The Program: Mastercard announced plans to make changes to their disputes resolution process for its network participants during the second half of 2019, followed by additional changes in April 2020.
Mastercard is changing the Dispute Resolution process to address the following concerns:
Significant increase in improper/invalid chargebacks and representments
- Increase in chargebacks under $25 (+15%)
- Significant increase in non-fraud disputes
- Chargeback timeframes and processes haven’t changed in more than 20 years
- To reduce the number of improper compliance cases.
- What is not changing with the Mastercard Dispute Resolution Initiative?
- Timeframes for merchants to respond
o 45 days to represent a chargeback
o 30 days to respond to a retrieval request
- The dispute process will remain chargeback/representment/second chargeback/pre-arb/arb until 2020.