Mastercard revised dispute processing and chargeback rules
Effective with the Spring 2019 release, the time frame for Issuers to initiate a first chargeback will be reduced from 120 days to 90 days, from the transaction central processing date, for all reason codes consolidated under Point of Interaction Error:
- 4831 -Error in Addition
- 4834 -Point of Interaction Error
- 4842 -Late Presentment
- 4846 -Correct Transaction Currency Code was not Provided
Mastercard will no longer support pre-compliance or compliance cases for unjust enrichment. Unjust enrichment occurs when a cardholder is credited twice (once as a result of a chargeback and then when the merchant issue a refund).
- Refunds must be addressed within the required chargeback time frame and must have proof that a refund was processed by the merchant
- Acquirers will no longer be able to address the refund amount outside of the chargeback process
- Merchants should not issue credits after a chargeback has been initiated