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Cardbrands - MasterCard: Revised Dispute Processing and Chargeback Rule Change

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

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