explanation of why they believe the pre-compliance filing
was invalid.
Notes. None.
Compliance Case
The Originating Institution (OI) may escalate a pre-compliance case within the required time
frame to a compliance case filing when:
1. The consumer continues to dispute the transaction.
2. The RI did not respond to the pre-compliance case or the RI’s response to the pre-
compliance case was invalid.
The OI accepts responsibility for the disputed transaction when the OI fails to escalate the pre-
compliance to a compliance case filing within the required time frame.
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
Table 30: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
Compliance Condition. The RI’s response to the pre-compliance case was invalid or not
provided.
Time Frame. Escalate within 90 calendar days of the transaction settlement date.
Supporting Documents. The OI’s explanation of why they believe the pre-compliance
response was invalid.
When applicable, the supporting documentation must be attached
upon escalation or within 10 calendar days of escalation.
Notes. None.
Overview.................................................................................................................................... 548
Clearing......................................................................................................................................548
Processing Cycles........................................................................................................................ 548
Processing Cycle for ATM Transactions....................................................................................548
Presentment...........................................................................................................................549
Reversals............................................................................................................................549
Chargebacks and Second Presentments..................................................................................550
Chargebacks......................................................................................................................550
Second Presentment.......................................................................................................... 550
Intra-European and Inter-European Dispute Administration Fee (ATM)................................551
Chip Transactions................................................................................................................... 552
Message Reason Codes...............................................................................................................552
Message Reason Code 4804—Multiple Processing................................................................. 553
Proper Use of Message Reason Code 4804........................................................................ 553
Improper Use of Second Presentment................................................................................ 553
Message Reason Code 4808—Transaction Not Authorized..................................................... 553
Proper Use of Message Reason Code 4808........................................................................ 553
Proper Use for Issuer’s First Chargeback............................................................................. 554
Proper Use for Acquirer’s Second Presentment................................................................... 554
Expired Payment Guarantee.......................................................................................... 554
Transaction Authorized..................................................................................................554
Message Reason Code 4809—Transaction Not Reconciled......................................................555
Proper Use of Message Reason Code 4809........................................................................ 555
Improper Use of Acquirer’s Second Presentment................................................................ 556
Message Reason Code 4811—Stale Transaction..................................................................... 556
Proper Use of Message Reason Code 4811........................................................................ 556
Improper Use of Acquirer’s Second Presentment................................................................ 556
Message Reason Code 4834—Duplicate Processing of Transaction......................................... 556
Proper Use of Message Reason Code 4834........................................................................ 556
Proper Use for Issuer’s First Chargeback............................................................................. 556
Overview
This appendix contains the rules and procedures for processing both interregional and intra-
European Mastercard, Maestro, and Cirrus ATM and PIN-based in-branch terminal exception
transactions.
Clearing
All Mastercard Europe Customers holding Mastercard, Maestro, and Cirrus licenses
(participants) must use and comply with the Integrated Product Message (IPM) format and
support the full clearing cycle.
Processing Cycles
The following sections contain information about the Processing Cycles.
Presentment
A transaction taking place at the ATM or PIN-based in-branch terminal is presented to the
issuer electronically using Global Clearing Management System (GCMS).
Interregional transactions made outside Europe with European cards will be presented to
Europe issuers by the Mastercard Single Message System using GCMS in USD.
The clearing presentment should be created by the acquirer as soon as possible and sent
within seven calendar days of the transaction date. Transactions that are not presented within
this time frame may be subject to chargebacks under message reason code 4842 (Late
Presentment), 4880 (Late Presentment) for Maestro ATM transactions,or 4811 (Stale
Transactions).
For all transactions presented between 46 calendar days and one year from the transaction
date, the acquirer will be charged a fee that will be transferred in full to the issuer.
Reversals
Whenever an acquirer identifies a partially completed transaction, or a not-completed
transaction or an error in the presentment of a transaction, it must process a reversal covered
by a Financial Message Reversal.
This can be a reversal for the transaction amount of the presentment (full reversal) or for a
partial amount (partial reversal). This procedure must be used when a full or partial reversal in
the authorization flow was received after presentment of the transaction. There is no time
limit for the acquirer to issue a reversal.
Presentment must be for the full amount of the original transaction, in the currency of the
original transaction, and may be altered only by a full or partial reversal:
• A full reversal: If a previously authorized transaction is fully reversed (for example, valid
authorization request and response, and the corresponding reversal request and response
messages are received) within the same clearing cycle, the transaction shall not appear in
the clearing file.
• A partial reversal: If a previously authorized transaction is partially reversed (for example,
valid authorization request and response, and the corresponding reversal request and
response messages are received) within the same clearing cycle, the transaction shall
appear in the clearing file with the corrected transaction amount.
Chargebacks
A chargeback may be initiated if the issuer determines that the transaction was presented in
violation of the Rules and that a specific reason is available.
Refer to Message Reason Codes. An acquirer must accept the resultant liability unless it can
satisfy the conditions for second presentment.
All chargebacks that are processed using GCMS must be processed electronically by the issuer
to the acquirer using the chargeback message as defined in the IPM Clearing Formats manual.
The issuer must send the chargeback within 90 or 120 calendar days of the Central Site
Business Date for intra-European and inter-European transactions and of the switch settlement
date for interregional transactions.
No provisions are made to settle any losses/gains resulting from exchange rate differences or
funding costs.
All message reason codes in this appendix are allowed for ATM and for PIN-based in-branch
terminal transactions completed with magnetic stripe or chip technology unless otherwise
stated.
Second Presentment
A second presentment may be processed by the acquirer if either of the following apply.
• Additional information can be provided to remedy the original defect that led to the
chargeback.
• The chargeback is believed to be invalid.
The second presentment must be electronically processed by the acquirer to the issuer using
the second presentment message as defined in IPM Clearing Formats.
Second presentments must be submitted within 45 calendar days of the Central Site Business
Date of the chargeback for intra-European and inter-European transactions and of the
chargeback settlement date for interregional transactions.
The second presentment may not be for an amount in excess of the issuer’s chargeback but
may be for the same or a lesser amount.
No provisions are made to settle any losses/gains resulting from exchange rate differences or
funding costs.
The second presentment DE 72 (Data Record) must contain the contact name, phone, and fax
numbers for second presentments for all interregional ATM message reason codes.
The requirements that must be met before an acquirer can second present a transaction, and
the supporting documentation required are provided under each message reason code.
For intra-European and inter-European transactions other, general second presentment
message reason codes may apply, such as:
• 2713—Invalid Chargeback
• 2702—Past Chargeback Time Limit
• 2011—Credit Previously Issued
Refer to Second Presentment/1240 IPM (Function codes 205 or 282) Message Reason Code
Usage for more message reason codes.
Supporting documentation, completed in English or accompanied by an English translation,
must be submitted at the time the second presentment is processed.
All supporting documentation must be provided through Mastercom.
the fee collection message must contain the “10-digit chargeback reference number—
collection of DAF.”
Chip Transactions
The production of a transaction cryptogram and related data elements for each chip
transaction introduces new information, which can help determine the actual circumstances
of a transaction and thus assist in determining issuer and acquirer liabilities.
Cryptograms must be provided to issuers in the original presentment or must be made
available to issuers if needed for subsequent inquiries.
However, the cryptogram in itself does not constitute a guarantee of payment to the acquirer.
The lack of a cryptogram or an invalid cryptogram does not provide an automatic right of
chargeback to the issuer.
DE 55 must be present in the First Presentment/1240 message. If the acquirer does not supply
correct data in DE 55 of the First Presentment/1240 message, the issuer may collect a
handling fee of EUR 25.
In addition to the above chargeback reasons, the following message reason codes may be
used by Mastercard to automatically chargeback interregional transactions.
Second Presentment Condition • The transaction was presented within seven calendar days of the
pre-authorization or authorization approval date, and the pre-
authorization or authorization was not reversed, or
• The issuer has not permanently closed the account.
Transaction Authorized
Second Presentment Condition The acquirer can substantiate that the transaction was approved.
Supporting Documents None
Other message codes may apply; refer to Second Presentment for more details.
Interregional Transactions
Time Frame 120 days
Supporting Documents None
DE 72 (Data Record) None
Notes The issuer must charge back both transactions.
Second Presentment Condition The acquirer can substantiate that a credit was processed.
Supporting Documents None
DE 72 (Data Record) CREDIT MMDDYY ARD NNNNNNNNNNNNNNNNNNNNNNNN
Notes Applies to intra-European and inter-European transactions
only
Replace MMDDYY with the date the issuer sent the credit or
reversal and optionally replace
NNNNNNNNNNNNNNNNNNNNNNN with the ARD.
Chargeback Remedied
Second Presentment Condition The acquirer can substantiate that both transactions were valid.
Supporting Documents Documentation indicating two separate transactions.
DE 72 (Data Record) None
Notes For interregional transactions where no ARD was mentioned in the
Data Record of the chargeback, the acquirer must provide
documentation substantiating each transaction that was charged
back.
Second Presentment Condition The chargeback is invalid because the issuer failed to provide the
original ARD in DE 72.
Supporting Documents None
DE 72 (Data Record) None
Notes Applies to intra-European and inter-European transactions
only
Other message codes may apply; refer to Second Presentment for more details.
Second Presentment Condition The acquirer can show that the chargeback was invalid or can
substantiate that the transaction date was not more than seven
calendar days prior to the central processing date of the
presentment.
Supporting Documents None
DE 72 (Data Record) MMDDYY
Notes Replace MMDDYY with the correct transaction date
Second Presentment Condition The acquirer can show that the account is not permanently closed.
Supporting Documents None
DE 72 (Data Record) MMDDYY
Notes Replace MMDDYY with the authorization date and code obtained
after the chargeback date.
Other message codes may apply; refer to Second Presentment for more details.
• POI currency conversion took place into a currency that is not the cardholder’s billing
currency, or
• POI currency conversion took place when the cash was dispensed in the cardholder’s billing
currency.
Second Presentment Condition The acquirer determines that the chargeback was invalid because
the correct transaction amount and currency code were provided.
In a dual currency environment, the merchant specified a currency
indicator on the TID.
Other message codes may apply; refer to Second Presentment for more details.
DE 72 (Data Record) RS3 and provide chargeback contact’s name, phone and fax number.
Notes The Data Elements (DE) referred to above should contain the same
information that would be included in the 0100/Authorization
Request and 1240/First Presentment messages. If provided in a
different format from the Mastercard Network or IPM, a key would
be required to explain each field. Reasonable evidence of a successful
disbursement of funds must be provided in the documentation
supplied.
Other message codes may apply; refer to Second Presentment for more details.
The issuer may initiate a chargeback using message reason code 4870 for counterfeit fraud
when:
• The issuer receives a cardholder letter alleging that the transaction was fraudulent, and
that the cardholder was in possession of his or her card at the time of the transaction or
the issuer certifies by means of a different document accompanying the cardholder’s letter
that this is a case of counterfeit fraud. The issuer must provide this documentation.
• The transaction was conducted with a hybrid counterfeit card at a magnetic stripe reading-
only ATM and the validly issued card (if any) was a hybrid card.
• The transaction that occurred on the counterfeit card was reported to the Fraud and Loss
Database on or before the date the chargeback was processed.
occurs when PDS 0002 (GCMS Product Identifier) was MAP (Mastercard Commercial
Payments Account) in the First Presentment/1240 message.
NOTE: Technical Fallback is not permitted for intra-European and inter-European ATM
transactions, and the issuer has a compliance right in cases of counterfeit fraud. Refer to
Chapter 7 of the Transaction Processing Rules.
Time Frame 120 days for Mastercard and Cirrus, 90 days for Maestro
Retrieval Request No
Supporting Documents Cardholder Documentation
DE 72 (Data Record) None
Notes None
Second Presentment Condition The acquirer can show that the liability shift does not apply as:
1. The card involved was not a hybrid card according to the service
code (DE 35 or DE 45) in the authorization request (that is, the
value of the first position was not a 2 or 6).
2. The transaction was completed with chip.
3. The chargeback was otherwise invalid (for example, the terminal
was hybrid).
Notes None
Second Presentment Condition The acquirer can show that on the chargeback date, the issuer was
listed in a Mastercard Announcement as:
1. Ineligible to participate in the Global Chip Liability Shift Program
for interregional Maestro ATM transactions; or
2. Limited to seven chargebacks for reason code 70 or 74 involving
the same Maestro card account, and the transaction charged
back contains an FNS counter value that is greater than seven (a
value of eight or more).
Second Presentment Condition The issuer previously charged back more than 15
transactions involving the same account for any of
the following message reason codes: 4837, 4840,
4863, 4870, or 4871.
Other message codes may apply; refer to Second Presentment for more details.
Second Presentment Condition The acquirer can substantiate that the transaction date was not
more than seven calendar days before the Central Site processing
date of the presentment.
Notes Other message codes may apply; refer to Second Presentment for
more details.
Overview.................................................................................................................................... 574
Exception Item Processing........................................................................................................... 575
Exception Transaction Types....................................................................................................575
Reversals................................................................................................................................ 575
Retrieval Requests.................................................................................................................. 575
Acquirer Requirements.......................................................................................................575
Chip Transactions................................................................................................................... 576
Chargebacks.......................................................................................................................... 576
Chargeback Procedures..................................................................................................... 576
Supporting Documentation for a Chargeback.................................................................... 576
Second Presentment Procedures............................................................................................. 577
Supporting Documentation for a Second Presentment....................................................... 577
Message Reason Codes for Interregional Transactions................................................................. 578
Interregional Message Reason Code 4804—Transaction Multiple Processing...........................579
Proper Use of Interregional Message Reason Code 4804....................................................579
Improper Use for Acquirer’s Second Presentment............................................................... 579
Interregional Message Reason Code 4809—Transaction Not Reconciled ................................ 579
Proper Use of Interregional Message Reason Code 4809....................................................579
Improper Use for Acquirer’s Second Presentment............................................................... 579
Interregional Message Reason Code 4811—Stale Transaction.................................................579
Proper Use of Interregional Message Reason Code 4811....................................................579
Improper Use of Acquirer’s Second Presentment................................................................ 579
Interregional Message Reason Code 4831—Disputed Amount............................................... 579
Proper Use of Interregional Message Reason Code 4831....................................................579
Proper Use for Issuer’s First Chargeback............................................................................. 580
Proper Use for Acquirer’s Second Presentment................................................................... 580
Interregional Message Reason Code 4834—Duplicate Transaction .........................................580
Proper Use of Interregional Message Reason Code 4834....................................................580
Proper Use for Issuer’s First Chargeback............................................................................. 580
Proper Use for Acquirer’s Second Presentment................................................................... 580
Interregional Message Reason Code 4837—No Cardholder Authorization.............................. 581
Proper Use of Interregional Message Reason Code 4837....................................................581
Improper Use of Interregional Message Reason Code 4837................................................581
Overview
This graphic presents the chargeback processing cycle.
Presentment The acquirer must send the presentment within seven (7) calendar days of
the transaction date. If an acquirer does not submit an interregional
transaction presentment within 120 days of the transaction date, GCMS will
automatically reject the transaction and process a credit adjustment for the
transaction amount to the issuer.
Chargeback The issuer must send the chargeback within 120 calendar days of the
transaction’s central processing date.
Second Presentment The acquirer must send the second presentment within 45 calendar days of
the central processing date of the chargeback.
Reversals
Europe uses a dual message system to process authorization messages and clearing messages
(using Global Clearing Management System [GCMS]).
Therefore, whenever an acquirer identifies an error in the presentment of a transaction, a
“reversal” (either full or partial) will be generated. There is no time limit for the acquirer to
issue a reversal.
Retrieval Requests
An issuer may initiate a retrieval request for an intra-European or inter-European transaction
after receiving a cardholder request or for fraud investigation.
Acquirer Requirements
The acquirer must fulfill a retrieval request within 30 calendar days of the retrieval request
processing date by providing the issuer with a legible copy of the requested documentation
through the Mastercom® electronic imaging system.
For e-commerce transactions, the acquirer must provide order information obtained from the
merchant and the merchant’s contact address and phone number.
Chip Transactions
The production of a transaction cryptogram and related data elements for each chip
transaction introduces new information, which can help determine the actual circumstances
of a transaction and thus assist in determining issuer and acquirer liabilities.
Cryptograms must be provided to issuers in the original presentment or must be made
available to issuers via retrieval request fulfillments if needed for subsequent inquiries.
However, the cryptogram in itself does not constitute a guarantee of payment to the acquirer.
Nor does the lack of a cryptogram or an invalid cryptogram provide an automatic right of
chargeback to the issuer.
Chargebacks
All message reason codes in this appendix are allowed for any type of Maestro POS
transaction unless otherwise stated under the message reason code. Such transactions include
the following.
• Magnetic stripe or chip read transactions
• Signature, PIN or non-PIN based transactions
• Mail order/Telephone order (MO/TO) transactions (where permitted)
When using message reason codes 4855 and 4860 to submit a chargeback of a purchase with
cash back transaction, the issuer may charge back only the purchase amount or a portion
thereof, using Function Code of 453 (Partial Amount) in the First Chargeback/1442 message.
An issuer must not charge back the cash back amount or any portion thereof under any of
these message reason codes.
Chargeback Procedures
A chargeback may be initiated if the issuer determines that the transaction was presented in
violation of the rules and that a specific reason is available as detailed in the section called,
Message Reason Codes for Interregional Transactions, and in the section called, Message
Reason Codes for Intra-European and Inter-European Transactions of this appendix.
A chargeback must be submitted within 120 calendar days from the Central Site Processing
date for the full transaction amount, unless otherwise specified in the appropriate message
reason codes. An acquirer must accept the resultant liability unless it can satisfy the conditions
for second presentment.
For disputes between two Customers that share a common language, it is sufficient if the
documentation is translated into English at arbitration stage.
The issuer may use the Dispute Resolution Form-Fraud (Form 0412) only if the Maestro card
account is closed. Before processing the chargeback with the form, the issuer must block the
account on its host and report the transaction to the Fraud and Loss Database. The issuer
must supply the cardholder’s affidavit of fraud when requested by the acquirer pursuant to a
judicial request or similar legal action.
Customers
Outside Europe
Europe Customers Use Reason
Chargeback Reason Use Reason Code Code PIN-based? Signature?
Disputed Amount 4831 71 Yes Yes
Duplicate Transaction 4834 73 Yes Yes
No Cardholder Authorization 4837 74 N/A Yes
Goods or Services Not 4855 79 Yes N/A
Provided
Credit Not Received 4860 75 Yes Yes
Chip Liability Shift 4870 70 Yes Yes
Chip Transaction—Late 4880 80 Yes No
Presentment
In addition to the above chargeback reasons, the following chargeback reason codes may be
used by Mastercard to automatically chargeback interregional transactions.
2 According to schedule of countries joining the Chip Liability Shift as published in the Global Operations Bulletins.
Issuers may use this message reason code when cardholder’s account has been debited for an
amount that is higher than the original purchase amount or debited for an incorrect amount
when the merchant accepted an alternative form of payment to complete the transaction.
Chargeback Remedied
IPM Second Presentment 2700
Message Reason Code
Chargeback remedied
Chargeback Remedied
IPM Second Presentment Message 2700
Reason Code
Chargeback remedied
Second Presentment Condition The acquirer can show that two separate transactions occurred.
Chargeback Remedied
Supporting Documents Documentation supporting two separate transactions or proof that a
credit was issued.
DE 72 (Data Record) None
Notes None
NOTE: Refer to the last three digits of DE48.42 and not the first three.
Any subsequent transaction related to the original DSRP transaction (as defined in the
preceding paragraph), such as a partial shipment or recurring payment.
Refer to Appendix F for Digital Secure Remote Payment transaction identification
requirements.
Second Presentment Condition The chargeback did not meet the requirements as stipulated under
section Proper Use of Interregional Message Reason Code 4837.
Supporting Documents Copy of the authorization record
DE 72 (Data Record) None
Notes None
Second Presentment Condition The issuer previously charged back two or more transactions
involving the same Maestro card account before the authorization
approval date of the disputed transaction for message reason code
4837 or 4870.
Second Presentment Condition The issuer previously charged back more than 15 transactions
involving the same account for message reason code 4837 or 4870.
Supporting Documents None
DE 72 (Data Record) None
Notes The Fraud Notification Service (FNS) provides the acquirer with the
total number of fraud-related chargebacks submitted by the issuer
involving the same account. FNS places the total chargeback count
in the Fraud Notification Service Chargeback Counter subfield within
the Fraud Notification Information field of the chargeback message.
The acquirer may process a representment if this field is present and
the chargeback counter value exceeds 15 (a value of 16 or more).
anticipated date that the goods or services were to be provided. If no such date is provided,
the chargeback must be processed within 120 days of the Central Site Processing date.
The issuer may charge back the transaction before the specified delivery date if it is
established that the merchant will not provide the goods or services because, for example, it is
no longer in business.
Chargeback Remedied
IPM Second Presentment Message Reason Code 2700
Chargeback remedied
Second Presentment Condition The acquirer can show that goods or services were
received by the cardholder.
Supporting Documents Documentation showing that goods or services were
received by the cardholder.
DE 72 (Data Record) None
Notes None
Credit Issued
IPM Second Presentment 2011
Message Reason Code
Credit issued
Second Presentment Condition The acquirer can show that a credit was processed.
Supporting Documents Documentation showing the date the credit was processed to the
cardholder’s account, and the reference number of that transaction.
DE 72 (Data Record) None
Notes None
0100 message or Financial Transaction Request/0200 message, and the validly-issued card,
if any, was an EMV chip card.
• The cardholder letter, electronic message, or completed Dispute Resolution Form-Fraud
(Form 0412) must indicate that he or she was in possession of the card at the time of the
transaction or the issuer certifies by means of a different document accompanying the
cardholder’s letter that this is a case of counterfeit.
For lost, stolen, or never received fraud all of the following additional requirements must
be met:
• The transaction was conducted at a magnetic stripe reading-only POS terminal or at a
hybrid terminal but DE 55 was not present in the Authorization Request/0100 message or
Financial Transaction Request/0200 message, and the validly-issued card, if any, was an
EMV chip card.
• The transaction was conducted without PIN as CVM.
• The cardholder letter, electronic message, or completed Dispute Resolution Form-Fraud
(Form 0412) must indicate that the card was lost, stolen, or never received at the time of
the transaction, or the issuer can otherwise certify by means of a different document
accompanying the cardholder’s letter that the card was lost, stolen, or never received at the
time of the transaction.
NOTE: Technical Fallback—When a hybrid card is used at a hybrid terminal and fallback from
chip to magnetic stripe occurs, the transaction must be properly identified with POS entry
mode 80 (DE 22) and authorized online. The cardholder verification method (CVM) must be
PIN, except if the transaction is acquired in a waiver country in which case signature is also a
permitted CVM. If the transaction is not properly identified in the Authorization Request/0100
message and in the First Presentment/1240 message then the issuer may charge the item back
under message reason code 4870.
Second Presentment Condition The acquirer can show that the liability shift does not apply as:
• The terminal was a hybrid terminal
• The transaction was not reported to the Fraud and Loss Database
on or before the Central Site Business Date of the chargeback, or
• The transaction was authorized online and did not involve a
hybrid card; that is, the first value in the service code (DE 35 or
DE 45) was not 2 or 6 and therefore did not indicate a hybrid
card.
Second Presentment Condition The issuer previously charged back two or more transactions
involving the same Maestro card account before the authorization
approval date of the disputed transaction for message reason code
4837 or 4870.
Second Presentment Condition The issuer previously charged back more than 15 transactions
involving the same account for message reason code 4837 or 4870.
Supporting Documents None
DE 72 (Data Record) None
Notes The Fraud Notification Service (FNS) provides the acquirer with the
total number of fraud-related chargebacks submitted by the issuer
involving the same account. FNS places the total chargeback count
in the Fraud Notification Service Chargeback Counter subfield within
the Fraud Notification Information field of the chargeback message.
The acquirer may process a representment if this field is present and
the chargeback counter value exceeds 15 (a value of 16 or more).
Second Presentment Condition The acquirer can show that on the chargeback date, the issuer was
listed in a Mastercard Announcement as:
Limited to seven chargebacks for reason code 4837 or 4870
involving the same Maestro card account and the transaction charge
back contains an FNS counter value that is greater than seven (a
value of eight or more).
Second Presentment Condition The acquirer shows that the transaction was presented within the
proper time frame.
Retrieval
Chargeback Message Reason Documentation Request
Codes Required Required Section Name
4808 Transaction Not No No Intra-European Message Reason
Authorized Code 4808—Transaction Not
Authorized
Retrieval
Chargeback Message Reason Documentation Request
Codes Required Required Section Name
4831 Disputed Amount Yes No Intra-European Message Reason
Code 4831—Disputed Amount
4834 Duplicate Processing No No Intra-European Message Reason
of Transaction Code 4834—Duplicate Processing
of Transaction
4837 No Cardholder Yes No Intra-European Message Reason
Authorization code 4837—No Cardholder
Authorization
4841 Canceled Recurring or Yes No Intra-European Message Reason
Digital Goods code 4841—Canceled Recurring
Transactions or Digital Goods Transactions
4846 Currency Errors Sometimes No Intra-European Message Reason
Code 4846—Currency Errors
4855 Goods or Services not Yes No Intra-European Message Reason
Delivered Code 4855—Goods or Services
Not Provided
4860 Credit not Received Yes No Intra-European Message Reason
Code 4860—Credit Not Received
4870 Chip Liability Shift No No Intra-European Message Reason
Code 4870—Chip Liability Shift
4880 Late Presentment No No Intra-European Message Reason
Code 4880—Late Presentment
• The issuer received and approved a full or partial reversal request relating to a previously
approved authorization request. However, the clearing file shows the transaction was
processed for the original authorized amount.
• Expired Payment Guarantee—The issuer may also use this message reason code if the
transaction was presented more than seven calendar days after the preauthorization
approval date and the issuer has permanently closed the account before filing the
chargeback. The above time frame does not apply to properly identified Maestro
contactless aggregated transit transactions.
To extend the duration of the message reason code 4808 chargeback protection period
afforded by an approved preauthorization of a Maestro Transaction, a Merchant or Acquirer
may later submit an additional preauthorization request for the same Transaction.
If the preauthorization request is for a zero amount, it extends the duration of the message
reason code 4808 chargeback protection period with no change in the guaranteed
Transaction amount.
If the preauthorization request is for an amount higher than zero, it both extends the duration
of the message reason code 4808 chargeback protection period and incrementally increases,
by the amount of the new preauthorization request, the guaranteed Transaction amount to
which the message reason code 4808 chargeback protection period applies.
If the message reason code 4808 chargeback protection period has already expired, the new
preauthorization request must be for the full Transaction amount rather than an incremental
amount.
Please refer to Chapter 2 of the Transaction Processing Rules for coding and processing
requirements for incremental preauthorization requests.
Second Presentment Condition The acquirer can substantiate that the transaction was either
approved:
1. Online by the issuer
2. Offline by the chip
Notes None
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
Expired Payment Guarantee
Second Presentment Condition • The transaction was presented within seven calendar days of the
pre-authorization or authorization approval date, and the pre-
authorization or authorization was not reversed, or
• The transaction was a properly identified Maestro contactless
aggregated transit transaction, or
• The issuer has not permanently closed the account.
– The exact transaction amount was not specified at the time the cardholder engaged in
the transaction, and
– The transaction amount exceeded what the cardholder could reasonably have expected,
taking into account the cardholder’s previous spending pattern, the conditions of the
cardholder agreement and the relevant circumstances of the case.
• The cardholder paid for goods or services by other means (for example, with a different
card or via bank transfer).
The chargeback must be accompanied by a cardholder letter, electronic message, or
completed Dispute Resolution Form identifying the disputed transaction and describing the
circumstances of the dispute.
Notes For unreasonable amount disputes and Paid by Other Means, the
chargeback may be for the full amount. For billing discrepancies, only
the difference in amount may be charged back of the transaction.
Chargeback Condition An improper merchant surcharge was applied to the total transaction
amount.
Time Frame One of the following:
• 120 calendar days from the Central Site Business Date
• 120 calendar days from the delivery date of the goods or services
Second Presentment Condition 1. The acquirer can show that the transaction was correctly
processed.
2. For unreasonable amount disputes, the merchant can show that
the cardholder agreed to an amount range as reasonable, and
the transaction amount did not exceed this amount range.
3. For payment by other means disputes, the merchant provides
an explanation that substantiates the validity of the transaction
charged.
Second Presentment Condition The acquirer can provide specific evidence of proper processing in
response to the cardholder’s claims.
Time Frame Within 45 calendar days of the chargeback settlement date.
IPM Second Presentment 2700 (See Corresponding Documentation/Chargeback Remedied)
Message Reason Code
Supporting Documents The merchant’s explanation and documentation.
DE 72 (Data Record) None
Notes Only the amount reflecting the improper surcharge may be charged
back. The total transaction amount must not be charged back.
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
Second Presentment Condition The acquirer can substantiate that both transactions are valid and
were authorized by PIN. The authorization date and code of both
transactions must be entered in DE 72 (Data Record).
Supporting Documents None
Second Presentment Condition The acquirer can show that a credit was issued. The central site
processing date of the credit or reversal must be provided.
Supporting Documents None
DE 72 (Data Record) Credit MMDDYY (and optionally the Acquirer Reference Data (ARD))
Notes None
Chargeback Remedied
Second Presentment Condition The acquirer provides two separate TIDs indicating two valid
transactions.
Supporting Documents Two separate TIDs indicating two valid transactions.
DE 72 (Data Record) None
Notes None
Second Presentment Condition The chargeback is invalid because the issuer failed to provide the
original ARD in DE 72 (Data Record).
Supporting Documents None
DE 72 (Data Record) None
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
• When the transaction was completed at an EMV terminal which was properly identified in
the authorization and the clearing record, except for fraudulent parking garage and tollway
transactions completed without CVM.
• For contactless transactions completed with successful PIN verification.
• If the issuer approved the transaction after submitting two or more chargebacks involving
the same Maestro card account (for this purpose, “account” means primary account
number [PAN], or PAN and expiration date) for message reason code 4837 or 4870.
• The issuer submitted more than 15 chargebacks involving the same account (as defined
above) for message reason code 4837 or 4870.
• The issuer is currently listed in a Mastercard Announcement as limited to seven
chargebacks for reason code 4837 or 4870 involving the same account (as defined above),
and the issuer has already met or exceeded this amount for the account in question.
Second Presentment Condition The acquirer can show that on the chargeback date, the issuer was
listed in a Mastercard Announcement as limited to seven
chargebacks for reason code 70 or 74 involving the same Maestro
card account, and the transaction charged back contains an FNS
counter value that is greater than seven (a value or eight or more).
Supporting Documents None
DE 72 (Data Record) ISSUER LISTED GSB NNNN FNS EXCEEDED
Notes Replace NNNN with the applicable Mastercard Announcement
number.
Transaction Authorized
Second Presentment Condition The acquirer can substantiate that the transaction was verified by PIN
and approved either:
1. Online by the issuer
2. Offline by the chip
Notes None
Chargeback Remedied
Second Presentment Condition The authorization record and the clearing record identified the POS
terminal as being hybrid.
Supporting Documents None.
DE 72 (Data Record) Hybrid POI MMDDYY NNNNNN
Notes None
Invalid Chargeback
Second Presentment Condition The chargeback did not meet the requirements as stipulated under
section Intra-European Message Reason code 4837—No Cardholder
Authorization
Supporting Documents None
DE 72 (Data Record) None
Second Presentment Condition The issuer previously charged back two or more transactions
involving the same Maestro card account before the authorization
approval date of the disputed transaction for message reason code
4837 or 4870.
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
newspapers, magazines, music, games, game pieces, and software (excludes gift cards). The
delivery of digital goods purchased in a transaction may occur on a one-time or subscription
basis. An issuer may use message reason code 4841 to charge back an e-commerce
transaction less than or equal to EUR 25 (or the local currency equivalent) for the purchase of
digital goods, provided the issuer determines that the merchant did not offer the cardholder
the following purchase controls:
• The option, enabled as a default setting, for the cardholder to disable all digital goods
purchases;
• The time period during which a digital goods purchase can be made on the cardholder’s
account with the merchant (the “account open” period) must not exceed 15 minutes from
the time at which the cardholder enters account authentication credentials; and
• Functionality that allows the cardholder to confirm or to cancel the clearly displayed total
transaction amount of each pending digital goods purchase before completion of the
transaction.
Before initiating a chargeback, the issuer must educate the cardholder on the use of purchase
control settings and challenge the cardholder regarding the purchase control settings that the
cardholder selected, if made available by the merchant.
Staged Digital Wallet. An Intra-European or Inter-European transaction to fund a Staged
Digital Wallet (SDW) may be charged back if the funds did not appear in the SDW. This
chargeback right is also available for purchases of goods or services (excluding gambling,
investments and similar provision of services) made using a SDW, when the SDW funding
transaction occurred during the consumer’s purchase.
A transaction in which a SDW is funded during the consumer’s purchase is identified with all
of the following:
• Wallet identifier in DE 48 (Additional Data—Private Use), subelement 26 (Wallet Program
Data), subfield 1 (Wallet Identifier) of the Authorization Request/0100 message and in PDS
0207 (Wallet Identifier) of the First Presentment/1240 message.
• SDW Operator name in conjunction with the retailer name in DE 43, subfield 1 (Card
Acceptor Name) of authorization and clearing messages.
• MCC that most closely describes the primary business of the retailer in DE 18 (Merchant
Type) of the Authorization Request/0100 message and in DE 26 (Card Acceptor Business
Code [MCC]) of the First Presentment/1240 message.
The issuer or the cardholder must have contacted or attempted to contact the SDW Operator
or the retailer to resolve the dispute before raising the chargeback. The result of this attempt
must be explained in the support documentation.
Retrieval Request No
Supporting Documents Cardholder letter, electronic message, or completed Dispute Resolution
Form stating that the merchant was notified of the cancellation before
the billing of the disputed transaction
DE 72 (Data Records) None
Note None
Chargeback Condition. The cardholder contacted the issuer claiming one of the following:
• The cardholder notified the merchant to cancel the recurring transaction and the merchant
continued to bill the cardholder.
• The cardholder was not aware that the cardholder was agreeing to a recurring transaction.
Time Frame. Within 120 calendar days of the transaction settlement date.
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
—Cardholder Dispute Chargeback (Form 1221) describing the cardholder’s complaint in sufficient
detail to enable all parties to understand the dispute. This means that the cardholder email, letter,
message or completed Dispute Resolution Form—Cardholder Dispute Chargeback (Form 1221) must
document how each Chargeback Conditions was met.
Digital Goods
Note None
Note The issuer can process any subsequent chargeback for this message
reason code with the required DE 72 (Data Record) text.
Replace MMDDYY with the date of the chargeback 4841 containing
documentation.
Replace Xs with the Acquirer Reference Data (ARD) of the previous
message reason code 4841 chargeback containing documentation.
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
Digital Goods
Second Presentment Condition The acquirer can substantiate that the merchant offered purchase
controls at the time of the transaction or transactions.
Retrieval Request No
Supporting Documents Cardholder letter, electronic message, or completed Dispute Resolution
Form
DE 72 (Data Record) POI CURRENCY CONVERSION
Notes The cardholder was not given the opportunity to choose the currency or
did not agree to the currency. The chargeback must be for the full
amount of the transaction.
Chargeback Remedied
IPM Second Presentment Message 2700
Reason Code
See Corresponding Documentation/Chargeback remedied
Chargeback Remedied
Second Presentment Condition The acquirer determines that the correct transaction amount and
currency code were provided.
In a dual currency environment, the merchant specified a currency
indicator on the TID.
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
The cardholder letter, electronic message, or completed Dispute Resolution Form must detail
the goods/services that the cardholder expected to receive or that the merchant represented
to have given, and this letter must accompany the chargeback.
The issuer must wait until the specified delivery date has passed before charging back. If no
delivery date is specified, the issuer must wait 30 calendar days after the transaction date
before charging back. The 120-day chargeback time frame is calculated from the latest
anticipated date that the goods or services were to be provided. If no such date is provided,
the chargeback must be processed within 120 days of the Central Site Processing date.
The issuer may charge back the transaction before the specified delivery date if it is
established that the merchant will not provide the goods or services because, for example, it is
no longer in business.
Chargeback
The conditions shown below represent valid options to process a first chargeback for message
reason code 4855—Failed Travel Merchant (Intra-EEA and Domestic European Transactions
Only).
Supporting Documents.
Cardholder email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) must include all of the following:
• A description of the Cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute.
• A reasonably specific description of the travel services purchased. For example, for flights: relevant
airlines, flight numbers, origin/destination details, dates/times, passenger names, ticket/
confirmation numbers, and so on.
• If Chargeback Condition 1 is applicable (except Swedish Domestic Transactions): evidence of the
bonding authority or similar scheme’s response to the Cardholder’s (or traveler’s) claim, or proof of
bond insufficiency. If the Cardholder (or traveler) requested reimbursement and did not receive a
response, then a copy of the request for reimbursement. A detailed Cardholder (or traveler)
explanation is permitted if such documentation is not available.
• SDW Operator name in conjunction with the retailer name in DE 43, subfield 1 (Card
Acceptor Name) of authorization and clearing messages.
• MCC that most closely describes the primary business of the retailer in DE 18 (Merchant
Type) of the Authorization Request/0100 message and in DE 26 (Card Acceptor Business
Code [MCC]) of the First Presentment/1240 message.
The issuer or the cardholder must have contacted or attempted to contact the SDW Operator
or the retailer to resolve the dispute before raising the chargeback. The result of this attempt
must be explained in the support documentation.
Chargeback Remedied
IPM Second Presentment 2700
Message Reason Code
Chargeback remedied
Second Presentment Condition The acquirer can show that the goods or services were provided.
Supporting Documents Documentation showing that goods or services were received by the
cardholder.
DE 72 (Data Record) None
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
If the credit receipt or merchant advisement is dated, the 120-day chargeback period begins
on the day the credit was issued or on the date that the goods were returned or the services
were canceled. If the merchant provided the cardholder with a dated receipt or credit advice
but did not post a credit to the cardholder’s account, the issuer must wait 15 calendar days
from the date of the credit receipt before charging back the transaction. If the cardholder did
not receive a credit receipt or credit from the merchant, the issuer must wait 30 calendar days
from the date of the merchandise return date or cancellation date before charging back the
transaction.
For canceled timeshare transactions, the issuer must wait 15 days from the date of
cancellation before charging back the transaction.
If the credit receipt or merchant advisement is undated, the 30-day waiting period is waived,
and the 120-day time frame will be calculated from the date of the cardholder letter.
The cardholder letter, electronic message, or completed Dispute Resolution Form must include
one of the following statements:
• The merchant accepted the returned merchandise or the cancellation of services, and it
failed to issue a credit, partial credit, or in-store credit.
• The merchant issued a credit but withheld funds without proper disclosure.
• The merchant issued an in-store credit that was not properly disclosed at the time of the
sale. A copy of the in-store credit must accompany the chargeback.
The issuer can immediately charge back the transaction if it receives one of the following:
• A letter from the merchant advising the issuer to obtain credit using a chargeback
• Proof of an improperly disclosed in-store credit
• A TID voided by the merchant
• SDW Operator name in conjunction with the retailer name in DE 43, subfield 1 (Card
Acceptor Name) of authorization and clearing messages.
• MCC that most closely describes the primary business of the retailer in DE 18 (Merchant
Type) of the Authorization Request/0100 message and in DE 26 (Card Acceptor Business
Code [MCC]) of the First Presentment/1240 message.
The issuer or the cardholder must have contacted or attempted to contact the SDW Operator
or the retailer to resolve the dispute before raising the chargeback. The result of this attempt
must be explained in the support documentation.
Timeshare
Notes An acquirer in the Europe region must ensure that a time-share merchant
must provide a full credit refund when the conditions below are both met:
• The transaction receipt was processed.
• The cardholder canceled the transaction within 90 calendar days of the
transaction date.
Credit Issued
Second Presentment Condition The acquirer can show that a credit or a reversal was processed.
Supporting Documents None
DE 72 (Data Record) Credit MMDDYY (and, optionally, the Acquirer Reference Data
[ARD])
Cancellation or Returns
Second Presentment Condition The acquirer can substantiate that the merchant correctly processed
the transaction.
Supporting Documents A copy of the TID as proof that the transaction involved a retail sale
rather than a credit
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
Credit Previously Issued—Intra-European and Inter-European Transactions
Second Presentment Condition The acquirer provides the date that it processed the
credit.
Supporting Documents One of the following:
1. When the credit was processed to the
cardholder’s Maestro account: None
2. When the credit was processed by other means:
compelling evidence showing the credit was
processed.
NOTE: Technical Fallback—When a hybrid card is used at a hybrid terminal and fallback from
chip to magnetic stripe occurs, the transaction must be properly identified with POS entry
mode 80 (DE 22) and authorized online. The cardholder verification method (CVM) must be
PIN, except if the transaction is acquired in a waiver country in which case signature is also a
permitted CVM. If the transaction is not properly identified in the Authorization Request/0100
message and in the First Presentment/1240 message then the issuer may charge the item back
under message reason code 4870.
Second Presentment Condition The acquirer can show that on the chargeback date, the issuer was
listed in a Mastercard Announcement as limited to seven
chargebacks for reason code 70 or 74 involving the same Maestro
card account, and the transaction charged back contains an FNS
counter value that is greater than seven (a value or eight or more).
Supporting Documents None
DE 72 (Data Record) ISSUER LISTED GSB NNNN FNS EXCEEDED
Notes Replace NNNN with the applicable Mastercard Announcement
number.
Invalid Chargeback
Second Presentment Condition 1. The terminal was a hybrid terminal and the proper CVM was
used.
2. The transaction was not reported to the Fraud and Loss
Database on or before the chargeback date
Supporting Documents 1. Evidence that the terminal was properly identified in the
authorization and clearing records as a hybrid terminal and the
proper CVM was used.
2. None
Transaction Authorized
Second Presentment Condition The transaction was authorized online and did not involve a hybrid
card. The first value in the service code (DE 35 or DE 45) was not 2
or 6 and therefore did not indicate a hybrid card.
Supporting Documents None
DE 72 (Data Record) INV SERVICE CODE
Notes None
Second Presentment Condition The issuer previously charged back two or more transactions
involving the same Maestro card account before the authorization
approval date of the disputed transaction for message reason code
4837 or 4870.
Other message codes may apply; refer to section Second Presentment Procedures in this
appendix for more details.
Second Presentment Condition The acquirer can substantiate that the transaction date was not
more than seven calendar days before the Central Site processing
date of the presentment.
Supporting Documents Transaction printout.
Other message codes may apply; refer to Second Presentment in this appendix for more
details.
• For airline ticket purchases, a copy of the boarding pass showing the cardholder’s name; or
• Details of a long-standing account/customer relationship between the merchant and the
cardholder (for example, account opening information); or
• If proof of death or incapacitation on the day a transaction was performed is provided by
the issuer, evidence that the transaction took place earlier than death or incapacitation.
Overview.................................................................................................................................... 630
CVM Limit Amounts................................................................................................................... 630
Overview
The following sections present information on contactless POS transaction and Quick Payment
Service transaction cardholder verification method (CVM) limit amounts. See Chapters 3 and 4
of Transaction Processing Rules for more information.
Mastercard will populate PDS 0044 (Program Participation Indicator), subfield 2 (QPS/
Contactless Chargeback Eligibility Indicator) with the value of I (Ineligible for Chargeback) in
the First and Second Presentment/1240 messages for any properly identified QPS or
contactless transactions equal to or less than the applicable CVM limit amount. For QPS and
contactless transaction identification requirements, see Appendix F.
Procedure
1. From the HTML edition of this document, click the file download icon in the upper right
corner.
2. Click CVM_Limit_Amounts.xls.
3. When the file opens, save it to a location on your computer.
OR
4. From the downloaded PDF edition of this document, click the paperclip and then click
CVM_Limit_Amounts.xls.
NOTE: The CVM Limit Amounts spreadsheet is very large. Before printing this document,
please be aware that, depending on your printer settings and paper selection, the printed
spreadsheet may exceed 250 pages.
All contactless amounts apply to both Mastercard and Maestro® Contactless Transactions
unless otherwise indicated.
Counterfeit Goods.............................................................................................................688
Acquirer Representment (Second Presentment).......................................................................688
Arbitration Case Filing............................................................................................................ 689
General Use.......................................................................................................................689
Counterfeit Goods.............................................................................................................690
Notes None
Subsequent Installments Charged Back After Chargeback of the First Installment for Message
Reason Code 4837
Time Frame 120 calendar days
Retrieval Request No
Supporting Documents None
DE 72 (Data Record) 4837 CB REF NNNNNNN
Notes Replace NNNNNNN with the first chargeback reference number.
Second Presentment Condition The acquirer can provide documentation showing that the issuer
requested installment acceleration for the transaction.
Additional Remedies
Acquirers can use the following second presentment message reason codes to submit a
Second Presentment/1240 for chargeback message reason 4850.
• 2002—Non-receipt of required documentation to support chargeback
• 2004—Invalid Acquirer Reference Data on chargeback; documentation was received
• 2011—Credit Previously Issued
• 2701—Duplicate Chargeback
• 2702—Past Chargeback Time Limit
• 2710—Scanning error—unrelated documents or partial scan
The issuer may use the following additional message reason codes to submit an arbitration
chargeback for message reason code 4850.
• 48xx—New valid chargeback reason
• 4901—Required documentation not received to support prior Second Presentment/1240
• 4902—Documentation received was illegible
• 4903—Scanning error—unrelated documents or partial scan
• 4908—Invalid Acquirer Reference Data on Second Presentment/1240 (2004);
documentation was received.
The arbitration chargeback cycle will no longer be available for chargebacks initiated on and
after 17 July 2020. For options in continuing a dispute, refer to section Arbitration Case Filing-
For Chargebacks Initiated On or After 17 July 2020.
consider any Supporting Documentation provided in the pre-arbitration that was required (but not
provided) in the chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Acquirer Response to an Arbitration Case. An acquirer may take one of the following actions in
response to receiving an arbitration case filing:
• Accept the arbitration case and thereby financial responsibility for the disputed transaction. The
acquirer can accept the arbitration case at any time before Mastercard rules on the case.
• Reject the arbitration case with a rebuttal and any relevant documentation that specifically
addresses the information contained in the arbitration case filing within 10 calendar days of the
arbitration case escalation date. Mastercard will not consider any information provided in
arbitration that was required (but not provided) in second presentment or pre-arbitration.
Once the arbitration is rejected, the case will then be available for Mastercard review as described
in the Mastercard Review Process section later in this chapter.
The Mastercom Case Filing Application will allow the acquirer to accept the arbitration case at any
time before Mastercard rules on the case.
• Take no action. After 10 calendar days, the Mastercom Case Filing Application will automatically
reject the arbitration case and the case will then be available for Mastercard review as described in
the Mastercard Review Process section later in this chapter.
The Mastercom Case Filing Application will allow the acquirer to accept the arbitration case at any
time before Mastercard rules on the case.
Issuer Submission of a Pre-Arbitration Case. An issuer may submit a pre-arbitration case when all
of the following:
• The chargeback was valid
• The second presentment required Supporting Documentation
• Supporting Documentation was not received to support the second presentment within eight
calendar days of the Central Site Business Date of the second presentment
A pre-arbitration case must be filed within 45 calendar days of the second presentment with the
following conditions:
• When second presentment supporting documentation will not be provided as indicated by the
second presentment supporting documentation indicator code of 0 (Supporting Documentation is
not required), the issuer must file the pre-arbitration case between 0 and 45 calendar days of the
second presentment.
Mastercard strongly recommends submitting the pre-arbitration case as soon as possible
(to allow sufficient time to escalate to an arbitration case, when necessary, in light of
time zone differences, weekends, and holidays).
• When second presentment supporting documentation will be provided as indicated by the second
presentment supporting documentation indicator code of 1 (Supporting Documentation will
follow), the issuer must wait at least eight calendar days for the supporting documentation before
filing the pre-arbitration case.
When second presentment supporting documentation is provided earlier than eight calendar days
from the Central Site Business Date of the second presentment, the issuer may file the pre-
arbitration case as soon as the second presentment supporting document is received.
Mastercard will consider the pre-arbitration invalid if the issuer files a pre-arbitration case before
the applicable second presentment supporting documentation time frame has expired.
Sender Memo. The issuer must include in the Sender Memo field within the Case Filing application
that the reason for the filing is “Required Documentation Not Received to Support Second
Presentment”, “4901”, or similar phrase describing the issue.
Supporting Documentation. The issuer is responsible for ensuring that legible copies of all relevant
documentation are linked to the pre-arbitration case filing. This means entering the chargeback
reference number and confirming that all previously provided Supporting Documentation (as
described in the individual reason codes) links to the case. When a chargeback reference number does
not exist or does not link all previously provided Supporting Documentation, a thorough description of
the circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application.
Slovenia, refer to the Mastercard Mobile Intracountry Liability Shift: Guidelines and
Requirements (available upon request to [email protected]).
India
An issuer may file a compliance case for cardholder disputes related to the cash back portion
of an intracountry cash back with or without purchase transaction conducted in India.
Mexico
Refer to the Mexico Domestic Switching Implementation Guide for dispute resolution
information on domestic Mexico transactions.
South Africa
An issuer may file a compliance case for cardholder disputes related to the cash back portion
of an intracountry cash back with or without purchase transaction conducted in South Africa.
NOTE: Issuers can use this message reason code only when no other message reason code
applies.
The issuer can process a chargeback within 60 calendar days after first learning of the dispute
from the cardholder or within 120 calendar days of the Central Site Business Date of the
transaction. When, however, the cardholder notified the issuer within the time frame of
another valid message reason code but the issuer did not charge back the transaction, the
issuer cannot use the time frame extension and charge back the transaction using message
reason code 4854.
The issuer can use message reason code 4854 when the following conditions are met:
• The cardholder tried and failed to resolve the dispute with the merchant.
• The issuer and acquirer are located in the U.S. region.
• The transaction took place within the same state as the cardholder’s billing address or
within 100 miles of the cardholder’s billing address. The exception to this rule concerns
non–face-to-face transactions. The cardholder’s current designated address is considered
the location of the transaction.
• The cardholder provides documentation to support the dispute with the merchant.
• The original transaction amount exceeded USD 50.
• The issuer may charge back only the disputed amount. Further, the issuer can charge back
only the portion of the disputed amount that is an unpaid balance at the time of merchant
or issuer notification. When the issuer charges back a partial amount, it must submit the
First Chargeback/1442 message with a Function Code of 453 (Partial Amount).
Calculating Unpaid Balances
As stated previously, the issuer can charge back only the unpaid balance at the time of
merchant or issuer notification. The calculation is based on the accounting method of “first
in/first out.” In addition, when calculating the unpaid balance, the issuer can consider
credits from returned merchandise along with cardholder payments.
Examples of sufficient information to verify that the disputed amount is unpaid can include
cardholder statements or screen prints of payments, credits, and balances.
• The cardholder letter, email, Dispute Resolution Form—Cardholder Dispute Chargeback
(Form 1221) documents the following:
– The cardholder authorized the transaction
– The cardholder returned or attempted to return the merchandise (when applicable)
– The cardholder contacted the merchant to resolve the dispute, and the merchant
refused to:
1. Adjust the price
2. Repair or replace the goods or other items of value
3. Issue a credit
Documentation to Support Dispute. Although documentation to support or corroborate
the cardholder’s dispute is not required with the first chargeback, in the event the merchant
provides documentation to challenge the dispute, documentation supporting the cardholder’s
dispute may be required with the arbitration chargeback or, if the chargeback was initiated on
or after 17 July 2020, pre-arbitration case.
Merchant Contact. The cardholder must contact the merchant before initiating the dispute
and the cardholder’s documentation must explain the result of the conversation with the
merchant.
When the cardholder cannot contact the merchant, the cardholder must state that an attempt
was made to contact the merchant and that the merchant failed to respond.
For a Debit Mastercard purchase with cash back transaction, an issuer can submit this
chargeback only for the purchase amount, or a portion thereof. The issuer must submit the
First Chargeback/1442 message with a Function Code of 453 (Partial Amount). An issuer must
not submit a chargeback for the cash back amount, or any portion thereof, using this reason
code.
When the cardholder returned the merchandise, the issuer must wait 15 calendar days from
the date the merchandise was returned before it can charge back the transaction. This waiting
period gives the merchant an opportunity to process a credit. The only exception to this 15-
day waiting period rule would be when the period would exceed the 120-calendar day (or 60-
calendar day, when applicable) time frame.
When benefits under applicable local or state laws exceed Federal Reserve Regulation Z
benefits, the greater benefits apply. However, the issuer must provide a copy of the applicable
law with the chargeback.
Disputed Surcharge
When processing a chargeback related to a Brand-level Surcharge or Product-level Surcharge
the previous requirements, except for the requirement that the issuer and acquirer are located
in the U.S. region, are not applicable. An issuer can use message reason code 4854 when the
Brand-level Surcharge or Product-level Surcharge amount was not properly calculated, not
permitted, not properly disclosed at the POI or on the TID, or not properly refunded.
NOTE: For information about the Brand-level Surcharge or Product-level Surcharge, refer to
the Mastercard Rules manual, Chapter 9, “Asia/Pacific Region Rules,” Rule 5.11.2, “Charges to
Cardholders”; Chapter 12, “Latin America and the Caribbean Region Rules,” Rule 5.11.2,
“Charges to Cardholders”; and Chapter 15, “Additional U.S. Region and U.S. Territory Rules,”
Rule 5.11.2, “Charges to Cardholders.”
Time Frame 60 calendar days after first learning about the dispute from the
cardholder or within 120 calendar days of the Central Site Business
Date
Retrieval Request No
Supporting Documents All of the following:
• Cardholder letter, email, Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) fulfilling the prerequisites of the
chargeback and the details of the nature of the dispute.
• Copy of applicable law (when applicable)
Disputed Surcharge
Time Frame Within 120 calendar days of the Central Site Business Date
Message Reason Code One of the following:
• 4854 Dual Message System transactions
• 54 for Debit Mastercard transactions processed on the Single
Message System
Retrieval Request No
Supporting Documents Cardholder letter, email, Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) describing the nature of the
disputed surcharge.
DE 72 (Data Record) None
Notes When the cardholder disputes only a part of the transaction
amount, the issuer must prorate the Surcharge amount.
Deficiency Corrected
IPM Second Presentment Message 2700
Reason Code
See Corresponding Documentation/Chargeback Remedied
Deficiency Corrected
Second Presentment Condition The acquirer can document it corrected the deficiency that led to the
chargeback.
Supporting Documents One or both of the following:
• Copy of the TID or invoice (when applicable)
• Merchant’s written rebuttal (when applicable)
Invalid Chargeback
Invalid Chargeback
IPM Second Presentment Message 2713
Reason Code
Invalid chargeback
Second Presentment Condition The acquirer substantiates that the chargeback was invalid. (For
example, the necessary supporting documentation failed to support
the chargeback.)
Supporting Documents None
DE 72 (Data Record) The reason for the invalidity
Notes None
Disputed Surcharge
Disputed Surcharge
IPM Second Presentment Message 2700
Reason Code
See Corresponding Documentation/Chargeback Remedied
Second Presentment Condition The acquirer substantiates that the surcharge was correctly
processed.
Supporting Documents Documentation proving the surcharge was correctly processed.
DE 72 (Data Record) None
Notes None
Second Presentment Condition The acquirer substantiates that the pro-rated surcharge was
incorrectly calculated by the issuer.
Supporting Documents Documentation proving the surcharge was incorrectly calculated.
DE 72 (Data Record) None
Notes None
Additional Remedies
Acquirers can use the following second presentment message reason codes to submit a
Second Presentment/1240 for message reason code 4854.
• 2002—Nonreceipt of required documentation to support chargeback
• 2004—Invalid Acquirer Reference Data on chargeback; documentation was received
• 2011—Credit previously issued
• 2700—Chargeback remedied. See corresponding documentation.
• 2701—Duplicate Chargeback
• 2702—Past Chargeback Time Limit
• 2709—Documentation received was illegible
arbitration chargeback cycle will no longer be available for chargebacks initiated on and after
July 17, 2020. For options in continuing a dispute, refer to Chapter 6 Pre-Arbitration and
Arbitration Case Filing-Chargebacks Initiated On or After 17 July 2020.
This section describes the process for filing, and responding to, a pre-arbitration and, when
applicable, an arbitration case when the issuer claims that the second presentment was
invalid.
consider any Supporting Documentation provided in the pre-arbitration that was required (but not
provided) in the chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to the
pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
number and confirming that all previously provided Supporting Documentation (as described in the
individual reason codes) links to the case. When a chargeback reference number does not exist or
does not link all previously provided Supporting Documentation, a thorough description of the
circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.
Acquirer Response to an Arbitration Case. An acquirer may take one of the following actions in
response to receiving an arbitration case filing:
• Accept the arbitration case and thereby financial responsibility for the disputed transaction. The
acquirer can accept the arbitration case at any time before Mastercard rules on the case.
• Reject the arbitration case with a rebuttal and any relevant documentation that specifically
addresses the information contained in the arbitration case filing within 10 calendar days of the
arbitration case escalation date. Mastercard will not consider any information provided in
arbitration that was required (but not provided) in second presentment or pre-arbitration.
Once the arbitration is rejected, the case will then be available for Mastercard review as described
in the Mastercard Review Process section later in this chapter.
The Mastercom Case Filing Application will allow the acquirer to accept the arbitration case at any
time before Mastercard rules on the case.
• Take no action. After 10 calendar days, the Mastercom Case Filing Application will automatically
reject the arbitration case and the case will then be available for Mastercard review as described in
the Mastercard Review Process section later in this chapter.
The Mastercom Case Filing Application will allow the acquirer to accept the arbitration case at any
time before Mastercard rules on the case.
Issuer Submission of a Pre-Arbitration Case. An issuer may submit a pre-arbitration case when all
of the following:
• The chargeback was valid
• The second presentment required Supporting Documentation
• Supporting Documentation was not received to support the second presentment within eight
calendar days of the Central Site Business Date of the second presentment
A pre-arbitration case must be filed within 45 calendar days of the second presentment with the
following conditions:
• When second presentment supporting documentation will not be provided as indicated by the
second presentment supporting documentation indicator code of 0 (Supporting Documentation is
not required), the issuer must file the pre-arbitration case between 0 and 45 calendar days of the
second presentment.
Mastercard strongly recommends submitting the pre-arbitration case as soon as possible
(to allow sufficient time to escalate to an arbitration case, when necessary, in light of
time zone differences, weekends, and holidays).
• When second presentment supporting documentation will be provided as indicated by the second
presentment supporting documentation indicator code of 1 (Supporting Documentation will
follow), the issuer must wait at least eight calendar days for the supporting documentation before
filing the pre-arbitration case.
When second presentment supporting documentation is provided earlier than eight calendar days
from the Central Site Business Date of the second presentment, the issuer may file the pre-
arbitration case as soon as the second presentment supporting document is received.
Mastercard will consider the pre-arbitration invalid if the issuer files a pre-arbitration case before
the applicable second presentment supporting documentation time frame has expired.
Sender Memo. The issuer must include in the Sender Memo field within the Case Filing application
that the reason for the filing is “Required Documentation Not Received to Support Second
Presentment”, “4901”, or similar phrase describing the issue.
Supporting Documentation. The issuer is responsible for ensuring that legible copies of all relevant
documentation are linked to the pre-arbitration case filing. This means entering the chargeback
reference number and confirming that all previously provided Supporting Documentation (as
described in the individual reason codes) links to the case. When a chargeback reference number does
not exist or does not link all previously provided Supporting Documentation, a thorough description of
the circumstances of the case in chronological order and all previously provided Supporting
Documentation must be manually attached into the Mastercom Case Filing Application.
The issuer is responsible for ensuring that legible copies of all relevant documentation are linked to
the pre-arbitration case filing at the time the case is filed. This means entering the chargeback
reference number and confirming that all previously provided Supporting Documentation (as
described in the individual reason codes) links to the case. When a chargeback reference number
does not exist or does not link all previously provided Supporting Documentation, a thorough
description of the circumstances of the case in chronological order and all previously provided
Supporting Documentation must be manually attached into the Mastercom Case Filing Application
at the time the case is filed.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Adjustment Condition The acquirer has received a returned item or notice of non-payment
for a non-negotiable item.
Time Frame One business day following receipt of the returned item or notice of
non-payment for a non-negotiable item.
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Time Frame Between 1 and 5 calendar days from the settlement date.
Notes None
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Adjustment Condition The acquirer is correcting an addition error with the cardholder’s
deposit.
Time Frame Between 1 and 5 calendar days from the settlement date.
Notes None
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Time Frame Between 1 and 5 calendar days from the settlement date.
Notes None
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Adjustment Condition The acquirer is correcting a keying error with the cardholder’s deposit.
Time Frame Between 1 and 5 calendar days from the settlement date.
Notes None
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Time Frame One business day following receipt of the non-cash item.
Supporting Documents A copy of the front and back of the non-cash item
Notes The original non-cash item must be sent to the issuer (the proof
of completing such act rests with the acquirer) within three
business days of the adjustment processing date.
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Acquirer Adjustment
The table shown below details the requirements for this adjustment message reason code.
Time Frame Between 1 and 5 calendar days from the settlement date.
Notes None
Issuer Chargeback
The issuer may process a chargeback using message reason code 30–Cardholder Disputed
Amount (U.S. Shared Deposits Only). Refer to the individual chargeback message reason code
later in this section for requirements.
Issuer Chargeback
The table shown below details the requirements for this adjustment message reason code.
Chargeback Condition The issuer is disputing the acquirer’s adjustment of a Shared Deposit
as invalid. The acquirer must have submitted the adjustment six or
more calendar days after the original transaction settlement date.
Time Frame Between 1 and 20 calendar days after the adjustment settlement
date.
Notes None
Acquirer Representment
Representment is not available for this message reason code.
Issuer Chargeback
The following table details the requirements for this message reason code.
General Use
Chargeback Message 53
Reason Code
Supporting Documents Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) stating all of the following:
• The cardholder engaged in the transaction
• The cardholder’s description of the goods or services the cardholder
expected to receive
• The cardholder’s description of the goods or services the cardholder
actually received
• The cardholder returned the goods or informed the merchant the
goods were available for pickup.
• The cardholder contacted the merchant to resolve the dispute, and the
merchant refused to adjust the price, repair or replace the goods or
other things of value, or to issue a credit.
Counterfeit Goods
Chargeback Condition The cardholder states that the goods were purported to be genuine, but
were counterfeit. “Counterfeit” means that the goods were not produced
by an authorized manufacturer of the goods and therefore infringe on
intellectual property rights.
Time Frame 120 calendar days
Chargeback Message 53
Reason Code
Supporting Documents Cardholder email, letter, message or completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) stating all of the following:
• The reason the cardholder believes that the goods are counterfeit
• Disposition of the goods; Examples include but are not limited to:
– The goods are in the possession of a governmental agency, such as
customs
– The goods are in the possession of the cardholder
– The cardholder discarded the goods
– The cardholder returned the goods to the Merchant
Second Presentment The acquirer can provide evidence of one of the following:
Condition • The dispute was corrected or resolved.
• The goods were not counterfeit.
• The chargeback was invalid.
Second Presentment 13
Message Reason Code
Supporting Documents The merchant’s explanation and documentation supporting the Second
Presentment Condition.
Notes Supporting documentation must be in English or accompanied by an
English translation.
Supporting documentation must be provided within 10 calendar days of
the chargeback settlement date.
Arbitration Case Filing Condition The acquirer failed to remedy the dispute.
Time Frame 45 calendar days of the representment settlement
date
Documentation Requirements All of the following:
• Dispute Resolution Management Case Filing
Form—SMS Linked Case Filing (682a)
• Second presentment supporting
documentation as provided by the acquirer
• A new cardholder email, letter, message or
completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221)
rebutting the merchant’s explanation
• Documentation supporting the new cardholder
letter which may include:
– Documentation from an expert or
professional that supports the cardholder’s
dispute about the level of quality or
misrepresentation.
– Other documentation necessary to support
the validity of the dispute which may
include, but is not limited to, the original
receipt, invoice, work order, brochure,
contract, or appraisal.
Counterfeit Goods
Arbitration Case Filing Condition The acquirer failed to remedy the dispute.
Time Frame 45 calendar days of the representment settlement
date
Documentation Requirements All of the following:
• Dispute Resolution Management Case Filing
Form—SMS Linked Case Filing (682a)
• Second presentment supporting
documentation as provided by the acquirer
• A new cardholder email, letter, message or
completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221)
rebutting the merchant’s explanation.
• One of the following:
– Documentation provided by a person
purporting to be the owner or authorized
representative of the owner of intellectual
property rights for the goods purported to
be counterfeit (which documentation may
be available from a Web site) substantiating
that the goods purchased are counterfeit;
– Documentation substantiating that the
merchant that sold the purported
counterfeit goods was closed by a
governmental agency for selling counterfeit
goods now purported by the cardholder to
be counterfeit; or
– Documentation from a bona fide expert
substantiating that the disputed goods are
counterfeit, which documentation is on the
expert’s letterhead or validated by other
information demonstrating that the opinion
expressed is that of an expert.
Guaranteed Reservations
All Lodging merchants who accept Mastercard are automatically enrolled in the Guaranteed
Reservation Program. Lodging merchants are not required to process Guaranteed Reservation
transactions; however, each merchant has the ability to create Guaranteed Reservation (No-
Show) transactions.
When a cardholder guarantees their reservation with a Mastercard, the merchant is ensuring
that a room will be available for the cardholder when the cardholder arrives at the property.
Merchants have the following responsibilities when accepting a Guaranteed Reservation:
• The merchant must keep a room available until check-out time on the day following the
reservation.
• When accepting the Mastercard as a guarantee, the merchant will provide the cardholder
with a confirmation number for the reservation.
• The merchant must inform the cardholder of the cancellation time and conditions.
Merchants may set cancellation limits up to 72 hours prior to the stay. When the
cardholder makes a reservation within the merchant’s cancellation period (for example, the
cardholder makes a reservation 24 hours in advance when the merchant has a 48-hour
cancellation requirement) the merchant agrees the default time of cancellation for that
reservation will be 18:00 merchant local time.
• Merchants must accept a cancellation from the cardholder when provided prior to the
agreed upon time frames. Upon acceptance of the cancellation, the merchant will provide
a cancellation number.
• Cardholders who cancel beyond the cancellation policy may be billed for one night of room
and tax only.
• No-Show transactions have a zero floor limit and must be authorized prior to billing.
In the event the merchant is unable to provide a room to a cardholder who guaranteed the
stay with a Mastercard, the merchant must do all of the following:
• Not bill the cardholder a No-Show charge
• Provide the cardholder with an option to take accommodations at a lodging establishment
rated equal to, or better than, the reserved property
• Ensure the cardholder is not charged more than the rate of the guaranteed stay
• Receive complimentary transportation to the new location, and
• A complimentary call when necessary for the cardholder to inform others of the new
location.
Merchants billing No-Show transactions are advised to keep notation that the transaction was
a No-Show in the event of a chargeback or retrieval request.
Should a cardholder dispute a No-Show charge for any reason other than as an unauthorized
transaction, the merchant may support their cancellation policy and No-Show billing only with
documentation verifying the cardholder received the cancellation policy and failed to adhere
to it.
Transaction Date
The Transaction date appearing in DE 12 (Date and Time, Local Transaction) is specified as
follows.
For the following transaction… The transaction date is the date on which…
Face-to-Face The products or services are exchanged.
Non–Face-to-Face The products are shipped or services performed.
Vehicle Rental The vehicle is returned, or, if applicable, the prepayment date.
Lodging Checkout occurred, or if applicable, the prepayment date.
No-show The Cardholder was expected to arrive at the lodging merchant
and failed to appear.
Airline/Railway The airline or railway ticket was issued.
Cruise Line The transportation documents were issued.
On-board Cruise Line The passenger disembarks.
Refund The Merchant grants a credit or price adjustment.
All In-Flight Commerce Transactions The flight departs from the originating city. The Transaction date
except those involving mailed for in-flight commerce mailed purchases is the shipment date
purchases unless otherwise disclosed to the Cardholder.
Mastercard Contactless Transit One or more contactless taps performed with one Mastercard
Aggregated Account and occurring at one transit Merchant are aggregated
in a First Presentment/1240 message.
Maestro Contactless Transit A Financial Transaction Request/0200 (or in the Europe Region,
Aggregated an Authorization Request/0100) message is sent for an estimated
or maximum amount in connection with the use of one Maestro
Account at one transit Merchant.
Contactless Transactions
The Acquirer must identify each Contactless Transaction with the following values. A
Transaction must not be identified as a Contactless Transaction if the Card information is
contact chip-read, magnetic stripe-read, or key-entered. In addition, a Transaction must not be
identified as a Maestro Contactless Transaction if the Card information is contactless magnetic
stripe-read, except in Brazil with respect to Maestro Magnetic Stripe Mode Contactless
Transactions (referred to herein as “Maestro Magstripe”).
22 (Point-of- 1 (POS Terminal PAN Any of the values shown in “Contactless Transactions
Service [POS] Entry Entry Mode) Values for Authorization Request/0100 or Financial
Mode) Transaction Request/0200 Messages.” Please note that
additionally, the value of 82 appears in Contactless
debt repayment Transactions.
48 (Additional 1 (Transaction Category X (Airline and Other Transportation Services)
Data—Private Use) Code [TCC])
48 (Additional 1 (Transit Transaction One of the following:
Data—Private Type) • 03 (Mastercard Contactless Transit Aggregated)
Use), subelement • 06 (Maestro Contactless Transit Aggregated)
64 (Transit
Program)
61 (Point-of- 1 (POS Terminal 1 (Unattended terminal)
Service [POS] Data Attendance)
3 (POS Terminal Location) 0 (On premises of merchant facility)
4 (POS Cardholder 0 (Cardholder present)
Presence)
5 (POS Card Presence) 0 (Card present)
6 (POS Card Capture 0 (Terminal/Operator has no card capture capability)
Capabilities)
7 (POS Transaction One of the following:
Status)
• 0 (Normal request)
• 4 (Pre-authorized request) Note: This value is only
for Europe Region-acquired Transactions.
Table 34: Contactless Transit Aggregated Transaction Values for First Presentment/
1240 Messages
Data
Element/PDS Subfield Value
22 (Point of 1 (Terminal Data: Card One of the following:
Service Data Code) Data Capability) • A (PAN auto-entry via contactless magnetic stripe)
• M (PAN auto-entry via contactless M/Chip)
Contactless-only Transactions
The Acquirer must identify each Contactless-only Transaction with the following values.
Payment Transactions
The Acquirer must identify each Payment Transaction, MoneySend Payment Transaction, and
Gaming Payment Transaction, as applicable, with the following values.
48 (Additional Data—Private Use) TCC (Transaction Category Refer to the Quick Reference Booklet.
Code)
48 (Additional Data—Private Use) 77 (Payment Transaction Payment Transaction program type
Type Indicator) identified in the Customer Interface
Specification and the Single Message
System Specifications.
The value used for the Payment Transaction program type must be that which best describes
the purpose of the Payment Transaction.
The Acquirer also should provide either the customer service phone number in PDS 0170
(Merchant Inquiry Information), subfield 1 (Customer Service Phone Number) or the URL
address in PDS 0175 (Merchant URL) in the clearing message.
A Payment Transaction Detail addendum may also be submitted with a Payment Transaction.
This addendum provides the Issuer and Cardholder with enhanced data about the Merchant,
the recipient of funds, and other Transaction details.
22 (Point-of-Service [POS] Entry 1 (POS Terminal PAN Entry 81 (PAN entry via e–commerce,
Mode) Mode) including chip)
22 (Point of Service Data Code) 5 (Cardholder Present Data) One of the following:
• 4 (Cardholder not present
(standing order/ recurring
transactions) [If the
Transaction is the first
payment in a recurring
payment arrangement]
• 5 (Cardholder not present
[electronic order])
22 (Point of Service Data Code) 7 (Card Data: Input Mode) S (Electronic commerce)
Table 48: Mastercard Mobile Remote Payment Transaction Values for Authorization
Request/0100 or Financial Transaction Request/0200 Messages
Table 49: Mastercard Mobile Remote Payment Transaction Values for First Presentment/
1240 Messages
Appendix G Forms
This appendix contains instructions for accessing the forms that are referred to in this guide.
Procedure
Follow these steps to log on to Mastercard Connect™.
1. Log on to Mastercard Connect using your RSA SecureID® token.
The Mastercard Connect home screen appears. There are two possible access points to get
to forms; through the Support tab or through the Publications Application/Quick Link.
2. Select Support from the top menu to access the Forms tab.
3. Select Forms from the bottom right of the Mastercard Connect screen.
6. Locate the desired form in the list. Forms may also be found by sorting under the category
of Clearing and Settlement.
Referenced Forms
The following forms have been referenced in this Chargeback Guide.
Notices
Following are policies pertaining to proprietary rights, trademarks, translations, and details
about the availability of additional information online.
Proprietary Rights
The information contained in this document is proprietary and confidential to Mastercard International
Incorporated, one or more of its affiliated entities (collectively “Mastercard”), or both.
This material may not be duplicated, published, or disclosed, in whole or in part, without the prior written
permission of Mastercard.
Trademarks
Trademark notices and symbols used in this document reflect the registration status of Mastercard
trademarks in the United States. Please consult with the Global Customer Service team or the Mastercard
Law Department for the registration status of particular product, program, or service names outside the
United States.
All third-party product and service names are trademarks or registered trademarks of their respective
owners.
Disclaimer
Mastercard makes no representations or warranties of any kind, express or implied, with respect to the
contents of this document. Without limitation, Mastercard specifically disclaims all representations and
warranties with respect to this document and any intellectual property rights subsisting therein or any part
thereof, including but not limited to any and all implied warranties of title, non-infringement, or suitability
for any purpose (whether or not Mastercard has been advised, has reason to know, or is otherwise in fact
aware of any information) or achievement of any particular result. Without limitation, Mastercard specifically
disclaims all representations and warranties that any practice or implementation of this document will not
infringe any third party patents, copyrights, trade secrets or other rights.
Translation
A translation of any Mastercard manual, bulletin, release, or other Mastercard document into a language
other than English is intended solely as a convenience to Mastercard customers. Mastercard provides any
translated document to its customers “AS IS” and makes no representations or warranties of any kind with
respect to the translated document, including, but not limited to, its accuracy or reliability. In no event shall
Mastercard be liable for any damages resulting from reliance on any translated document. The English
version of any Mastercard document will take precedence over any translated version in any legal
proceeding.