Chargeback Guide

Chargeback Guide
14 May 2020
TB
Summary of Changes, 14 May 2020

The following are changes with the most recent publication of this document.
Description of Change Where to Look

Chapter 3, Dual Message System Chargebacks-Initiated On or After 17 July 2020
Corrected “Cardholder Debited More than Once Chapter 3-Dual Message System Chargebacks-
for the Same Goods or Services” table Initiated On or After 17 July 2020 > Point-of-
Interaction Error > Second Presentment
>Cardholder Debited More than Once for the
Same Goods or Services
©1988––2020 Mastercard. Proprietary. All rights reserved.

Chargeback Guide • 14 May 2020 2

The following are changes with the most recent publication of this document.

Chapter 2, Dual Message System Chargebacks-Initiated On or Before 16 July 2020
Corrected Time Frame from “Within 20 calendar Dual Message System Chargebacks-Initiated On or
days” to “Within 120 calendar days” Before 16 July 2020 > Cardholder Dispute
Chargeback > Chargeback > Addendum Dispute

Summary of Changes, 30 April 2020

The following are changes with the 30 April 2020 publication of this document.

Minor editorial, grammar, typographic fixes, or Throughout
formatting changes.
Incorporated the changes announced "AN Throughout
3984—20.Q2 Switching Release—Deferral".
Update “April” instances in Chapter 2, 3, 5, 6,
and Appendix D to “July”.
Incorporated the changes announced in “AN Throughout

1550—Announcing the Retirement of SAFE
Online and Introducing the Fraud and Loss
Database”.
Replacing ‘SAFE’ with ‘Fraud’ or ‘Fraud and Loss
Database’ in instances where required.
Chapter 1, General Information

Incorporated the changes announced in “AN 2457—Revised Standards—Exit of the United
Kingdom and Gibraltar from the European Union”, that includes:
Update paragraph 2 General Information > Chargeback Cycles and
Arbitration Case Filing > Chargeback Cycles and
Arbitration Case Filing
Chapter 2, Dual Message System Chargebacks-Initiated On or Before 16 July 2020
Corrected Time Frame from “Within 20 calendar Dual Message System Chargebacks-Initiated On or
days” to “Within 120 calendar days” Before 16 July 2020 > Cardholder Dispute
Chargeback > Chargeback > Addendum Dispute
Incorporated the changes announced in “AN 1550—Announcing the Retirement of SAFE
Online and Introducing the Fraud and Loss Database”, that includes:
Update Notes. row Dual Message System Chargebacks-Initiated On or
Before 16 July 2020 > Fraud-related Chargebacks
> No Cardholder Authorization > Chargeback >
No Cardholder Authorization
Update Supporting Documents bullet one and Dual Message System Chargebacks-Initiated On or
two; add a third bullet Before 16 July 2020 > Fraud-related Chargebacks
> Second Presentment > Account Takeover
Update “The issuer may not use this message Dual Message System Chargebacks-Initiated On or
reason code in the following situations” Before 16 July 2020 > Fraud-related Chargebacks
paragraph, bullets one, two, and three. > Questionable Merchant Activity


Update Chargeback Condition row, bullet three Dual Message System Chargebacks-Initiated On or
remove code “07” entry. Before 16 July 2020 > Fraud-related Chargebacks
> Global Merchant Audit Program (GMAP)
Update Chargeback Condition table row. Dual Message System Chargebacks-Initiated On or
> Questionable Merchant Audit Program (QMAP)
Update Chargeback Condition table row. Dual Message System Chargebacks-Initiated On or
> Mastercard Rule 3.7 Violation for Coercion
Claim
Change title from “Improper SAFE Reporting” to Dual Message System Chargebacks-Initiated On or
“Improper Fraud Reporting” Before 16 July 2020 > Fraud-related Chargebacks
Update Second Presentment Condition table > Questionable Merchant Activity > Second
row. Presentment > Improper Fraud Reporting
Update Second Presentment Condition table Dual Message System Chargebacks-Initiated On or

row. Before 16 July 2020 > Fraud-related Chargebacks
> Questionable Merchant Activity > Second
Presentment > Ineligible Fraud
Update fifth bullet after first paragraph. Dual Message System Chargebacks-Initiated On or
> Chip Liability Shift
Update fifth bullet in first paragraph Dual Message System Chargebacks-Initiated On or
Update Chargeback Condition fifth bullet in Before 16 July 2020 > Fraud-related Chargebacks
table row and Notes second paragraph in table > Chip Liability Shift > Chargeback > Chip Liability
row. Shift
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 paragraph after bullet list Dual Message System Chargebacks-Initiated On or

> Chip Liability Shift—Lost/Stolen/Never Received
Issue (NRI) Fraud
Update Chargeback Condition table row, fifth Dual Message System Chargebacks-Initiated On or
bullet and second paragraph Before 16 July 2020 > Fraud-related Chargebacks
Update Notes table row, second paragraph > Chargeback > Lost/Stolen/NRI Fraud Chip
Liability Shift


Update Supporting Documents row Dual Message System Chargebacks-Initiated On or
> Chargeback > Not Reported to the Fraud and
Loss Database

Update paragraph two, bullet eight Dual Message System Chargebacks-Initiated On or
Before 16 July 2020 > Point-of-Interaction Error >
Point-of-Interaction Error
Update title from: “Unreasonable Amount—Intra- Dual Message System Chargebacks-Initiated On or
European Economic Area (EEA) Transactions Only” Before 16 July 2020 > Point-of-Interaction Error >
to “Unreasonable Amount (EEA, Gibraltar, United Unreasonable Amount (EEA, Gibraltar, United
Kingdom)” Kingdom)
Update Chargeback Condition table row bullet
one and two
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)
Chapter 3, Dual Message System Chargebacks-Initiated On or After 17 July 2020

Delete section “Credit Previously Attempted”
from: Dual Message System Chargebacks-Initiated
On or After 17 July 2020 > Fraud-related
Chargebacks > No Cardholder Authorization >
Second Presentment
Remove first sentence in: NOTES: Dual Message System Chargebacks-Initiated On or
After 17 July 2020 > Cardholder Dispute
Chargeback > Chargeback > Digital Goods
Purchase of USD 25 or Less
Update Notes table row Dual Message System Chargebacks-Initiated On or
After 17 July 2020 > Fraud-related Chargebacks >
Update Supporting Documents row. Dual Message System Chargebacks-Initiated On or
No Cardholder Authorization > Second
Presentment > Account Takeover


Update third paragraph; second bullet list; third Dual Message System Chargebacks-Initiated On or
bullet After 17 July 2020 > Fraud-related Chargebacks >
Questionable Merchant Activity
Update Chargeback Condition row, third bullet Dual Message System Chargebacks-Initiated On or
remove code “07” entry. After 17 July 2020 > Fraud-related Chargebacks >
Questionable Merchant Activity > Chargeback >
Global Merchant Audit Program (GMAP)
Update Chargeback Condition table row, last Dual Message System Chargebacks-Initiated On or
bullet before “Chip Liability Shift Participation”. After 17 July 2020 > Fraud-related Chargebacks >
Chip Liability Shift
Update Chargeback Condition row, fifth bullet Dual Message System Chargebacks-Initiated On or
and Notes row, second paragraph After 17 July 2020 > Fraud-related Chargebacks >
Chip Liability Shift > Chargeback > Chip Liability
Shift
to “Not Reported to the Fraud and Loss After 17 July 2020 > Fraud-related Chargebacks >
Database” Chip Liability Shift > Second Presentment > Not
Update Second Presentment Condition and Reported to the Fraud and Loss Database
Supporting Documents table rows
Update second paragraph Dual Message System Chargebacks-Initiated On or

Chip Liability Shift—Lost/Stolen/Never Received
Issue (NRI) Fraud
Update Chargeback Condition row, fifth bullet Dual Message System Chargebacks-Initiated On or
and Notes row, second paragraph. After 17 July 2020 > Fraud-related Chargebacks >
Chargeback > Lost/Stolen/NRI Fraud Chip Liability
Shift
Update title from “Not Reported to SAFE” to “Not Dual Message System Chargebacks-Initiated On or
Reported to the Fraud and Loss Database" After 17 July 2020 > Fraud-related Chargebacks >
Update Second Presentment Condition and Chargeback > Second Presentment >Not
Supporting Documents table rows Reported to the Fraud and Loss Database
Update Second Presentment Condition, Dual Message System Chargebacks-Initiated On or

Supporting Documents, and Notes table rows. After 17 July 2020 > Fraud-related Chargebacks >
No Cardholder Authorization > Chargeback > No
Cardholder Authorization
to “Not Reported to the Fraud and Loss After 17 July 2020 > Fraud-related Chargebacks >
Database” Chip Liability Shift > Second Presentment > Not
Update Second Presentment Condition and Reported to the Fraud and Loss Database
Supporting Documents table rows


Update paragraph two, bullet eight Dual Message System Chargebacks-Initiated On or
After 17 July 2020 > Point-of-Interaction Error
Update title from: “Unreasonable Amount—Intra- Dual Message System Chargebacks-Initiated On or
European Economic Area (EEA) Transactions Only” After 17 July 2020 > Fraud-related Chargebacks >
to “Unreasonable Amount (EEA, Gibraltar, United Point-of-Interaction Error > Chargeback >
Kingdom)” Unreasonable Amount (EEA, Gibraltar, United
Update Chargeback Condition table row bullet Kingdom)
one and two
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)
Incorporated the changes announced in “AN 3257—Revised Standards—Elimination of

Chargeback Transaction Batching”, that includes:
Update Supporting Documents, DE 72 (Data Dual Message System Chargebacks-Initiated On or
Record)., and Notes.table rows. After 17 July 2020 > Authorization-related
Chargeback > Chargeback > CAT 3 Device
Record)., and Notes. table rows. After 17 July 2020 > Cardholder Dispute
Chargeback > Chargeback > Digital Goods
Purchase of USD 25 or Less
Record)., and Notes. table rows. After 17 July 2020 > Cardholder Dispute
Chargeback > Chargeback > Cardholder Dispute
of a Recurring Transaction
Update Second Presentment Condition table Dual Message System Chargebacks-Initiated On or
row, first paragraph. After 17 July 2020 > Cardholder Dispute
Chargeback > Second Presentment > Digital
Goods Purchase of USD 25 or Less
Record) table rows, and remove “Batching MCC After 17 July 2020 > Fraud-related Chargebacks >
4813, 4814, 4816, or 5967 Transactions” in No Cardholder Authorization > Chargeback > No
Notes. table row. Cardholder Authorization
Incorporated the changes announced in “AN 3822—Revised Standards—Transaction Amount

Differs Chargeback (Cardholder Receipts for Gratuities)”, that includes:
Update Notes table row. Dual Message System Chargebacks-Initiated On or
After 17 July 2020> Point-of-Interaction Error >
Chargeback > Transaction Amount Differs

Chapter 4, Single Message System Chargebacks

Update Supporting Documents bullet list Single Message System Chargebacks >
Chargeback Reason Codes > Cash Dispute-ATM
Only Acquirer Representment (Second
Presentment)

Update fifth bullet in Chargeback Condition Single Message System Chargebacks Chargeback
table row Reason Codes Chip Liability Shift > Issuer
Chargeback > Counterfeit Fraud
Chapter 5, Arbitration Case Filing-For Chargebacks Initiated On or Before 16 July 2020

Update title from “Intra-EEA Third Party Processed Arbitration Case Filing-For Chargebacks Initiated
Disputes” to “Third Party Processed Disputes On or Before 16 July 2020 > Time Frames and
(Europe Only)” Requirements > Third Party Processed Disputes
Update Definition paragraph (Europe Only)
Chapter 6, Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After

17 July 2020
Add new section Pre-Arbitration and Arbitration Case Filing-For

Chargebacks Initiated On or After 17 July 2020 >
Time Frames and Requirements > Dual Message
System Pre-Arbitration and Arbitration Case Filing
> Point -of-Interaction Error > Transaction Amount
Differs (Gratuity Disputes Only)
Update title from “Intra-EEA Third Party Processed Pre-Arbitration and Arbitration Case Filing-For
Disputes” to “Third Party Processed Disputes Chargebacks Initiated On or After 17 July 2020 >
(Europe Only)” Time Frames and Requirements > Dual Message
Update Definition paragraph System Pre-Arbitration and Arbitration Case Filing
> Third Party Processed Disputes (Europe Only)
Incorporated the changes announced in “AN 3822—Revised Standards—Transaction Amount

Differs Chargeback (Cardholder Receipts for Gratuities)”, that includes:


Pre-Arbitration and Arbitration Case Filing-For
Chargebacks Initiated On or After 17 July 2020 >
Time Frames and Requirements > Dual Message
System Pre-Arbitration and Arbitratino Case Filing
> Point-of-Interaction Error >
Appendix B, Chargebacks—Maestro POS Transactions

Update paragraph three Chargebacks—Maestro POS Transactions >
Message Reason Codes for Interregional
Transactions > Interregional Message Reason
Code 4870—Chip Liability Shift > Proper Use of
Interregional Message Reason Code 4870
Update first paragraph Chargebacks—Maestro POS Transactions >
Message Reason Codes for Intra-European and
Inter-European Transactions > Proper Use for
Issuer’s First Chargeback
Update second paragraph Chargebacks—Maestro POS Transactions >
Message Reason Codes for Intra-European and
Inter-European Transactions > Intra-European
Message Reason Code 4870—Chip Liability Shift
> Proper Use for Intra-European Message Reason
Code 4870

Update “The issuer may use this message reason Chargebacks—Maestro POS Transactions >
code as follows:” row,third bullet Message Reason Codes for Intra-European and
Inter-European Transactions > Intra-European and
Inter-European Message Reason Code 4831—
Disputed Amount > Proper Use of Intra-European
and Inter-European Message Reason Code 4831

Update DE 72 (Data Records) and Note table Chargebacks—Maestro POS Transactions >
rows Message Reason Codes for Intra-European and
Message Reason Code 4841—Canceled Recurring
or Digital Goods Transactions > Proper Use for
Issuer’s First Chargeback > Recurring Transaction
Canceled Before Billing


Update Supporting Documents, DE 72 (Data Chargebacks—Maestro POS Transactions >
Record) table rows, and removing “Batching Message Reason Codes for Intra-European and
MCC 4816 or 5967 Transactions” in Notes table Inter-European Transactions > Intra-European
row Message Reason Code 4841—Canceled Recurring
Issuer’s First Chargeback > Cardholder Dispute of
a Recurring Transaction
Update Second Presentment Condition, DE 72 Chargebacks—Maestro POS Transactions >
(Data Record), and Note table rows Message Reason Codes for Intra-European and
Issuer’s First Chargeback > Digital Goods
Record) table rows, and remove “Batching MCC Message Reason Codes for Intra-European and
4816 or 5967 Transactions” inNotes table row Inter-European Transactions > Intra-European
Issuer’s First Chargeback > Cardholder Dispute of
a Recurring Transaction
Record), and Notes table rows Message Reason Codes for Intra-European and
Issuer’s First Chargeback > Digital Goods
Update Second Presentment Condition table Chargebacks—Maestro POS Transactions >
row Message Reason Codes for Intra-European and
Acquirer's Second Presentment > Digital Goods
Appendix D, Domestic Chargebacks, Arbitration Case Filing, and Compliance Case Filing
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

Appendix F, Transaction Identification Requirements

Incorporated the changes announced in “AN 1853—Revised Standards—Push Payment
Transactions Mandate and MoneySend MCC Expansion”, that includes:
Update table rows Transaction Identification Requirements > Payment
• 18 (Merchant Type) Transactions > Payment Transactions
• 48 (Additional Data—Private Use)
• 48 (Additional Data—Private Use)

Contents
Contents
Summary of Changes, 14 May 2020...................................................................2
Summary of Changes, 12 May 2020...................................................................3
Summary of Changes, 30 April 2020..................................................................4
Chapter 1: General Information......................................................................... 36

Single and Dual Message Systems.................................................................................... 37
Definitions....................................................................................................................... 37
Chargeback Cycles and Arbitration Case Filing................................................................. 37
Overview of the Single and Dual Message System Chargeback Cycles and
Arbitration Case Filing................................................................................................. 37
Compliance Case Filing.................................................................................................... 39
Reversals.......................................................................................................................... 40
Rights and Obligations..................................................................................................... 40
Hardship Variances........................................................................................................... 42
Related Documentation....................................................................................................42
Chapter 2: Dual Message System Chargebacks-Initiated On or

Before 16 July 2020...................................................................................................43
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

Contents
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
Transaction Did Not Complete.................................................................................84
Timeshares..............................................................................................................85
Credit Posted as a Purchase.....................................................................................86
Second Presentment.................................................................................................... 86
General Second Presentment.................................................................................. 86
Digital Goods Purchase of USD 25 or Less............................................................... 88
Credit Previously Issued........................................................................................... 88
Additional Second Presentment Options..................................................................91
Arbitration Chargeback............................................................................................... 93
General Arbitration Chargeback..............................................................................93
Acquirer Reference Data (ARD) Does Not Match or is Invalid................................... 96
Additional Arbitration Chargeback Options............................................................. 96
Fraud-related Chargebacks...............................................................................................97
No Cardholder Authorization.......................................................................................97
Chargeback.......................................................................................................... 100
No Cardholder Authorization............................................................................100
Second Presentment............................................................................................. 103
Two or More Previous Fraud-related Chargebacks.............................................104
Fraud-related Chargeback Counter Exceeds Threshold......................................104
Contactless Transaction Unattended Terminals..................................................105
PIN Transaction.................................................................................................105
Mastercard SecureCode SL1 (Merchant-only Liability Shift)................................106
Mastercard SecureCode SL2 (Global Liability Shift)............................................ 106
Account Takeover............................................................................................. 107
Addendum Charges......................................................................................... 107
Address Verification Service (AVS) Transaction...................................................108
Compelling Evidence for Airline Transactions.................................................... 109

Contents
Compelling Evidence for Recurring Transactions............................................... 109

Compelling Evidence for E-commerce and MO/TO Transactions........................ 110
Guaranteed Reservation Service (“No-show")................................................... 112
Invalid Chargeback........................................................................................... 112
Chip Liability Shift............................................................................................ 112
Chip/PIN Liability Shift...................................................................................... 113
Credit Previously Issued.................................................................................... 113
Additional Second Presentment Options........................................................... 116
Arbitration Chargeback.........................................................................................116
New Location Information Provided in the Second Presentment........................116
Addendum Disputes......................................................................................... 117
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
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
Cardholder Does Not Recognize................................................................................ 130
Chargeback.......................................................................................................... 133
Cardholder Does Not Recognize....................................................................... 133
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

Contents

New Information Not Provided......................................................................... 140
UCAF Value Discrepancy...................................................................................141
Chip Liability Shift......................................................................................................142
Chargeback.......................................................................................................... 147
Not Reported to the Fraud and Loss Database.................................................. 150
Issuer Authorized Transaction........................................................................... 151
Technical Fallback............................................................................................. 151
Chip Transaction— Offline Authorized..............................................................151
DE 55 was Provided in the First Presentment/1240 Message............................. 152
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud .............................. 157
Chargeback.......................................................................................................... 164
Lost/Stolen/NRI Fraud Chip Liability Shift........................................................... 164
Authorized Online Transaction..........................................................................167
Chip Transaction—DE 55 Not Provided—Did Not Require Online
Authorization................................................................................................... 167
DE 55 was Provided in the First Presentment/1240 Message............................. 168
Point-of-Interaction Error................................................................................................173

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—PIN
Transaction........................................................................................................... 183
Transaction Amount Differs................................................................................... 184
ATM Disputes....................................................................................................... 184
Late Presentment—Corrected Transaction Date..................................................... 187
Credit Previously Issued......................................................................................... 189
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

Contents
Issuer Use of Message Reason Code 7624.............................................................197

Acquirer Use of Message Reason Code 7627—No MAC Provided......................... 197
Acquirer Use of Message Reason Code 7627—Face-to-Face or CAT Level 2
Transaction........................................................................................................... 197
Required Fields in Fee Collection Messages............................................................198
Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)........... 199
Chargeback Message Reason Codes.............................................................................. 200
First Chargeback: MTI 1442.......................................................................................200
Second Presentment: MTI 1240................................................................................. 200
Technical Return....................................................................................................200
Documentation Return..........................................................................................200
Substance Return..................................................................................................200
Arbitration Chargeback: MTI 1442............................................................................ 201
Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code
Usage........................................................................................................................202
Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason
Code Usage...............................................................................................................206
Chapter 3: Dual Message System Chargebacks-Initiated On or

After 17 July 2020....................................................................................................208
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
Required Authorization Obtained.......................................................................... 220
Expired Chargeback Protection Period................................................................... 221
Multiple Authorization Requests........................................................................... 222
One Authorization with Multiple Clearing Records................................................ 223
CAT 3 Device ....................................................................................................... 223
Cardholder Dispute Chargeback ....................................................................................226
Chargeback...............................................................................................................229
Goods or Services Were Either Not as Described or Defective................................ 229
Goods or Services Not Provided.............................................................................230

Contents
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
General Second Presentment................................................................................ 247
Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only........248
Digital Goods Purchase of USD 25 or Less............................................................. 249
Fraud-related Chargebacks.............................................................................................253
No Cardholder Authorization.....................................................................................253
Chargeback.......................................................................................................... 256
No Cardholder Authorization............................................................................256
Contactless Transaction Unattended Terminals..................................................260
PIN Transaction.................................................................................................260
Account Takeover............................................................................................. 262
Addendum Charges......................................................................................... 262
Compelling Evidence for Airline Transactions.................................................... 263
Compelling Evidence for Recurring Transactions............................................... 264
Compelling Evidence for E-commerce and MO/TO Transactions........................ 265
Guaranteed Reservation Service (“No-show")................................................... 267
Chip/PIN Liability Shift...................................................................................... 268
Questionable Merchant Activity ................................................................................ 271

Contents
Chargeback.......................................................................................................... 273
Global Merchant Audit Program (GMAP).......................................................... 273
Questionable Merchant Audit Program (QMAP)................................................274
Mastercard Rule 3.7 Violation for Coercion Claim............................................. 275
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
Chargeback.......................................................................................................... 285
Second Presentment ............................................................................................ 286
Issuer Authorized Transaction........................................................................... 288
Second Presentment.........................................................................................289
Authorization................................................................................................... 289
Chip Transaction— Offline Authorized..............................................................290
DE 55 Was Provided in the First Presentment/1240 Message.............................290
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud............................... 294
Chargeback.......................................................................................................... 300
Lost/Stolen/NRI Fraud Chip Liability Shift........................................................... 300
Authorized Online Transaction..........................................................................303
Authorization................................................................................................... 304
DE 55 Was Provided in the First Presentment/1240 Message.............................304

Contents

Point-of-Interaction Error................................................................................................308
Chargeback...............................................................................................................309
Transaction Amount Differs...................................................................................310
ATM Disputes....................................................................................................... 312
Late Presentment ................................................................................................. 314
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange
Loss...................................................................................................................... 316
only)..................................................................................................................... 316
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
Late Presentment—Corrected Transaction Date..................................................... 322
only)..................................................................................................................... 326
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
Additional Processing Notes........................................................................................... 328
Progressive Handling Fees...............................................................................................329
Progressive Handling Fee Overview............................................................................ 329
Issuer Use of Message Reason Code 7622................................................................. 329

Contents
Acquirer Use of Message Reason Code 7623............................................................. 329

Acquirer Use of Message Reason Code 7627—No MAC Provided..............................330
Transaction................................................................................................................ 330
Required Fields in Fee Collection Messages................................................................ 331
Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)........... 332
Chargeback Message Reason Codes.............................................................................. 333
First Chargeback: MTI 1442.......................................................................................333
Second Presentment: MTI 1240................................................................................. 333
Usage........................................................................................................................333
Arbitration Chargeback ............................................................................................ 337
Chapter 4: Single Message System Chargebacks.................................... 338

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
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
Chargeback Reason Codes.............................................................................................345
Correction of a Chargeback.......................................................................................346
Issuer Correction................................................................................................... 346
Acquirer Representment........................................................................................346

Contents
Cash Dispute-ATM Only.............................................................................................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
Counterfeit Fraud............................................................................................. 348
Lost, Stolen, or Never Received Fraud............................................................... 349
Chip Liability Shift Program for Domestic and Intraregional Transactions........... 350
Chip Liability Shift Program for Interregional Transactions................................. 353
Improper Use for Issuer Chargeback......................................................................354
Transaction Amount Differs....................................................................................... 357
Duplicate Transaction.................................................................................................358
No Cardholder Authorization.....................................................................................360
Credit Not Received................................................................................................... 362
Goods or Services Not Provided................................................................................. 364
Late Presentment.......................................................................................................366
Invalid Adjustment—Account Closed.........................................................................367
Invalid Adjustment—Insufficient Funds...................................................................... 368

Contents
Chapter 5: Arbitration Case Filing-For Chargebacks Initiated On

or Before 16 July 2020........................................................................................... 369
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
Chapter 6: Pre-Arbitration and Arbitration Case Filing-For

Chargebacks Initiated On or After 17 July 2020...................................... 379
Overview........................................................................................................................381
Mastercom.....................................................................................................................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
Cardholder Dispute............................................................................................... 395
Cardholder Reasserts Their Claim......................................................................395
Error.................................................................................................................405
Change of Reason within the Cardholder Dispute Chargeback......................... 414
Change of Reason within the Cardholder Dispute Chargeback......................... 417
No Cardholder Authorization................................................................................ 420

Contents
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
Error.................................................................................................................451
Change of Chargeback Reason to an Questionable Merchant Chargeback....... 460
Chip Liability Shift................................................................................................. 462
Error.................................................................................................................464
Chip Liability - Lost/Stolen/Never Received Issue (NRI) Fraud...................................469
Error.................................................................................................................471
Point-of-Interaction Error.......................................................................................475
Transaction Amount Differs (Gratuity Disputes Only)......................................... 475
ATM Disputes................................................................................................... 478
ATM Dispute-Required Second Presentment Supporting Documentation Not
Received (Europe Issuers only)...........................................................................480
Error.................................................................................................................487
Change of Chargeback Reason to a Point-of-Interaction (POI) Error
Chargeback......................................................................................................496
Fees............................................................................................................................... 499
Intra-European and Inter-European Domestic Disputes....................................................500
Third Party Processed Disputes (Europe Only)..................................................................501
Appeals..........................................................................................................................502
Time Frames.............................................................................................................. 502

Contents
Chapter 7: Compliance Case Filing.................................................................. 504

Overview........................................................................................................................505
Mastercom.....................................................................................................................505
How to File, and Respond to, a Compliance Case...........................................................506
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
Fees............................................................................................................................... 515
Appeals..........................................................................................................................516
Time Frames.............................................................................................................. 516
Chapter 8: Mastercard Merchant Presented QR......................................519

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
Compliance Case.................................................................................................. 529
Credit not Processed..................................................................................................532
Compliance Case.................................................................................................. 535
Paid by Other Means................................................................................................. 537
Compliance Case.................................................................................................. 538
Billed an Incorrect Amount........................................................................................ 540

Contents

Compliance Case.................................................................................................. 541
Duplicate Transaction.................................................................................................542
Compliance Case.................................................................................................. 544
Appendix A: Chargebacks—Mastercard Europe ATM

Transactions (Mastercard, Maestro, and Cirrus).......................................546
Overview........................................................................................................................548
Clearing......................................................................................................................... 548
Processing Cycles........................................................................................................... 548
Processing Cycle for ATM Transactions....................................................................... 548
Presentment.............................................................................................................. 549
Reversals...............................................................................................................549
Chargebacks and Second Presentments..................................................................... 550
Chargebacks.........................................................................................................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 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
Improper Use of Acquirer’s Second Presentment....................................................556
Message Reason Code 4811—Stale Transaction........................................................ 556
Message Reason Code 4834—Duplicate Processing of Transaction............................ 556
Transaction Authorized (For Intra-European and Inter-European Transactions
Only)................................................................................................................ 557

Contents
Credit Previously Issued (For Intra-European and Inter-European Transactions

Only)................................................................................................................ 557
Chargeback Remedied..................................................................................... 557
Invalid Data Record...........................................................................................558
Message Reason Code 4842—Late Presentment........................................................558
Improper Use for Issuer’s First Chargeback.............................................................558
Correct Transaction Date Provided.................................................................... 559
Account not Permanently Closed......................................................................559
Message Reason Code 4846—Currency Errors...........................................................559
POI Currency Conversion.................................................................................. 560
POI Currency Conversion—Incorrect Cardholder Currency................................ 560
Improper Use for Acquirer’s Second Presentment.................................................. 561
Proper Use for New Presentments......................................................................... 561
Message Reason Code 4859—ATM Dispute.............................................................. 562
Improper Use of Message Reason Code 4859....................................................... 562
Proper Use For Acquirer’s Second Presentment...................................................... 562
Message Reason Code 4870—Chip Liability Shift...................................................... 564
Chargeback Invalid........................................................................................... 566
Issuer Listed in a Mastercard Announcement.................................................... 567
Message Reason Code 4880—Late Presentment........................................................568
Proper Use of Intra-European or Inter-European Message Reason Code 4880........ 568
Appendix B: Chargebacks—Maestro POS Transactions........................570

Overview........................................................................................................................574
Exception Item Processing.............................................................................................. 575
Exception Transaction Types....................................................................................... 575
Reversals................................................................................................................... 575

Contents
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
Interregional Message Reason Code 4809—Transaction Not Reconciled ................... 579
Interregional Message Reason Code 4811—Stale Transaction.................................... 579
Interregional Message Reason Code 4831—Disputed Amount...................................579
Interregional Message Reason Code 4834—Duplicate Transaction ............................ 580
Interregional Message Reason Code 4837—No Cardholder Authorization................. 581
Improper Use of Interregional Message Reason Code 4837................................... 581
Interregional Message Reason Code 4855—Goods or Services Not Delivered.............583
Interregional Message Reason Code 4860—Credit Not Received............................... 584
Interregional Message Reason Code 4870—Chip Liability Shift.................................. 585

Contents
Improper Use of Interregional Message Reason Code 4870................................... 587

Interregional Message Reason Code 4880—Late Presentment................................... 589
Message Reason Codes for Intra-European and Inter-European Transactions...................590
Intra-European Message Reason Code 4808—Transaction Not Authorized................ 591
Proper Use of Intra-European Message Reason Code 4808....................................591
Improper Use of Intra-European Message Reason Code 4808................................592
Expired Payment Guarantee..............................................................................593
Proper Use for New Presentments.....................................................................594
Intra-European and Inter-European Message Reason Code 4831—Disputed Amount.594
Proper Use of Intra-European and Inter-European Message Reason Code 4831..... 594
Improper Merchant Surcharge (Intra-European and Inter-European
Transactions Only)............................................................................................ 597
Intra-European Message Reason Code 4834—Duplicate Processing of Transaction.....598
Invalid Data Record...........................................................................................599
Intra-European Message Reason Code 4837—No Cardholder Authorization..............600

Contents

Improper Use for Acquirer's Second Presentment.................................................. 603
Intra-European Message Reason Code 4841—Canceled Recurring or Digital Goods
Transactions...............................................................................................................604
Recurring Transaction Canceled Before Billing................................................... 605
Account Listed in Payment Cancellation Service (PCS)....................................... 606
Cardholder Dispute of a Recurring Transaction................................................. 606
Digital Goods................................................................................................... 607
Subsequent Message Reason Code 4841 Chargeback...................................... 607
Proper Use for Acquirer's Second Presentment...................................................... 608
Recurring Transactions......................................................................................608
Digital Goods................................................................................................... 608
Intra-European Message Reason Code 4846—Currency Errors...................................609
Incorrect Currency Transmitted......................................................................... 609
POI Currency Conversion.................................................................................. 609
Currency Conversion—Incorrect Cardholder Currency...................................... 610
Proper Use for New Presentments......................................................................... 611
Intra-European Message Reason Code 4855—Goods or Services Not Provided.......... 611
Intra-European Message Reason Code 4860—Credit Not Received............................ 616
Credit Not Processed........................................................................................ 618
Timeshare........................................................................................................ 619
Credit Posted as a Purchase.............................................................................. 619
Credit Issued.................................................................................................... 620
Cancellation or Returns.................................................................................... 620
Purchase Properly Posted.................................................................................. 620
Credit Previously Issued—Intra-European and Inter-European Transactions........ 621
Reason Code 4860—Arbitration Case Filing.......................................................... 622
Intra-European Message Reason Code 4870—Chip Liability Shift...............................622
Proper Use for Intra-European Message Reason Code 4870.................................. 622

Contents

Intra-European Message Reason Code 4880—Late Presentment................................626
Domestic Chargeback Rules........................................................................................... 627
Additional Rules Applicable to Domestic Transactions in Ireland, Turkey, and France... 627
Arbitration Case Filing...........................................................................................628
Appendix C: CVM Limit Amounts.................................................................... 629

Overview........................................................................................................................630
CVM Limit Amounts.......................................................................................................630
Appendix D: Domestic Chargebacks, Arbitration Case Filing, and

Compliance Case Filing......................................................................................... 632
Participating Countries—Installment Billing Dispute (Reason Code 4850)........................635
Proper Use of Message Reason Code 4850................................................................ 635
Proper Use of Issuer’s First Chargeback...................................................................... 636
Incorrect Number of Installments...........................................................................636
Incorrect Installment Amount................................................................................ 637
Premature Processing of Installment...................................................................... 637
Not an Installment Transaction.............................................................................. 637
Invalid Installment Acceleration............................................................................. 638
Subsequent Installments Charged Back After Chargeback of First Installment for
Message Reason Code 4837................................................................................. 638
Proper Use for Acquirer’s Second Presentment........................................................... 638
Correct Number of Installments.............................................................................638
Correct Installment Amount.................................................................................. 639
Installment Not Premature.....................................................................................639
Valid Installment Acceleration............................................................................... 640
Additional Remedies............................................................................................. 640

Contents
Arbitration Chargeback-For Chargebacks Initiated On or Before 16 July 2020............641

Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020................ 642
Cardholder Reasserts their Claim ..........................................................................646
Error .................................................................................................................... 651
Required Documentation Not Received to Support Second Presentment ...............653
Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and Slovenia—Intracountry
Acquirer Domain Mobile Remote Payment Transactions..................................................655
India.............................................................................................................................. 656
Mexico...........................................................................................................................656
South Africa...................................................................................................................656
U.S. Region—Cardholder Dispute—Not Elsewhere Classified (Reason Code 4854)..........656
Proper Use of Message Reason Code 4854................................................................ 656
Proper Use for Issuer’s First Chargeback..................................................................... 658
Disputed Surcharge...............................................................................................659
Proper Use for Acquirer’s Second Presentment........................................................... 659
Invalid Chargeback............................................................................................... 660
Disputed Surcharge...............................................................................................660
Disputed Surcharge—Incorrect Pro-rated Calculation............................................ 661
Additional Remedies............................................................................................. 661
Arbitration Chargeback-for Chargeback Initiated On or Before 16 July 2020..............661
Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020................ 662
Cardholder Reasserts their Claim ..........................................................................667
Error .................................................................................................................... 672
Required Documentation Not Received to Support Second Presentment ...............674
Acquirer Reference Data (ARD) Does Not Match or is Invalid ................................ 677
U.S. Region—U.S. Shared Deposits.................................................................................681
Returned Item (Reason Code 20)............................................................................... 681
Empty Deposit Envelope (Reason Code 24)................................................................ 682
Error in Addition (Reason Code 25)............................................................................682
Error in Settlement (Reason Code 26)........................................................................ 683
Customer Keyed Wrong Amount (Reason Code 27)...................................................683

Contents
Non-Cash Item Deposited (Reason Code 28)..............................................................684
Foreign/Counterfeit Currency Deposited (Reason Code 29)........................................ 685
Cardholder Disputed Amount (Reason Code 30)........................................................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
Acquirer Representment (Second Presentment)..........................................................688
General Use.......................................................................................................... 689
Appendix E: Lodging Merchant Services..................................................... 691

Guaranteed Reservations................................................................................................692
Advance Resort Deposit................................................................................................. 693
Appendix F: Transaction Identification Requirements.......................... 694

Transaction Date............................................................................................................ 695
Contactless Transactions.................................................................................................695
Contactless Transit Aggregated Transactions.............................................................. 697
Contactless-only Transactions.................................................................................... 699
Quick Payment Service Transactions................................................................................700
Payment Transactions..................................................................................................... 701
Electronic Commerce Transactions..................................................................................703
Digital Secure Remote Payment Transactions.................................................................. 704
Digital Secure Remote Payment Transactions Containing Chip Data........................... 704
Digital Secure Remote Payment Transactions Containing UCAF Data..........................706
Partial Shipments or Recurring Payments Following Digital Secure Remote Payment
Transactions...............................................................................................................708
Mastercard Mobile Remote Payment Transactions...........................................................710
Mastercard Biometric Card Program Transactions........................................................... 710
Mastercard Consumer-Presented Quick Response (QR) Transactions................................711

Contents
Appendix G: Forms................................................................................................. 712

Accessing Mastercard Connect.......................................................................................713
Referenced Forms...................................................................................................... 715
Notices...........................................................................................................................716

General Information
Chapter 1 General Information

This chapter provides a high level overview of the single and dual message system chargeback
cycles as well as arbitration and compliance.
Single and Dual Message Systems................................................................................................. 37

Definitions.................................................................................................................................... 37
Chargeback Cycles and Arbitration Case Filing..............................................................................37
Overview of the Single and Dual Message System Chargeback Cycles and Arbitration Case
Filing........................................................................................................................................ 37
Compliance Case Filing................................................................................................................. 39
Reversals.......................................................................................................................................40
Rights and Obligations.................................................................................................................. 40
Hardship Variances........................................................................................................................42
Related Documentation................................................................................................................ 42

General Information
Single and Dual Message Systems
Single and Dual Message Systems

The Single Message System (formerly known as the Mastercard® Debit Switch [MDS])
processes authorization, clearing, and settlement in a single message. Refer to the Single
Message System Specifications and the Single Message Transaction Manager User Guide for
detailed information.
The Dual Message System processes authorization messages through the Authorization
Platform and clearing/settlement messages through the Global Clearing Management System
(GCMS). GCMS uses messages in the Integrated Product Messages (IPM) format. Refer to the
Global Clearing Management System Reference Manual for detailed information on how to
process messages, currency conversion, and edits. Refer to the IPM Clearing Formats for
message formats and data requirements.
Definitions
The terms “Customer” and “Standards” as used in this guide have the meaning set forth in
the Definitions chapter of Mastercard Rules.
Chargeback Cycles and Arbitration Case Filing

The following table provides an overview of the chargeback cycles and arbitration case filing
for the Single and Dual Message Systems.
Detailed information can be found in the Single Message System Chargebacks, Dual Message
System Chargebacks, and Arbitration Case Filing chapters.
In the European Economic Area (EEA), Gibraltar, and the United Kingdom, the chargeback
rules apply to all disputed transactions regardless of the processor. Please refer to your chosen
processor’s documentation for processing instructions and for equivalent data elements to
those referenced in this guide.
Overview of the Single and Dual Message System Chargeback Cycles and
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.

General Information
Overview of the Single and Dual Message System Chargeback Cycles and Arbitration Case Filing
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.

In the Single Message System, this is In the Dual Message System, this is a First
an Advice Reason Code/0489 Chargeback/1442 message.
message.
When the total transaction amount is being
Function codes are not used in the charged back, DE 24 (Function Code) must
Single Message System, rather the include a value of 450 (Full Amount).
issuer charges back either the full or
When a partial amount is being charged back,
partial amount.
DE 24 must include a value of 453 (Partial
Amount).
Second An acquirer may process a second presentment when the acquirer:

Presentment • Believes the issuer’s chargeback did not fulfill the requirements of the chargeback
reason code
• Can provide information that addresses the original reason for the dispute
A second presentment must be for the total chargeback amount or a lesser amount.

This is an Advice Reason Code/0491 This is a Second Presentment/1240 message.
message.
Function codes are not used in the second presented, DE 24 (Function Code) must
Single Message System, rather the include a value of 205 (Full Amount).
acquirer represents either the full or
When a partial amount is being second
partial amount.
presented, DE 24 must include a value of 282
(Partial Amount).
Arbitration An issuer may process an arbitration chargeback when the issuer:

Chargeback • Believes the acquirer’s second presentment did not fulfill the requirements of the
chargeback reason code.
• Can address the information provided by the acquirer.
An arbitration chargeback must be for the total second presentment amount or a
lesser amount.

General Information
Compliance Case Filing

The Single Message System does In the Dual Message System, this is an
not support an Arbitration Arbitration Chargeback/1442 message.
Chargeback.
Arbitration chargebacks are not supported for
Maestro and Cirrus transactions occurring on
the Dual Message System.
charged back, DE 24 (Function Code) must
include a value of 451 (Full Amount).
When a partial amount is being charged back,
DE 24 must include a value of 454 (Partial
Amount).
NOTE: The arbitration chargeback cycle will

be eliminated for first chargebacks
processed on or after 17 July 2020.
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.

In the Single Message System, the In the Dual Message System:
issuer may file an arbitration case.
• For first chargebacks processed before 17
July 2020 the an acquirer may file an
arbitration case.
• For first chargebacks processed on or after
17 July 2020 the issuer may file an
arbitration case.
A compliance case may be filed by either an issuer or an acquirer when:

• A message reason code doesn’t exist to address the dispute
• A rule has been violated
• A financial loss has been documented as a direct result of the rule violation

General Information
Reversals
Refer to the Compliance Case Filing chapter 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.
Rights and Obligations

The following applies in addition to the rights and obligations described in the Standards:
• An issuer is limited to one chargeback per presented transaction amount within the time
frame applicable for the chargeback reason code. The transaction amount may be charged
back one time by the issuer, either as a full amount, a partial amount, or multiple partial
amounts not to exceed the original clearing message amount.
• An acquirer must not process a new first presentment for the same transaction after
receiving a chargeback with the exception of a “POI Currency Conversion” dispute under
the Dual Message System Point-of-Interaction Error chargeback (message reason code
4834).
The “POI Currency Conversion” exception is available when the chargeback is valid and the
acquirer accepts the chargeback. The acquirer may process a new First Presentment/1240
message with the correct transaction currency. The new presentment must be processed
within 30 calendar days of the Central Site Business Date of the first chargeback in order
for the acquirer to be protected from a “Late Presentment” chargeback.
• The issuer, acquirer, merchant, or cardholder must not retain funds, goods, and/or services
twice for the same transaction. Issuers and acquirers are responsible to research and
identify refunds prior to each chargeback processing cycle. Issues of this nature must be
resolved properly during the chargeback and second presentment cycles and within the
required timeframes. A compliance case filing is invalid. Examples include but are not
limited to:
– When an issuer has billed a transaction to its cardholder’s account for payment and then
chooses to exercise a chargeback right, the issuer must credit the cardholder’s account
for the amount of the chargeback. An issuer must not allow a cardholder to be credited
twice because of a chargeback processed by the issuer and a refund processed by the
merchant.
– 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

General Information
Rights and Obligations
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.

General Information
Hardship Variances
Hardship Variances
A hardship variance is considered when a natural disaster causes severe operational

difficulties. A hardship variance removes the GCMS time frame edits in the dual message
system for the chargeback cycles of all message reason codes for a specific time period.
Removing the time frame edits means that GCMS will not reject a message solely because the
message was sent after the time frame for the cycle. All other requirements of the reason
code continue to apply. Refer to the Global Clearing Management System Reference Manual
and IPM Clearing Formats for additional information.
Hardship variances are not supported in the Single Message System.
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

Dual Message System Chargebacks-Initiated On or Before 16 July 2020
Chapter 2 Dual Message System Chargebacks-Initiated On

or Before 16 July 2020
This chapter is for chargebacks initiated on or before 16 July 2020 and the chargeback’s
subsequent cycles, and details the procedures that Customers must follow for each individual
message reason code.
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

Transaction Did Not Complete............................................................................................. 84

Timeshares.......................................................................................................................... 85
Credit Posted as a Purchase................................................................................................. 86
Second Presentment.................................................................................................................86
General Second Presentment............................................................................................... 86
Digital Goods Purchase of USD 25 or Less............................................................................ 88
Credit Previously Issued........................................................................................................88
Additional Second Presentment Options.............................................................................. 91
Arbitration Chargeback............................................................................................................ 93
General Arbitration Chargeback.......................................................................................... 93
Acquirer Reference Data (ARD) Does Not Match or is Invalid................................................ 96
Additional Arbitration Chargeback Options..........................................................................96
Fraud-related Chargebacks........................................................................................................... 97
No Cardholder Authorization................................................................................................... 97
Chargeback....................................................................................................................... 100
No Cardholder Authorization........................................................................................ 100
Second Presentment.......................................................................................................... 103
Two or More Previous Fraud-related Chargebacks..........................................................104
Fraud-related Chargeback Counter Exceeds Threshold...................................................104
Contactless Transaction Unattended Terminals...............................................................105
PIN Transaction..............................................................................................................105
Mastercard SecureCode SL1 (Merchant-only Liability Shift)............................................ 106
Mastercard SecureCode SL2 (Global Liability Shift).........................................................106
Account Takeover..........................................................................................................107
Addendum Charges...................................................................................................... 107
Address Verification Service (AVS) Transaction............................................................... 108
Compelling Evidence for Airline Transactions................................................................. 109
Compelling Evidence for Recurring Transactions............................................................ 109
Compelling Evidence for E-commerce and MO/TO Transactions..................................... 110
Guaranteed Reservation Service (“No-show")................................................................112
Invalid Chargeback........................................................................................................112
Chip Liability Shift......................................................................................................... 112
Chip/PIN Liability Shift................................................................................................... 113
Credit Previously Issued................................................................................................. 113
Additional Second Presentment Options........................................................................116
Arbitration Chargeback..................................................................................................... 116
New Location Information Provided in the Second Presentment.....................................116

Addendum Disputes......................................................................................................117
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
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
Cardholder Does Not Recognize............................................................................................. 130
Chargeback....................................................................................................................... 133
Cardholder Does Not Recognize.................................................................................... 133
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
New Information Not Provided...................................................................................... 140
UCAF Value Discrepancy............................................................................................... 141


Chip Liability Shift.................................................................................................................. 142
Chargeback....................................................................................................................... 147
Not Reported to the Fraud and Loss Database............................................................... 150
Issuer Authorized Transaction........................................................................................ 151
Technical Fallback..........................................................................................................151
Chip Transaction— Offline Authorized.......................................................................... 151
DE 55 was Provided in the First Presentment/1240 Message.......................................... 152
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud ...........................................157
Chargeback....................................................................................................................... 164
Lost/Stolen/NRI Fraud Chip Liability Shift........................................................................164
Authorized Online Transaction.......................................................................................167
Chip Transaction—DE 55 Not Provided—Did Not Require Online Authorization............. 167
DE 55 was Provided in the First Presentment/1240 Message.......................................... 168
Point-of-Interaction Error............................................................................................................ 173
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—PIN Transaction..... 183
ATM Disputes.................................................................................................................... 184
Late Presentment—Corrected Transaction Date..................................................................187
Credit Previously Issued......................................................................................................189
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
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
Issuer Use of Message Reason Code 7624......................................................................... 197
Acquirer Use of Message Reason Code 7627—No MAC Provided...................................... 197
Acquirer Use of Message Reason Code 7627—Face-to-Face or CAT Level 2 Transaction..... 197

Required Fields in Fee Collection Messages........................................................................ 198

Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)........................ 199
Chargeback Message Reason Codes........................................................................................... 200
First Chargeback: MTI 1442....................................................................................................200
Second Presentment: MTI 1240..............................................................................................200
Technical Return................................................................................................................ 200
Documentation Return...................................................................................................... 200
Substance Return...............................................................................................................200
Arbitration Chargeback: MTI 1442......................................................................................... 201
Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code Usage.... 202
Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason Code
Usage.....................................................................................................................................206

Overview
Overview
Chargebacks fall into four categories:

• Authorization
• Cardholder disputes
• Fraud
• Point-of-Interaction Error
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.

Chargeback
– 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.
Required Authorization Not Obtained
Chargeback Condition. Both of the following:

• Authorization was required
• Authorization was not properly obtained.
Time Frame. Within 90 calendar days of the Central Site Business Date of the transaction.

Message Reason Code. One of the following:

• 4808 (Authorization-related Chargeback) for Dual Message System transactions
• 08 (Authorization-related Chargeback) 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). None

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.

Expired Chargeback Protection Period
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.
Chargeback Condition. One of the following:

• The transaction occurred at a merchant located in the Europe region and the issuer permanently
closed the account before processing the chargeback.
• The transaction occurred at a merchant located in any other region and the issuer deems the
account not to be in good standing (a “statused” account) before processing the chargeback.
And one of the following:
• The authorization was identified as a preauthorization (DE 61 [Point-of-Service (POS) Data],
subfield 7 (POS Transaction Status) contains a value of 4 [Preauthorized request]) and the
transaction was presented more than 30 calendar days after the latest authorization approval date.
• The authorization was not identified as a preauthorization and the transaction was presented more
than seven calendar days after the authorization approval date.
The above time frames do not apply to properly identified acquirer-financed or merchant-financed
preauthorized installment billing payments or contactless transit aggregated or transit debt recovery
transactions.
• 4808 for Dual Message System transactions
• 08 for Debit Mastercard transactions processed on the Single Message System
eliminated:
transactions


Multiple Authorization Requests
Notes. This chargeback is not available for the following transactions:

• Properly identified acquirer-financed or merchant-financed preauthorized installment payments.
• Properly identified Mastercard contactless transit aggregated or transit debt recovery transactions.
Chargeback Condition. A Card-Not-Present authorization was declined by the issuer and

subsequently approved in Stand-In or X-Code.
• 4808 for Dual Message System transactions.
• 08 for Debit Mastercard transactions processed on the Single Message System.
eliminated:
transactions.
the Single Message System.

DE 72 (Data Record). Optionally: MULTIPLE AUTH REQUESTS
Notes. None

CAT 3 Device
CAT 3 Device

1. The transaction was not identified with one of the following MCCs:
– 4784—Bridges and Road Fees, Tolls
– 5499—Miscellaneous Food Stores—Convenience Stores, Markets, Specialty Stores (solely for
Contactless-only Transactions)
– 7523—Automobile Parking Lots and Garages
– 7542—Car Washes
2. The transaction was identified with one of the above MCCs and the transaction amount was
greater than one of the following:
a. The CVM Limit as published in Appendix C (CVM Limit Amounts) for contactless-only CAT 3
devices
b. HKD 500 for domestic Hong Kong CAT 3 transactions identified with MCC 7523 (Automobile
Parking Lots and Garages)
c. EUR 50 for CAT 3 transaction occurring in Europe
d. USD 40, or its local currency equivalent, for all other CAT 3 transactions
3. The transaction was a magnetic stripe transaction identified with one of the MCCs listed in bullet
1.
4. The PAN was listed in the applicable Local Stoplist or Electronic Warning Bulletin File on the date
of the transaction.
5. The PAN was expired or not yet valid
6. The transaction occurred in the Europe region with a card that had a service code of X2X (Positive
Online Authorization Required).
eliminated:
transactions
Supporting Documents. For batched chargebacks: A list of the ARDs and the amount of each
transaction.
For all other chargebacks: None

CAT 3 Device
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

Second Presentment
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.

Required Authorization Obtained
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

DE 72 (Data Record)
When online authorized: AUTHORIZATION DATE MMDDYY NNNNNN
When offline EMV authorized and DE 55 not previously provided in the First Presentment/1240
message: DE 55 PROVIDED
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.

Second Presentment Condition. One of the following:

1. The transaction was properly identified in authorization as a preauthorization (DE 61, subfield 7 =
4), the transaction was presented within 30 calendar days of the preauthorization approval date,
and was not reversed.
2. The transaction was not properly identified in authorization as a preauthorization, the transaction
was presented within seven calendar days of the authorization approval date, and was not
reversed.
3. The transaction was properly identified in authorization as acquirer-financed or merchant-financed
installment payment.
4. The transaction was properly identified in authorization as a Mastercard Contactless transit
aggregated or transit debt recovery transaction.
5. The transaction occurred at:
a. A Europe region merchant location and the issuer has not permanently closed the account
b. A merchant located in any other region and the issuer has not “statused” the account (that
is, the issuer considered the account to be in good standing at the time of the chargeback)
Time Frame. Within 45 calendar days of the chargeback settlement date.

• 2713 (Invalid Chargeback) for Dual Message System transactions

DE 72 (Data Record). One of the following corresponding to the Second Presentment Condition:
1. PREAUTH MMDDYY
2. AUTH MMDDYY
3. INSTALLMENT
4. TRANSIT
5. Either:
a. ACCOUNT NOT CLOSED
b. ACCOUNT NOT STATUSED
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.

Second Presentment Condition.One of the following:

1. The issuer-generated decline response 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).
2. The issuer generated an approval response after previously declining the transaction.
3. For a card-not-present transaction, the merchant can prove that the cardholder resubmitted the
online order.
Time Frame.Within 45 calendar days of the chargeback settlement date

Supporting Documents. One of the following corresponding to the Second Presentment

Condition:
1. None
2. None
3. Documentation supporting the merchant’s claim.

Notes. None
One Authorization with Multiple Clearing Records
Second Presentment Condition. Both of the following:

• One of the following indicators was present in DE 25 (Message Reason Code) of the First
Presentment/1240 message
– 1403 (Previously approved authorization—partial amount, multi-clearing)
– 1404 (Previously approved authorization—partial amount, final clearing)
• The total of all clearing records submitted in connection with the approved authorization did not
exceed the approved amount


CAT 3 Device
DE 72 (Data Record). One of the following, as applicable:

• PREAUTH MMDDYY 1403
• AUTH MMDDYY 1403
Notes.
When the transaction authorization was identified as a preauthorization, use PREAUTH.
CAT 3 Device
Second Presentment Condition. All of the following:

• The transaction was not a magnetic stripe transaction
• The PAN was not listed in the applicable Local Stoplist or Electronic Warning Bulletin File on the
date of the transaction
• 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.

• 2707 (No authorization request required or attempted) for Dual Message System transactions

DE 72 (Data Record). Optionally: CAT 3
Notes. None.
Credit Previously Issued
Second Presentment Condition. The merchant issued a credit to the cardholder’s account.
• 2011 (Credit Previously Issued) for Dual Message System transactions

DE 72 (Data Record). MMDDYY NNNNNNNNNNNNNNNNNNNNNNN

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.
• 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 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

Additional Second Presentment Options
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
– 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.

Notes. Not available for ATM transactions.
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.
General Arbitration Chargeback
Arbitration Chargeback Condition. The issuer continues to dispute the transaction.

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.

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:
• 4808 Authorization-related Chargeback
• 48XX

Notes. Replace 48XX with the valid chargeback message reason code.
Arbitration Chargeback Condition. One of the following:

1. When the issuer’s first chargeback didn’t include the ARD present in the first presentment, the
issuer must provide the correct ARD.
2. When the issuer’s first chargeback included the ARD present in the first chargeback, the issuer
must provide a copy of the first presentment as Supporting Documentation.
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.
Reference Data; Documentation Received.
Supporting Documents. One of the following corresponding to the Arbitration Chargeback

Condition:
1. None
2. A copy of the first presentment showing the ARD
DE 72 (Data Record). CORRECT REFERENCE NUMBER SUPPLIED

Notes. None
Additional Arbitration Chargeback Options

Cardholder Dispute Chargeback
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.

Notes. None

This section provides information in handling a cardholder dispute chargeback. Use of the
cardholder dispute chargeback requires that the cardholder engaged in the transaction.
A Cardholder Dispute chargeback may be submitted when the cardholder contacted the
issuer alleging one of the following:
• 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 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.

Chargeback

Chargeback
The tables in this section detail the conditions under which a Cardholder Dispute chargeback
may be processed.
Goods or Services Were Either Not as Described or Defective
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
• 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.
Time Frame. One of the following:

• 120 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
• Between 15 and 120 calendar days from the transaction settlement date
• Between 15 and 120 calendar days from the delivery/cancellation date of the goods or services.

Goods or Services Not Provided

• 4853 (Cardholder Dispute) for Dual Message System transactions
• 53 (Cardholder Dispute—Defective/Not as Described) for Debit Mastercard transactions processed
on the Single Message System
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.

• The cardholder contacted the issuer claiming both of the following:
– The cardholder engaged in the transaction.
– The purchased goods or services were not received.
• Travel services arranged through an online travel agency or tour operator were not received and
the travel agency or tour operator is no longer in business.

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.
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
days from the expiration date printed on the card.
• In all other cases: within 120 calendar days from the transaction settlement date.

eliminated:
• 4855 (Goods or Services Not Provided) for Dual Message System transactions
• 55 (Non-receipt of Merchandise) for Debit Mastercard transactions processed on the Single
Message System

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.

Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only
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.

1. Maximum 150 calendar days from the latest expected service date, whether the bonding
authority or similar scheme responded or not. The issuer must wait at least 30 calendar days from
the date the request was sent prior to processing a chargeback, unless a negative response was
received, in which case, the chargeback may be processed upon receipt of the negative reply.
The following exceptions apply:
– For German Domestic Transactions: Maximum 240 calendar days from the latest expected
service date, whether the bonding authority or similar scheme responded or not. The issuer
must wait at least 60 calendar days from the date the request was sent prior to processing a
chargeback, unless a negative response was received, in which case, the chargeback may be
processed upon receipt of the negative reply.
– For Polish Domestic Transactions: Maximum 540 calendar days from the Central Site Business
Date, whether the bonding authority or similar scheme responded or not. The issuer must wait
at least 60 calendar days from the date the request was sent prior to processing a chargeback,
unless a negative response was received, in which case, the chargeback may be processed
upon receipt of the negative reply.
– For Swedish Domestic Transactions: Maximum 120 calendar days from the latest expected
service date.
2. Maximum 120 calendar days after from the expected service date.
In all cases, the issuer does not have to wait for the latest expected service date before processing
the chargeback. A chargeback may be processed immediately upon learning the travel services
will not be provided to the cardholder (or traveler). The issuer is still obliged to meet all other
applicable chargeback requirements, such as a request for reimbursement from the bonding
authority or similar scheme.

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, it will eventually be replaced
by 4853:
• 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:
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.

Digital Goods Purchase of USD 25 or Less
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.

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).
The delivery of digital goods purchased in a transaction may occur on a one-time or
subscription basis.

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

eliminated:
• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions
• 41 (Canceled Recurring Transaction) for Debit Mastercard transactions processed on the Single
Message System

Credit Not Processed
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.
DE 72 (Data Record). DIGITAL GOODS.

For batched chargebacks: DIGITAL GOODS NNN
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.
batch.
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


• Within 120 calendar days from the transaction date for a VAT credit.
• Between 15 and 120 calendar days from the date on the credit documentation, or the date the
service was canceled, or the goods were returned.
When waiting the 15 calendar days would cause the issuer to exceed the 120 calendar day time
frame, the issuer may chargeback the transaction earlier than 15 calendar days.
When the credit documentation is dated, the 120-day chargeback time frame counts the date on
the credit documentation as day zero.
When the credit documentation is undated, the 120-day time frame counts the date on the
cardholder letter, email, message, or Dispute Resolution Form—Cardholder Dispute Chargeback
(Form 1221) as day zero.
When the cardholder letter is undated, the chargeback time frame counts the receipt date of the
documentation by the issuer as day zero.
• The issuer can immediately charge back the transaction upon receiving one of the following forms
of credit documentation:
– 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

eliminated:
• 4860 (Credit Not Processed) for Dual Message System transactions
• 60 (Credit Not Processed) for Debit Mastercard transactions processed on the Single Message
System
Supporting Documents. One of the following:

• A cardholder letter, email, message, or 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
• Merchant documentation to support a credit is due to the cardholder
• Proof of an improperly disclosed in-store credit and cardholder explanation
DE 72 (Data Record). For improperly disclosed partial credit only:

NNNNNNNNNNNNNNNNNNNNNNN

Counterfeit Goods
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.

• Within 120 calendar days of the Central Site Business date
• When the transaction involved delayed delivery: 120 calendar days from the date the goods and
services were received

• 53 (Cardholder Dispute— Defective/Not as Described) for Debit Mastercard transactions processed
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

Cardholder Dispute of a Recurring Transaction
DE 72 (Data Record). Optionally: COUNTERFEIT
Notes. None

A recurring transaction allows for continuous billing without a specified end date.
• 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.

eliminated:
Message System
Supporting Documents. A cardholder letter, email, message, or completed Dispute Resolution Form
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.
DE 72 (Data Record) None

Notes
Proper Disclosure of Terms and Conditions
Terms and conditions for recurring transactions must be clearly detailed to the cardholder. Recurring
transaction terms and conditions must be separate and distinct from general terms and conditions of
sale.

Issuer Dispute of a Recurring Transaction

1. The issuer listed the account in the Payment Cancellation Service (PCS) prior to the disputed
transaction occurring.
2. The issuer previously charged back a disputed recurring transaction with the same PAN and
merchant
3. The issuer previously notified the merchant or acquirer to cancel the recurring transaction prior to
the disputed transaction occurring.

eliminated:
Message System
Supporting Documents. One of the following correspond to the Chargeback Condition:

1. None
2. One of the following:
– A new cardholder letter, email, message, or Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) stating that the merchant was notified of the cancellation before the
disputed transaction.
– The original cardholder letter, email, message, or Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) from the original chargeback disputing a recurring
transaction stating that the merchant was notified of the cancellation before the disputed
transaction.
3. Issuer certification letter stating that the merchant was notified of the cancellation before the
DE 72 (Data Record). One of the following correspond to the Chargeback Condition:

1. RPCS MMDDYY
2. CB MMDDYY ARD XXXXXXXXXXXXXXXXXXXXXXX
3. None

Addendum Dispute
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.
• The cardholder engaged in a valid transaction with the merchant.
• A subsequent transaction occurred with that same merchant without the cardholder’s consent.
dispute.
Time Frame. Within 120 calendar days of the Central Site Business Date of the disputed subsequent
transaction.

eliminated:
• 4859 (Addendum, No-show, or ATM Dispute) for Dual Message System transactions
• 59 (Services Not Rendered) for Debit Mastercard transactions processed on the Single Message
System

“No-Show” Hotel Charge
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.

Transaction Did Not Complete

eliminated:
System
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
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
• The cardholder claims the disputed transaction failed to complete
• The cardholder did not use the goods or services

Timeshares

eliminated:
Message System
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-
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.
Time Frame. 120 calendar days from the cancellation date.

eliminated:
System
Supporting Documents. A cardholder letter, email, message, or Dispute Resolution Form—

Cardholder Dispute Chargeback (Form 1221) is required when the cardholder made a transaction for a
timeshare or any similar provision of services and canceled the agreement within
• 90 calendar days of the agreement date for intra-European and inter-European transactions
• 14 calendar days of the agreement date for all other transactions
DE 72 (Data Record). TIMESHARE

Credit Posted as a Purchase
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.

eliminated:
System
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
to a Cardholder Dispute chargeback may be processed.
General Second Presentment
Second Presentment Condition. The acquirer can provide evidence in response to the cardholder’s
claims.


• 2700 (See Corresponding Documentation/Chargeback Remedied) for Dual Message System
transactions
Supporting Documents. The merchant’s explanation and documentation.

When the Second Presentment is in response to a First Chargeback for an Addendum Dispute the
acquirer must provide proof the transaction was completed as described in the Transaction Processing
Rules, section 3.12 Charges for Loss, Theft, or Damage—Mastercard POS Transactions Only.
When the Second Presentment is in response to a First Chargeback for Credit Not Processed, the
acquirer must provide documentation that proper disclosure was made in accordance with the
Transaction Processing Rules, section 3.11 Specific Terms of a Transaction.
Notes. A merchant or acquirer statement that the cardholder never contacted the merchant to cancel
the recurring transaction is not a valid second presentment.
claims.
IPM Second Presentment Message Reason Code. 2700 (See Corresponding Documentation/
Chargeback Remedied) for Dual Message System transactions.

• Proof that the cardholder (or traveler) received reimbursement from the merchant, a bonding
authority or similar scheme according to local law.
• The merchant’s explanation and documentation showing that the travel services paid for will be
provided or were available to the cardholder (or traveler).
• The merchant’s explanation and documentation, specifically documenting that the travel services
are covered by a bonding authority or similar scheme according to local law and that the
cardholder (or traveler) has recourse to collect reimbursement. Instructions on how to request
reimbursement must be provided. An acquirer statement that a bonding authority or similar
scheme exists is not sufficient by itself. This remedy is not applicable to Swedish Domestic
Transactions.
DE 72 (Data Record). None.
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.

transactions
Supporting Documents. Documentation to support that the chargeback is remedied or invalid (for
example, website screen images).
Notes. None

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.
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).
collection letter is accepted by the issuer in writing, the Fee Collection/1740 message must be
Reference Manual.
acquirer.


the issuer in writing, the Fee Collection/1740 message must be processed in accordance with

the following:
– 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.
– 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
Notes. None

The tables in this section detail the conditions under which an arbitration chargeback in
response to a second presentment may be processed.
Arbitration Chargeback Condition. The cardholder continues to dispute the transaction.

condition. For example, the first chargeback was for merchandise not received, the second
presentment includes proof that delivery occurred after the first chargeback was processed, the
cardholder now claims that the merchandise arrived damaged. The arbitration chargeback must meet
the conditions for Goods or Services were either Not as Described or Defective.
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: ipinquiries@mastercard.com
• 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).

Notes. The new cardholder letter, email, message or completed Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) must be dated after the second presentment and must specifically
address the rebuttal provided with the second presentment.
Arbitration Chargeback Condition. The Cardholder continues to dispute the Transaction

IPM Arbitration Chargeback Message Reason Code.
4853 (Cardholder Dispute-Defective/Not as Described) for Dual Message System transactions.
replaced by 4853:
Message System transactions
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.

Reference Data; Documentation was Not Received or Not Required
Reference Data; Documentation Received

Condition:
1. None

Notes. None

Fraud-related Chargebacks
1. 4901—Required Documentation Not Received to Support Second Presentment Required
supporting documentation was not received.
Mastercard Dispute Resolution Management staff will find the acquirer responsible when the
acquirer files an arbitration case.
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.
Notes. None
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
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.
• 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
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
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
– 7523—Parking Lots and Garages

– 7832—Motion Picture Theaters
– 8062—Hospitals
– 9402—Postal Services- Government Only
• Corporate Purchasing Department Account Program transactions.
• 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 must be provided using the Mastercom application. Any action
received in Mastercom must be responded to in Mastercom.
Chargeback
The tables in this section detail the conditions under which an issuer may process a first
chargeback under the No Cardholder Authorization chargeback.
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder did not
authorize the transaction.
• 4837 (No Cardholder Authorization) for Dual Message System transactions
• 37 (No Cardholder Authorization) for Debit Mastercard transactions processed on the Single
Message System


• Cardholder email, letter, message or completed Dispute Resolution Form-Fraud (Form 0412) stating
that the cardholder did not authorize the transaction.
• Written complaint 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.
In addition, for batched chargebacks: A list of the ARDs and the amount of each transaction.
DE 72 (Data Record). For batched chargebacks: MULTIPLE TRANSACTIONS NNN


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:

Second Presentment
• 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.
batch.
the batch.
Replace NNN with number of transactions
Second Presentment
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.
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.


DE 72 (Data Record). One of the following:
• FNS
• NN MMDDYY NN MMDDYY AUTH MMDDYY
Notes. The following applies to the use of DE 72 (Data Record):

• Use FNS when the authorization approval date of the disputed transaction is later than the date
value provided by the Fraud Notification Service in PDS 0200 (Fraud Counter), subfield 1 (Fraud
NTF Date) of the First Chargeback/1442 message.
• Use NN MMDDYY for a previous chargeback by replacing NN with the last two digits of the
message reason code and MMDDYY with the Central Site Business Date of the previous
chargeback. For AUTH MMDDYY, replace MMDDYY with the authorization approval date of the
Fraud-related Chargeback Counter Exceeds Threshold
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.

Contactless Transaction Unattended Terminals


DE 72 (Data Record). FNS COUNT NN
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.


DE 72 (Data Record). CONTACTLESS NNNNNN MMDDYY
Notes
Replace MMDDYY with the date the transaction was authorized.
Replace NNNNNN with the authorization approval code.
PIN Transaction
Second Presentment Condition. A PIN was present in the Authorization Request/0100 message.

DE 72 (Data Record). PIN MMDDYY NNNNNN

Mastercard SecureCode SL1 (Merchant-only Liability Shift)
Notes

• All of the required e-commerce indicators were provided in the Authorization Request/0100
message.
• The Authorization Request Response/0110 message reflected the issuer’s approval of the
transaction.
• DE 48 (Additional Data—Private Use), subelement 42 (Electronic Commerce Indicators), subfield, 1
(Electronic Commerce Security Level Indicator and UCAF Collection Indicator), positions 1, 2, and
3) contained any of the following values of 211, 212, 215, 221, 222, 225, 241, 242, 245, 911,
912, or 915.
• For intraregional Europe transactions: The UCAF submitted by a Europe region merchant did
not contain the Mastercard-assigned static Accountholder Authentication Value (AAV).


DE 72 (Data Record). AUTH MMDDYY/NNNNNN SL 1
Notes
Replace MMDDYY with the date the authorization request message containing a value of 1 in DE48,
subfield 42, position 3 was approved.
Mastercard SecureCode SL2 (Global Liability Shift)

message.
transaction.
912, or 915.

Account Takeover


Notes
This second presentment applies to Mobile Remote Payment transactions. For information about
Mobile Remote Payment transactions, see Chapter 18, Mastercard Mobile Rules of the Mastercard
Rules.
Account Takeover
Second Presentment Condition. The acquirer can provide evidence that the transaction resulted
from an account takeover.
transactions
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.

Notes. None
Addendum Charges
Second Presentment Condition. The acquirer can substantiate that the addendum transaction is the
cardholder’s responsibility.

Address Verification Service (AVS) Transaction
IPM Second Presentment Message Reason Code 2700 (See Corresponding Documentation/
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.

Notes.
For example, after the cardholder initially is billed for a vehicle rental, the cardholder is billed for a
separate additional amount that represents unpaid parking tickets. The cardholder claims that he or
she did not authorize the transaction for the parking tickets. The merchant should include, with the
second presentment, information about the violations showing that they were issued during the
period that the vehicle was rented by the cardholder, as well as the rental agreement with proof the
cardholder participated in the original transaction.

• The Authorization Response/0110 message included a positive Address Verification Service (AVS)
response of X or Y.
• The address to which the merchandise was sent was the same as the AVS-confirmed address.

transactions
Supporting Documents. Both of the following:

• Indicate AVS response X or Y
• Documentation supporting the merchandise was sent to the AVS-confirmed billing address

Notes. None

Compelling Evidence for 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 airline transactions.

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
DE 72 (Data Record). COMP EVID

Notes. None
Compelling Evidence for Recurring Transactions
This second presentment is limited to non–face-to-face recurring transactions.

transactions

Compelling Evidence for E-commerce and MO/TO Transactions
Supporting Documents. All of the following:

• A description of the goods or services being provided
• The start date of the original recurring transaction
• State which, if any, of the following was used in the original transaction:
– SecureCode
– Card validation code 2 (CVC 2) and that the Authorization Response/0110 message included a
value of M in DE 48, subelement 87 (Card Validation Code Result)
• One of the following:
– The transaction was properly identified in both authorization and clearing as a recurring
transaction. Refer to the Customer Interface Specification and IPM Clearing Formats for the
recurring data element values.
– Documentation proving that the transaction was recurring. Examples include but are not limited
to: The merchant providing proof that the cardholder had to click to accept the recurring terms
and conditions or the cardholder signed a contract agreeing to the recurring terms and
conditions.

Notes. None
This second presentment is limited to e-commerce, mail order, and telephone order transactions.

transactions

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

Notes.
This second presentment right does not apply when the cardholder purchased as a guest.
A merchant’s ability to register a cardholder to make purchases does not, in and of itself, provide a
second presentment right.
A partial shipment may occur when an item ordered by the cardholder was unavailable at the time of
the initial transaction. A balance may be due when the cardholder agrees to pay in installments, or to
pay a deposit upon placing the order and the balance upon delivery of the goods (a “delayed
delivery”). Refer to Appendix F for Digital Secure Remote Payment (DSRP) transaction identification
requirements.

Guaranteed Reservation Service (“No-show")
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.
transactions

• The primary account number (PAN)
• The cardholder’s name present on the card
• The confirmation number provided at the time the reservation was made

Notes. None
Invalid Chargeback
Second Presentment Condition The issuer’s chargeback was invalid. For example, the issuer
submitted documentation that failed to support the chargeback.

DE 72 (Data Record). Reason for the second presentment
Notes. None

1. The transaction was between Customers that participate in the appropriate Chip Liability Shift
Program.
2. The transaction was face-to-face, occurred at an attended a hybrid terminal with card-read (not
key-entered) account information.
3. The transaction was initiated with a non-EMV chip card.
This is a final remedy.

Chip/PIN Liability Shift

• 2870 (Chip Liability Shift) for Dual Message System transactions
Supporting Documents. None.
DE 72 (Data Record). AUTH MMDDYY NNNNNN
Notes
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.

• 2871 (Chip/PIN Liability Shift) for Dual Message System transactions
Supporting Documents. DE 55 must be provided in the first presentment or authorization record.

DE 72 (Data Record). When applicable, AUTH MMDDYY NNNNNN
Notes.


Notes.
Reference Manual.
acquirer.


IPM Second Presentment Message Reason Codes And Second Presentment Conditions. One
of the following:
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. 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.
The issuer’s first chargeback was processed past the time frame specified for the chargeback.

Notes. None
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
Arbitration Chargeback Condition. Both of the following:

• New information regarding the merchant location was provided in the second presentment
• The cardholder continues to claim that the cardholder did not authorize the transaction.

Addendum Disputes
IPM Arbitration Chargeback Message Reason Code. 4837 (No cardholder authorization)

• A new cardholder letter, email, or message dated after the second presentment specifically
addressing the new information.
• When the Mastercard card account is closed, a completed Dispute Resolution Form-Fraud (Form
0412) form dated after the second presentment and based on a discussion with the cardholder.
• A new cardholder letter, email, message or Dispute Resolution Form-Fraud (Form 0412) form is not
required when all of the following:
– The Mastercard card account is closed
– The original cardholder letter, email, message or Dispute Resolution Form-Fraud (Form 0412)
form specified the date on which the last legitimate transaction performed by the authorized
cardholder occurred
– The disputed transaction was approved after that date

Notes. Before processing the arbitration chargeback with the Dispute Resolution Form-Fraud (Form
0412) 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.
New Information. New information regarding the merchant name and/or transaction date is not a
valid second presentment.
Addendum Disputes

• When the original transaction was fraudulent: The acquirer did not provide proof of card
presence for the original transaction and the original rental agreement or hotel folio
• When the charge is for loss, theft, or damage: The acquirer failed to provide proof of the
transaction was completed as described in the Transaction Processing Rules, section 3.8 Charges
for Loss, Theft, or Damage.
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.

1. Both of the following:
– The cardholder continues to dispute an AVS-confirmed transaction.
– The issuer confirmed that the AVS-confirmed address belonged to the legitimate cardholder at
the time of the authorization.
2. The issuer reviewed the AVS information from the second presentment and one of the following:
– Denies that a positive AVS was given
– Denies the merchandise was sent to the AVS-confirmed address.
IPM Arbitration Chargeback Message Reason Code 4837 (No cardholder authorization

Condition:
– A new cardholder letter, email message, or Dispute Resolution Form-Fraud (Form 0412) dated
after the second presentment in which the cardholder continues to assert that the cardholder
did not authorize the transaction.
– 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.
2. None
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.
IPM Arbitration Chargeback Message Reason Code 4837 (No cardholder authorization)

Guaranteed Reservation Service (“No-show”)

• A new cardholder letter, email, or message dated after the second presentment specifically refuting
the documentation received from the merchant in the second presentment.
0412) form dated after the second presentment and, based on a discussion with the cardholder,
specifically refuting the documentation received from the merchant in the second presentment.

Notes. An arbitration chargeback is not available when SecureCode was used to initiate the
transaction.
Arbitration Chargeback Condition. The issuer or cardholder continues to dispute a Guaranteed

Reservation Service (“no-show”) transaction.

• A statement (or DE 72 text) by the issuer stating that information provided by the merchant is not
accurate and, in particular, which information is not accurate (for example, incorrect cardholder
name or incorrect cardholder address).
• A new cardholder letter, email, or message dated after the second presentment, to reconfirm the
cardholder’s dispute.
0412) form dated after the second presentment and based on a discussion with the cardholder.

Notes. None



Condition:
1. None

Notes. None

• 48XX—New valid chargeback reason
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
• 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

Notes. None

This section provides information for an issuer and acquirer in handling a dispute when a
merchant is listed in the GMAP or QMAP or liable for coercion claims.
The issuer may use this chargeback when one of the following occurred:
• 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

Chargeback

Chargeback
chargeback under the Questionable Merchant Activity chargeback.
Chargeback Condition. All of the following:

• The acquirer name, acquirer ID, merchant name, and merchant location are listed in a Mastercard
Announcement under the QMAP.
• Each transaction charged back must have occurred during the published chargeback period.
• The issuer must have properly reported the transaction to the Fraud and Loss Database with one of
the following fraud type codes:
– 00 = Lost Fraud
– 01 = Stolen Fraud
– 04 = Counterfeit Card Fraud
– 06 = Card Not Present Fraud

• Within 120 calendar days of the Mastercard Announcement publication date that first listed the
merchant location.
The Mastercard Announcement publication date is counted as the first day of the 120-day
calculation.
• Within 120 calendar days of the Central Site Business Date of the transactions
In addition to the above, for eligible fraudulent transactions affected by a Mastercard Announcement
that retracts chargeback permission, the issuer may submit chargebacks until the publication date of
the Mastercard Announcement stating that the acquirer of the merchant no longer is required to
accept chargebacks under this message reason code.

Questionable Merchant Audit Program (QMAP)

• 4849 (Questionable Merchant Activity) for Dual Message System transactions
• 49 (Questionable Merchant Activity) for Debit Mastercard transactions processed on the Single
Message System

DE 72 (Data Record). PROGRAM GMAP BULLETIN NO. NNNN
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.

Announcement under the GMAP.
• The issuer must have properly reported the transaction to the Fraud and Loss Database. All fraud
type codes are eligible.

merchant location.
calculation.
• Within 120 calendar days of the Central Site Business Date of the transactions.

Message System

DE 72 (Data Record). PROGRAM QMAP BULLETIN NO. NNNN

Mastercard Rule 3.7 Violation for Coercion Claim
Notes.

• Mastercard has confirmed that the merchant violated Rule 3.7 at least two times within the case
scope period cited in the noncompliance confirmation letter.
– 00 = Lost Fraud
Time Frame Within 30 calendar days of the date of the noncompliance confirmation letter.
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.
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.

Not Considered in Violation of Mastercard Rule 3.7 for Coercion Claim

1. The merchant did not violate Mastercard Rule 3.7 due to coercion as determined by Mastercard.
2. The issuer did not include the noncompliance confirmation letter from Mastercard as Supporting
Documents.

IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback)

Condition:
1. A copy of the letter from Mastercard that its investigation of the merchant was closed without a
finding of violation of Mastercard Rule 3.7.
2. None
1. MERCHANT NOT IN VIOLATION
2. MISSING CONFIRMATION LETTER
Notes. None
Late First Chargeback Submission
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.

DE 72 (Data Record). LATE SUBMISSION
Notes. None
Improper Fraud Reporting
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.

Ineligible Fraud

DE 72 (Data Record). IMPROPER SAFE REPORTING
Notes. None
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.

DE 72 (Data Record). FRAUD TYPE
Notes. None
Not Listed in Mastercard Announcement

1. The merchant in question was not listed in a Mastercard Announcement.
2. The transaction did not occur within the period specified.


1. MERCHANT NOT LISTED
2. INVALID TRANSACTION DATE
Notes. None
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.
Reference Manual.
acquirer.


of the following:
chargeback record did not match the information contained in the first presentment record.

Notes. None
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.

Time Frame. Within 45 calendar days of the second presentment settlement date

Cardholder Does Not Recognize

Condition:
1. None

Notes. None

This section provides information for an issuer and acquirer in handling a dispute when the
cardholder claims he or she doesn’t recognize the non-face-to-face transaction appearing on
the cardholder’s account.
A non-face-to-face transaction occurs when the card, the cardholder, and/or the merchant
representative are not all present at the time of the transaction. Mail order, telephone order,
cardholder-activated terminal (CAT), electronic commerce (e-commerce), and recurring
payment transactions are examples of non–face-to-face transactions.
The issuer may use this chargeback when all of the following occurred:
• The cardholder contacted the issuer claiming the cardholder doesn’t recognize the
transaction appearing on the cardholder’s account.
• The issuer made a good-faith effort to identify the transaction for the cardholder.
• The transaction being questioned by the cardholder was a non-face-to-face transaction.
This includes when the authorization and clearing messages conflict on identifying the
transaction as non-face-to-face; meaning:
– The authorization indicates non–face-to-face and the clearing indicates face-to-face; or
– The authorization indicates face-to-face and the clearing indicates non–face-to-face
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

Authorization Request/0100 message or Financial Transaction Request/0200 message.

Refer to Appendix F for Mastercard Consumer-Presented QR transactions identification
requirements.
• The cardholder states the transaction is unauthorized. The issuer must use
chargeback reason code 4837-No Cardholder Authorization.
• A face-to-face transaction. A face-to-face transaction is typically identified in an
Authorization Request/0100 message with:
Data Element Subfield Value

61 (Point-of-Service [POS] Data) 1 (POS Terminal Attendance) 0 (Attended Terminal)
4 (POS Cardholder Presence) 0 (Cardholder present)
5 (POS Card Presence) 0 (Card present)
A face-to-face transaction is typically identified in a First Presentment/1240 messages

including:

22 (Point of Service [POS] 4 (Terminal Operating Environment) One of the following:
Entry Mode)
– 1 (On card acceptor
premises; attended terminal)
– 3 (Off card acceptor
premises; attended)
5 (Cardholder Present Data) 0 (Cardholder present)

6 (Card Present Data) 1 (Card present)
• 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
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
• Properly identified “no-show” lodging transactions.


subfield 1 (Electronic Commerce Security Level Indicator and UCAF Collection Indicator),
911, 912, or 915.

Chargeback

commercial card, the corporate entity.
An Expedited Dispute Resolution Form is not allowed.
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.

• The cardholder contacted the issuer claiming the cardholder doesn’t recognize the transaction
appearing on the cardholder’s account.
• The transaction being questioned by the cardholder was a non-face-to-face transaction.
• The issuer made a good-faith effort to identify the transaction for the cardholder.
• 4863 (Cardholder Does Not Recognize—Potential Fraud) for Dual Message System transactions
• 63 (Cardholder Does Not Recognize—Potential Fraud) for Debit Mastercard transactions processed
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.
DE 72 (Data Record). For batched chargebacks: MULTIPLE TRANSACTIONS NNN


Second Presentment
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.
batch.
the batch.
Replace NNN with the number of transactions being charged back.
Second Presentment
presentment in response to a Cardholder Does Not Recognize chargeback.
and/or 4871.


1. FNS
2. NN MMDDYY NN MMDDYY AUTH MMDDYY


1. Use FNS when the authorization approval date of the disputed transaction is later than the date
value provided by the Fraud Notification Service in PDS 0200, subfield 1 of the First Chargeback/
1442 message.
2. Use NN MMDDYY for a previous chargeback by replacing NN with the last two digits of the
message reason code and replacing MMDDYY with the Central Site Business Date of the previous
chargeback. For AUTH MMDDYY, replace MMDDYY with the authorization approval date of
the disputed transaction.
account card account (for this purpose, “account” means primary account number [PAN], or PAN and
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).


0200, subfield 2 of the First Chargeback/1442 message. The chargeback count value must be 16 or
greater.
New Information to Identify the Transaction
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).

Chargeback Remedied)
Supporting Documents. Documentation that would further identify the transaction.

Address Verification Service (AVS)

Notes. None
Address Verification Service (AVS)
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.

• Documentation of positive AVS response X or Y.
• Documentation that shows the merchandise was sent to the AVS-confirmed billing address.
The acquirer must provide additional information, not contained in the authorization or clearing
message that would help to identify the transaction.
Additional information includes one or more of 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).

Notes. None
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.

Notes. None

Conflicting Information in Authorization and Clearing Messages
Conflicting Information in Authorization and Clearing Messages

• The authorization and clearing messages conflict on identifying the transaction as non-face-to-face
or face-to-face
• The transaction was face-to-face
Time Frame Within 45 calendar days of the chargeback settlement date

IPM Second Presentment Message Reason Code. 2713 (Invalid chargeback)
Supporting Documents. Proof of card presence.

Notes. None

message.
transaction.
• DE 48 (Additional Data—Private Use), subelement 42 (Electronic Commerce Indicators), subfield 1
912, or 915.

IPM Second Presentment Message Reason Code. 2008 (Issuer authorized transaction)

Notes.
Replace MMDDYY with the date the authorization request message containing a value of 1 in DE 48,


message. The Authorization Request Response/0110 message reflected the issuer’s approval of the
transaction.
• DE 48 (Additional Data—Private Use), subelement 42 (Electronic Commerce Indicators), subfield 1
912, or 915.

IPM Second Presentment Message Reason Code. 2008 (Issuer authorized transaction)

Notes
Rules.


Notes.
Reference Manual.
acquirer.


of the following:

Notes. None
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.
IPM Arbitration Chargeback Message Reason Code. 4863 (Cardholder Does Not Recognize—
Potential Fraud)

DE 72 (Data Record). RS 1

UCAF Value Discrepancy
Notes. None
UCAF Value Discrepancy
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.
IPM Arbitration Chargeback Message Reason Code. 4863 (Cardholder Does Not Recognize—
Potential Fraud)

DE 72 (Data Record). RS 4
Notes. None

Time Frame. Within 45 calendar days of the second presentment settlement date

Condition:
1. None

Notes. None

• 48XX—New valid chargeback reason
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.
Mastercard Dispute Resolution staff will find the acquirer responsible when the acquirer files an
arbitration case.
• 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.
Supporting documentation doesn’t correspond to the transaction being charged back (for

Notes. None

This section provides information for an issuer and acquirer in handling a dispute when all of
the following:
• The cardholder states that the cardholder did not authorize the transaction.
• Both the issuer and the acquirer are located in a country or region participating in a
domestic, intraregional, or interregional chip liability shift as shown in the below table.


– A fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid
terminal
– A fraudulent transaction occurred at a hybrid terminal but DE 55 was not present in the
Authorization Request/0100 or Financial Transaction Request/0200 message
• The validly-issued card was an EMV chip card.
• The transaction was reported to the Fraud and Loss Database as counterfeit 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.
Chip Liability Shift Participation
Has been in effect since or

A chip liability shift in... Applicable to... will take effect on...
Asia/Pacific region Interregional transactions 15 April 2011
Intraregional transactions 1 January 2006
Domestic transactions 1 January 2006
Canada region Interregional transactions 15 April 2011
Intraregional/domestic transactions:
• Excluding transactions at 31 March 2011

automated fuel dispensers (MCC
5542)
• Including transactions at 31 December 2012

5542)
Europe region Interregional transactions 13 April 2007



Latin America and the Caribbean Interregional transactions 12 October 2012
(LAC) region
Domestic transactions:
• Argentina 16 October 2015
• Brazil 1 August 2015
• Colombia 1 October 2008
• Uruguay 16 October 2015
• Venezuela 1 July 2009
• All other LAC countries 17 October 2014
Middle East/Africa (MEA) region Interregional transactions 15 April 2011

• South Africa 1 January 2005
• All other MEA countries 1 January 2006
United States region

Interregional transactions:
• Excluding transactions at 1 October 2015
5542)
• Including transactions at 1 October 2017

5542)
5542)

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.
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
• 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 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.


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
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.

• The cardholder contacted the issuer claiming that the cardholder did not authorize the transaction.
• Both the issuer and the acquirer are located in a country or region participating in a domestic,
intraregional, or interregional chip liability shift as shown in the Chip Liability Shift Participation
table (earlier in this section).
– A fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid terminal
• The transaction was reported to the Fraud and Loss Database as counterfeit in accordance with the
Fraud and Loss Database User Guide prior to processing the chargeback.
• 70 (Chip Liability Shift) for Debit Mastercard transactions processed on the Single Message System

• Cardholder letter, email, message or completed Dispute Resolution Form-Fraud (Form 0412) stating
both of the following:
– The cardholder did not authorize the transaction.
– The cardholder was in possession and control of all valid cards issued to the account at the time
of the transaction.
• Cardholder letter, email, or Dispute Resolution Form-Fraud (Form 0412) stating that the cardholder
did not authorize the transaction and an issuer certification letter verifying counterfeit.
For subsequent counterfeit transactions occurring after the account was closed, a copy of the
original cardholder letter and the issuer’s written certification that the account had been closed and
the date the account was closed.

Second Presentment
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
to a Chip Liability Shift chargeback may be processed.
and/or 4871.


1. FNS


Time frame. Within 45 calendar days of the chargeback settlement date


0200, subfield 2 of the First Chargeback/1442 message.
Not Reported to the Fraud and Loss Database
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.
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.

Issuer Authorized Transaction

Notes. None
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.
IPM Second Presentment Message Reason Code. 2008 (Issuer authorized the transaction)

DE 72 (Data Record). INV SERVICE CODE X
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.

DE 72 (Data Record). TECHNICAL FALLBACK MMDDYY NNNNN
Notes
Replace NNNNN with the authorization approval code.
Chip Transaction— Offline Authorized

• The transaction was completed by reading the chip.
• The transaction did not require online authorization.
• DE 55 was provided in the First Presentment/1240 message.

DE 55 was Provided in the First Presentment/1240 Message

DE 72 (Data Record). CHIP TRANSACTION
Notes. None
Second Presentment Condition. DE 55 was provided in the First Presentment/1240 message and
• 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


DE 72 (Data Record). DE 55 PREVIOUSLY PROVIDED
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 or intraregional chip liability shift or that does not participate
in the interregional Chip Liability Shift Program.

DE 72 (Data Record). CHIP LIABILITY NA
Notes. None
Second Presentment Condition. The merchant issued a credit to the cardholder’s account



Notes
Reference Manual.
acquirer.


of the following:
presentment.

Notes. None

This section details the conditions under which an issuer may process an arbitration
chargeback in response to an acquirer’s second presentment.


Condition:
1. None

Notes. None

case filing.
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud

This section provides information in handling a dispute when all of the following:
• The cardholder states that:
– The card is no longer, or has never been, in the possession of the cardholder.
domestic, intraregional, or interregional lost/stolen/NRI fraud chip liability shift as shown in
the below table.
• A fraudulent transaction resulted from the use of a hybrid PIN-preferring card at one of the
following:
– A magnetic stripe-reading-only terminal (whether PIN-capable or not).
– For domestic Malaysia transactions only, a hybrid terminal not equipped with a PIN pad
capable (at a minimum) of checking the PIN online.
For all other transactions, a hybrid terminal not equipped with a PIN pad capable (at a
minimum) of checking the PIN offline.
– For domestic Malaysia transactions only, a hybrid terminal equipped with a PIN pad
capable (at a minimum) of checking the PIN online, but DE 55 was not present in the

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.
Lost/Stolen/NRI Fraud Chip Liability Shift Participation
A lost/stolen/NRI fraud Has been in effect since

chip liability shift in... Applicable to... or will take effect on...
Asia/Pacific region Domestic transactions
• Malaysia 1 January 2017

• Excluding transactions at automated fuel 31 March 2011
dispensers (MCC 5542)
• Including transactions at automated fuel 31 December 2012

Europe region Interregional transactions May 2007

Latin America and the Domestic transactions
Caribbean (LAC) region
Middle East/Africa region Domestic, intraregional, and interregional 1 July 2017

transactions


Interregional transactions
• Excluding transactions at automated fuel 1 October 2015
• Including transactions at automated fuel 1 October 2017

• Excluding transactions at automated fuel 1 October 2015
• Including transactions at automated fuel 1 October 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.

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.

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
following values:
message, as described in Customer Interface Specification and Single
Message System Specifications; and
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:
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

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.
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).
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.
• 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
Consumer- Presented QR transaction that was properly identified in the Authorization
• 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.
than 2xx or 6xx, because of one of the following:
• The transaction was a mail order, phone order, e-commerce, or non–face-to-face
recurring payment transaction.

• 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

Chargeback
Chargeback
The table in this section details the conditions under which a Lost/Stolen/NRI Fraud Chip
Lost/Stolen/NRI Fraud Chip Liability Shift

intraregional, or interregional chip/PIN liability shift as shown in the below table.
following:
– A magnetic stripe-reading-only terminal (whether PIN-capable or not)
– A hybrid terminal not equipped with a PIN pad capable (at a minimum) of checking the PIN
offline
– 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 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.
• 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

1. Cardholder letter, email, message or completed Dispute Resolution Form-Fraud (Form 0412)
stating that the cardholder did not authorize the transaction and one of the following:
– A statement in the cardholder letter, email, message or completed Dispute Resolution Form-
Fraud (Form 0412) that the card was lost, stolen, or never received.
– A written issuer certification of lost stolen or NRI fraud.
– A law enforcement or police report made to the issuer regarding the loss, theft, or non-receipt
of the card.
2. Documentation that shows the priority sequence of cardholder verification methods (CVMs)
supported by the card or issuer for the disputed transaction, from highest to lowest priority (the
“CVM list”).
For subsequent fraudulent transactions occurring after the account was closed, a copy of the
original cardholder letter and the issuer’s written certification that the account had been closed
and the date the account was closed.

Second Presentment
Notes
the account number on the Mastercard Stand in Account File with a “capture card” response until
Second Presentment
to a Chip/PIN Liability Shift chargeback may be processed.
and/or 4871.


1. FNS


1442 message.


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.

Authorized Online Transaction

Notes. None

• The transaction was authorized online.
• 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.


Notes
Replace X with the value contained in position 1of the three-digit service code transmitted by the card
to the terminal.
Technical Fallback
Second Presentment Condition The transaction was the result of technical fallback at a PIN-capable
terminal.

DE 72 (Data Record). TECHNICAL FALLBACK
Notes. None
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

Supporting Documents. DE 55 and mandatory subelements

Notes. None


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.

Notes. None



Notes.
Reference Manual.
acquirer.


of the following:
presentment.

Notes. None

This section detail the conditions under which an arbitration chargeback in response to an
acquirer’s second presentment may be processed.


Condition:
1. None

Notes. None

case filing.
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
• 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 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.
In addition, the issuer may use message reason code 4834 when the acquirer presented a
transaction past the applicable time frame.
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
• 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.

Transaction Amount Differs

eliminated:
• 4831 (Transaction Amount Differs) for Dual Message System transactions
• 31 (Transaction Amount Differs) for Debit Mastercard transactions processed on the Single
Message System
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.

ATM Disputes

eliminated:
Message System

• 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

Notes. This chargeback is not available for verbal price agreements.
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.
Time Frame. Between 5 and 120 calendar days of the transaction settlement date.
eliminated:
• 59 (RS3=ATM dispute) for Debit Mastercard transactions processed on the Single Message System


Charges for Loss, Theft, or Damages
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
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.
eliminated:
• 31 (Incorrect Transaction Amount) for Debit Mastercard transactions processed on the Single
Message System

—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.

Notes. The Cardholder Dispute chargeback (message reason code 4853) should be used to dispute a
charge for loss, theft, or damage processed as a separate (addendum) transaction.

Late Presentment
Late Presentment

• The account is permanently closed.
• The issuer used good-faith efforts to collect the transaction amount from the cardholder.
• The transaction was not presented within one of the following time frames.
– When the transaction was completed with electronically recorded card information (whether
card-read or key-entered), the acquirer has a maximum of seven calendar days after the
transaction date to present the transaction to the issuer.
– When the transaction was completed with manually recorded card information (whether
imprinted or handwritten), the acquirer has a maximum of 30 calendar days after the
– For transactions effected at a U.S. region merchant with a card issued in the U.S. region, when
the transaction was completed with manually recorded card information (whether imprinted or
handwritten), the acquirer has a maximum of 14 calendar days after the transaction date to
present the transaction to the issuer.
– A Payment Transaction must be presented in clearing within one business day of the
authorization date.
– A contactless transit aggregated transaction must be presented in clearing within 14 calendar
days of the authorization date.
These time frames are defined as the time between the transaction date and the Central Site Business
Date. When calculating the number of days, consider the transaction date as day zero. An issuer must
accept a transaction submitted beyond the applicable time frame when the account is in good
standing or the transaction can be honored.
Notwithstanding these time frames, the acquirer has a maximum of 30 calendar days (14 calendar
days for intra-United States transactions) after the transaction date to present a transaction when the
acquirer must delay presentment:
• Because of the merchant’s delay in submitting the transaction, as permitted under Chapter 3,
Transaction Records of Transaction Processing Rules; or
• 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.
eliminated:
• 4842 (Late Presentment) for Dual Message System transactions
• 42 (Late Presentment) for Debit Mastercard transactions processed on the Single Message System

DE 72 (Data Record). LATE PRESENTMENT

POI Currency Conversion (Dynamic Currency Conversion)
Notes.

1. The cardholder states that the cardholder was not given the opportunity to choose the desired
currency in which the transaction was completed or did not agree to the currency of the
transaction
2. POI currency conversion was performed incorrectly

eliminated:
• 4846 (Correct Transaction Currency Code Not Provided) for Dual Message System transactions
• 46 (Correct Transaction Currency Code Not Provided) for Debit Mastercard transactions processed
Supporting Documents. One of the following corresponding to the Chargeback Condition:

1. A cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction
parties to understand the dispute.
2. None

1. POI CURRENCY CONVERSION
2. INCORRECT CARDHOLDER CURRENCY
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.

Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss
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.
eliminated:
• 4831 (Incorrect Transaction Amount) for Dual Message System transactions
Message System

1. Cardholder letter, email, message, or Dispute Resolution Form—Point-of-Interaction (POI) Errors
(Form 1240) must include the date of the credit and must specifically address the original error
which caused the merchant to process the credit.
2. The ARD of the credit transaction.

Notes. Only the currency exchange loss amount may be charged back.
Improper Merchant Surcharge (Intra-European and Inter-European transactions only)
Chargeback Condition. An improper merchant surcharge was applied to the total transaction
amount.
• Within 90 calendar days of the Central Site Business Date.
• Within 90 calendar days of the delivery date of the goods or services.
Message Reason Code. 4834 for Dual Message System transactions

• A copy of the cardholder’s receipt or invoice showing the improper surcharge.
• A cardholder letter, email message or completed Dispute Resolution Form—Point-of-Interaction
DE 72 (Data Record). SURCHARGE

Unreasonable Amount (EEA, Gibraltar, United Kingdom)
Notes.
Only the amount reflecting the improper surcharge may be charged back. The total transaction
amount must not be charged back.

• The card was issued in the EEA, Gibraltar, or the United Kingdom
• The merchant was located in the EEA, Gibraltar, or the United Kingdom
• The cardholder contacted the issuer claiming the transaction amount was unreasonable
• The exact transaction amount was not specified at the time the cardholder engaged in the
transaction
• PIN or CDCVM was not used
• 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
—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.
Second Presentment
to a point-of-interaction error chargeback may be processed.

Second Presentment Condition. The acquirer can provide evidence of proper processing in response
to the cardholder’s claims.
transactions
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.

Notes. None
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.
• 2008 (Issuer authorized transaction) for Dual Message System transactions
TIDs documenting two separate transactions.
DE 72 (Data Record). PIN MMDDYY NNNNNN MMDDYY NNNNNN

Notes. This second presentment is not available for ATM transactions.

DE 72 (Data Record) is used to identify the transactions involved in the dispute. The transactions may
optionally be identified in chronological order.
In PIN MMDDYY NNNNNN: Replace MMDDYY with the date the transaction was authorized and
replace NNNNNN with the authorization approval code of one transaction.
In MMDDYY NNNNNN: Replace MMDDYY with the date the transaction was authorized and
replace NNNNNN with the authorization approval code of the other transaction.
Second Presentment Condition. The acquirer can provide evidence that the cardholder was billed
the correct amount.
transactions

Notes. None
ATM Disputes
Second Presentment Condition. The acquirer can provide evidence that the funds were correctly
dispensed.
transactions
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.
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.

transactions

Notes. None

Late Presentment
Late Presentment

1. The account is open.
2. The transaction was presented within one of the following time frames.
authorization date.
These time frames are defined as the time between the transaction date and the Central Site
Business Date. When calculating the number of days, consider the transaction date as day zero.
An issuer must accept a transaction submitted beyond the applicable time frame when the
account is in good standing or the transaction can be honored.
Not withstanding these time frames, the acquirer has a maximum of 30 calendar days (14
calendar days for intra-United States transactions) after the transaction date to present a
transaction when the acquirer must delay presentment:
– Because of the merchant’s delay in submitting the transaction, as permitted under Chapter 3,
– 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.


Condition:
1. None
2. The merchant and/or acquirer’s explanation and documentation.

Late Presentment—Corrected Transaction Date
1. AUTH MMDDYY NNNNNN
2. DELAYED PRESENTMENT
Notes.
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.

• The transaction date in the First Presentment/1240 message was incorrect.
• The correct transaction date is within the applicable time frame for a First Presentment/1240
message.

• 2003 (Correct transaction date provided) for Dual Message System transactions

DE 72 (Data Record). CORRECT TRANS DATE MMDDYY
Notes. Replace MMDDYY with the date the issuer authorized the transaction.

transactions

Notes. This second presentment is not available for POI currency conversion disputes regarding the
cardholder’s agreement to the conversion.
When the chargeback is valid, the acquirer should accept the chargeback and process a new First
Presentment/1240 message with the correct transaction currency. The new presentment must be
processed within 30 calendar days of the Central Site Business Date of the first chargeback in order
for the acquirer to be protected from a Late Presentment chargeback.
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.
transactions
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.

Notes. None



Notes. Replace MMDDYY with the date of the credit transaction.

Optionally, replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer’s Reference Data (ARD) of
Reference Manual.
acquirer.

Second Presentment Condition. The acquirer can provide specific evidence of proper processing in
response to the cardholder’s claims.

Notes. A merchant or acquirer statement merely asserting that the merchant surcharge is permitted
by Mastercard Standards or applicable law is not a valid second presentment. The documentation
must specifically cite the Standard or law relied on or explain in reasonable detail why the chargeback
is invalid.

of the following:
– 2002—Non-receipt of Required Documentation to Support Chargeback
Required supporting documentation not received.
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.
– 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.


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.
Arbitration Chargeback Condition. The cardholder continues to dispute the transaction.

condition.
IPM Arbitration Chargeback Message Reason Code. 4834 (Errors in Processing)
—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.

Notes. None



Condition:
1. None

Notes. None
1. 4901—Required Documentation Not Received to Support Second Presentment
Mastercard Dispute Resolution staff will find the acquirer responsible when the acquirer files an
arbitration case.
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.

Notes. None

Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)

Chargeback rules on this subject appear in the “Domestic Chargeback” appendix.
Installment Billing Dispute (Participating Countries Only)

Domestic Chargeback Dispute (Europe Region Only)

Issuers only may use message reason code 4999 in the case of a centrally acquired domestic
transaction, or a domestic transaction processed through the Mastercard Network, where a
chargeback is available according to the applicable domestic rule, but cannot be processed
under a different message reason code.
Requirements for Issuer’s First Chargeback, Acquirer’s Second Presentment, and

Issuer’s Arbitration Chargeback
Customers must follow the requirements for the applicable domestic chargeback rules. The
applicable domestic chargeback reason code must be provided.
Improper Use of Message Reason Code 4999

The issuer may not use this reason code when 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.

Arbitration of these disputes will be handled domestically.
Additional Processing Notes

Some or all of message reason codes contain Additional Processing Notes. Additional
Processing Notes are not themselves chargeback requirements or conditions. Rather,
Additional Processing Notes are provided to guide or illustrate particular circumstances or
events and to address circumstances or events of frequent concern to Customers.
As set forth in section 2.1—Standards of the Mastercard Rules manual, Mastercard has the
sole right to interpret such Corporation Standards, including those in this guide.

Progressive Handling Fees

The Progressive Handling Fee program applies only to non–face-to-face transactions excluding
Cardholder-activated Terminal (CAT) Level 2 transactions.
NOTE: Progressive handling fees do not apply to intra-European and inter-European

transactions.
Progressive Handling Fee Overview

Customers may process a handling fee in conjunction with message reason codes 4807 or
4808 as follows solely for all non–face-to-face transactions except CAT Level 2 transactions.
The handling fee, identified with the correct message reason code, compensates the
Customer for the cost of processing one of the following, or for the cost of reversing an
invalid handling fee (using message reason code 7627):
• First chargeback (message reason code 7622)
• Second presentment (message reason code 7623)
• Arbitration chargeback (message reason code 7624)
Issuer Use of Message Reason Code 7622

The issuer may collect a USD 25 handling fee when processing a chargeback by submitting an
IPM Fee Collection/1740-700 message with message reason code 7622. The issuer must
process its handling fee within five calendar days of the Central Site Business Date of the
chargeback.
Acquirer Use of Message Reason Code 7623

The acquirer may collect a handling fee when processing a second presentment by submitting
an IPM Fee Collection/1740-700 message with message reason code 7623, except when
either of the following occur.
• The acquirer is collecting a handling fee for the same transaction using an IPM Fee
Collection/1740-700 message with message reason code 7627.
• The second presentment contains corrected or previously omitted information that
remedies the chargeback. (Such information may include, but is not limited to, a
transaction date, merchant location, or authorization code.)
The amount of the handling fee is USD 50 plus the amount of the handling fee that the issuer
previously collected for the chargeback, if any. The acquirer must process its handling fee
within 15 calendar days of the Central Site Business Date of the second presentment.
Mastercard will determine responsibility for the progressive handling fee when the chargeback
is filed as an arbitration case.


The issuer may collect a handling fee when processing an arbitration chargeback that disputes
the validity of the information provided by the acquirer with the second presentment.
The issuer may collect the handling fee by submitting an IPM Fee Collection/1740-700
message with message reason code 7624. The amount of the handling fee is USD 50 plus the
amount of any handling fee that the acquirer previously collected, whether for the second
presentment, or to reverse the handling fee previously collected by the issuer for the
chargeback, or both. The amount of the fee is restricted to USD 50 when the acquirer did not
collect any handling fee associated with the second presentment. The issuer must process its
handling fee within 15 calendar days of the Central Site Business Date of the arbitration
chargeback. Mastercard will determine responsibility for the progressive handling fee when
the chargeback is filed as an arbitration case.
Acquirer Use of Message Reason Code 7627—No MAC Provided

When the issuer collected a handling fee using an IPM Fee Collection/1740-700 message with
message reason code 7622, but the transaction was a recurring payment transaction and the
issuer’s decline response did not include an associated Merchant Advice Code (MAC) as
described below, the acquirer may collect a handling fee of USD 25 plus the amount that the
issuer previously collected for the chargeback by submitting an IPM Fee Collection/1740-700
message with message reason code 7627.
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 (Data Record) of the original message with
message reason code 7622 and the code “NO MAC.”
Message reason code 7627 applies because an issuer is not entitled to a handling fee when its
response to a recurring payment authorization request, other than an approval that was
properly identified, did not include a Merchant Advice Code.
The conditions below must be satisfied for an acquirer to collect the handling fee for “NO
MAC” as described above:
• The authorization request was identified properly (DE 61, subfield 4 = 4 [Standing Order/
Recurring Transaction]).
• The issuer’s decline response did not include an associated MAC (DE 48, subelement 84) of
01, 02, or 03. (This does not include X-Code or Stand-In declines).
• The clearing message was identified as a recurring transaction (DE 22 [Cardholder Present
Data], subfield 5 value 4 [Cardholder not present; standing (recurring) transaction]).
Acquirer Use of Message Reason Code 7627—Face-to-Face or CAT Level 2 Transaction

When the acquirer receives a handling fee in an IPM Fee Collection/1740-700 message with
message reason code 7622, but the transaction was either a face-to-face transaction or a CAT
Level 2 transaction, the acquirer may collect a handling fee of USD 25 plus the amount that
the issuer collected by submitting an IPM Fee Collection/1740-700 message with message
reason code 7627.

Required Fields in Fee Collection Messages
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)
A CAT Level 2 transaction Value of CT2 in PDS 0023 (Terminal Type)
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 include the following fields in every Fee Collection/1740-700 message in
which DE 25 (Message Reason Code) contains a value of 7622, 7623, 7624, or 7627.
• DE 2 (Primary Account Number)
• DE 31 (Acquirer Reference Data)
• DE 72 (Data Record)
• DE 73 (Date, Action)
When any of the data elements described above are missing, incomplete, or invalid, the
receiving Customer may return a Fee Collection/1740-700 message for the same amount
originally received using the following:
• The original message reason code
• Applicable function code of 780 (Fee Collection Return), 781 (Fee Collection
Resubmission), or 782 (Fee Collection Arbitration Return)

Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)
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
Intra-European and Inter-European Dispute Administration Fee

(Mastercard POS)
For intra-European and inter-European transactions, a Dispute Administration Fee (DAF) will be
automatically generated for each chargeback, second presentment and arbitration chargeback
by Mastercard via the Mastercard Consolidated Billing System.
The fees will be credited to the sender and debited from the receiver of the respective
chargeback cycle as follows:
• First chargeback: The issuer is credited 15 EUR and the acquirer is debited 15 EUR.
• Second presentment: The acquirer is credited 30 EUR (15 EUR net) and the issuer is debited
30 EUR (15 EUR net).
• Arbitration chargeback: The issuer is credited 45 EUR (30 EUR net) and the acquirer is
debited 45 EUR (30 EUR net).
In the event that an arbitration (or pre-arbitration) case is filed at the end of the cycles, the
acquirer will be allowed to collect 60 EUR from the issuer (30 EUR net) when the acquirer is
favored, within 45 days of the ruling decision or acceptance by the issuer. This fee may be
collected by the favored acquirer using a miscellaneous Fee Collection/1740-700 message
with reason code 7606. DE 72 (Data Record) of the fee collection message must contain the
“7-digit case ID—collection of DAF.”
The DAF does not apply when the transaction is coded with MCC 5499, 5735, 5815, 5816,
7311, or 7399.
Should the fee be debited unduly, meaning the acquirer collects the DAF with a second
presentment after processing a credit to the cardholder, the fee can be collected by the
impacted party using the miscellaneous Fee Collection/1740-700 message with reason code
7606. This fee collection message should be sent within 45 days after the dispute message
was sent which unduly triggered the DAF. DE 72 (Data Record) of the fee collection message
must contain the “10-digit chargeback reference number—collection of DAF.”

Chargeback Message Reason Codes

The following sections present a summary of processing requirements.
First Chargeback: MTI 1442

Processing requirements for First Chargebacks can be found in each chargeback's section later
in this chapter.
Second Presentment: MTI 1240

This table presents processing requirements for Second Presentment.
Function Code 205 (Full)/282 (Partial)
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
2002 Nonreceipt of required documentation to support chargeback

2709 Documentation received was illegible.
2710 Scanning error—unrelated documents or partial scan
Substance Return
2003 Correct transaction date provided

2005 Correct merchant location/description provided Issuer authorized transaction
2008 Issuer authorized transaction
2011 Credit previously issued
2700 See Corresponding Documentation/Chargeback Remedied
2701 Duplicate Chargeback
2702 Past Chargeback Time Limit
2703 Requested transaction document provided (requires hardship variance)
2704 Invalid Data Record Text

Arbitration Chargeback: MTI 1442
2705 Correct MCC provided

2706 Authorization advised suspicious
2707 No authorization request required or attempted
2708 Account was not listed on the applicable Electronic Warning Bulletin as of the transaction
date
2713 Invalid Chargeback
2870 Chip Liability Shift
2871 Chip/PIN Liability Shift
Arbitration Chargeback: MTI 1442

This table presents processing requirements for Arbitration Chargeback.
Function Code: 451 (Full); 454 (Partial)

Refer to Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason
Code Usage for additional message reason codes.
Technical Return
4905 Invalid Acquirer Reference Data on Second Presentment/1240 (required documentation)

Must be used when Message 2001 is received from the acquirer
4908 Invalid Acquirer Reference Data on Second Presentment/1240 (required documentation)

Must be used when Message 2004 is received from the acquirer
4901 Required documentation not received to support previous Second Presentment/1240.

4903 Scanning error—Unrelated documents or partial scan.
4904 Reserved

Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code Usage
Usage
This section lists definitions for the Second Presentment/1240 IPM message reason codes.
Second Presentment/1240 IPM Message Reason Code Definitions

Message Reason Code Definition
2001—Invalid Acquirer The acquirer must use this message reason code to notify the issuer that
Reference Data; the combination of Primary Account Number and Acquirer Reference
Documentation was Received Data on the chargeback message does not match the information
or was Not Required contained in the first presentment, and that documentation sent by the
issuer was received or that no documentation was required to be sent.
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.
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.
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.


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.
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.


2710—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
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.
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
is prohibited from pursuing the dispute with an arbitration chargeback.

Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason Code Usage
Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason

Code Usage
This section lists definitions for the Arbitration Chargeback/1442 IPM message reason codes.
Arbitration Chargeback/1442 IPM Message Reason Codes

48NN—Select Reason Codes 48NN is an abbreviation that applies to the arbitration chargeback (cycle
Apply 3) showing one of two conditions:
• The issuer continues the arbitration chargeback for the same
message reason code as the original chargeback because the
acquirer either failed to remedy the first chargeback or the issuer is
providing progressive documentation (when appropriate) and the
same message reason code used with the first chargeback still
applies.
• The second presentment documentation provides new information
that remedies the original chargeback, but based on the second
presentment, the issuer finds that a new and valid chargeback
reason is applicable to the case. In such case, the issuer must change
the message reason code to the new and valid chargeback reason
with the processing of the arbitration chargeback (cycle 3).
4807 Warning Bulletin File

4808 Authorization-related Chargeback
4812 Account number not on file
4831 Transaction amount differs
4834 Point of Interaction Error
4837 No cardholder authorization
4841 Canceled Recurring or Digital Goods Transactions
4842 Late presentment
4846 Correct transaction currency code was not provided
4849 Questionable merchant activity
4850 Installment Billing Dispute
4853 Cardholder Dispute—Defective/Not as described
4854 Cardholder dispute not elsewhere classified (U.S. only)
4855 Goods or Services Not Provided
4859 Addendum, No-show, or ATM Dispute
4860 Credit not processed
4863 Cardholder Does Not Recognize—Potential Fraud

Arbitration Chargeback/1442 IPM (Function Codes 451 or 454) Message Reason Code Usage
Arbitration Chargeback/1442 IPM Message Reason Codes

4871 Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud
4901—Required The issuer must use this message reason code when documentation that
Documentation Not Received is required to support the second presentment is not received within
to Support Second eight calendar days of the second presentment. The issuer may use this
Presentment message reason code between days 9 and 45 after the second
presentment. The successful processing of an arbitration chargeback for
this message reason code will forfeit the acquirer’s right to send the case
to arbitration.
Documentation received more than eight calendar days after processing
the second presentment must be accepted by the issuer, as long as the
issuer has not yet processed an arbitration chargeback as of the time the
documentation is received.
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
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.

Dual Message System Chargebacks-Initiated On or After 17 July 2020
Chapter 3 Dual Message System Chargebacks-Initiated On

or After 17 July 2020
This chapter is for chargebacks initiated on or after 17 July 2020 and the chargeback’s
subsequent cycles, and details the procedures that Customers must follow for each individual
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
Required Authorization Obtained.......................................................................................220
Expired Chargeback Protection Period................................................................................221
Multiple Authorization Requests........................................................................................ 222
One Authorization with Multiple Clearing Records............................................................. 223
CAT 3 Device .................................................................................................................... 223
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

General Second Presentment............................................................................................. 247
Failed Travel Merchant—Intra-EEA and Domestic European Transactions Only.................... 248
Digital Goods Purchase of USD 25 or Less.......................................................................... 249
Fraud-related Chargebacks......................................................................................................... 253
No Cardholder Authorization................................................................................................. 253
Chargeback....................................................................................................................... 256
No Cardholder Authorization........................................................................................ 256
Contactless Transaction Unattended Terminals...............................................................260
PIN Transaction..............................................................................................................260
Account Takeover..........................................................................................................262
Addendum Charges...................................................................................................... 262
Compelling Evidence for Airline Transactions................................................................. 263
Compelling Evidence for Recurring Transactions............................................................ 264
Compelling Evidence for E-commerce and MO/TO Transactions..................................... 265
Guaranteed Reservation Service (“No-show")................................................................267
Chip/PIN Liability Shift................................................................................................... 268
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
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
Chargeback....................................................................................................................... 285
Second Presentment ......................................................................................................... 286
Issuer Authorized Transaction........................................................................................ 288
Second Presentment..................................................................................................... 289
Chip Transaction— Offline Authorized.......................................................................... 290
DE 55 Was Provided in the First Presentment/1240 Message..........................................290
Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud............................................294
Chargeback....................................................................................................................... 300
Lost/Stolen/NRI Fraud Chip Liability Shift........................................................................300
Authorized Online Transaction.......................................................................................303
DE 55 Was Provided in the First Presentment/1240 Message..........................................304
Point-of-Interaction Error............................................................................................................ 308

Chargeback............................................................................................................................309
ATM Disputes.................................................................................................................... 312
Late Presentment .............................................................................................................. 314
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss............ 316
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
ATM Disputes.................................................................................................................... 320
Late Presentment—Corrected Transaction Date..................................................................322
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
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

Chargeback Message Reason Codes........................................................................................... 333

First Chargeback: MTI 1442....................................................................................................333
Second Presentment: MTI 1240..............................................................................................333
Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code Usage.... 333
Arbitration Chargeback ......................................................................................................... 337

Overview
Overview
Chargebacks fall into four categories:

• Authorization
• Cardholder disputes
• Fraud
• Point-of-Interaction Error
Authorization-related Chargeback
This section provides information in handling an authorization-related chargeback.
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.

Chargeback
– 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.
Chargeback
The tables in this section detail the conditions under which an authorization-related
chargeback may be processed.

• Authorization was required
• Authorization was not properly obtained.


• 4808 (Authorization-related Chargeback) for Dual Message System transactions
• 08 (Authorization-related Chargeback) for Debit Mastercard transactions processed on the Single
Message System
eliminated:
transactions


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.

• 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.

• The transaction occurred at a merchant located in the Europe region and the issuer permanently
closed the account before processing the chargeback.
• The transaction occurred at a merchant located in any other region and the issuer deems the
account not to be in good standing (a “statused” account) before processing the chargeback.
• The authorization was identified as a preauthorization (DE 61 [Point-of-Service (POS) Data],
subfield 7 (POS Transaction Status) contains a value of 4 [Preauthorized request]) and the
transaction was presented more than 30 calendar days after the latest authorization approval date.
• The authorization was not identified as a preauthorization and the transaction was presented more
than seven calendar days after the authorization approval date.
The above time frames do not apply to properly identified acquirer-financed or merchant-financed
preauthorized installment billing payments or contactless transit aggregated or transit debt recovery
transactions.
eliminated:
transactions


Notes. This chargeback is not available for the following transactions:

• Properly identified acquirer-financed or merchant-financed preauthorized installment payments.
• Properly identified Mastercard contactless transit aggregated or transit debt recovery transactions.
Chargeback Condition. A Card-Not-Present authorization was declined by the issuer and

subsequently approved in Stand-In or X-Code.
eliminated:
transactions

DE 72 (Data Record). Optionally: MULTIPLE AUTH REQUESTS
Notes. None

CAT 3 Device
CAT 3 Device

1. The transaction was not identified with one of the following MCCs:
a. 4784—Bridges and Road Fees, Tolls
b. 5499—Miscellaneous Food Stores—Convenience Stores, Markets, Specialty Stores (solely for
Contactless-only Transactions)
c. 7523—Automobile Parking Lots and Garages
d. 7542—Car Washes
2. The transaction was identified with one of the above MCCs and the transaction amount was
greater than one of the following:
a. The CVM Limit as published in Appendix C (CVM Limit Amounts) for contactless-only CAT 3
devices
b. HKD 500 for domestic Hong Kong CAT 3 transactions identified with MCC 7523 (Automobile
Parking Lots and Garages)
c. EUR 50 for CAT 3 transaction occurring in Europe
d. USD 40, or its local currency equivalent, for all other CAT 3 transactions
3. The transaction was a magnetic stripe transaction identified with one of the MCCs listed in bullet
1.
4. The PAN was listed in the applicable Local Stoplist or Electronic Warning Bulletin File on the date
of the transaction.
5. The PAN was expired or not yet valid
6. The transaction occurred in the Europe region with a card that had a service code of X2X (Positive
Online Authorization Required)
eliminated:
transactions
None

Second Presentment
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
to an authorization-related chargeback may be processed.
Second Presentment Condition. The transaction was authorized and presented within the
applicable Chargeback Protection Period.



• When online authorized: AUTHORIZATION DATE MMDDYY NNNNNN
• When offline EMV authorized and DE 55 not previously provided in the First Presentment/1240
message: DE 55 PROVIDED
Notes.
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.

1. The transaction was properly identified in authorization as a preauthorization (DE 61, subfield 7 =
4), the transaction was presented within 30 calendar days of the preauthorization approval date,
and was not reversed.
2. The transaction was not properly identified in authorization as a preauthorization, the transaction
was presented within seven calendar days of the authorization approval date, and was not
reversed.
3. The transaction was properly identified in authorization as acquirer-financed or merchant-financed
installment payment.
4. The transaction was properly identified in authorization as a Mastercard contactless transit
aggregated or transit debt recovery transaction.
5. The transaction occurred at, one of the following:
a. A Europe region merchant location and the issuer has not permanently closed the account
b. A merchant located in any other region and the issuer has not “statused” the account (that
is, the issuer considered the account to be in good standing at the time of the chargeback)



1. PREAUTH MMDDYY
2. AUTH MMDDYY
3. INSTALLMENT
4. TRANSIT
5. Either:
a. ACCOUNT NOT CLOSED
b. ACCOUNT NOT STATUSED

1. The issuer-generated decline response 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).
2. The issuer generated an approval response after previously declining the transaction.
3. For a card-not-present transaction, the merchant can prove that the cardholder resubmitted the
online order.


Condition:
1. None
2. None
3. Documentation supporting the merchant’s claim
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


• One of the following indicators was present in DE 25 (Message Reason Code) of the First
Presentment/1240 message
– 1403 (Previously approved authorization—partial amount, multi-clearing)
– 1404 (Previously approved authorization—partial amount, final clearing)
• The total of all clearing records submitted in connection with the approved authorization did not
exceed the approved amount.


DE 72 (Data Record). One of the following, as applicable:
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.


DE 72 (Data Record). Optionally: CAT 3

Notes. None.


Notes.
Reference Manual.
acquirer.

the following:

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.

This section provides information in handling a cardholder dispute chargeback. Use of the
cardholder dispute chargeback requires that the cardholder engaged in the transaction.
A Cardholder Dispute chargeback may be submitted when the cardholder contacted the

• 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.

Chargeback
Chargeback
The tables in this section detail the conditions under which a Cardholder Dispute chargeback
may be processed.
Goods or Services Were Either Not as Described or Defective
dispute
issue a credit
• For disputes involving goods: The cardholder returned the goods or informed the merchant the
goods were available for pickup
intended purpose.
– 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.

transaction settlement date for issues of interruption of ongoing services
• Between 15 and 120 calendar days from the delivery/cancellation date of the goods or services.


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.

• The cardholder contacted the issuer claiming both of the following:
– The cardholder engaged in the transaction.
• Travel services arranged through an online travel agency or tour operator were not received and
the travel agency or tour operator is no longer in business.

Time Frame.
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
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
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
days from the expiration date printed on the card.
• In all other cases: within 120 calendar days from the transaction settlement date.

eliminated:
Message System

Cardholder Dispute Chargeback (Form 1221) must include both of the following:
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
• 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
– The cardholder (or traveler) requested reimbursement from the bonding authority or similar
– For Swedish Domestic Transactions: no additional requirement. The cardholder (or traveler) is
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.
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.

authority or similar scheme responded or not. The issuer must wait at least 30 calendar days from
– For German Domestic Transactions: Maximum 240 calendar days from the latest expected
service date, whether the bonding authority or similar scheme responded or not. The issuer
must wait at least 60 calendar days from the date the request was sent prior to processing a
chargeback, unless a negative response was received, in which case, the chargeback may be
processed upon receipt of the negative reply.
– For Polish Domestic Transactions: Maximum 540 calendar days from the Central Site Business
Date, whether the bonding authority or similar scheme responded or not. The issuer must wait
at least 60 calendar days from the date the request was sent prior to processing a chargeback,
unless a negative response was received, in which case, the chargeback may be processed
upon receipt of the negative reply.
– For Swedish Domestic Transactions: Maximum 120 calendar days from the latest expected
service date.
2. Maximum 120 calendar days after from the expected service date.
In all cases, the issuer does not have to wait for the latest expected service date before processing
will not be provided to the cardholder (or traveler). The issuer is still obliged to meet all other
applicable chargeback requirements, such as a request for reimbursement from the bonding
authority or similar scheme.

Message Reason Code. 4853 (Cardholder Dispute—Defective/Not as Described) for Dual Message
System transactions.
eliminated:
• 4855 (Goods or Services Not Provided) for Dual Message System transactions.
Message System transactions.
the dispute.
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)

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.
reflect only the travel services not provided. If the cardholder (or traveler) has received partial
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.
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.

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
The delivery of digital goods purchased in a transaction may occur on a one-time or
subscription basis.

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)
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?

eliminated:
Message System

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.
DE 72 (Data Record). DIGITAL GOODS.
Notes. This chargeback is not available for fraud disputes.
• 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.

• Within 120 calendar days of the transaction date for a VAT credit.
• Between 15 and 120 calendar days from the date on the credit documentation, or the date the
service was canceled, or the goods were returned.
When waiting the 15 calendar days would cause the issuer to exceed the 120 calendar day time
frame, the issuer may chargeback the transaction earlier than 15 calendar days.
When the credit documentation is dated, the 120-day chargeback time frame counts the date on
the credit documentation as day zero.
When the credit documentation is undated, the 120-day time frame counts the date on the
cardholder letter, email, message, or Dispute Resolution Form—Cardholder Dispute Chargeback
When the cardholder letter is undated, the chargeback time frame counts the receipt date of the
documentation by the issuer as day zero.
• The issuer can immediately charge back the transaction upon receiving one of the following forms
of credit documentation:
– 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


eliminated:
System

• A cardholder letter, email, message, or 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
• Merchant documentation to support a credit is due to the cardholder.
• Proof of an improperly disclosed in-store credit and cardholder explanation.
DE 72 (Data Record). For improperly disclosed partial credit only:

For all others: None
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 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 claims that the goods were purported to be genuine, but were counterfeit.

• Within 120 calendar days of the Central Site Business Date
• When the transaction involved delayed delivery: within 120 calendar days of the date the goods
and services were received.

• 53 (Cardholder Dispute— Defective/Not as Described) for Debit Mastercard transactions processed
on the Single Message System.
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.
DE 72 (Data Record). Optionally: COUNTERFEIT
Notes. None



• 4853 (Cardholder Dispute) for Dual Message System transactions.
eliminated:
• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions.
Message System.

Notes.
sale.

1. The issuer listed the account in the Payment Cancellation Service (PCS) prior to the disputed
transaction occurring.
2. The issuer previously charged back a disputed recurring transaction with the same PAN and
merchant
3. The issuer previously notified the merchant or acquirer to cancel the recurring transaction prior to
the disputed transaction occurring.


eliminated:
• 4841 (Canceled Recurring or Digital Goods Transactions) for Dual Message System transactions.
Message System.
Supporting Documents. One of the following correspond to the Chargeback Condition:

1. None
– A new cardholder letter, email, message, or Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) stating that the merchant was notified of the cancellation before the
– The original cardholder letter, email, message, or Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) from the original chargeback disputing a recurring
transaction stating that the merchant was notified of the cancellation before the disputed
transaction.
3. Issuer certification letter stating that the merchant was notified of the cancellation before the
DE 72 (Data Record). One of the following correspond to the Chargeback Condition:

1. RPCS MMDDYY
2. CB MMDDYY ARD XXXXXXXXXXXXXXXXXXXXXXX
3. None
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
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.
• The cardholder engaged in a valid transaction with the merchant.
• A subsequent transaction occurred with that same merchant without the cardholder’s consent.
dispute.
Time Frame. Within 120 calendar days of the Central Site Business Date of the disputed subsequent
transaction.

eliminated:
System

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.

eliminated:
System

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.
DE 72 (Data Record). When the “no-show” charge differed from the rate quoted to the cardholder,
• 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.
• The cardholder claims the disputed transaction failed to complete.
• The cardholder did not use the goods or services.

eliminated:
Message System

Timeshares
Supporting Documents. Cardholder email, letter, message or completed Dispute Resolution Form-
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.
Time Frame. Within 120 calendar days of the cancellation date.

eliminated:
System
Supporting Documents. A cardholder letter, email, message, or Dispute Resolution Form—

Cardholder Dispute Chargeback (Form 1221) is required when the cardholder made a transaction for a
timeshare or any similar provision of services and canceled the agreement within one of the following:
• 90 calendar days of the agreement date for intra-European and inter-European transactions.
• 14 calendar days of the agreement date for all other transactions.
DE 72 (Data Record). TIMESHARE
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.

Second Presentment

eliminated:
• 4860 (Credit Not Processed) for Dual Message System transactions.
System.
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
to a Cardholder Dispute chargeback may be processed.
General Second Presentment
claims.

transactions


When the Second Presentment is in response to a First Chargeback for an Addendum Dispute the
acquirer must provide proof the transaction was completed as described in the Transaction Processing
Rules, section 3.12 Charges for Loss, Theft, or Damage—Mastercard POS Transactions Only.
When the Second Presentment is in response to a First Chargeback for Credit Not Processed, the
acquirer must provide documentation that proper disclosure was made in accordance with the
Transaction Processing Rules, section 3.11 Specific Terms of a Transaction.
Notes. A merchant or acquirer statement that the cardholder never contacted the merchant to cancel
the recurring transaction is not a valid second presentment.
claims.

• Proof that the cardholder (or traveler) received reimbursement from the merchant, a bonding
• The merchant’s explanation and documentation showing that the travel services paid for will be
provided or were available to the cardholder (or traveler).
• The merchant’s explanation and documentation, specifically documenting that the travel services
are covered by a bonding authority or similar scheme according to local law and that the
cardholder (or traveler) has recourse to collect reimbursement. Instructions on how to request
reimbursement must be provided. An acquirer statement that a bonding authority or similar
Transactions.
Notes. A merchant or acquirer statement that the cardholder never contacted the bonding authority

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.

transactions
Supporting Documents. Documentation to support that the chargeback is remedied or invalid (for
example, website screen images).
Notes. None


• When the credit was processed to the cardholder’s Mastercard account: None
• When the credit was processed by other means: Compelling evidence showing the credit was
processed.

DE 72 (Data Record). One of the following corresponding to the Supporting Documents:

1. CRED MMDDYY ARD or MMDDYY ARD

Notes.
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.
Reference Manual.
acquirer.

the following:
presentment.


Notes. None
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
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.
purpose, “account” means primary account number [PAN] and expiration date) for any of

• 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.
subfield, 1 (Electronic Commerce Security Level Indicator and UCAF Collection Indicator),
911, 912, or 915.
• Mastercard Commercial Payments Account. The transaction was a Mastercard
• 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
Refer to Message Reason Code 4853—Cardholder Dispute regarding chargeback
requirements for non-fraud digital goods transactions.

• 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

Supporting Documents must be provided using the Mastercom application. Any action
received in Mastercom must be responded to in Mastercom.
Chargeback
chargeback under the No Cardholder Authorization chargeback.
Chargeback Condition. The cardholder contacted the issuer claiming that the cardholder did not
authorize the transaction.
• 4837 (No Cardholder Authorization) for Dual Message System transactions
• 37 (No Cardholder Authorization) for Debit Mastercard transactions processed on the Single
Message System

• Cardholder email, letter, message or completed Dispute Resolution Form-Fraud (Form 0412) stating
that the cardholder did not authorize the transaction.
• Written complaint 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.

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 Mastercard card account is closed.
• The issuer blocked the account on its host.
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:

Second Presentment
• 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
and/or 4871.



1. FNS

• Use FNS when the authorization approval date of the disputed transaction is later than the date
• Use NN MMDDYY for a previous chargeback by replacing NN with the last two digits of the
chargeback. For AUTH MMDDYY, replace MMDDYY with the authorization approval date of the



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.


DE 72 (Data Record). CONTACTLESS NNNNNN MMDDYY

Notes.
PIN Transaction
Second Presentment Condition. A PIN was present in the Authorization Request/0100 message.

DE 72 (Data Record). PIN MMDDYY NNNNNN
Notes.


message.
transaction.
912, or 915.


Notes
Replace MMDDYY with the date the authorization request message containing a value of 1 in DE48,

message.
transaction.
912, or 915.


Account Takeover

Notes
Rules.
Account Takeover
Second Presentment Condition. The acquirer can provide evidence that the transaction resulted
from an account takeover.
transactions

Supporting Documents. Documentation proving the transaction resulted from an account takeover.
• The Daily 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.

Notes. None
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/

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.

Notes.
For example, after the cardholder initially is billed for a vehicle rental, the cardholder is billed for a
separate additional amount that represents unpaid parking tickets. The cardholder claims that he or
she did not authorize the transaction for the parking tickets. The merchant should include, with the
second presentment, information about the violations showing that they were issued during the
period that the vehicle was rented by the cardholder, as well as the rental agreement with proof the
cardholder participated in the original transaction.

• The Authorization Response/0110 message included a positive Address Verification Service (AVS)
response of X or Y.
• The address to which the merchandise was sent was the same as the AVS-confirmed address.

transactions

• Indicate AVS response X or Y
• Documentation supporting the merchandise was sent to the AVS-confirmed billing address

Notes. None
This second presentment is limited to non-face-to-face airline transactions.


transactions

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.

Notes. None
This second presentment is limited to non–face-to-face recurring transactions.

transactions


• A description of the goods or services being provided.
• The start date of the original recurring transaction.
• State which, if any, of the following was used in the original transaction:
– SecureCode
– Card validation code 2 (CVC 2) and that the Authorization Response/0110 message included a
value of M in DE 48, subelement 87 (Card Validation Code Result)
– The transaction was properly identified in both authorization and clearing as a recurring
transaction. Refer to the Customer Interface Specification and IPM Clearing Formats for the
recurring data element values.
– Documentation proving that the transaction was recurring. Examples include but are not limited
to: The merchant providing proof that the cardholder had to click to accept the recurring terms
and conditions or the cardholder signed a contract agreeing to the recurring terms and
conditions.

Notes. None
This second presentment is limited to e-commerce, mail order, and telephone order transactions.

transactions

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

Notes
This second presentment right does not apply when the cardholder purchased as a guest.
A merchant’s ability to register a cardholder to make purchases does not, in and of itself, provide a
second presentment right.
A partial shipment may occur when an item ordered by the cardholder was unavailable at the time of
the initial transaction. A balance may be due when the cardholder agrees to pay in installments, or to
pay a deposit upon placing the order and the balance upon delivery of the goods (a “delayed
delivery”). Refer to Appendix F for Digital Secure Remote Payment (DSRP) transaction identification
requirements.

Invalid Chargeback
Invalid Chargeback
Second Presentment Condition The issuer’s chargeback was invalid. For example, the issuer
submitted documentation that failed to support the chargeback.

DE 72 (Data Record). Reason for the second presentment
Notes. None
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.
transactions

• The primary account number (PAN).
• The cardholder’s name present on the card.
• The confirmation number provided at the time the reservation was made.

Notes. None


1. The transaction was between Customers that participate in the appropriate Chip Liability Shift
Program.
2. The transaction was face-to-face, occurred at an attended a hybrid terminal with card-read (not
key-entered) account information.
3. The transaction was initiated with a non-EMV chip card.


Supporting Documents. None.
DE 72 (Data Record). AUTH MMDDYY NNNNNN
Notes
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.

• 2871 (Chip/PIN Liability Shift) for Dual Message System transactions

Supporting Documents. DE 55 must be provided in the first presentment or authorization record.
DE 72 (Data Record). When applicable, AUTH MMDDYY NNNNNN

Notes


Notes
Reference Manual.
acquirer.

of the following:
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.


Notes. None

This section provides information for an issuer and acquirer in handling a dispute when a
merchant is listed in the GMAP or QMAP or liable for coercion claims.
The issuer may use this chargeback when one of the following occurred:

• 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).

Chargeback
Chargeback
chargeback under the Questionable Merchant Activity chargeback.

Announcement under the QMAP.
– 00 = Lost Fraud
– 04 = Counterfeit Card Fraud
– 06 = Card Not Present Fraud


merchant location.
calculation.

Message System

DE 72 (Data Record). PROGRAM GMAP BULLETIN NO. NNNN
Notes

Announcement under the GMAP.
• The issuer must have properly reported the transaction to the Fraud and Loss Database. All fraud
type codes are eligible.

merchant location.
calculation.


Message System

DE 72 (Data Record). PROGRAM QMAP BULLETIN NO. NNNN
Notes

• Mastercard has confirmed that the merchant violated Rule 3.7 at least two times within the case
scope period cited in the noncompliance confirmation letter.
– 00 = Lost Fraud
Time Frame. Within 30 calendar days of the date of the noncompliance confirmation letter.
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.

Second Presentment
Second Presentment
presentment in response to a Questionable Merchant Activity chargeback.

1. The merchant did not violate Mastercard Rule 3.7 due to coercion as determined by Mastercard.
2. The issuer did not include the noncompliance confirmation letter from Mastercard as Supporting
Documents.

Condition:
1. A copy of the letter from Mastercard that its investigation of the merchant was closed without a
finding of violation of Mastercard Rule 3.7.
2. None
1. MERCHANT NOT IN VIOLATION
2. MISSING CONFIRMATION LETTER
Notes. None
Late First Chargeback Submission
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.

DE 72 (Data Record). LATE SUBMISSION

Improper Fraud and Loss Database Reporting
Notes. None
Improper Fraud and Loss Database Reporting
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.

DE 72 (Data Record). IMPROPER SAFE REPORTING

Notes. None
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.

DE 72 (Data Record). FRAUD TYPE

Notes. None
Not Listed in Mastercard Announcement

1. The merchant in question was not listed in a Mastercard Announcement.
2. The transaction did not occur within the period specified.


1. MERCHANT NOT LISTED
2. INVALID TRANSACTION DATE
Notes. None


Notes.
Replace MMDDYY with the date of the credit transaction. Optionally, replace
NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference Data (ARD) of the credit
transaction.
processed in accordance with chapter 19 of the Global Clearing Management System Reference
Manual.
acquirer.
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.
of the following:
chargeback record did not match the information contained in the first presentment record.


Notes. None

This section provides information for an issuer and acquirer in handling a dispute when all of
the following occur:
• The cardholder states that the cardholder did not authorize the transaction.
domestic, intraregional, or interregional chip liability shift as shown in the below table.

– A fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid

terminal
• The transaction was reported to the Fraud and Loss Database as counterfeit 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.
Chip Liability Shift Participation

Asia/Pacific region Interregional transactions 15 April 2011
• Excluding transactions at 31 March 2011

5542)
• Including transactions at 31 December 2012

5542)
Europe region Interregional transactions 13 April 2007



Latin America and the Caribbean Interregional transactions 12 October 2012
(LAC) region
• Argentina 16 October 2015
• Colombia 1 October 2008
• Uruguay 16 October 2015
• Venezuela 1 July 2009
• All other LAC countries 17 October 2014
Middle East/Africa (MEA) region Interregional transactions 15 April 2011

• South Africa 1 January 2005
• All other MEA countries 1 January 2006
United States region Interregional transactions: 1 October 2015

• Excluding transactions at
5542)

5542)
5542)

5542)
The issuer may not use this message reason code when the following occur:
for a related partial shipment or recurring payment. Refer to Appendix F for Digital Secure

• 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
• A valid Mastercard Consumer-Presented Quick Response (QR) transactions. A
Mastercard Consumer-Presented QR transaction that was properly identified in the
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.
than 2xx or 6xx in DE 35 (Track 2 Data) or DE 45 (Track 1 Data), either because:
• The transaction was a mail order, phone order, e-commerce, or recurring payment
transaction.

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:
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

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
following values:
message, as described in the Customer Interface Specification and
Single Message System Specifications manuals; and
Presentment/1240 message, as described in the IPM Clearing
Formats manual.

Chargeback

Chargeback
The tables in this section detail the conditions under which a first chargeback under the Chip
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.

• The cardholder contacted the issuer claiming that the cardholder did not authorize the transaction.
intraregional, or interregional chip liability shift as shown in the Chip Liability Shift Participation
table (earlier in this section).
– A fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid terminal
• The transaction was reported to the Fraud and Loss Database as counterfeit in accordance with the
Fraud and Loss Database User Guide prior to processing the chargeback.

Second Presentment

• 70 (Chip Liability Shift) for Debit Mastercard transactions processed on the Single Message System

• Cardholder letter, email, message or completed Dispute Resolution Form-Fraud (Form 0412) stating
– The cardholder was in possession and control of all valid cards issued to the account at the time
of the transaction.
• Cardholder letter, email, or Dispute Resolution Form-Fraud (Form 0412) stating that the cardholder
did not authorize the transaction and an issuer certification letter verifying counterfeit.
For subsequent counterfeit transactions occurring after the account was closed, a copy of the

Notes.
the account number on the Mastercard Stand-in Account File with a “capture card” response until
Second Presentment
to a Chip Liability Shift chargeback may be processed.

and/or 4871.
IPM Second Presentment Message Reason Code. 2713 (Invalid Chargeback).


1. FNS

1442 message.
message reason code and replacing MMDDYY with the Central Site Business Date of the previous
Time frame. Within 45 calendar days of the chargeback settlement date



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

Notes. None
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.


Technical Fallback
Notes
Replace X with the value contained in position 1 of the three-digit service code transmitted by the
card to the terminal.
Technical Fallback
Second Presentment Condition. The transaction was the result of technical fallback.

DE 72 (Data Record). TECHNICAL FALLBACK MMDDYY NNNNN

Notes
Replace NNNNN with the authorization approval code.
Second Presentment


Notes. None

• The transaction was completed by reading the chip.
• The transaction did not require online authorization.
• DE 55 was provided in the First Presentment/1240 message.
Chargeback Remedied).


Notes. None
DE 55 Was Provided in the First Presentment/1240 Message


Invalid Chargeback
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


Notes. None


Notes
processed in accordance with chapter 19-Fee Collection of the Clearing Management System
Reference Manual.
acquirer.
chapter 19-Fee Collection of the Clearing Management System Reference Manual. In the event an

of the following:
presentment.


Notes. None


This section provides information in handling a dispute when all of the following:
domestic, intraregional, or interregional lost/stolen/NRI fraud chip liability shift as shown in
the below table.
following:
– A magnetic stripe-reading-only terminal (whether PIN-capable or not).
– For domestic Malaysia transactions only, a hybrid terminal not equipped with a PIN pad
capable (at a minimum) of checking the PIN online.
For all other transactions, a hybrid terminal not equipped with a PIN pad capable (at a
minimum) of checking the PIN offline.
– For domestic Malaysia transactions only, a hybrid terminal equipped with a PIN pad
capable (at a minimum) of checking the PIN online, but DE 55 was not present in the
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.
• 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
contactlessenabled 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 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.

Lost/Stolen/NRI Fraud Chip Liability Shift Participation

Asia/Pacific region Domestic transactions
Malaysia 1 January 2017
Excluding transactions at automated fuel 31 March 2011
Including transactions at automated fuel 31 December 2012
Europe region Interregional transactions May 2007

Latin America and the Domestic transactions
Caribbean (LAC) region
Brazil 1 August 2015
Middle East/Africa region Domestic, intraregional, and interregional 1 July 2017
transactions
Interregional transactions
Excluding transactions at automated fuel 1 October 2015
Including transactions at automated fuel 1 October 2017
Excluding transactions at automated fuel 1 October 2015
Including transactions at automated fuel 1 October 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
POS terminal with full EMV Level 1 and Level 2 type approval status
with regard to the chip technical specifications; and
following values:
message, as described in Customer Interface Specification and Single
Message System Specifications; and
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:
Mode), subfield 1 (POS Terminal PAN Entry Mode) of the Authorization
• 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
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).
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.
• 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


Consumer- Presented QR transaction that was properly identified in the Authorization
• 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.
than 2xx or 6xx, because of one of the following:
• The transaction was a mail order, phone order, e-commerce, or non–face-to-face
recurring payment transaction.
• CAT 2 and CAT 3 Transactions—Chargebacks of CAT 2 and CAT 3 transactions are not

Chargeback
• ATM Transactions—Chargebacks of Mastercard ATM Network transactions are not

Chargeback
The table in this section details the conditions under which a Lost/Stolen/NRI Fraud Chip
Lost/Stolen/NRI Fraud Chip Liability Shift

intraregional, or interregional chip/PIN liability shift as shown in the below table.
following:
– A magnetic stripe-reading-only terminal (whether PIN-capable or not) – A hybrid terminal not
equipped with a PIN pad capable (at a minimum) of checking the PIN offline
– 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 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.

Second Presentment
• 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

1. Cardholder letter, email, message or completed Dispute Resolution Form-Fraud (Form 0412)
stating that the cardholder did not authorize the transaction and one of the following:
– A statement in the cardholder letter, email, message or completed Dispute Resolution Form-
Fraud (Form 0412) that the card was lost, stolen, or never received.
– A written issuer certification of lost stolen or NRI fraud. – A law enforcement or police report
made to the issuer regarding the loss, theft, or non-receipt of the card.
2. Documentation that shows the priority sequence of cardholder verification methods (CVMs)
supported by the card or issuer for the disputed transaction, from highest to lowest priority (the
“CVM list”).
For subsequent fraudulent transactions occurring after the account was closed, a copy of the

Notes.
the account number on the Mastercard Stand in Account File with a “capture card” response until
application on Mastercard Connect
.
Second Presentment
to a Chip/PIN Liability Shift chargeback may be processed.

and/or 4871.


1. FNS

1442 message.



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.
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

Notes. None

• The transaction was authorized online.
• 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.

Technical Fallback
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.

DE 72 (Data Record). TECHNICAL FALLBACK

Notes. None


Notes. None
DE 55 Was Provided in the First Presentment/1240 Message
• The transaction was completed with chip while the card was not PIN-preferring.
• The transaction was the result of CVM fallback.

Invalid Chargeback


Working”.
Invalid Chargeback
Second Presentment Condition. The transaction involved an issuer or acquirer located in a country

Notes. None


Notes.
processed in accordance with chapter 19-Fee Collection of the Clearing Management System
Reference Manual.
acquirer.
chapter 19-Fee Collection of the Clearing Management System Reference Manual. In the event an

of the following:
presentment.


Notes. None

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
• 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
UK, Gibraltar domestic transactions, and UK domestic transactions).
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.
Documents contain sufficient detail. Supporting Documents must be provided using the
Mastercom application.

Chargeback
Chargeback
The tables in this section detail the conditions under which a first chargeback under the point-
of-interaction error chargeback may be processed.
• The cardholder paid for a transaction using one form of payment and was subsequently debited
for the same transaction using another form of payment.
eliminated:
Message System
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
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.
eliminated:
Message System

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
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

Notes. This chargeback is not available for verbal price agreements.
Effective for first chargebacks processed on or after 17 July 2020: Only a partial transaction amount
representing the difference between the correct and incorrect amounts may be charged back.

ATM Disputes
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.
Time Frame. Between 5 and 120 calendar days of the transaction settlement date.
eliminated:
• 59 (RS3=ATM dispute) for Debit Mastercard transactions processed on the Single Message System

Notes
This chargeback is not available for fraud.
The issuer may chargeback only the amount which the cardholder claims was not dispensed by the
ATM.
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.
eliminated:
Message System
—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.

Notes.
The Cardholder Dispute chargeback (message reason code 4853) should be used to dispute a charge
for loss, theft, or damage processed as a separate (addendum) transaction.

Late Presentment
Late Presentment

• The account is permanently closed.
• The issuer used good-faith efforts to collect the transaction amount from the cardholder.
• The transaction was not presented within one of the following time frames.
authorization date.
– Effective for transactions occurring on or after 17 July 2020, a refund transaction must be
presented in clearing within five calendar days of the transaction date. For a refund transaction,
the transaction date is the date on which the merchant agreed to provide a refund to the
cardholder (the refund transaction receipt date, or if the refund transaction was authorized by
the issuer, then the refund transaction authorization date).
These time frames are defined as the time between the transaction date and the Central Site Business
Date. When calculating the number of days, consider the transaction date as day zero. An issuer must
accept a transaction submitted beyond the applicable time frame when the account is in good
standing or the transaction can be honored.
Notwithstanding these time frames, the acquirer has a maximum of 30 calendar days (14 calendar
days for intra-United States transactions) after the transaction date to present a transaction when the
acquirer must delay presentment:
• Because of the merchant’s delay in submitting the transaction, as permitted under Chapter 3,
• 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.


eliminated:
• 4842 (Late Presentment) for Dual Message System transactions
• 42 (Late Presentment) for Debit Mastercard transactions processed on the Single Message System

DE 72 (Data Record). LATE PRESENTMENT
Notes.

1. The cardholder states that the cardholder was not given the opportunity to choose the desired
transaction.
2. POI currency conversion was performed incorrectly.

eliminated:
• 4846 (Correct Transaction Currency Code Not Provided) for Dual Message System transactions
• 46 (Correct Transaction Currency Code Not Provided) for Debit Mastercard transactions processed
Supporting Documents. One of the following corresponding to the Chargeback Condition:

1. A cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction
2. None


1. POI CURRENCY CONVERSION
2. INCORRECT CARDHOLDER CURRENCY
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.
eliminated:
• 4831 (Incorrect Transaction Amount) for Dual Message System transactions
Message System

1. Cardholder letter, email, message, or Dispute Resolution Form—Point-of-Interaction (POI) Errors
(Form 1240) must include the date of the credit and must specifically address the original error
which caused the merchant to process the credit.
2. The ARD of the credit transaction.

Notes. Only the currency exchange loss amount may be charged back.
Chargeback Condition. An improper merchant surcharge was applied to the total transaction
amount.


• Within 90 calendar days of the Central Site Business Date.
• Within 90 calendar days of the delivery date of the goods or services.

• A copy of the cardholder’s receipt or invoice showing the improper surcharge.
• A cardholder letter, email message or completed Dispute Resolution Form—Point-of-Interaction
DE 72 (Data Record). SURCHARGE

Notes. Only the amount reflecting the improper surcharge may be charged back. The total
transaction amount must not be charged back.

• The card was issued in the EEA, Gibraltar, or the United Kingdom.
• The merchant was located in the EEA, Gibraltar, or the United Kingdom.
• The cardholder contacted the issuer claiming the transaction amount was unreasonable.
• The exact transaction amount was not specified at the time the cardholder engaged in the
transaction.
• PIN or CDCVM was not used.
• 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.
—Point of Interaction (POI) Errors (Form 1240) describing the cardholder’s complaint in sufficient detail
DE 72 (Data Record). UNREASONABLE AMOUNT

Second Presentment
Notes.
Second Presentment
to a point-of-interaction error chargeback may be processed.
transactions

Notes. None
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.


• 2008 (Issuer authorized transaction) for Dual Message System transactions
DE 72 (Data Record). PIN MMDDYY NNNNNN MMDDYY NNNNNN

Notes. This second presentment is not available for ATM transactions.
DE 72 (Data Record) is used to identify the transactions involved in the dispute. The transactions may
optionally be identified in chronological order.
In PIN MMDDYY NNNNNN: Replace MMDDYY with the date the transaction was authorized and
replace NNNNNN with the authorization approval code of one transaction.
In MMDDYY NNNNNN: Replace MMDDYY with the date the transaction was authorized and
replace NNNNNN with the authorization approval code of the other transaction.
Second Presentment Condition. The acquirer can provide evidence that the cardholder was billed
the correct amount.
transactions


Notes. None

ATM Disputes
ATM Disputes
Second Presentment Condition. The acquirer can provide evidence that the funds were correctly
dispensed.
transactions
Supporting Documents. Refer to the Single Message System Chargebacks chapter, Message Reason
Code 17—Cash Dispute-ATM Only.

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.
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.

transactions


Late Presentment
Notes. None
Late Presentment

1. The account is open.
2. The transaction was presented within one of the following time frames.
authorization date.
These time frames are defined as the time between the transaction date and the Central Site
Business Date. When calculating the number of days, consider the transaction date as day zero.
An issuer must accept a transaction submitted beyond the applicable time frame when the
account is in good standing or the transaction can be honored.
Not withstanding these time frames, the acquirer has a maximum of 30 calendar days (14
calendar days for intra-United States transactions) after the transaction date to present a
transaction when the acquirer must delay presentment:
– Because of the merchant’s delay in submitting the transaction, as permitted under Chapter 3,
– 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.



Condition:
1. None
2. The merchant and/or acquirer’s explanation and documentation.
1. AUTH MMDDYY NNNNNN
2. DELAYED PRESENTMENT
Notes
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.

• The transaction date in the First Presentment/1240 message was incorrect.
• The correct transaction date is within the applicable time frame for a First Presentment/1240
message.

• 2003 (Correct transaction date provided) for Dual Message System transactions


DE 72 (Data Record). CORRECT TRANS DATE MMDDYY

Notes. Replace MMDDYY with the date the issuer authorized the transaction.
transactions


Notes. This second presentment is not available for POI currency conversion disputes regarding the
When the chargeback is valid, the acquirer should accept the chargeback and process a new First
Presentment/1240 message with the correct transaction currency. The new presentment must be
processed within 30 calendar days of the Central Site Business Date of the first chargeback in order
for the acquirer to be protected from a Late Presentment chargeback.
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.

transactions

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.

Notes. None


Notes
Reference Manual.
acquirer.

Second Presentment Condition. The acquirer can provide specific evidence of proper processing in

Notes. A merchant or acquirer statement merely asserting that the merchant surcharge is permitted
by Mastercard Standards or applicable law is not a valid second presentment. The documentation
must specifically cite the Standard or law relied on or explain in reasonable detail why the chargeback
is invalid.

the following:
presentment.

Notes. None


Installment Billing Dispute (Participating Countries Only)

Chargeback rules on this subject appear in the “Domestic Chargeback”.
Domestic Chargeback Dispute (Europe Region Only)

Issuers only may use message reason code 4999 in the case of a centrally acquired domestic
transaction, or a domestic transaction processed through the Mastercard Network, where a
chargeback is available according to the applicable domestic rule, but cannot be processed
under a different message reason code.
Requirements for Issuer’s First Chargeback and Acquirer’s Second Presentment

Customers must follow the requirements for the applicable domestic chargeback rules. The
applicable domestic chargeback reason code must be provided.

The issuer may not use this reason code when the transaction was a Mastercard Commercial
Payments Account transaction. A Mastercard Commercial Payments Account transaction

Arbitration of these disputes will be handled domestically.
Additional Processing Notes

Some or all of message reason codes contain Additional Processing Notes. Additional
Processing Notes are not themselves chargeback requirements or conditions. Rather,

Additional Processing Notes are provided to guide or illustrate particular circumstances or

events and to address circumstances or events of frequent concern to Customers.
As set forth in section 2.1—Standards of the Mastercard Rules manual, Mastercard has the
sole right to interpret such Corporation Standards, including those in this guide.

The Progressive Handling Fee program applies only to non–face-to-face transactions excluding
Cardholder-activated Terminal (CAT) Level 2 transactions.
NOTE: Progressive handling fees do not apply to Intra-European and inter-European

transactions.
Progressive Handling Fee Overview

Customers may process a handling fee in conjunction with message reason codes 4807 or
4808 as follows solely for all non–face-to-face transactions except CAT Level 2 transactions.
The handling fee, identified with the correct message reason code, compensates the
Customer for the cost of processing one of the following, or for the cost of reversing an
invalid handling fee (using message reason code 7627):
• First chargeback (message reason code 7622)
• Second presentment (message reason code 7623)

The issuer may collect a USD 25 handling fee when processing a chargeback by submitting an
IPM Fee Collection/1740-700 message with message reason code 7622. The issuer must
process its handling fee within five calendar days of the Central Site Business Date of the
chargeback.
Acquirer Use of Message Reason Code 7623

The acquirer may collect a handling fee when processing a second presentment by submitting
an IPM Fee Collection/1740-700 message with message reason code 7623, except when
either of the following occur.
• The acquirer is collecting a handling fee for the same transaction using an IPM Fee
Collection/1740-700 message with message reason code 7627.
• The second presentment contains corrected or previously omitted information that
remedies the chargeback. (Such information may include, but is not limited to, a
transaction date, merchant location, or authorization code.)
The amount of the handling fee is USD 50 plus the amount of the handling fee that the issuer
previously collected for the chargeback, if any. The acquirer must process its handling fee
within 15 calendar days of the Central Site Business Date of the second presentment.

Mastercard will determine responsibility for the progressive handling fee when the chargeback
is filed as an arbitration case.

When the issuer collected a handling fee using an IPM Fee Collection/1740-700 message with
message reason code 7622, but the transaction was a recurring payment transaction and the
issuer’s decline response did not include an associated Merchant Advice Code (MAC) as
described below, the acquirer may collect a handling fee of USD 25 plus the amount that the
issuer previously collected for the chargeback by submitting an IPM Fee Collection/1740-700
message with message reason code 7627.
Record) the information it received in DE 72 (Data Record) of the original message with
message reason code 7622 and the code “NO MAC.”
Message reason code 7627 applies because an issuer is not entitled to a handling fee when its
response to a recurring payment authorization request, other than an approval that was
properly identified, did not include a Merchant Advice Code.
The conditions below must be satisfied for an acquirer to collect the handling fee for “NO
MAC” as described above:
• The authorization request was identified properly (DE 61, subfield 4 = 4 [Standing Order/
Recurring Transaction]).
• The issuer’s decline response did not include an associated MAC (DE 48, subelement 84) of
01, 02, or 03. (This does not include X-Code or Stand-In declines).
• The clearing message was identified as a recurring transaction (DE 22 [Cardholder Present
Data], subfield 5 value 4 [Cardholder not present; standing (recurring) transaction]).

Transaction
When the acquirer receives a handling fee in an IPM Fee Collection/1740-700 message with
message reason code 7622, but the transaction was either a face-to-face transaction or a CAT
Level 2 transaction, the acquirer may collect a handling fee of USD 25 plus the amount that
the issuer collected by submitting an IPM Fee Collection/1740-700 message with message
reason code 7627.
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)
A CAT Level 2 transaction Value of CT2 in PDS 0023 (Terminal Type)
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 include the following fields in every Fee Collection/1740-700 message in
which DE 25 (Message Reason Code) contains a value of 7622, 7623, or 7627.
• DE 2 (Primary Account Number)
• DE 31 (Acquirer Reference Data)
• DE 72 (Data Record)
• DE 73 (Date, Action)
When any of the data elements described above are missing, incomplete, or invalid, the
receiving Customer may return a Fee Collection/1740-700 message for the same amount
originally received using the following:
• The original message reason code
• Applicable function code of 780 (Fee Collection Return), 781 (Fee Collection
Resubmission), or 782 (Fee Collection Arbitration Return)
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

Intra-European and Inter-European Dispute Administration Fee (Mastercard POS)
• Data Record Missing

• Data Record Not Formatted Correctly
• Date Action Missing
• Fee Collection Time Frame Exceeded
• Incorrect Fee Amount
Intra-European and Inter-European Dispute Administration Fee

(Mastercard POS)
automatically generated for each chargeback and second presentment by Mastercard using
the Mastercard Consolidated Billing System.
• Chargeback: The issuer is credited 15 EUR and the acquirer is debited 15 EUR.
In the event that an arbitration (or pre-arbitration) case is filed at the end of the cycles, the
issuer will be allowed to collect 45 EUR from the acquirer (30 EUR net) when the issuer is
favored, within 45 days of the ruling decision or acceptance by the acquirer. This fee may be
collected by the favored issuer using a miscellaneous Fee Collection/1740-700 message with
reason code 7606. DE 72 (Data Record) of the fee collection message must contain the “7-
digit case ID—collection of DAF.”
7311, or 7399.
Should the fee be debited unduly, meaning the acquirer collects the DAF with a second
presentment after processing a credit to the cardholder, the fee can be collected by the issuer
using the miscellaneous Fee Collection/1740-700 message with reason code 7606. This fee
collection message should be sent within 45 days after the dispute message was sent which
unduly triggered the DAF. DE 72 (Data Record) of the fee collection message must contain the
“10-digit chargeback reference number—collection of DAF.”


The following sections present a summary of processing requirements.
First Chargeback: MTI 1442

Processing requirements for First Chargebacks can be found in each chargeback's section
earlier in this chapter.
Second Presentment: MTI 1240

This table presents processing requirements for Second Presentment.
Function Code 205 (Full)/282 (Partial)
Technical Return
2001 Invalid Acquirer Reference Data; documentation was neither required nor received.
2004 Invalid Acquirer Reference Data on chargeback; documentation was received.
2002 Nonreceipt of required documentation to support chargeback

2710 Scanning error—unrelated documents or partial scan
Usage
This section lists definitions for the Second Presentment/1240 IPM message reason codes.

Reference Data; the combination of Primary Account Number and Acquirer Reference
Documentation was Received Data on the chargeback message does not match the information
or was Not Required contained in the first presentment, and that documentation sent by the
issuer was received or that no documentation was required to be sent.


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.
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.


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.
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.


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
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.


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
chargeback 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
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
is prohibited from pursuing the dispute with an arbitration case.

Single Message System Chargebacks
Chapter 4 Single Message System Chargebacks

This chapter contains information about chargeback processing for the Single Message System.
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
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
Chargeback Reason Codes..........................................................................................................345
Correction of a Chargeback................................................................................................... 346
Issuer Correction................................................................................................................346
Acquirer Representment.................................................................................................... 346
Cash Dispute-ATM Only......................................................................................................... 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
Counterfeit Fraud..........................................................................................................348

Lost, Stolen, or Never Received Fraud............................................................................ 349

Chip Liability Shift Program for Domestic and Intraregional Transactions........................ 350
Chip Liability Shift Program for Interregional Transactions.............................................. 353
Improper Use for Issuer Chargeback.................................................................................. 354
Transaction Amount Differs.................................................................................................... 357
Duplicate Transaction............................................................................................................. 358
No Cardholder Authorization................................................................................................. 360
Credit Not Received................................................................................................................362
Goods or Services Not Provided.............................................................................................. 364
Late Presentment................................................................................................................... 366
Invalid Adjustment—Account Closed......................................................................................367
Invalid Adjustment—Insufficient Funds................................................................................... 368

Overview
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.
Exception Transaction Types

Customers must support the following types of exceptions:
• Adjustment performed by the acquirer
• Chargeback and Correction of a Chargeback performed by the issuer
• Representment (also known as “second presentment”) and Correction of Representment
performed by the acquirer
Arbitration chargebacks are not available in the Single Message System.

Supporting Documentation
Supporting Documentation
For procedures to process supporting documentation, refer to Mastercard Connect™ >
Publications > Mastercom System.
Acquirer Adjustment Reason Codes

The following message reason codes are available for an acquirer to perform Single Message
System adjustments and corrections.
Reason Code Description

06 Correction of a Representment
10 Correction of a Terminal Malfunction
20 Returned Item (U.S. Shared Deposits Only)
24 Empty Deposit Envelope (U.S. Shared Deposits Only)
25 Error in Addition (U.S. Shared Deposits Only)
26 Error in Settlement (U.S. Shared Deposits Only)
27 Customer Keyed Wrong Amount (U.S. Shared Deposits Only)
28 Non-Cash Item Deposited (U.S. Shared Deposits Only)
29 Foreign/Counterfeit Currency Deposited (U.S. Shared Deposits Only)
85 Adjustment Reversal
Message Reason Code 06—Correction of a Representment

The acquirer may use this message reason code to correct a representment.
Acquirer Correction
The table shown below details the requirements for this adjustment message reason code.
Correction Condition The acquirer is reversing a representment, thereby canceling the

original representment.
Time Frame Between 1 and 10 calendar days after the representment settlement
date.
Adjustment Message Reason 06

Code

Issuer Chargeback
Supporting Documents None
Additional Information None
Notes The acquirer has the option of submitting a new representment.

However, the required representment documentation must be
provided within 10 calendar days of the original representment date.
The Single Message Transaction Manager only allows one correction
per representment. When the acquirer determines an error occurred
with the corrected representment, 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 representment settlement
date.
Issuer Chargeback
An issuer chargeback is not available for this message reason code.
Message Reason Code 10—Correct a Terminal Malfunction

The acquirer may use this message reason code to correct a terminal malfunction.
Acquirer Correction
Correction Condition The acquirer is correcting a terminal malfunction.
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

Code

Acquirer Correction
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
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
Issuer Chargeback
Refer to the individual chargeback message reason codes later in this section for chargeback
requirements.
Message Reason Code 20—Returned Item (U.S. Shared Deposits Only)

Message Reason Code 24—Empty Deposit Envelope (U.S. Shared Deposits Only)
Message Reason Code 25—Error in Addition (U.S. Shared Deposits Only)

Message Reason Code 26—Error in Settlement (U.S. Shared Deposits Only)

Message Reason Code 28—Non-Cash Item Deposited (U.S. Shared Deposits Only)
Message Reason Code 29—Foreign/Counterfeit Currency Deposited (U.S. Shared

Deposits Only)
Message Reason Code 30—Cardholder Disputed Amount (U.S. Shared Deposits

Only)
Message Reason Code 85—Adjustment Reversal

The acquirer may use this message reason code to reverse an adjustment.
Acquirer Adjustment
Adjustment Condition The acquirer is reversing an adjustment.
Time Frame Between 1 and 10 calendar days after the original adjustment
settlement date.
Code
Additional Information Optional

Issuer Chargeback
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
within 10 calendar days of the original adjustment.
Issuer Chargeback
An issuer chargeback is not available for this message reason code.
Chargeback Reason Codes

The following message reason codes are available for an issuer to perform Single Message
System chargebacks and corrections.
Reason Code Description

03 Correction of a Chargeback
17 Cash Dispute-ATM Only
30 Cardholder Disputed Amount (U.S. Shared Deposits Only)
71 Transaction Amount Differs
73 Duplicate Transaction
74 No Cardholder Authorization
75 Credit Not Received
79 Goods or Services Not Provided
80 Late Presentment
95 Invalid Adjustment: Account Closed
96 Invalid Adjustment: Insufficient Funds

Correction of a Chargeback
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.
Correction Condition The issuer is reversing a chargeback.
Time Frame Between 1 and 10 calendar days after the chargeback settlement
date.

Code
Notes The issuer has the option of submitting a new chargeback.

The Single Message Transaction Manager only allows one correction
per chargeback. When the issuer determines an error occurred with
the corrected chargeback, the issuer must submit the MDS Exception
Item Processing Request (Form 500) with a Single Message
within 10 calendar days of the original chargeback settlement date.
Acquirer Representment
An acquirer representment is not available for this message reason code.
Cash Dispute-ATM Only

The issuer may use message reason code 17 to dispute an ATM cash withdrawal.
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

Acquirer Representment (Second Presentment)
Notes The issuer may chargeback only the disputed amount.

This chargeback must not be used for fraud disputes.
When a chargeback is for the full amount of the original transaction,
any ATM access fee may be included in the chargeback amount.

The table shown below details the requirements of the second presentment for this message
reason 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
Second Presentment Message 13

Reason Code
Supporting Documents Supporting documentation must be provided within 10 calendar days

of the representment settlement date.
The supporting documentation must come from the ATM or PIN-
based In-branch journal and, at minimum, must include:
• Account accessed
• The ATM or PIN-based In-branch Terminal financial activity that
occurred immediately before and after the disputed transaction
occurred without any errors.
• ATM or PIN-based In-branch Terminal number
• Primary account number read from Track 2 of the magnetic stripe
or from the chip
• Transaction amount
• Transaction date and time
• Transaction trace
• Transaction type
Notes Supporting documentation must be in English or accompanied by an

English translation.
In addition to the supporting documentation, the acquirer may
provide a transaction report. When provided, the transaction report
must be accompanied by an explanation describing each element of
the report and its definition in English.
When applicable, domestic rules must be provided with supporting
documentation.

Mastercard Automated Reversal

The table shown below details the automated reversal process.
Mastercard Automated Reversal Both of the following:

Condition
• Acquirer representment supporting documentation was not
provided via Mastercom within 10 calendar days of the
representment settlement date.
• Both the issuer and the acquirer are not in Europe
Time Frame 11 calendar days from the representment settlement date
Mastercard Automated Reversal 19

Message Reason Code
Notes Mastercard will credit the issuer and debit the acquirer.
Cardholder Disputed Amount (U.S. Shared Deposits Only)

Defective/Not as Described—Intra-U.S. Region and U.S. Territories Only


The issuer may use message reason code 70 when the cardholder disputed an unauthorized
transaction performed with an EMV chip card.
Issuer Chargeback
Counterfeit Fraud
Chargeback Condition All of the following:

• The cardholder contacted the issuer alleging that the transaction was
fraudulent.
• Both the issuer and the acquirer are located in a country or region that has
adopted a domestic or intraregional chip liability shift, or that participates
in the Global Chip Liability Shift Program for interregional transactions as
shown in the below tables.
• The transaction was conducted with a counterfeit card at a magnetic stripe
reading-only ATM or POS terminal.
• The validly issued card was a hybrid card.
• The fraudulent transaction must be reported to the Fraud and Loss
Database on or before the date the chargeback is processed.

Lost, Stolen, or Never Received Fraud
Time Frame For Maestro ATM transactions: Between 5 and 90 calendar days from the
For all other transactions: Between 5 and 120 calendar days from the
Supporting Documents One of the following:

• Cardholder letter, email, message or completed Dispute Resolution Form-
Fraud (Form 412) stating both of the following: -
– Neither the cardholder nor anyone authorized by the cardholder
engaged in the transaction.
– The cardholder or another person authorized by the cardholder was in
possession and control of all valid cards issued to the account at the
time of the transaction.
• Cardholder letter, email, message or 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
verifying counterfeit.
For subsequent counterfeit transactions occurring after the account was
closed, a copy of the original cardholder letter, email, message or completed
Dispute Resolution Form-Fraud (Form 412) and the issuer’s written certification
stating the date the account was closed.
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.
A completed Dispute Resolution Form-Fraud (Form 412) must be the result of
contact with the cardholder.
Lost, Stolen, or Never Received Fraud

• The cardholder contacted the issuer alleging that the transaction was
fraudulent.
• Both the issuer and the acquirer are located in a country or region that has
adopted a domestic or intraregional chip liability shift, or that participates
in the Global Chip Liability Shift Program for interregional transactions as
shown in the below tables.
• The transaction was conducted at a magnetic stripe reading-only POS
terminal without PIN as CVM.
• The transaction was conducted with a hybrid card.
• The fraudulent transaction must be reported to the Fraud and Loss
Database on or before the date the chargeback is processed.

Chip Liability Shift Program for Domestic and Intraregional Transactions
Time Frame For Maestro ATM transactions: Between 5 and 90 calendar days from the
For all other transactions: Between 5 and 120 calendar days from the
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.
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.
A completed Dispute Resolution Form-Fraud (Form 412) must be the result of
contact with the cardholder.

The following table identifies the effective dates for the Chip Liability Shift for domestic and
intraregional transactions.

A chip liability shift in… Effective for transactions dated on or after…
Domestic Programs
Asia/Pacific
American Samoa 12 April 2019 for ATM transactions
Australia 13 April 2012 for Mastercard ATM transactions
12 April 2019 for Maestro and Cirrus ATM transactions
Bangladesh 16 October 2015 for ATM transactions

Bhutan 16 October 2015 for ATM transactions


Domestic Programs
Brunei Darussalam, 12 April 2019 for ATM transactions
Cambodia, Christmas
Island, Cocos (Keeling)
Islands, Cook Islands,
Fiji, French Polynesia,
Guam, Heard and
McDonald Islands,
Hong Kong
India 31 December 2018 for ATM transactions
Indonesia 1 January 2022 for ATM transactions
Kiribati, Lao People’s 12 April 2019 for ATM transactions
Democratic Republic,
Macao, Malaysia
Maldives 16 October 2015 for ATM transactions
Marshall Islands, 12 April 2019 for ATM transactions
Micronesia, Federated
States of, Mongolia,
Myanmar, Nauru
Nepal 18 April 2018 for ATM transactions
New Caledonia 12 April 2019 for ATM transactions
New Zealand 13 April 2012 for Mastercard ATM transactions
Niue, Norfolk Island, 12 April 2019 for ATM transactions
Northern Marianna
Islands, Palau, Papua
New Guinea,
Philippines, Pitcairn,
Samoa, Singapore,
Solomon Islands
Sri Lanka 16 October 2015 for ATM transactions
Thailand, Timor-Leste, 12 April 2019 for ATM transactions
Tokelau, Tonga,
Tuvalu, U.S. Minor
Outlying Islands,
Vanuatu, Vietnam,
Wallis and Futuna
Canada • 31 March 2011 for ATM transactions
• 31 December 2015 for Maestro POS transactions
Europe region (all countries in region) 1 January 2005 for all transactions


Domestic Programs
Latin America and the Caribbean
Argentina 16 October 2015 for all transactions
Brazil 1 March 2008 for all transactions
Colombia 1 October 2008 for all transactions
Uruguay 16 October 2015 for all transactions
Venezuela 1 July 2009 for all transactions
All other countries 17 October 2014 for all transactions
and territories
United States region (consisting of the United • 1 October 2015 for all POS transactions except
States) automated fuel dispenser transactions (MCC 5542)
• 21 October 2016 for ATM transactions
• 1 October 2020 for automated fuel dispenser
transactions (MCC 5542)
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
Bangladesh, Bhutan, Maldives, and 16 October 2015

Sri Lanka
India 31 December 2018
Indonesia 1 January 2022 for ATM
transactions
Korea, Republic of 16 October 2020 for ATM
transactions
Nepal 18 April 2018
All other countries and territories 12 April 2019 for ATM
transactions
Europe region 1 January 2005 for all transactions

Chip Liability Shift Program for Interregional 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

The following table identifies the effective dates for the Chip Liability Shift for interregional
transactions.

In this region… The following countries Effective for transactions dated on or
and territories after…
participate…
Asia/Pacific All Currently in effect for Maestro POS
transactions
Australia and New Zealand 31 December 2015 (Mastercard ATM

transactions)
Bangladesh, Bhutan, 16 October 2015 for ATM transactions

Maldives, and Sri Lanka
India 31 December 2018 for ATM transactions
Indonesia 1 January 2022 for ATM transactions
Nepal 18 April 2018 for ATM transactions

All other countries and 19 April 2013 (Maestro ATM transactions)
territories
All other countries and 20 October 2017 (Mastercard and Cirrus

territories ATM transactions)
Canada All • 31 December 2015 for Maestro POS

transactions
• Currently in effect for ATM transactions
Europe All Currently in effect for all transactions

Improper Use for Issuer Chargeback

In this region… The following countries Effective for transactions dated on or
and territories after…
participate…
Latin America and the All Currently in effect for Maestro POS
Caribbean transactions
Mexico 1 September 2014 for all transactions
Puerto Rico and U.S. Virgin • 19 April 2013 for Maestro ATM
Islands transactions
• 21 October 2016 for Mastercard and
Cirrus ATM transactions
All other countries and • 18 October 2013 for Mastercard ATM

territories transactions
• Currently in effect for Maestro and
Middle East/Africa All Currently in effect for all transactions
United States All • 19 April 2013 for Maestro ATM

transactions
• 1 October 2015 for all Maestro POS
transactions except automated fuel
dispenser transactions (MCC 5542)
• 21 October 2016 for Mastercard and
• 1 October 2017 for Maestro POS
automated fuel dispenser transactions
(MCC 5542)

The issuer must not initiate a chargeback using reason code 70 when one of the following:
• The transaction was a properly identified Mastercard Consumer-Presented Quick Response
(QR) transaction. Refer to Appendix F for Mastercard Consumer-Presented QR transactions
identification requirements.
• Fraud Notification Service alert
– 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 reason code 70 or 74.
– The issuer submitted more than 15 chargebacks involving the same account (as defined
above) for reason code 70 or 74.
• The issuer is currently listed a Mastercard Announcement as limited to seven chargebacks
involving the same card account (for this purpose, ‘account” means PAN, or PAN and

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
• 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.

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 with 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 Financial Transaction Request/0200 message, as described in
the Single Message System Specifications manual.


reason code.
Second Presentment Condition One of the following:

• The card is not a hybrid card (meaning the service code is not 2xx
or 6xx)
• The issuer previously charged back two or more transactions
involving the same card account prior to the authorization
approval date of the disputed transaction for reason code 70 or
74
• The issuer previously charged back more than 15 transactions
involving the same card account for reason code 70 or 74
• 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.
• A hybrid card was used at a hybrid POS terminal and the
transaction was properly identified as fallback
• 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 Global Chip
Liability Shift for interregional transactions
• On the chargeback date, the issuer was listed a Mastercard
Announcement as limited to seven chargebacks involving the
same card account for reason code 70 or 74 and the FNS
chargeback counter value exceeds seven
• The chargeback was invalid.

Reason Code
Supporting Documents An explanation and documentation supporting the Second

Presentment Condition.

Supporting documentation must be provided within 10 calendar days
of the chargeback settlement date.


The issuer may use message reason code 71 when the cardholder contacted the issuer
alleging that the cardholder was billed an incorrect amount.
Issuer Chargeback
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.
date

Code

reason code.

• The acquirer can provide evidence that the amount debited from
the cardholder’s account was correct.

Reason Code
Supporting Documents The merchant’s explanation and documentation supporting the

Second Presentment Condition.




Condition

Message Reason Code
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
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.
date

Code

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.

reason code.

• The acquirer can provide evidence to support two separate
transactions, or proof that a credit was issued.
Time Frame 45 calendar days from the transaction settlement date

Reason Code



Condition

Message Reason Code

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
Chargeback Condition One of the following:

• The transaction is a contactless transaction that exceeds the
applicable contactless CVM limit and was completed without
successful online PIN verification or on-device cardholder
verification.
• The UCAF collection indicator in DE 48 (Additional Data),
subelement 42 (Electronic Commerce Indicators), Subfield 1
(Electronic Commerce Security Level Indicator and UCAF
Collection Indicator, position 3 (UCAF Collection Indicator)
contains a value of zero.
• The UCAF data in DE 48 (Additional Data), subelement 43 (Static
AAV for Maestro or Mastercard Advance Registration Program),
position 1 contained a value of 3 (Transaction processed under the
Maestro Advance Registration Program).
• The Remote Payments Program Type value in DE 48 (Additional
Data), subelement 48 (Mobile Program Indicators), subfield 1
(Remote Payments Program Type Identifier) contains a value of 2
(Acquirer domain).
• The transaction is an intra-Brazil contactless magnetic stripe
transaction that exceeds BRL 50 and online PIN was not the CVM.
DE 22 (Point of Service Entry Mode), subfield 1 (POS Terminal PAN
Entry Mode) contained a value of 91 and DE 61 (Point of Service
[POS] Data), subfield 11 (POS Card Data Terminal Input Capability
Indicator) contained a value of 3 or 4.
date

Code
Notes This message reason code must not be used for Mastercard
Consumer-Presented Quick Response (QR) transactions.


reason code.
Second Presentment One of the following conditions is met:

Condition • The transaction was approved and PIN was the CVM
• Fraud Notification Service (FNS): The issuer previously charged back
two or more transactions involving the same card account prior to the
authorization approval date of the disputed transaction for reason
code 70 or 74
• FNS: The issuer previously charged back more than 15 transactions
involving the same card account for reason code 70 or 74
• The issuer did not properly report the transaction to the Fraud and
Loss Database on or before the chargeback date
• On the chargeback date, the issuer was listed a Mastercard
Announcement as limited to seven chargebacks involving the same
card account for reason code 70 or 74 and the FNS chargeback
counter value exceeds seven.
• The merchant was located in a signature waiver country as defined in
the Transaction Processing Rules manual, chapter 3—Acceptance
Procedures, section Merchant Acceptance Procedures, subsection
Maestro Cardholder Verification-PIN and Signature Requirements and
can provide a cardholder signed transaction receipt.
• 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 any subsequent transaction for related partial
shipment or recurring payment occurred. Refer to Appendix F for
Digital Secure Remote Payment transaction identification
requirements.
• The acquirer determines the chargeback is otherwise invalid.

Reason Code
Supporting Documents The merchant’s explanation and documentation supporting the Second




Condition

Message Reason Code
Credit Not Received

The issuer may use reason code 75 to dispute one of the following:
• An account was not credited.
• An account was debited instead of credited.
Issuer Chargeback
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.
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.

Code

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.

reason code.
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.

Reason Code




Condition


Message Reason Code

The issuer may use reason code 79 when the cardholder claims goods or services were not
received.
Issuer Chargeback
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


This message reason code must not be used when the merchant was willing and
able to provide the goods or services and the cardholder refused to accept the
goods or services.
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.

reason code.
• 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.

Reason Code




Condition

Late Presentment

Message Reason Code
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
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
Reason Code
Notes None

reason code.
• The transaction date is within the seven-calendar-day time limit.
• The cardholder’s account is open.


Reason Code




Condition

Message Reason Code
Invalid Adjustment—Account Closed

An issuer may use message reason code 95 to chargeback an invalid adjustment when the
account is closed.
Issuer Chargeback
Chargeback Condition Both of the following:

• The account is closed.
• The acquirer’s adjustment must have been processed between 11
and 45 calendar days after the transaction settlement date.
Time Frame Between 1 and 20 calendar days after the adjustment settlement
date.

Code

Notes None

Representment is not available for this message reason code.
Invalid Adjustment—Insufficient Funds

An issuer may use message reason code 96 to chargeback an invalid adjustment when the
account has insufficient funds.
Issuer Chargeback

• The account does not have sufficient funds.
• The acquirer’s adjustment must have been processed between 11
and 45 calendar days after the transaction settlement date.
date.

Code
Notes None


Arbitration Case Filing-For Chargebacks Initiated On or Before 16 July 2020
Chapter 5 Arbitration Case Filing-For Chargebacks

Initiated On or Before 16 July 2020
This chapter is for chargebacks initiated on or before 16 July 2020, and provides the
procedures that Customers must follow when filing and managing an arbitration case.
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
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 >
Time Frames and Requirements

The following table describes the conditions, time frames and requirements to file an
arbitration case.
Condition One of the following:

• The chargeback cycles have been completed and 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.
Time Frame 45 calendar days from the Central Site Business Date of the last applicable chargeback
cycle.

Supporting When the acquirer is the Filing Customer:

Documentation
• When all previously provided Supporting Documentation (as described in the
individual reason codes within the Dual Message System Chargebacks chapter) is
shown as being linked to the case: None
When all previously provided Supporting Documentation (as described in the
individual reason codes within the Dual Message System Chargebacks chapter) is
not shown as being linked to the case: A thorough description of the circumstances
of the case in chronological order and all previously provided Supporting
Documentation.
• When Supporting Documentation (as described in the individual reason codes
within the Dual Message System Chargebacks chapter) has been provided for the
first time in the last chargeback cycle as allowed by the individual chargeback
reason code: The Filing Customer may address the new Supporting Documentation
and provide any new applicable Supporting Documentation.
When the issuer is the Filing Customer:
• 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.
• When the SMS Case Filing box is checked in the Mastercom Case Filing application:
a completed Dispute Resolution Management Case Filing Form-SMS Linked Case
Filing (Form 682a)
• In addition:
– For cases involving 53-Defective/Not as Described—Intra-U.S. Region and
U.S. Territories Only, refer to the Domestic Chargeback appendix.
– For cases involving 71-Transaction Amount Differs the following must also be
included:
– The cardholder letter, email, message or completed Dispute Resolution Form
—Point-of-Interaction (POI) Errors (Form 1240) stating the cardholder’s
account has been debited for one of the following:
– An amount that is different from the original purchase amount
– 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:


—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
– For cases involving 79-Goods or Services Not Provided the following must
also be included:
—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.
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.

Mastercard Review Process

Mastercard will wait to rule on a case until one of the following occurs:
• 10 calendar days from the case filing submission date has passed
• The Filed-Against Customer rejects the case filing within Mastercom
Mastercard will decline to rule on a case when the Filing Customer did not follow all filing
requirements. Examples of incorrect filing include but are not limited to:
• The case has insufficient documentation to enable Mastercard to rule on the case and
assign responsibility for the disputed amount.
• The case was filed 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:
When Dispute Resolution Management declines to rule on a case, the Filing Customer is
responsible for the following Filing fees:

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:
– Administrative Fee:
– Technical Violation Fee per violation of the dispute processing rules:
• The Customer not found responsible for the case may be responsible for a Technical
Violation Fee per violation of the dispute processing rules:
Mastercard will assess the Customer requesting an appeal the following fee:
Dispute Administration Fee (DAF)

• For Intra-European and Inter-European ATM and Maestro transactions: The issuer may
collect 45 EUR from the acquirer (30 EUR net) within 45 calendar days of an acquirer
accepting a pre-arbitration or arbitration case or Mastercard ruling in favor of the issuer.
• For Intra-European and Inter-European Mastercard POS transactions: The acquirer may
collect 60 EUR from the issuer (30 EUR net) within 45 calendar days of an issuer accepting
a pre-arbitration or arbitration case or Mastercard ruling in favor the acquirer.
• The DAF does not apply when the transaction is coded with MCC 5499, 5735, 5815,
5816, 7311, or 7399.
• The DAF may be collected using a miscellaneous Fee Collection/1740-700 message with
reason code 7606. DE 72 (Data Record) of the fee collection message must contain
“NNNNNN —COLLECTION OF DAF.” NNNNNN must be replaced with the 7-digit case
identification number.
• When the fee was debited unduly, meaning the acquirer collects the DAF with a second
impacted party using the miscellaneous Fee Collection/1740-700 message1740-700 with
reason code 7606. This fee collection message must be sent within 45 days after the
dispute message was sent which unduly triggered the DAF. DE 72 (Data Record) of the fee
collection message must contain the “NNNNNNNNNN —COLLECTION OF DAF.”
NNNNNNNNNN must be replaced with the 10 digit chargeback reference number.

Intra-European and Inter-European Domestic Disputes

The following sections provide information on intra-European and inter-European disputes.
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.

Third Party Processed Disputes (Europe Only)

The following sections provide information on arbitration of disputes relating to Intra-EEA
transactions or transactions between an EEA country and the United Kingdom that were not
processed through Mastercard.
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.
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
How to File an Appeal

An appeal:

Appeal Review Process
• May only be submitted by a Customer involved in the case.

• Must include a detailed explanation of why the Customer believes the Mastercard decision
should be reconsidered. An appeal may include documentation supporting an overturn of
the original decision. However, no new facts will be considered in an appeal unless, and
then only to the extent, requested by the Chief Franchise Officer.
• Must be a printed document signed by the Customer’s Principal contact as detailed in
Member Info—Mastercard or Member Information—Cirrus/Maestro on Mastercard
Connect™.
• Must be sent at the same time by postal mail or courier (whichever delivery method best
provides prompt delivery) to Mastercard and the other Customer involved in the case as
described below:
Mastercard International, Incorporated

ATTN: Chief Franchise Officer
2000 Purchase Street
Purchase, NY 10577–2509
USA

Vice President, Dispute Resolution Management
2200 Mastercard Boulevard
O’Fallon, MO 63368-7263
USA
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

An appeal not compliant with these rules or otherwise submitted improperly will be rejected.
The Chief Franchise Officer of Mastercard will review each properly filed appeal.
The Chief Franchise Officer may take such action as he or she deems necessary or appropriate
or may elect not to act.
The Chief Franchise Officer may delegate authority to act or not to act with respect to any
particular appeal matter or type of appeal matter. If the Chief Franchise Officer or his or her
designee elects to conduct further inquiry into the matter, each Customer must cooperate

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.

Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020
Chapter 6 Pre-Arbitration and Arbitration Case Filing-For

Chargebacks Initiated On or After 17 July 2020
This chapter is for chargebacks initiated on or after 17 July 2020, and provides the procedures
that Customers must follow when filing and managing an arbitration case.
Overview.................................................................................................................................... 381
Mastercom................................................................................................................................. 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
Cardholder Dispute............................................................................................................395
Cardholder Reasserts Their Claim.................................................................................. 395
Change of Reason within the Cardholder Dispute Chargeback...................................... 414
Change of Reason within the Cardholder Dispute Chargeback...................................... 417
No Cardholder Authorization............................................................................................. 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
Change of Chargeback Reason to an Questionable Merchant Chargeback.................... 460

Chip Liability Shift..............................................................................................................462

Chip Liability - Lost/Stolen/Never Received Issue (NRI) Fraud............................................... 469
Point-of-Interaction Error................................................................................................... 475
Transaction Amount Differs (Gratuity Disputes Only)......................................................475
ATM Disputes................................................................................................................478
ATM Dispute-Required Second Presentment Supporting Documentation Not Received
(Europe Issuers only)......................................................................................................480
Change of Chargeback Reason to a Point-of-Interaction (POI) Error Chargeback............496
Fees............................................................................................................................................ 499
Intra-European and Inter-European Domestic Disputes................................................................ 500
Third Party Processed Disputes (Europe Only)...............................................................................501
Appeals...................................................................................................................................... 502
Time Frames...........................................................................................................................502

Overview
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.

The following tables describe the conditions, time frames and documentation necessary to file
a pre-arbitration case (when required) and an arbitration case.
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. This means that extra days are not allowed
when an optional pre-arbitration case is filed. For example, if an issuer chooses to file a pre-

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.

Single Message System Arbitration Case Filing

This section describes the process for filing, and responding to, an arbitration case in the
single message system.

Issuer Submission of an Arbitration Case

An issuer may submit an arbitration case when:
• The chargeback was valid
• The second presentment failed to remedy the dispute
An 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 arbitration case between 0 and 45 calendar days of the second presentment.
• 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 10 calendar days for the supporting documentation before filing the arbitration
case.
When second presentment supporting documentation is provided earlier than 10 calendar days from the
Central Site Business Date of the second presentment, the issuer may file the arbitration case as soon as
the second presentment supporting document is received.
Mastercard will consider the arbitration case invalid if the issuer files an 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 an arbitration
case filing. If the second presentment supporting documentation is received after the “protected” 10
calendar day time frame and on the same day as the arbitration case filing, Mastercard will not consider
the second presentment supporting documentation.
Sender Memo.
The issuer must include in the Sender Memo field within the Mastercom Case Filing Application the reason
for the filing. For example: “71-Transaction Amount Differs” or similar phrase describing the dispute.
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.
When the SMS Case Filing box is checked in the Mastercom Case Filing Application: a completed Dispute
Resolution Management Case Filing Form—SMS Linked Case Filing (Form 682a)
Regardless of whether or not the SMS Case Filing box is checked, the following information must be
provided as applicable.
For cases involving 53-Defective/Not as Described—Intra-U.S. Region and U.S. Territories Only, the
requirements in the Dual Message System Pre-Arbitration and Arbitration Case Filing, Cardholder Dispute
section later in this chapter apply.
For cases involving 71-Transaction Amount Differs the following must also be included:
• The cardholder letter, email, message or completed Dispute Resolution Form—Point-of-Interaction (POI)
Errors (Form 1240) stating the cardholder’s account has been debited for one of the following:
– An amount that is different from the original purchase amount

– 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
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.
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.
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 filing
date. Mastercard will not consider any information provided in arbitration that was required (but not
provided) in second presentment.
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

Dual Message System Pre-Arbitration and Arbitration Case Filing
Dual Message System Pre-Arbitration and Arbitration Case Filing

This section describes the process for filing, and responding to, pre-arbitration and arbitration
cases in the dual message system.
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.
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.


An issuer may submit an arbitration case when:
• The original chargeback was valid
• The second presentment failed to remedy the dispute
An arbitration case must be filed within 45 calendar days of the second presentment with the
• 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 arbitration case between 0 and 45 calendar days of the
second presentment.
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 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 arbitration
case as soon as the second presentment supporting document is received.
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 arbitration case filing,
Mastercard will not consider the second presentment supporting documentation.
Sender Memo.
The issuer must include in the Sender Memo field within the Mastercom Case Filing Application that
the reason for the filing is “Authorization-related” (or similar phrase), “08”, or “4808”. One of the
following codes may be used, however, they will eventually be eliminated: ”07”, “12”, ”4807”, or
“4812”.
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.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid. The
reason is either typed into the Sender Memo field or included in Supporting Documentation within
the Mastercom Case Filing Application.
Mastercard will not consider any Supporting Documentation provided in the arbitration case filing that
was required (but not provided) in the chargeback, second presentment, or pre-arbitration case filing.
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 Received with Second Presentment was Illegible or Scanning Error
Documentation must be manually attached into the Mastercom Case Filing Application at the time the
case is filed.

• 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/or any relevant documentation that specifically
addresses the information contained in the arbitration case filing within 10 calendar days of the
arbitration case filing date. Mastercard will not consider any information provided in arbitration
that was required (but not provided) in the second presentment.
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.

issuer claims that the second presentment documentation was illegible.



An issuer may submit an arbitration case within 45 calendar days from the Central Site Business Date of the
second presentment when all of the following occurred:
• The second presentment required Supporting Documentation
• The second presentment Supporting Documentation was illegible (meaning blank or unreadable pages)
Sender Memo.
The issuer must include in the Sender Memo field within the Mastercom Case Filing Application that the
reason for the filing is “Documentation Illegible”, “Scanning error”, “4902”, “4903”, or similar phrase
describing the issue.
required (but not provided) in the chargeback, second presentment, or pre-arbitration case filing.
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.

• Reject the arbitration case with a rebuttal and/or any relevant documentation that specifically addresses
the information contained in the arbitration case filing within 10 calendar days of the arbitration case
filing date. Mastercard will not consider any information provided in arbitration that was required (but
not provided) in the second presentment.

Required Documentation Not Received to Support Second Presentment

issuer claims that the second presentment documentation was not received.


An issuer may submit an arbitration case when both of the following occurred:
• The second presentment required Supporting Documentation and was not provided
• When documentation will not be provided as indicated by the second presentment supporting
documentation indicator code of 0, the arbitration case must be filed between 0 and 45 calendar
days of the second presentment.
• When second presentment supporting documentation will be provided, an issuer must wait at
least eight calendar days before filing the arbitration case. This means when the second
presentment supporting documentation indicator code is a 1, the arbitration case must be filed
between nine and 45 calendar days from the Central Site Business Date of the second
presentment.
arbitration case filing. Should the second presentment supporting document be received after the
“protected” eight day timeframe and on the same day as the arbitration case filing, Mastercard
will not consider the second presentment supporting documentation.
Mastercard will consider the arbitration invalid if the issuer files an arbitration case before the
Sender Memo.
the reason for the filing is “Required Documentation Not Received to Support Second Presentment”,
“4901”, or similar phrase describing the issue.
Mastercard will not consider any Supporting Documentation provided in the arbitration case filing that
was required (but not provided) in the chargeback, second presentment, or pre-arbitration case filing.
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.

Acquirer Response to an Arbitration Case

• Reject the arbitration case with a rebuttal and any relevant documentation that specifically
arbitration case escalation date. Mastercard will not consider any information provided in
arbitration that was required (but not provided) in second presentment.
Once the arbitration case is rejected, the case will then be available for Mastercard review as
described in the Mastercard Review Process section later in this chapter.
reject the arbitration case and the case will then be available for Mastercard review as described in.

second presentment claimed the Acquirer Reference Data (ARD) was invalid.
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.


An issuer may submit an arbitration case when all of the following occurred:
• The original chargeback was valid.
• The second presentment claimed the Acquirer Reference Data (ARD) in the original chargeback
was invalid.
• The Acquirer Reference Data (ARD) in the original chargeback was valid.
presentment.
Sender Memo.
the reason for the filing is “CORRECT REFERENCE NUMBER SUPPLIED” or similar phrase describing the
issue.
Documentation.
• When the issuer’s chargeback didn’t include the ARD present in the first presentment: The issuer
must provide the correct ARD.
• When the issuer’s chargeback included the ARD present in the chargeback: The issuer must provide
a copy of the first presentment as Supporting Documentation.
Documentation.
If the issuer escalates to an arbitration case, Mastercard will not consider any Supporting
Documentation provided in the arbitration that was required (but not provided) in the chargeback.

case is filed.

arbitration that was required (but not provided) in second presentment or pre-arbitration.

Cardholder Dispute
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.

Issuer Submission of a Pre-Arbitration Case

An issuer may submit a pre-arbitration case when both of the following occurred:
• The original Cardholder Dispute 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 both of the following timeframes:
• Within 45 calendar days of the second presentment
• At least 30 calendar days prior to escalating to an arbitration case.
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).
In addition:
the issuer must file the pre-arbitration case between 0 and 45 calendar days of the second presentment.
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
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Cardholder Dispute” (or
similar phrase), “53”, or “4853”. One of the following codes may be used, however, they will eventually be
eliminated: “41”, “55”, “59”, “60”, “4841”, “4855”, “4859”, or “4860”.
The issuer must include the reason why the issuer believes the Second Presentment to be invalid in either
A new cardholder letter, email, message, or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) dated after the second presentment and specifically addressing the merchant’s
rebuttal provided with the second presentment.
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-

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: ipinquiries@mastercard.com.
• 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)
A request for reimbursement from a bonding authority or similar scheme is not required for Swedish
domestic transactions.

Acquirer Response to a Pre-arbitration Case

An acquirer may take one of the following actions in response to receiving a pre-arbitration case filing:
• Accept the pre-arbitration case and thereby financial responsibility for the disputed transaction.
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. After 30 calendar days the Mastercom Case Filing Application will automatically reject
the pre-arbitration case to the issuer for review and possible escalation to an arbitration case filing.
• Reject the pre-arbitration case with a rebuttal and any relevant documentation.
The acquirer should include the reason why the acquirer believes the pre-arbitration case filing to be
invalid in either the Receiver Memo field within the Mastercom Case Filing Application or as Supporting
Documentation.
Rejecting the case must occur within 30 calendar days of the date the pre-arbitration case was submitted
into the Mastercom Case Filing Application.
The acquirer may reject the pre-arbitration case for one of the following reasons:
– The chargeback was invalid
– The second presentment remedied the chargeback. An example includes, but is not limited to, a
credit was processed by the merchant before the second presentment and that credit was
documented in the second presentment.
– The pre-arbitration case was invalid. Examples include, but are not limited to, improper Supporting
Documentation, the issuer submitted the pre-arbitration case before the applicable second
presentment supporting documentation time frame expired, the issuer submitted the pre-arbitration
case before the applicable second presentment supporting documentation time frame expired, or the
issuer submitted the pre-arbitration case beyond the applicable time frame which did not provide the
acquirer with 30 calendar days to respond.
– The merchant has a rebuttal that specifically addresses the Supporting Documentation provided in
the pre-arbitration case and, when applicable, documentation.
If the issuer escalates the pre-arbitration to an arbitration case, Mastercard will not consider any
Supporting Documentation provided in the pre-arbitration response that was required (but not provided)
in the second presentment.
Issuer Submission of an Arbitration Case.

An issuer may escalate the pre-arbitration to an arbitration case when the issuer continues to believe the
chargeback is valid and the acquirer failed to remedy the pre-arbitration case. The issuer should provide a
rebuttal and any relevant documentation in support of that rebuttal. Any rebuttal and documentation must
be provided within 10 calendar days of escalation.
Mastercard will not consider any information provided in arbitration that was required (but not provided) in
the chargeback or pre-arbitration.
Escalation must occur within 75 calendar days from the second presentment Central Site Business Date. If
the issuer does not escalate by the 75th calendar day from the second presentment Central Site Business
Date the issuer will have accepted the financial responsibility for the disputed transaction.
The Mastercom Case Filing Application will allow the issuer to withdraw the arbitration case at any time


provided) in the second presentment or pre-arbitration.


applicable, an arbitration case when the issuer believes the second presentment did not
remedy the chargeback.

Issuer Submission of a Pre-Arbitration Case.

An issuer may submit a pre-arbitration case when all of the following:
• The original Cardholder Dispute chargeback was valid
• The second presentment supporting documentation failed to remedy the Cardholder Dispute chargeback
In addition:
issuer must wait at least eight calendar days for the supporting documentation before filing the
prearbitration case.
• When second presentment supporting documentation is provided earlier than eight calendar days from
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
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Cardholder Dispute” (or
similar phrase), “53”, “4853”. One of the following codes may be used, however, they will eventually be
eliminated: “41”, “55”, “59”, “60”, “4841”, “4855”, “4859”, or “4860”.

Acquirer Response to a Pre-arbitration Case.

Documentation.
documented in the second presentment





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 required second presentment
documentation was illegible.

An issuer may submit a pre-arbitration case within 45 calendar days from the Central Site Business Date of
the second presentment and at least 30 calendar days prior to escalating to an arbitration case when all of
the following:
Sender Memo.
Filing Application.
Acquirer Response to a Pre-Arbitration Case.

• Reject the pre-arbitration with a legible copy of the Supporting Documentation previously provided in
the Second Presentment. New documentation must not be provided. Rejecting the case must occur
within 30 calendar days of the date the pre-arbitration case was submitted into the Mastercom Case
Filing Application.



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 case is rejected, the case will then be available for Mastercard review as described in



• Supporting Documentation was not received to support the second presentment within eight
calendar days of the Central Site Business Date of the second presentment
• At least 30 calendar days prior to escalating to an arbitration case
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
In addition:
not required), the issuer must file the pre-arbitration case between 0 and 45 calendar days of the
second presentment.
filing the pre-arbitration case.
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.
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

Acquirer Response to a Pre-Arbitration Case.

When the chargeback was valid, the acquirer should accept the pre-arbitration case when the
acquirer didn’t provide second presentment Supporting Documentation before the pre-arbitration
case was submitted.
Should the issuer escalate the pre-arbitration to an arbitration case, Mastercard will find the
acquirer responsible for the disputed amount as well as any fines and fees.
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. After 30 calendar days the Mastercom Case Filing Application will automatically
reject the pre-arbitration case to the issuer for review and possible escalation to an arbitration case
filing.
• Reject the pre-arbitration with a legible copy of the Supporting Documentation previously
provided in the Second Presentment. New documentation must not be provided. Rejecting the
case must occur within 30 calendar days of the date the pre-arbitration case was submitted into
When the chargeback was invalid, the acquirer may reject a pre-arbitration case with a rebuttal
and any relevant documentation.

An issuer may escalate the pre-arbitration to an arbitration case when the issuer continues to believe
the chargeback is valid and the acquirer failed to remedy the pre-arbitration case. The issuer should
provide a rebuttal and any relevant documentation in support of that rebuttal. Any rebuttal and
documentation must be provided within 10 calendar days of escalation.
Mastercard will not consider any information provided in arbitration that was required (but not
provided) in the chargeback or pre-arbitration.
Escalation must occur within 75 calendar days from the second presentment Central Site Business
Date. If the issuer does not escalate by the 75th calendar day from the second presentment Central
Site Business Date the issuer will have accepted the financial responsibility for the disputed
transaction.
The Mastercom Case Filing Application will allow the issuer to withdraw the arbitration case at any






An issuer may submit a pre-arbitration case when all of the following conditions are met.
was invalid.
A pre-arbitration case must be filed within 45 calendar days of the second presentment with the
second presentment.
from the Central Site Business Date of the second presentment, the issuer may file the
prearbitration case as soon as the second presentment supporting document is received.
Sender Memo.
issue.
Documentation.
• When the issuer’s chargeback included the ARD present in the first chargeback: The issuer must
provide a copy of the first presentment as Supporting Documentation.
Documentation.
Supporting Documentation provided in the pre-arbitration that was required (but not provided) in the
chargeback.

pre-arbitration case filing at the time the case is filed. This means entering the chargeback reference
case is filed.
Acquirer Response to a Pre-arbitration Case

Accepting the case must occur within 30 calendar days of the date the pre-arbitration case was
submitted into the Mastercom Case Filing Application.
filing.
• Reject the pre-arbitration with a rebuttal and any relevant documentation.
The acquirer should include the reason why the acquirer believes the pre-arbitration case filing to
be invalid in either the Receiver Memo field within the Mastercom Case Filing Application or as
Rejecting the case must occur within 30 calendar days of the date the pre-arbitration case was
– The chargeback was invalid.
– The second presentment remedied the chargeback. An example includes, but is not limited to,
a credit was processed by the merchant before the second presentment and that credit was
– The pre-arbitration case was invalid. Examples include, but are not limited to, improper
Supporting Documentation, the issuer submitted the pre-arbitration case before the applicable
second presentment supporting documentation time frame expired, or the issuer submitted the
pre-arbitration case beyond the applicable time frame which did not provide the acquirer with
30 calendar days to respond.
– The merchant has a rebuttal that specifically addresses the Supporting Documentation provided
in the pre-arbitration case and, when applicable, documentation.
Supporting Documentation provided in the pre-arbitration response that was required (but not
provided) in the second presentment.


transaction.


Change of Reason within the Cardholder Dispute Chargeback

This section describes the process for changing the reason for the cardholder dispute through
the pre-arbitration and arbitration process.
Issuer Pre-Arbitration Case Submission.

An issuer must submit a pre-arbitration case when the issuer is changing the reason for the dispute
from one aspect of a Cardholder Dispute to another. For example, the original chargeback claims the
goods were not received, however during the course of the dispute the goods arrived damaged.
In order to change the reason for a dispute all of the following must occur:
• The Second Presentment remedied the original chargeback and identified that another Cardholder
Dispute reason is available and meets the conditions as described in Chapter 3-Dual Message
System Chargebacks-Chargebacks Initiated On or After 17 July 2020.
• A pre-arbitration case must be filed within both of the following timeframes:
– Within 45 calendar days of the second presentment
– At least 30 calendar days prior to escalating to an arbitration case.
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).
• The issuer must provide the supporting documentation required for the new Cardholder Dispute
reason.
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 Sender Memo tab of the Mastercom Case Filing Application must include all of the following:
– The text “Change of Reason”
– One of the following: “Cardholder Dispute” (or similar phrase), ”53”, or ”4853”.
One of the following codes may be used, however, they will eventually be eliminated: “41”,
“55”, “59”, “60”, “4841”, “4855”, “4859”, or “4860”.
• When the Cardholder Dispute chargeback requires DE 72 (Data Record) text or when optional DE
72 (Data Record) text is being provided, the DE 72 text must be provided in either the Sender
Memo tab of the Mastercom Case Filing Application or as Supporting Documentation.


filing.
– The original chargeback was invalid
– The second presentment remedied the original chargeback and did not identify a valid
Cardholder Dispute chargeback as being available.

the original chargeback and the Cardholder Dispute change of reason chargeback are both valid and
the acquirer failed to remedy the pre-arbitration case within 30 calendar days. The issuer should
transaction.




This section describes the process for changing the reason for the cardholder dispute through
the pre-arbitration and arbitration process.

from one aspect of a Cardholder Dispute to another. For example, the original chargeback claims the
goods were not received, however during the course of the dispute the goods arrived damaged.
• The Second Presentment remedied the original chargeback and identified that another Cardholder
Dispute reason is available and meets the conditions as described in Chapter 3-Dual Message
System Chargebacks-Chargebacks Initiated On or After 17 July 2020.
• The issuer must provide the supporting documentation required for the new Cardholder Dispute
reason.
• The Sender Memo tab of the Mastercom Case Filing Application must include all of the following:
– The text “Change of Reason”
– One of the following: “Cardholder Dispute” (or similar phrase), ”53”, or ”4853”.
One of the following codes may be used, however, they will eventually be eliminated: “41”,
“55”, “59”, “60”, “4841”, “4855”, “4859”, or “4860”.
• When the Cardholder Dispute chargeback requires DE 72 (Data Record) text or when optional DE
72 (Data Record) text is being provided, the DE 72 text must be provided in either the Sender
Memo tab of the Mastercom Case Filing Application or as Supporting Documentation.


filing.
– The second presentment remedied the original chargeback and did not identify a valid
Cardholder Dispute chargeback as being available.

the original chargeback and the Cardholder Dispute change of reason chargeback are both valid and
the acquirer failed to remedy the pre-arbitration case within 30 calendar days. The issuer should
transaction.



This section describes the process for continuing a No Cardholder Authorization dispute after
the chargeback cycles have completed.


– The Second Presentment Supporting Documentation failed to remedy the No Cardholder
Authorization chargeback.
– The Second Presentment Supporting Documentation was reviewed by the cardholder and the
cardholder reasserts the disputed transaction is fraudulent
In addition:
prearbitration case.
Sender Memo.
The issuer must include in the Sender Memo field within the Case Filing application that the reason for the
filing is “No Cardholder Authorization”, “4837”, or similar phrase describing the issue.


Documentation.
Documentation provided in the pre-arbitration response that was required (but not provided) in the second
presentment.

Compelling Evidence for Airline, Recurring, E-Commerce, and MO/TO Transactions



applicable, an arbitration case when the issuer provided the compelling evidence provided as
second presentment supporting documentation to the cardholder, the cardholder reviewed
that information, and the cardholder reasserts fraud.
Pre-arbitration case filing is not available when the acquirer provided compelling evidence
documenting authentication of the cardholder using SecureCode at the start of a recurring
transaction arrangement. In this case, the issuer may consider disputing the transaction as a
Cardholder Dispute.


An issuer may submit a pre-arbitration case when all of the following occurred:
• The original No Cardholder Authorization chargeback was valid
• SecureCode was not used to initiate the transaction
Authorization Chargeback
In addition:
arbitration case.
Sender Memo.
reason for the filing is “No Cardholder Authorization”, “4837”, or similar phrase describing the issue.
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 issuer listed the account number on the Mastercard Stand-in Account File with a “capture card”
response until card expiration

Acquirer Responses to a Pre-arbitration Case.

Documentation.
presentment supporting documentation time frame expired, or the issuer submitted the pre-
arbitration case beyond the applicable time frame which did not provide the acquirer with 30
calendar days to respond.


Addendum Disputes

Addendum Disputes
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.

Addendum Disputes

• The original No Cardholder Authorization chargeback was valid
• The cardholder reviewed the information provided by the merchant in the second presentment
• The cardholder reasserts the disputed transaction is fraudulent.
When the cardholder asserts the original transaction was not fraudulent and the cardholder is
disputing the addendum transaction for reasons other than fraud, the issuer must follow the pre-
arbitration and arbitration process described in the Cardholder Dispute or Point-of-Interaction Error
sections of this chapter.
– The original transaction was key-entered, and the original rental agreement or hotel folio was
not provided in the second presentment.
– The acquirer failed to provide proof in the second presentment that the transaction was
completed as described in the Transaction Processing Rules, section 3.12 Charges for Loss,
Theft, or Damage-Mastercard POS Transactions Only.
• Within 45 calendar days of the second presentment.
In addition:
second presentment.
• When second presentment supporting documentation is provided earlier than eight calendar days
Mastercard will consider the pre-arbitration case invalid if the issuer files a pre-arbitration case before
The issuer must accept supporting documentation as long as the issuer has not processed a pre-
“protected” eight calendar day time frame and on the same day as the pre-arbitration case filing,
Sender Memo.

Addendum Disputes
the reason for the filing is “No Cardholder Authorization”, “4837”, or similar phrase describing the
issue.
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.
occur before filing the pre-arbitration case:
Documentation.
chargeback.
case is filed.

Addendum Disputes

An acquirer may take one of the following actions in response to receiving a Pre-arbitration case filing:
filing.
second presentment supporting documentation time frame expired, or the issuer submits the

Addendum Disputes

transaction.


Address Verification Services (AVS) Transaction

applicable, an arbitration case when the issuer believes the second presentment with AVS
information did not remedy the chargeback.


• The Second Presentment Supporting Documentation failed to remedy the dispute
• The cardholder reviewed the information provided in the second presentment
• The cardholder reasserts the disputed transaction is fraudulent
• For invalid AVS: The issuer reviewed the AVS information from the second presentment and one
of the following:
– Denies that a positive AVS was given
– Denies the merchandise was sent to the AVS-confirmed address
• For confirmed AVS: Both of the following:
– The cardholder continues to dispute an AVS-confirmed transaction
– The issuer confirmed that the AVS-confirmed address belonged to the legitimate cardholder at
the time of the authorization
In addition:
second presentment.
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.
Sender Memo.
The issuer must include in the Sender Memo field within the Mastercom Case Filing Application:

• 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
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.
occur before filing the pre-arbitration case:
card” response until card expiration
Documentation.
chargeback.
case is filed.


filing.

transaction.


• Take no action After 10 calendar days, the Mastercom Case Filing Application will automatically


applicable, an arbitration case when the issuer believes the second presentment for
Guaranteed Reservation Service (“No-show”) did not remedy the chargeback.


Authorization Chargeback.
cardholder reasserts the disputed transaction is fraudulent.
In addition:
second presentment.
Sender Memo.
the reason for the filing is “No Cardholder Authorization” “4837”, or similar phrase describing the
issue.
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.
• 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).
Documentation.
chargeback.
case is filed.


filing.
– The original chargeback was invalid.

transaction.



New Merchant Location

applicable, an arbitration case when the issuer believes the second presentment with new
merchant location information did not remedy the chargeback.


• New information regarding the merchant location was provided in the second presentment.
Authorization chargeback. For example: new information regarding the transaction date or
merchant name is not a valid second presentment.
In addition:
second presentment.
Sender Memo.
the reason for the filing is “No Cardholder Authorization” “4837”, or similar phrase describing the
issue.
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, 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.
Documentation.
Should the issuer escalate the pre-arbitration to an arbitration case, Mastercard will not consider any
chargeback.
case is filed.


filing.
– The original chargeback was invalid.


transaction.



This section describes the process for continuing a Questionable Merchant Activity dispute
after the chargeback cycles have completed.


An issuer may submit a pre-arbitration case when both of the following:
• The Second Presentment Supporting Documentation failed to remedy the Questionable Merchant
Activity chargeback
In addition:
arbitration case.
Sender Memo.
The issuer must include in the Sender Memo within the Mastercom Case Filing Application that the reason
for the filing is “Questionable Merchant Activity”, “4849”, or similar phrase describing the issue.


Documentation.





supporting documentation was illegible.

An issuer may submit a pre-arbitration case within 45 calendar days from the Central Site Business
Date of the second presentment and at least 30 calendar days prior to escalating to an arbitration
case when all of the following:
• The second presentment Supporting Documentation was illegible (meaning blank or unreadable
pages)
Sender Memo.
the reason for the filing is “Documentation Illegible”, “Scanning error”, “4902”, “4903”, or similar
phrase describing the issue.
pre-arbitration case filing. This means entering the chargeback reference number and confirming that

• Accept the arbitration case and thereby financial responsibility for the disputed transaction.
filing.


transaction.




An issuer may submit a pre-arbitration case when all of the following occurred:
In addition:
second presentment.
When second presentment supporting documentation will be provided as indicated by the second
filing the prearbitration case.
Sender Memo.
prearbitration case filing. This means entering the chargeback reference number and confirming that


case was submitted
filing.

An issuer may escalate the pre-arbitration to an arbitration casewhen the issuer continues to believe
transaction.






An issuer may submit a pre-arbitration case when all of the following conditions are met:
• The chargeback was valid.
was invalid.
• At least 30 calendar days prior to escalating to an arbitration case
In addition:
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 will consider the arbitration invalid if the issuer files a pre-arbitration case before the
Sender Memo.
issue.
Documentation.
• When the issuer’s chargeback included the ARD present in the chargeback: The issuer must provide
a copy of the first presentment as Supporting Documentation.
Documentation.

If the issuer escalates to a pre-arbitration case to an arbitration case, Mastercard will not consider any
chargeback.
case is filed.

filing.

Arbitration Case Filing.

transaction.


Change of Chargeback Reason to an Questionable Merchant Chargeback

This section describes the process for changing the reason code through the pre-arbitration
and arbitration process.

An issuer must submit a pre-arbitration case when the issuer is changing the reason for the dispute from a
non-Questionable Merchant Activity chargeback to a Questionable Merchant Activity dispute.
• A valid Questionable Merchant Activity chargeback is available and meets the conditions as described in
Chapter 3-Dual Message System Chargebacks-Initiated On or After 17 July 2020.
• A pre-arbitration case must be filed within both of the following timeframes
allow sufficient time to escalate to an arbitration case, when necessary, in light of time
zone differences, weekends, and holidays).
• The issuer must provide the supporting documentation required for a Questionable Merchant Activity
chargeback.
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 Sender Memo tab of the Mastercom Case Filing Application must include the text “Change of
Reason” and either “Questionable Merchant Activity”, “4849”, or similar phrase describing the new
valid chargeback reason.
• When the Questionable Merchant Activity chargeback requires DE 72 (Data Record) text or when
optional DE 72 (Data Record) text is being provided, the DE 72 text must be provided in either the
Sender Memo tab of the Mastercom Case Filing Application or as Supporting Documentation.


Documentation.
– The acquirer has a rebuttal that specifically addresses the Supporting Documentation provided in the
pre-arbitration case and, when applicable, documentation. An example includes, but is not limited to,
a copy of the letter from Mastercard that its investigation of the merchant was closed without a
finding of violation of Mastercard Rule 3.7
Arbitration Case Filing.

original chargeback and the Questionable Merchant Activity chargeback are both valid and the acquirer
failed to remedy the pre-arbitration within 30 calendar days. The issuer should provide a rebuttal and any
relevant documentation in support of that rebuttal. Any rebuttal and documentation must be provided
within 10 calendar days of escalation.



This section describes the process for continuing a Chip Liability Shift dispute after the
issuer believes the second presentment did not remedy the chargeback.
Pre-Arbitration Case Filing.



An issuer may submit an arbitration case when all of the following:
• The Second Presentment failed to remedy the dispute
conditions:
arbitration case.
the Central Site Business Date of the second presentment, the issuer may file the arbitration case as soon
as the second presentment supporting document is received.
Sender Memo.
for the filing is “Chip Liability Shift”, “70”, “4870”, or similar phrase describing the issue.
If the issuer escalates to an arbitration case, Mastercard will not consider any Supporting Documentation
provided in the arbitration that was required (but not provided) in the chargeback.





Sender Memo.
Filing Application.






An issuer may submit an arbitration case when both of the following occurred:
conditions:
documentation indicator code of 0, the arbitration case must be filed between 0 and 45 calendar days
of the second presentment.
• When second presentment supporting documentation will be provided, an issuer must wait at least eight
calendar days before filing the arbitration case. This means when the second presentment supporting
documentation indicator code is a 1, the arbitration case must be filed between nine and 45 calendar
days from the Central Site Business Date of the second presentment.
case filing. Should the second presentment supporting document be received after the “protected”
eight day timeframe and on the same day as the arbitration case filing, Mastercard will not consider the
second presentment supporting documentation.
Mastercard will consider the arbitration invalid if the issuer files an arbitration case before the applicable
second presentment supporting documentation time frame has expired.
Sender Memo.
reason for the filing is “Required Documentation Not Received to Support Second Presentment” or “4901”
or similar phrase describing the issue.
Filing Application.






was invalid.
presentment.
Mastercard will consider the arbitration invalid if the issuer files a arbitration case before the
Sender Memo.
issue.
Documentation.
Documentation.

Chip Liability - Lost/Stolen/Never Received Issue (NRI) Fraud
case is filed.

Chip Liability - Lost/Stolen/Never Received Issue (NRI) Fraud

This section describes the process for continuing a Chip Liability Shift—Lost/Stolen/Never
Received Issue (NRI) Fraud dispute after the chargeback cycles have completed.
issuer believes the second presentment did not remedy the chargeback.

Pre-arbitration is optional. When an issuer chooses to file an arbitration case, the time frame for the

Issuer Submission of an Arbitration Case..

conditions:
arbitration case.
the Central Site Business Date of the second presentment, the issuer may file the arbitration case as soon
Sender Memo.
for the filing is “Chip Liability Shift—Lost/Stolen/Never Received Issue (NRI) Fraud”, “4871”, or similar
phrase describing the issue.
If the issuer escalates to an arbitration case, Mastercard will not consider any Supporting Documentation
provided in the arbitration that was required (but not provided) in the chargeback.





• The original chargeback was valid.
• The second presentment required Supporting Documentation.
• The second presentment Supporting Documentation was illegible (meaning blank or unreadable pages).
Sender Memo.
Filing Application.






was invalid.
presentment.
“protected” eight day time frame and on the same day as the arbitration case filing, Mastercard
Sender Memo.
issue.
Documentation.
either the Sender Memo field within the Case Filing application or as Supporting Documentation.

case is filed.


This section describes the process for continuing a Point-of-Interaction Error dispute after the
Transaction Amount Differs (Gratuity Disputes Only)
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 second presentment supporting documentation was reviewed by the cardholder and the
cardholder reasserts their dispute
second presentment.
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”,
Documentation.

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.
chargeback.
case is filed.


filing.

ATM Disputes

transaction.
Acquirer Responses to an Arbitration Case

ATM Disputes
issuer believes the second presentment did not remedy the ATM chargeback.


ATM Disputes

conditions:
case.
Sender Memo.
for the filing is “POI-ATM”, “17”, “34”, “59, “4834”, “4859”, or similar phrase describing the issue.
When the SMS Case Filing box is checked in the Mastercom Case Filing Application: a completed Dispute
Resolution Management Case Filing Form-SMS Linked Case Filing (Form 682a).
required (but not provided) in the chargeback.

ATM Dispute-Required Second Presentment Supporting Documentation Not Received (Europe Issuers only)

(but not provided) in second presentment or pre-arbitration. Rejecting the case must occur within 30
calendar days of the date the pre-arbitration case was submitted into the Mastercom Case Filing
Application.
ATM Dispute-Required Second Presentment Supporting Documentation Not Received

(Europe Issuers only)
This section describes the process for filing, and responding to, an arbitration case when
required second presentment supporting documentation in response to an ATM dispute was
not received.



An issuer may submit an arbitration case when 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.
conditions:
case.
Sender Memo.
for the filing is “POI-ATM-No documentation” or similar phrase describing the issue.
required (but not provided) in the chargeback.






A pre-arbitration case must be filed within 45 calendar days of the second presentment with the following
conditions:
arbitration case.
Sender Memo.
for the filing is “POI Error”, “31”, “34”, “42”, “46”, “4831”, “4834”, “4842”, “4846”, “4880”, or
similar phrase describing the issue.


Documentation.






An issuer may submit a pre-arbitration case within 45 calendar days from the Central Site Business Date of
the second presentment and at least 30 calendar days prior to escalating to an arbitration case when all of
the following:
Sender Memo.
Filing Application.

Filing Application.






• Supporting Documentation was not received to support the second presentment within eight calendar
days of the Central Site Business Date of the second presentment
In addition
arbitration case.
Central Site Business Date of the second presentment, the issuer may file the pre-arbitration case as soon
Mastercard will consider the pre-arbitration invalid if the issuer files a pre-arbitration case before the
Sender Memo.
reason for the filing is “Required Documentation Not Received to Support Second Presentment”, “4901”,
or similar phrase describing the issue.
Filing Application.


When the chargeback was valid, the acquirer should accept the pre-arbitration case when the acquirer
didn’t provide second presentment Supporting Documentation before the pre-arbitration case was
submitted
Should the issuer escalate the pre-arbitration to an arbitration case, Mastercard will find the acquirer
responsible for the disputed amount as well as any fines and fees.
Filing Application.
When the chargeback was invalid, the acquirer may reject a pre-arbitration case with a rebuttal and any
relevant documentation







was invalid.
second presentment.
from the Central Site Business Date of the second presentment, the issuer may file the
prearbitration case as soon as the second presentment supporting document is received.
Sender Memo.
issue.
Documentation.
Documentation.

chargeback.
case is filed.

filing.


transaction.


Change of Chargeback Reason to a Point-of-Interaction (POI) Error Chargeback

This section describes the process for changing the reason code through the pre-arbitration
and arbitration process.

from a non-POI Error dispute to a POI Error dispute.
• The Second Presentment remedied the original chargeback and identified that a valid POI Error
chargeback is available and meets the conditions as described in Chapter 3-Dual Message System
Chargebacks-Initiated On or After 17 July 2020
• The issuer must provide the supporting documentation required for a POI Error chargeback.
• The Sender Memo tab of the Mastercom Case Filing Application must include the text “Change of
Reason” and “POI Error”, “17”, “34”, “4834”, or similar phrase describing the new valid
chargeback reason
• When the POI Error chargeback requires DE 72 (Data Record) text or when optional DE 72 (Data
Record) text is being provided, the DE 72 text must be provided in either the Sender Memo tab of
the Mastercom Case Filing Application or as Supporting Documentation.


filing.
– The second presentment remedied the original chargeback and did not identify a valid POI Error
chargeback as being available.

the original chargeback and the POI Error chargeback are both valid and the acquirer failed to remedy
the pre-arbitration case within 30 calendar days. The issuer should provide a rebuttal and any relevant
documentation in support of that rebuttal. Any rebuttal and documentation must be provided within
10 calendar days of escalation.
transaction.



• The case was filed beyond the appropriate filing period.

Fees
Fees
System (MCBS) at the end of the month.
Refer to the applicable country or region Mastercard Consolidated Billing System (MCBS)
manual for more information.
• Filing fee:
When Dispute Resolution Management declines to rule on a case, the Filing Customer is
responsible for the following Filing fees:
– Filing Fee:


• For Intra-European and Inter-European transactions: The issuer may collect 45 EUR from the
acquirer (30 EUR net) within 45 calendar days of an acquirer accepting a pre-arbitration or
arbitration case or Mastercard ruling in favor of the issuer.
5816, 7311, or 7399.
“NNNNNN —COLLECTION OF DAF.” NNNNNN must be replaced with the 7-digit case
• When the fee was debited unduly, meaning the acquirer collected the DAF with a second
issuer using the miscellaneous Fee Collection/1740-700 message with reason code 7606.
This fee collection message must be sent within 45 calendar days after the dispute
message was sent which unduly triggered the DAF. DE 72 (Data Record) of the fee
collection message must contain “NNNNNNNNNN —COLLECTION OF DAF.”

The following sections provide information on intra-European and inter-European disputes.
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
• 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,
The arbitration procedure defined for international disputes will apply for domestic disputes.

The following sections provide information on arbitration of disputes relating to Intra-EEA
transactions or transactions between an EEA country and the United Kingdom that were not
processed through Mastercard.
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.
The arbitration procedure defined for international disputes will apply for Intra-EEA third party
processed disputes.

Appeals
Appeals
Time Frames
• Postal mail, the date included in the postmark must be within the 45 calendar day time
frame.
the 45 calendar day time frame.

An appeal:
the original decision. However, no new facts will be considered in an appeal unless, and
then only to the extent, requested by the Chief Franchise Officer.
Company Contact Management application on Mastercard Connect™.
• Must be sent at the same time by postal mail or courier (whichever delivery method best
provides prompt delivery) to Mastercard and the other Customer involved in the case as
described below:
USA

O’Fallon, MO 63368-7263
USA
The Principal or Compliance contact of the other Customer involved in the case as detailed in

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


Chapter 7 Compliance Case Filing

This chapter provides the procedures to file and manage a compliance case.
Overview.................................................................................................................................... 505
Mastercom................................................................................................................................. 505
How to File, and Respond to, a Compliance Case........................................................................506
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
Fees............................................................................................................................................ 515
Appeals...................................................................................................................................... 516
Time Frames...........................................................................................................................516

Overview
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.

How to File, and Respond to, a Compliance Case
How to File, and Respond to, a Compliance Case

The Filing Customer must submit a pre-compliance case correctly, completely, and in
compliance with the Timeframes and Requirements section later in this chapter. Pre-
compliance is required, with the exception of a Fee Collection/1740 message case.
The Filing Customer is responsible for ensuring that legible copies of all relevant
documentation is linked to the case filing.
• When the compliance case involves a chargeback, the Filing Customer can enter the
chargeback reference number and confirm that all previously provided documents link to
the case.
When relevant documentation is not showing as being linked to the case, a thorough
description of the circumstances of the case in chronological order and all relevant
chargeback cycle documentation must be manually attached to the Mastercom case.
• When the compliance case does not involve a chargeback, all relevant documentation must
be manually attached to the Mastercom case.
At any time prior to the Filed-Against Customer rejecting or accepting the case, the Filing
Customer may withdraw the case for any reason.
The Filed-Against Customer, using the Case Filing application within Mastercom, may:
• Reject the pre-compliance with a rebuttal and any relevant documentation within 30
calendar days of the date the pre-compliance case was submitted into Mastercom.
• Accept the pre-compliance case within 30 calendar days 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. After 30 calendar days the Mastercom system will automatically reject the
pre-compliance case.
The Filing Customer may escalate the pre-compliance case to a compliance case once the case
is rejected using the Case Filing application within Mastercom within the timeframes described
in the Timeframes and Requirements section later in this chapter.
At any time prior to a Mastercard decision on the case, the Filing Customer may withdraw the
compliance case for any reason.
The Filed-Against Customer, using the Case Filing application within Mastercom, may:
• Reject the compliance case with a rebuttal and any relevant documentation within 10
calendar days of the escalation date.
• Accept the compliance case prior to a Mastercard decision on the case.
• Take no action.
Mastercard will then review and determine responsibility for the case as described in the


The following tables describe the conditions, time frames, and documentation necessary to
submit a compliance case.
Missing, Invalid, or Inaccurate Authorization Data
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.

Inaccurate Clearing Data That Restricts Chargeback Cycles
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.
Inaccurate Clearing Data That Restricts Chargeback Cycles
Pre-compliance Condition Both of the following:

• An issuer or acquirer may file a pre-compliance case when the
clearing data presented in the First Presentment message or any
subsequent chargeback cycle was inaccurate, causing a valid
chargeback cycle (first chargeback, second presentment, or
arbitration chargeback) to be rejected or unprocessed.
As used herein, “inaccurate” means data that does not accurately
reflect the conditions that were present at the point of interaction
at the time a transaction occurred or that does not match data
provided in the original presentment.
• The Filing Customer suffered a financial loss directly due to the
violation.
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.

Fee Collection/1740 Message
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.
This compliance case includes claims of Improper UCAF Data.
Fee Collection/1740 Message
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-

Failure to Provide the TID
Failure to Provide the TID
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
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
Merchant Not Listed or Improperly Listed on MATCH
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

Unspent Gift Card Funds
Pre-compliance All of the following:

Supporting
• Documentation to support the Pre-Compliance Condition.
Documentation
• For each chargeback included in the case filing: The chargeback reference
number, date of the first chargeback, amount being charged back, Acquirer
Reference Data, and merchant name.
• 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 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
Unspent Gift Card Funds

• An issuer may file a pre-compliance case for unspent funds against an
acquirer whose merchant deactivated a gift or prepaid card purchased
fraudulently with a Mastercard card.
• The issuer suffered a financial loss directly due to the violation.
Pre-compliance Supporting Both of the following:
Documentation
(Form 682a)
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.

Acquirer Request for Cardholder Statement of Fraud
Notes Information relevant to the case must be in English or the original non-English
Acquirer Request for Cardholder Statement of Fraud
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 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

Issuer Listed in Mastercard Announcement
Issuer Listed in Mastercard Announcement
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).
compliance case
Pre-compliance Supporting The date of the Mastercard Announcement listing the issuer.
Documentation
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.
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.
compliance case
Documentation • The authorization request approval date; and
• The transaction amount indicated in the authorization request
message.
Compliance Time Frame Within 45 calendar days after approval of the Payment Transaction
authorization request.

All Other Rules Violations
Notes An amount of up to four percent of the transaction amount may also be

included, in common currency (USD, Euro, or Pound Sterling), to
compensate the issuer for the expense of advancing funds to the
cardholder.
This scenario must not be used when the RI has approved a valid
Payment Transaction reversal request.
All Other Rules Violations

• A rule was violated
• The Filing Customer 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
Documentation
(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


Fees
• The Customer filed the case beyond the appropriate filing period.
Fees
System (MCBS) at the end of the month. Refer to the applicable country or region Mastercard
Consolidated Billing System (MCBS) manual for more information.
• Filing fee:
When Dispute Resolution Management declines to rule on a case, the filing Customer is
responsible for the Filing fees:
– Filing Fee:

Appeals


• For Intra-European and Inter-European transactions: The issuer may collect 45 EUR from the
acquirer (30 EUR net) within 45 calendar days of an acquirer accepting a pre-arbitration or
arbitration case or Mastercard ruling in favor of the issuer.
5816, 7311, or 7399.
“NNNNNN—COLLECTION OF DAF.” NNNNNN must be replaced with the 7-digit case
• When the fee was debited unduly, meaning the acquirer collected the DAF with a second
issuer using the miscellaneous Fee Collection/1740-700 message with reason code 7606.
• This fee collection message must be sent within 45 calendar days after the dispute
message was sent which unduly triggered the DAF. DE 72 (Data Record) of the fee
collection message must contain “NNNNNNNNNN—COLLECTION OF DAF.”
Appeals
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

• Postal mail, the date included in the postmark must be within the 45 day time frame
the 45 day time frame

An appeal:
the original decision. No new facts will be considered in an appeal unless, and then only to
the extent, requested by the Chief Franchise Officer.
• Must be sent at the same time by postal mail or courier (whichever method best provides
prompt delivery) to Mastercard and the other Customer involved in the case as described
below:
USA

O’Fallon, MO 63368-7263
USA
The Principal or Compliance contact of the other Customer involved in the case as detailed
in Company Contact Management application on Mastercard Connect™.
In addition, both sets of appeal documents 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



Mastercard Merchant Presented QR
Chapter 8 Mastercard Merchant Presented QR

Overview of the Mastercard Merchant Presented QR Dispute Process.
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
Compliance Case...............................................................................................................529
Credit not Processed...............................................................................................................532
Compliance Case...............................................................................................................535
Paid by Other Means.............................................................................................................. 537
Compliance Case...............................................................................................................538
Billed an Incorrect Amount..................................................................................................... 540
Compliance Case...............................................................................................................541
Duplicate Transaction............................................................................................................. 542
Compliance Case...............................................................................................................544

Overview
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.

How to File, and Respond to, Disputes through the Compliance Case Filing Process
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.
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.
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
Dispute Reasons
The following sections provide information in handling Merchant Presented QR disputes.
Goods or Services were Either not as Described or Defective

This section provides information in handling a dispute when the consumer contacted the
Originating Institution alleging that the 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.
Pre-Compliance Case
This table details the conditions under which an Originating Institution (OI) may initiate a pre-
compliance case filing.
Table 1: Good or Services were either not as Described or Defective
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.
issue a refund.
• For disputes involving goods: The consumer returned the goods or informed the merchant the
goods were available for pickup.
intended purpose.
– 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.
transaction settlement date for issues of interruption of ongoing services.

Pre-Compliance Case

• An OI statement within the Pre-compliance case filing stating that the dispute is for “GOODS AND
SERVICES WERE EITHER NOT AS DESCRIBED OR DEFECTIVE”.
• Consumer email, letter, message or completed Dispute Resolution Form—Cardholder Dispute
Chargeback (Form 1221) describing the consumer’s complaint in sufficient detail to enable all
• Documentation from an expert or professional that supports the consumer’s dispute about the
level of quality or misrepresentation. Other documentation as 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.
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 Case Response

A Receiving Institution (RI) may respond to a pre-compliance case filing when:
1. Goods or services were as described or not defective.
2. The pre-compliance filing was invalid.
The following tables detail the conditions under which an RI may response to a pre-
compliance case filing.
Table 2: Good or Services were as Described or not Defective
Pre-Compliance Response The Receiving Institution (RI) can provide evidence in response to
Condition. the consumer’s claims.
Time Frame. Within 25 calendar days of the pre-compliance Submitted Date as

shown in the Mastercom Case Filing application.
Supporting Documents. The merchant’s explanation and documentation in response to the
cardholder’s claims.
Notes. This dispute 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.
Table 3: The OI’s Pre-Compliance was Invalid
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
Time Frame. Within 25 calendar days 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 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.
Table 4: The Consumer Continues to Dispute the Transaction
Compliance Condition. The consumer continues to dispute the transaction.
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.
Notes. The new consumer letter, email, message or completed Dispute

Resolution Form—Cardholder Dispute Chargeback (Form 1221)
must be dated after the pre-compliance case response and must
specifically address the rebuttal provided with the pre-compliance
case response.
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.

Goods or Services were not Provided
• The delivery date of the goods or services.
• 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.
Goods or Services were not Provided

This section details the requirements for claims of goods or services were not provided.
Pre-Compliance Case
This table details the conditions under which an Originating Institution (OI) may initiate a
dispute.
Table 6: Good or Services were not Provided
Pre-Compliance Condition. One of the following:

• The consumer contacted the Originating Institution (OI) claiming
– The consumer engaged in the transaction.
• Travel services arranged through an online travel agency or tour
operator were not received and the travel agency or tour
operator is no longer in business.

Pre-Compliance Case
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 one of the following time
frames:
• In cases involving delayed delivery of goods or services and the
delivery or performance date was not specified by the
merchant: the OI must wait 30 calendar days from the
transaction date before submitting a pre-compliance and not to
exceed 90 calendar days from the transaction settlement date.
However, the OI may file a pre-compliance case immediately
(and not wait the 30 calendar days) upon learning the merchant
will not provide the goods or services because, for example, for
• 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 90 calendar days
of the latest anticipated delivery or performance date specified
by the merchant.
However, the OI may file a pre-compliance case 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 90
calendar days of the date the consumer becomes aware that the
service ceased. A pre-compliance case 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, 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, 90 calendar days
from the expiration date printed on the card.
• In all other cases: 90 calendar days from the transaction
settlement date.

Pre-Compliance Case
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
must include both of the following:
– A description of the consumer’s complaint in sufficient detail
– 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
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.

Pre-Compliance Case
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

Compliance Case
1. Goods or services were as described or not defective.

The following tables detail the conditions under which an RI may respond to a pre-compliance
case filing.
Table 7: Good or Services were Provided
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.
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:
compliance to a compliance case filing within the required time frame.

Compliance Case
The following tables detail the conditions under which an OI may escalate to a compliance
case filing.
• 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.

Compliance Case
—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

case response.
Table 10: The RI’s Response to the Pre-Compliance Case was Invalid or Not Provided
provided.

Credit not Processed
• 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.
When applicable , the supporting documentation must be attached
Notes. None.
Credit not Processed

This section details the requirements for claims that a refunds was not processed.
Pre-Compliance Case
This table details the conditions under which an Originating Institution may initiate a dispute.
Table 11: Credit not Processed
Pre-compliance Condition. The consumer contacted the Originating Institution (OI) claiming
• 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.

Pre-Compliance Case

compliance case must be submitted within one of the following
time frames:
• Between 15 and 90 calendar days from the date on the refund
documentation, or the date the service was canceled, or the
goods were returned.
When waiting the 15 calendar days would cause the OI to
exceed the 90 calendar day time frame, the OI may file a pre-
compliance case earlier than 15 calendar days.
When the refund documentation is dated, the 90-day pre-
compliance case time frame counts the date on the refund
documentation as day zero.
When the refund documentation is undated, the 90-day time
frame counts the date on the consumer letter, email, message,
or Dispute Resolution Form—Cardholder Dispute Chargeback
When the consumer letter is undated, the pre-compliance case
time frame counts the receipt date of the documentation by the
OI as day zero.
• 90 calendar days from the transaction date for a VAT refund.
• The OI can immediately charge back the transaction upon
receiving one of the following forms of refund documentation:
– A letter from the merchant advising the OI to obtain a
refund using a dispute.
– Proof of an improperly disclosed in-store credit.
– A receipt voided by the merchant.
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
• Merchant documentation to support a refund is due to the
consumer.
• Proof of an improperly disclosed in-store credit and consumer
explanation.

Pre-Compliance Case
Notes. 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 consumer must be
informed of the refund policy prior to completion of the transaction
at the point of interaction. Failure to disclose a refund policy will
result in the merchant’s requirement to accept the goods for return
and issue a refund.
When the merchant informed the consumer of its refund policy at
the time of purchase, the consumer must abide by that policy. For
example, the consumer’s sales slip clearly indicates that the refund
policy is “in-store credit only” or “no refunds.”

1. A refund was processed.
case filing.
Table 12: Credit was Processed
Pre-Compliance Case The merchant issued a refund to the consumer’s account.

Response Condition.
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.
Notes. This pre-compliance case response is not available for ATM

transactions.

Compliance Case
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.
was invalid.
Notes. None.
Compliance Case
case filing.
• The date on the refund documentation.
• The date the services were canceled or the goods were
returned.
• The transaction date for a VAT refund.

Compliance Case
—Cardholder Dispute Chargeback (Form 1221) dated after the pre-
compliance case response and specifically addressing the
When the original consumer letter, email, message, or Dispute
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.

case response.
provided.
• The date on the refund documentation.
• The date the services were canceled or the goods were
returned.
• The transaction date for a VAT refund.
response was invalid. When applicable , the supporting
documentation must be attached upon escalation or within 10
calendar days of escalation.
Notes. None.

Paid by Other Means
Paid by Other Means

This section details the requirements for claims the merchant was paid twice for the same
transaction.
Pre-Compliance Case
Table 16: Paid by Other Means
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.
compliance must be submitted between 5 and 60 calendar days
from the transaction settlement date.
• 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
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.
– 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.

1. Both transactions were valid.

Compliance Case

case filing.
Table 17: Both Transaction were Valid
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.
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.
time frame.
was invalid.
Notes. None.
Compliance Case

Compliance Case
case filing.

Time Frame. Escalate within 90 calendar days of the transaction settlement date.

case response.
provided.
When applicable, the supporting documentation must be attached
Notes. None.

Billed an Incorrect Amount
Billed an Incorrect Amount

This section details the requirements for claims that the consumer was billed an incorrect
amount.
Pre-Compliance Case
Table 21: Billed an Incorrect Amount
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.
compliance must be submitted within 60 calendar days from the
• An OI statement within the pre-compliance case filing stating
that the dispute reason is for “BILLED AN INCORRECT
AMOUNT”.
Resolution Form —Point-of-Interaction (POI) Errors (Form 1240)
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.
– A receipt including the correct transaction amount.
– The final hotel or car rental bill.
– Merchant email confirming price.
Notes. This dispute is not available for verbal price agreements.

1. The consumer was billed the correct amount.
case filing.

Compliance Case
Table 22: Billed Correct Amount
Pre-Compliance Case The RI can provide evidence that the consumer was billed the
Response Condition. correct amount.
Notes. None.
time frame.
was invalid.
Notes. None.
Compliance Case
The OI accepts responsibility for the disputed transaction when the OI fails to escalate the pre-
case filing.


case response.
provided.
Notes. None.
This section details the requirements for claims that a duplicate transaction was processed.
Pre-Compliance Case
Table 26: Duplicate Transaction
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.
compliance must be submitted between 5 and 60 calendar days
from the transaction settlement date.

Pre-Compliance Case

• An OI statement within the Pre-compliance case filing stating
that the dispute reason is for “DUPLICATE TRANSACTION”.
enable all parties to understand the dispute. Sufficient
transaction details to locate both transactions involved in the
duplication. For example: transaction settlement dates and
switch serial numbers, or acquirer reference data (ARDs).
Notes. The OI may file a pre-compliance case for only the disputed
amount.

1. Two separate transactions occurred.
case filing.
Table 27: Separate Transactions
Pre-Compliance Case The Receiving Institution can provide evidence to support two
Response Condition. separate transactions, or proof that a refund was issued.
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.
time frame.

Compliance Case
was invalid.
Notes. None.
Compliance Case
The OI accepts responsibility for the disputed transaction when the OI fails to escalate the pre-
case filing.


case response.
provided.

Compliance Case
Notes. None.

Chargebacks—Mastercard Europe ATM Transactions (Mastercard, Maestro, and Cirrus)
Appendix A Chargebacks—Mastercard Europe ATM

Transactions (Mastercard, Maestro, and Cirrus)
This appendix contains the rules and procedures for processing interregional, inter-European, and
intra-European Mastercard, Maestro, and Cirrus and PIN-based in-branch terminal exception
transactions. The information contained in this appendix is only used by Europe region
issuers and acquirers.
Overview.................................................................................................................................... 548
Clearing......................................................................................................................................548
Processing Cycles........................................................................................................................ 548
Processing Cycle for ATM Transactions....................................................................................548
Presentment...........................................................................................................................549
Reversals............................................................................................................................549
Chargebacks and Second Presentments..................................................................................550
Chargebacks......................................................................................................................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 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
Improper Use of Acquirer’s Second Presentment................................................................ 556
Message Reason Code 4811—Stale Transaction..................................................................... 556
Message Reason Code 4834—Duplicate Processing of Transaction......................................... 556


Transaction Authorized (For Intra-European and Inter-European Transactions Only)........ 557
Credit Previously Issued (For Intra-European and Inter-European Transactions Only)........557
Chargeback Remedied.................................................................................................. 557
Invalid Data Record....................................................................................................... 558
Message Reason Code 4842—Late Presentment.................................................................... 558
Improper Use for Issuer’s First Chargeback......................................................................... 558
Correct Transaction Date Provided................................................................................. 559
Account not Permanently Closed.................................................................................. 559
Message Reason Code 4846—Currency Errors....................................................................... 559
POI Currency Conversion...............................................................................................560
POI Currency Conversion—Incorrect Cardholder Currency............................................. 560
Improper Use for Acquirer’s Second Presentment............................................................... 561
Proper Use for New Presentments...................................................................................... 561
Message Reason Code 4859—ATM Dispute........................................................................... 562
Improper Use of Message Reason Code 4859.................................................................... 562
Proper Use For Acquirer’s Second Presentment...................................................................562
Message Reason Code 4870—Chip Liability Shift................................................................... 564
Chargeback Invalid........................................................................................................566
Issuer Listed in a Mastercard Announcement................................................................. 567
Message Reason Code 4880—Late Presentment.................................................................... 568
Proper Use of Intra-European or Inter-European Message Reason Code 4880.....................568

Overview
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.
Processing Cycle for ATM Transactions

This image presents the Exception processing cycle for ATM transactions.
Exception Processing Cycle for ATM Transactions

Presentment
Processing Cycle Time Frame

Presentment The acquirer must send the presentment within seven calendar days of the
transaction date.
Chargeback A chargeback for reason code 4870 (Chip Liability Shift) for a Maestro ATM
transaction must be submitted within 90 calendar days from the settlement
date or central site processing date of the disputed transaction. All other
chargebacks must be submitted within 120 calendar days.
Second Presentment The acquirer must send the second presentment within 45 calendar days of
the Central Site Business Date of the chargeback.
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

Chargebacks and Second Presentments
response messages are received) within the same clearing cycle, the transaction shall
appear in the clearing file with the corrected transaction amount.
Chargebacks and Second Presentments

The following sections contain information about chargebacks and second presentments.
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.
Supporting Documentation for a Chargeback

No supporting documentation is required when submitting a chargeback, unless otherwise
stated under the specific message reason code. However, issuers should be able to justify any
chargeback initiated.
When a cardholder letter is required, the issuer must provide an electronic message or a
signed declaration by the authorized cardholder explaining the reason for the dispute.
Supporting documentation, completed in English, or accompanied by an English translation,
must be submitted within 10 calendar days of the chargeback processing date via Mastercom.
For disputes between two Customers that share a common language, it is sufficient if the
documentation is translated into English at arbitration stage.
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.

Intra-European and Inter-European Dispute Administration Fee (ATM)
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.
Intra-European and Inter-European Dispute Administration Fee (ATM)

automatically generated for each chargeback and second presentment by Mastercard via the
Mastercard Consolidated Billing System.
7311, or 7399.
Should the fee be debited unduly, for example, the acquirer collects the DAF with a second
presentment after processing a credit to the cardholder, the full amount of the unduly debited
fee can be collected by the impacted party using the miscellaneous Fee Collection/1740-700
message with reason code 7606. This fee collection message should be sent within 45 days
after the dispute message was sent which unduly triggered the DAF. DE 72 (Data Record) of

Chip Transactions
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.
Message Reason Codes

The following message reason codes are allowed for ATM and for PIN-based in-branch
terminal transactions completed with magnetic stripe or chip technology unless otherwise
stated.
Reason Code Description Section

4808 Transaction Not Authorized Message Reason Code 4808—Transaction Not
Authorized
4834 Duplicate Processing of Message Reason Code 4834—Duplicate Processing of
Transaction Transaction
4842 Late Presentment Message Reason Code 4842—Late Presentment
(Mastercard and Cirrus
only)
4846 Currency Errors Message Reason Code 4846—Currency Errors

4859 ATM Dispute Message Reason Code 4859—ATM Dispute
4870 Chip Liability Shift Message Reason Code 4870—Chip Liability Shift
4880 Late Presentment (Maestro Message Reason Code 4880—Late Presentment
only)
1 Not available for interregional ATM transactions.

Message Reason Code 4804—Multiple Processing
In addition to the above chargeback reasons, the following message reason codes may be
used by Mastercard to automatically chargeback interregional transactions.
Reason Code Description Section

4804 Multiple Processing Message Reason Code 4804—Multiple Processing
4809 Transaction not reconciled Message Reason Code 4809—Transaction Not
Reconciled
4811 Stale Transaction Message Reason Code 4811—Stale Transaction
Message Reason Code 4804—Multiple Processing

The following sections describe the proper and improper use of message reason code 4804.
Proper Use of Message Reason Code 4804

Mastercard uses this reason code to automatically charge back any interregional transaction
between a Europe acquirer and a non-Europe issuer if a previous presentment had already
been matched to the pending file.
Improper Use of Second Presentment

Second presentments are not permitted. The acquirer may rectify the transaction details and
submit a correct new first presentment.
Message Reason Code 4808—Transaction Not Authorized


The issuer receives a complaint from the cardholder or it has determined that an intra-
European transaction presented has not been properly authorized.
• The issuer or his agent has never received an authorization request.
• The issuer or his agent has declined the authorization request.
• The amount processed is higher than the authorized amount.
This message reason code may be used for a chip transaction if it has not been authorized
online by the issuer.
Expired Payment Guarantee—The issuer may also use this message reason code if the
transaction was presented more than seven calendar days after the authorization approval
date and the issuer has permanently closed the account before filing the chargeback.

Proper Use for Issuer’s First Chargeback

The condition shown below represents a valid option that the issuer may choose to process a
first chargeback for message reason code 4808.
Time Frame 120 days

Notes The full amount should be charged back, except when the processed
amount is higher than the authorized amount. In this case the
difference between both amounts may be charged back.
Proper Use for Acquirer’s Second Presentment

The condition shown below represents a valid option that the acquirer may choose to process
a second presentment for message reason code 4808.
Other message codes may apply; refer to Second Presentment for more details.
Expired Payment Guarantee
IPM Second Presentment Message 2713

Reason Code Invalid Chargeback
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.

DE 72 (Data Record) PREAUTH MMDDYY or AUTH MMDDYY or ACCOUNT NOT CLOSED
Notes If the transaction authorization was identified as a pre-authorization,
use PREAUTH. If the transaction authorization was not identified as
a pre-authorization, use AUTH. Replace MMDDYY with the
Transaction Authorized

Reason Code
Second Presentment Condition The acquirer can substantiate that the transaction was approved.

Message Reason Code 4809—Transaction Not Reconciled
DE 72 (Data Record) MMDDYY NNNNNN

Notes Replace MMDDYY with the date the issuer authorized the
transaction.
Message Reason Code 4809—Transaction Not Reconciled


between a Europe acquirer and a non-Europe issuer in the following situation.
Mastercard was unable to reconcile the clearing presentment with the authorization details of
a transaction and has determined that there is a discrepancy between the reference of the
authorization request and the clearing presentment.

Improper Use of Acquirer’s Second Presentment

Message Reason Code 4811—Stale Transaction


between a Europe acquirer and a non-Europe issuer presented more than 120 calendar days

Second presentments are not permitted under this reason code.
Message Reason Code 4834—Duplicate Processing of Transaction


The issuer or the cardholder determines that a transaction has been submitted in duplicate. A
transaction is considered duplicate if the terminal ID, the transaction amount, the date and
the time of the transaction are the same.

The conditions shown below represent valid options that the issuer may choose to process a
Time Frame 120 days

DE 72 (Data Record) FIRST REF NNNNNNNNNNNNNNNNNNNNNNN
Notes Replace NNNNNNNNNNNNNNNNNNNNNNN with the Acquirer
Reference Data (ARD) of the first transaction.
Interregional Transactions
Time Frame 120 days
Notes The issuer must charge back both transactions.


The conditions shown below represent valid options that the acquirer may choose to process a
second presentment for message reason code 4834.
Transaction Authorized (For Intra-European and Inter-European Transactions Only)
IPM Second 2008

Presentment Message Reason
Code
Second Presentment Condition The acquirer can substantiate that both transactions are valid and
were authorized by PIN.
DE 72 (Data Record) PIN MMDDYY NNNNNN, PIN MMDDYY NNNNNN
Notes Applies to intra-European and inter-European transactions
only
Replace MMDDYY with the date the issuer authorized the
transaction.
Replace NNNNNN with the authorization approval code of both
transactions.
Credit Previously Issued (For Intra-European and Inter-European Transactions Only)

Reason Code
Second Presentment Condition The acquirer can substantiate that a credit was processed.
DE 72 (Data Record) CREDIT MMDDYY ARD NNNNNNNNNNNNNNNNNNNNNNNN
only
Replace MMDDYY with the date the issuer sent the credit or
reversal and optionally replace
NNNNNNNNNNNNNNNNNNNNNNN with the ARD.
Chargeback Remedied

Reason Code
See Corresponding Documentation/Chargeback Remedied

Invalid Data Record
Second Presentment Condition The acquirer can substantiate that both transactions were valid.
Supporting Documents Documentation indicating two separate transactions.
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.
Invalid Data Record

Reason Code
Invalid Data Record Text
Second Presentment Condition The chargeback is invalid because the issuer failed to provide the
original ARD in DE 72.
only
Message Reason Code 4842—Late Presentment


This message reason code is used when an intra-European and inter-European transaction was
presented more than seven calendar days after the transaction date and the account is
permanently closed.
Reason Code 4842 applies only to Cirrus and Mastercard transactions. For Maestro
transactions, refer to Message Reason Code 4880—Late Presentment (Maestro).

The issuer must use good-faith efforts to collect the transaction amount from the cardholder
before exercising this chargeback right.
Improper Use for Issuer’s First Chargeback

The issuer cannot submit a chargeback for message reason code 4842 if the account is in
good standing. This chargeback is not available when the transaction occurred with a
Mastercard Commercial Payments Account. A Mastercard Commercial Payments Account


Correct Transaction Date Provided

Reason Code
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.
DE 72 (Data Record) MMDDYY
Notes Replace MMDDYY with the correct transaction date
Account not Permanently Closed

Reason Code
Invalid Chargeback
Second Presentment Condition The acquirer can show that the account is not permanently closed.
DE 72 (Data Record) MMDDYY
Notes Replace MMDDYY with the authorization date and code obtained
after the chargeback date.
Message Reason Code 4846—Currency Errors


This reason code may be used only for intra-European and inter-European transactions when
Point-of-interaction (POI) currency conversion was applied in the following circumstances:
• The cardholder states that he or she was not given the opportunity to choose the desired
transaction, or

• 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.

The following conditions represent valid options that the issuer may choose to process a first
chargeback for message reason code 4846.
POI Currency Conversion
Time Frame 120 Calendar days

Retrieval Request No
Supporting Documents Cardholder dispute letter
DE 72 (Data Record) POI CURRENCY CONVERSION
Notes The chargeback must be for the full amount of the transaction
POI Currency Conversion—Incorrect Cardholder Currency
Time Frame 120 Calendar days

Supporting Documents To document the currency and amount billed to the cardholder supply
• The cardholder’s billing statement or
• The issuer’s internal transaction record
DE 72 (Data Record) INCORRECT CARDHOLDER CURRENCY

Notes For the following types of disputes involving POI currency conversion:
• The transaction was converted into a currency that is not the
cardholder’s billing currency, or
• The cardholder billing currency is the same as the currency in which
the goods/services are priced, or
• The cash was dispensed in the cardholder’s billing currency.
The chargeback may be for a partial amount representing the amount
resulting from the double conversion, excluding any amount related to
the issuer’s conversion of the transaction.


The following condition represents a valid option that the acquirer may choose to process a

Reason Code
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.
Supporting Documents Documentation proving the correct currency was provided or

specified.
Notes This remedy is not applicable for POI currency conversion disputes.
Improper Use for Acquirer’s Second Presentment

The acquirer is prohibited from using the second presentment to argue the validity of the
cardholder’s claim regarding the selection of or non-agreement to the currency.
The contents of the transaction receipt are considered only in determining whether POI
currency conversion has occurred on a transaction. They neither prove nor disprove the
For POI currency conversion disputes where the full amount was charged back, the acquirer
should resubmit the transaction in the currency dispensed if the chargeback is valid.
Proper Use for New Presentments

If the chargeback is valid and if the full amount was charged back, the acquirer should process
the transaction as a First Presentment/1240 message in the currency dispensed.
The new presentment must be processed within 30 days of the Central Site Business Date of
the first chargeback for the acquirer to be protected from a chargeback under message reason
code 4842—Late Presentment.
When converting the new transaction to the cardholder’s billing currency, the acquirer should
apply the conversion rate that was in effect on the date of the original transaction.

Message Reason Code 4859—ATM Dispute
Message Reason Code 4859—ATM Dispute

The following sections describe the proper use of message reason code 4859.

The issuer receives a cardholder complaint advising that the cardholder did not receive, or
received only in part, funds charged to his or her account as a result of an automated cash
disbursement.

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 120 days

DE 72 (Data Record) RS3
Notes None
Proper Use For Acquirer’s Second Presentment

Disbursement of Funds to Cardholder

IPM Second 2700
Chargeback Remedied
Code
Second Presentment Condition The acquirer can provide documentation verifying the disbursement
of funds to the cardholder.

Proper Use For Acquirer’s Second Presentment
Disbursement of Funds to Cardholder

Supporting Documents A legible copy of either the ATM audit tape or an internal transaction
report from the acquirer. The ATM audit tape or the transaction
report must show any terminal financial activity that occurred
immediately before and after the disputed transaction.
The internal transaction report from the acquirer is to be used only
when the ATM did not produce an audit tape. Data on the
transaction report must come from the ATM journal and not from
the clearing system.
A transaction report must contain sufficient information to enable
the issuer to determine the amount of funds that were disbursed by
the ATM. If required for clarity, the transaction report must be
accompanied by a key that shows the different elements of the
report and their definitions.
At minimum, the audit tape or transaction report must include:
• Primary Account Number read from track 2 of the magnetic stripe
or from the chip (DE 2)
• Transaction type and account accessed (DE 3)
• Transaction amount in local currency (DE 4)
• Transaction trace or System Trace Audit Number (DE 11)
• Transaction date and time (DE 12)
• Terminal ID (DE 41)
• Terminal status (only required in case of partial or no dispense)
• Error report (only required in case of partial or no dispense). The
documentation may also show:
– Terminal’s response to the last command received from the
Interchange System
– Retract indicator
– Bill counts for each canister
If bill counts are present in the documentation, the acquirer must
state the denomination of the bills that were dispensed from each
canister.
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.



The Chip Liability Program allows participating Customers to charge back fraudulent magnetic
stripe transactions resulting from counterfeit fraud.
This message reason code applies to intra-European and inter-European ATM transactions and
to transactions in which one Customer is located in the Europe region and the other
Customer is located in a participating country or territory in another region.
The following countries and regions participate in the Global Chip Liability Shift Program for
interregional Mastercard, Maestro, and Cirrus ATM transactions.
Global Chip Liability Shift Program for Interregional ATM Transactions

In this region… The following countries and Effective for ATM transactions
territories participate… dated on or after…
Asia Pacific region Australia and New Zealand 31 December 2015 (Mastercard)
Bangladesh, Bhutan, Maldives, and 16 October 2015 (all brands)
Sri Lanka
India 31 December 2018 (all brands)
Indonesia 1 January 2022 (all brands)
Nepal 18 April 2018 (all brands)
All other countries and territories 19 April 2013 (Maestro only)
All other countries and territories 20 October 2017 (Mastercard and
Cirrus)
Canada region All Currently in effect (all brands)
Europe region All Currently in effect (all brands)
Latin America and the Caribbean Mexico 1 September 2014 (all brands)
region
Puerto Rico and U.S. Virgin Islands 19 April 2013 (Maestro only)
21 October 2016 (Cirrus and
Mastercard)
All other countries and territories 18 October 2013 (Mastercard)

Currently in effect (Maestro and
Cirrus)
Middle East/Africa region All Currently in effect (all brands)

Global Chip Liability Shift Program for Interregional ATM Transactions

In this region… The following countries and Effective for ATM transactions
territories participate… dated on or after…
United States region All 19 April 2013 (Maestro only)
21 October 2016 (Cirrus and
Mastercard)
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.

The issuer must not initiate a chargeback using message reason code 4870 if:
• A hybrid card is used at a hybrid terminal.
• A fallback from chip to magnetic stripe technology occurs and the transaction is properly
identified in the authorization and clearing records with POS entry mode 80 (DE 22).
• Authorization Approval after the FNS Date.The issuer approved the transaction after
submitting two or more chargebacks involving the same Mastercard, Maestro, or Cirrus
card account (for this purpose, “account” means primary account number [PAN], or PAN
and, if present, 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.
15 chargebacks in aggregate involving the same Mastercard, Maestro, or Cirrus account (as
defined above) for message reason codes 4837, 4840, 4870, or 4871. Message reason
• The issuer is currently listed in a Mastercard Announcement as ineligible to participate in
the Global Chip Liability Shift Program for interregional Maestro ATM transactions.
• The issuer is currently listed in a Mastercard Announcement as limited to seven
chargebacks for reason code 4837 or 4870 involving the same Maestro card account (for
this purpose, “account” means PAN, or PAN and expiration date), and the issuer has
already met or exceeded this amount for the account in question.
• This chargeback is not available when the transaction occurred with a Mastercard
Commercial Payments Account. A Mastercard Commercial Payments Account transaction

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
Supporting Documents Cardholder Documentation
Notes None

Chargeback Invalid

Reason Code
Chargeback invalid
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).
Supporting Documents • Intra-European and inter-European transactions—None

• Interregional transactions—The acquirer must provide
documentation showing that the chargeback was invalid.

Issuer Listed in a Mastercard Announcement
DE 72 (Data Record) Applies to intra-European and inter-European transactions only:

1. TRX Chip Liability Shift NA
2. Chip Transaction
3. Reason for return
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).

DE 72 (Data Record) 1. ISSUER LISTED GSB NNNN CLS INELIG
2. ISSUER LISTED GSB NNNN FNS EXCEEDED
Notes Replace NNNN with the applicable Mastercard Announcement

number.
IPM Second Presentment Message Reason Code 2713

Invalid Chargeback
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.

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).

Proper Use of Intra-European or Inter-European Message Reason Code 4880

An intra-European or inter-European ATM transaction is presented more than seven calendar
days after the transaction date and the account is permanently closed.

good standing.
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.


Reason Code
Correct transaction date provided
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


DE 72 (Data Record) Correct transaction date
Notes Other message codes may apply; refer to Second Presentment for
more details.

Chargebacks—Maestro POS Transactions
Appendix B Chargebacks—Maestro POS Transactions

This appendix describes the procedures for processing Maestro POS exception transactions. The
information contained in this appendix is for Europe region Customers only.
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
Interregional Message Reason Code 4809—Transaction Not Reconciled ................................ 579
Interregional Message Reason Code 4811—Stale Transaction.................................................579
Interregional Message Reason Code 4831—Disputed Amount............................................... 579
Interregional Message Reason Code 4834—Duplicate Transaction .........................................580
Interregional Message Reason Code 4837—No Cardholder Authorization.............................. 581
Improper Use of Interregional Message Reason Code 4837................................................581


Interregional Message Reason Code 4855—Goods or Services Not Delivered..........................583
Interregional Message Reason Code 4860—Credit Not Received............................................ 584
Interregional Message Reason Code 4870—Chip Liability Shift............................................... 585
Improper Use of Interregional Message Reason Code 4870................................................587
Interregional Message Reason Code 4880—Late Presentment................................................ 589
Message Reason Codes for Intra-European and Inter-European Transactions............................... 590
Intra-European Message Reason Code 4808—Transaction Not Authorized............................. 591
Proper Use of Intra-European Message Reason Code 4808................................................ 591
Improper Use of Intra-European Message Reason Code 4808............................................ 592
Expired Payment Guarantee.......................................................................................... 593
Proper Use for New Presentments................................................................................. 594
Intra-European and Inter-European Message Reason Code 4831—Disputed Amount..............594
Proper Use of Intra-European and Inter-European Message Reason Code 4831.................. 594
Improper Merchant Surcharge (Intra-European and Inter-European Transactions Only)... 597

Intra-European Message Reason Code 4834—Duplicate Processing of Transaction................. 598

Invalid Data Record....................................................................................................... 599
Intra-European Message Reason Code 4837—No Cardholder Authorization...........................600
Improper Use for Acquirer's Second Presentment...............................................................603
Transactions........................................................................................................................... 604
Recurring Transaction Canceled Before Billing................................................................605
Account Listed in Payment Cancellation Service (PCS)....................................................606
Cardholder Dispute of a Recurring Transaction.............................................................. 606
Digital Goods................................................................................................................ 607
Subsequent Message Reason Code 4841 Chargeback...................................................607
Proper Use for Acquirer's Second Presentment...................................................................608
Recurring Transactions...................................................................................................608
Digital Goods................................................................................................................ 608
Intra-European Message Reason Code 4846—Currency Errors................................................609
Incorrect Currency Transmitted...................................................................................... 609
POI Currency Conversion...............................................................................................609
Currency Conversion—Incorrect Cardholder Currency................................................... 610


Proper Use for New Presentments...................................................................................... 611
Intra-European Message Reason Code 4855—Goods or Services Not Provided....................... 611
Intra-European Message Reason Code 4860—Credit Not Received.........................................616
Credit Not Processed..................................................................................................... 618
Timeshare..................................................................................................................... 619
Credit Posted as a Purchase...........................................................................................619
Credit Issued................................................................................................................. 620
Cancellation or Returns................................................................................................. 620
Purchase Properly Posted...............................................................................................620
Credit Previously Issued—Intra-European and Inter-European Transactions..................... 621
Reason Code 4860—Arbitration Case Filing.......................................................................622
Intra-European Message Reason Code 4870—Chip Liability Shift........................................... 622
Proper Use for Intra-European Message Reason Code 4870............................................... 622
Intra-European Message Reason Code 4880—Late Presentment.............................................626
Domestic Chargeback Rules........................................................................................................ 627
Additional Rules Applicable to Domestic Transactions in Ireland, Turkey, and France................627
Arbitration Case Filing....................................................................................................... 628

Overview
Overview
This graphic presents the chargeback processing cycle.

Exception Item Processing
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.
Exception Item Processing

The following sections provide information on Exception Item Processing.
Exception Transaction Types

Each Customer must support the following point-of-sale (POS) exception transaction types.
• Retrieval request/request for documentation
• First chargeback
• Second presentment
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
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.
Supporting Documentation for a Chargeback

No supporting documentation is required when submitting a chargeback, unless otherwise
stated under the specific message reason code. However, issuers should be able to justify any
chargeback initiated.
When a cardholder letter is required, the issuer must provide a cardholder letter, electronic
message, completed Dispute Resolution Form or a signed declaration by the authorized
cardholder explaining the reason for the dispute.
Supporting documentation, completed in English, or accompanied by an English translation,
must be submitted within 10 days of the chargeback processing date using Mastercom.

Second Presentment Procedures
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.
Second Presentment Procedures

An acquirer must use its best efforts to investigate each chargeback received for validity and
either accept the charge or process a second presentment.
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 or gains resulting from exchange rate differences
or funding costs.
Second presentments must be submitted within 45 calendar days from the chargeback
processing date. 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 transactions and inter-European other general second presentment
message reason codes may apply, such as:
• 2713—Invalid Chargeback
• 2702—Past Chargeback Time Limit Issued
Refer to Second Presentment/1240 IPM (Function Codes 205 or 282) Message Reason Code
Usage for a complete list of second presentment message reason codes.
After the acquirer has processed the second presentment, the issuer has no more chargeback
rights; arbitration chargebacks are not permitted.
Supporting Documentation for a Second Presentment

When required under the reason code, supporting documentation, completed in English, or
accompanied by an English translation, must be submitted within 10 days of the second
presentment processing date using Mastercom.
For interregional transactions, the acquirer must supply supporting documentation with
every second presentment, substantiating the reason for the second presentment.

Message Reason Codes for Interregional Transactions
Message Reason Codes for Interregional Transactions

The following message reason codes are applicable to interregional POS, e-commerce, PIN-
based in-branch, and Maestro® contactless transactions unless otherwise indicated under the
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.
Chargeback Reason Reason Code PIN-based? Signature?

Multiple Processing 4804 Yes Yes
Transaction not reconciled 4809 Yes Yes
Stale Transaction 4811 Yes Yes
2 According to schedule of countries joining the Chip Liability Shift as published in the Global Operations Bulletins.

Interregional Message Reason Code 4804—Transaction Multiple Processing
Interregional Message Reason Code 4804—Transaction Multiple Processing

Proper Use of Interregional Message Reason Code 4804

between a Europe acquirer and a non-Europe issuer if a previous presentment had already
been matched to the pending file.

Interregional Message Reason Code 4809—Transaction Not Reconciled


between a Europe acquirer and a non-Europe issuer in the following situation.
Mastercard was unable to reconcile the clearing presentment with the authorization details of
a transaction, because of a discrepancy between the authorization request and the clearing
presentment.

Interregional Message Reason Code 4811—Stale Transaction


between a Europe acquirer and a non-Europe issuer presented more than 120 calendar days

Second presentments are not permitted for message reason code 4811.
Interregional Message Reason Code 4831—Disputed Amount


This message reason code is used only for the following transactions.
• e-commerce
• Maestro contactless
• Point-of-Sale (POS)

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.

The issuer may chargeback only the amount of the disputed difference.

Chargeback Remedied
IPM Second Presentment 2700
Message Reason Code
Chargeback remedied
Second Presentment Condition The transaction was correctly processed.

Supporting Documents Documentation proving that the transaction was correctly processed.
Notes None
Interregional Message Reason Code 4834—Duplicate Transaction


A cardholder’s account has been debited more than once for a single transaction.
To demonstrate that the transaction is a duplicate, the POS terminal transaction amount and
the date and time of the transaction must be the same for the transactions in question.

For duplicated interregional transactions, the issuer must charge back both transactions.

Chargeback Remedied
Reason Code
Chargeback remedied
Second Presentment Condition The acquirer can show that two separate transactions occurred.

Interregional Message Reason Code 4837—No Cardholder Authorization
Chargeback Remedied
Supporting Documents Documentation supporting two separate transactions or proof that a
credit was issued.
Notes None
Interregional Message Reason Code 4837—No Cardholder Authorization

Neither the length of time between authorization approval and transaction presentment, nor
the partial or full reversal of an approved authorization, have any effect upon the protection
that an authentication occurring during authorization provides against fraud-related
chargebacks (for example, Mastercard SecureCode authentication, chip validation, and/or PIN
verification).

This message reason code is applicable as follows.
• The transaction is a contactless transaction that exceeds the applicable contactless CVM
limit and was completed without successful online PIN verification or on-device cardholder
verification.
• The UCAF collection indicator in DE 48 (Additional Data), subelement 42 (Electronic
Commerce Indicators), Subfield 1 (Electronic Commerce Security Level Indicator and UCAF
Collection Indicator, position 3 (UCAF Collection Indicator) contains a value of zero.
• The UCAF data in DE 48 (Additional Data), subelement 43 (Static AAV for Maestro or
Mastercard Advance Registration Program), position 1 contained a value of 3 (Transaction
processed under the Maestro Advance Registration Program).
• The Remote Payments Program Type value in DE 48 (Additional Data), subelement 48
(Mobile Program Indicators), subfield 1 (Remote Payments Program Type Identifier) contains
a value of 2 (Acquirer domain).
Improper Use of Interregional Message Reason Code 4837

This chargeback may not be used in the following situations.
• A Digital Secure Remote Payment (DSRP) transaction identified in authorization with a
value of 2 in DE 48, subelement 42 (Electronic Commerce Indicators), subfield 1 (Electronic
Commerce Security Level Indicator and UCAF Collection Indicator), position 3 (UCAF
Collection Indicator).
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.

• A Mastercard Consumer-Presented Quick Response (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 Quick Response
(QR) transactions identification requirements.
• 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
magnetic stripe transactions completed without CVM
• For contactless transactions completed with successful PIN verification
• 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.

Invalid Chargeback

Reason Code
Invalid chargeback
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
Notes None

Message Reason Code
Invalid chargeback
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.


Notes The Fraud Notification Service (FNS) alerts the acquirer in the event
that the issuer has submitted two or more chargebacks involving the
same account for reason code 4837 or 4870. FNS places the date on
which the issuer submitted the second such fraud-related
chargeback in the Fraud Notification Service Date subfield within the
Fraud Notification Information field of the chargeback message. If
this field is present and contains a date value that is earlier than the
authorization approval date of the disputed transaction, the acquirer
may process a second presentment.

Reason Code
Invalid chargeback
Second Presentment Condition The issuer previously charged back more than 15 transactions
involving the same account for message reason code 4837 or 4870.
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).
Interregional Message Reason Code 4855—Goods or Services Not Delivered


This message reason code applies only to the following transactions.
• e-commerce
• Point-of-Sale (POS)
The cardholder’s account has been debited for a transaction, but the goods or services that
were to be shipped, delivered, or otherwise provided by the expected delivery date were not
received.
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

This chargeback does not cover situations where the goods or services provided by the
merchant do not meet the cardholder’s expectations.
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.

Chargeback Remedied
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.
Notes None
Interregional Message Reason Code 4860—Credit Not Received


This message reason code applied only to POS and e-commerce transactions.
The issuer may use message reason code 4860 if a cardholder’s account is not credited for a
refund from a merchant or is inaccurately debited instead of credited because of an incorrect
transaction code.


This chargeback should be for the full amount of the refund, or in the case of an inaccurate
debit, twice the original transaction amount to offset the error.
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.

Credit Issued
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.
Notes None
Interregional Message Reason Code 4870—Chip Liability Shift

The following section describes the proper use of message reason code 4870.

The issuer may initiate a chargeback using reason code 4870 if the following apply.
The issuer must receive a cardholder letter, electronic message, or complete a Dispute
Resolution Form-Fraud (Form 0412) alleging that the transaction was fraudulent, and the
issuer must provide this letter.
The fraudulent transaction must be reported to the Fraud and Loss Database on or before the
date the chargeback is processed. When using the Dispute Resolution Form-Fraud (Form
0412), the Maestro card account must be closed and the transaction must have been be
reported to the Fraud and Loss Database.
For counterfeit fraud, all of the following additional requirements must be met:
• The transaction was conducted with a counterfeit card at a magnetic stripe reading-only
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 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.
(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.
The following countries

and territories Effective for Maestro POS transactions
In this region... participate… dated on or after...
Asia/Pacific region All Currently in effect
Canada region All 31 December 2015
Latin America and the All Currently in effect
Caribbean region
Middle East/Africa region All Currently in effect
United States region All 1 October 2015 for all except automated
fuel dispenser transactions (MCC 5542)
1 October 2017 for automated fuel
dispenser transactions (MCC 5542)


This code may not be used for properly identified contactless transactions.
The issuer must not use message reason code 4870 if:
number [PAN], or PAN and expiration date) for reason codes 4837 or 4870.
0200 message. Refer to Appendix F for Mastercard Consumer-Presented QR transactions

Invalid Chargeback

Reason Code
Invalid Chargeback
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.
Supporting Documents Documentation showing how the chargeback was invalid.

Notes The acquirer must always provide supporting documentation when
second presenting interregional transactions. It is not sufficient to
enter a message in DE 72.


Reason Code
Invalid Chargeback
4837 or 4870.

Notes The Fraud Notification Service (FNS) alerts the acquirer in the event
that the issuer has submitted two or more chargebacks involving the
same account for reason code 4837 or 4870. FNS places the date on
which the issuer submitted the second such fraud-related
chargeback in the Fraud Notification Service Date subfield within the
Fraud Notification Information of the chargeback message. If this
field is present and contains a date value that is earlier than the
authorization approval date of the disputed transaction, the acquirer
may process a second presentment.

Reason Code
Invalid Chargeback
Second Presentment Condition The issuer previously charged back more than 15 transactions
involving the same account for message reason code 4837 or 4870.
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).


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).

DE 72 (Data Record) ISSUER LISTED GSB NNNN FNS EXCEEDED
number.
Interregional Message Reason Code 4880—Late Presentment


This message reason code applies only to chip-read and PIN-based POS and Maestro
contactless transactions.
An issuer may use reason code 4880 if the transaction is submitted into clearing more than
seven calendar days after the transaction date and the cardholder’s account is either closed or
does not contain sufficient funds to cover the transaction amount.
In order to use message reason code 4880, an issuer must have used good-faith efforts to
collect the transaction amount from the cardholder’s account.
An issuer will not be able to submit a chargeback under message reason code 4880 if the
cardholder’s account is in good standing.


Reason Code
Correct transaction date provided
Second Presentment Condition The acquirer shows that the transaction was presented within the
proper time frame.

Message Reason Codes for Intra-European and Inter-European Transactions

Supporting Documents Documentation proving that the transaction was presented within
the seven calendar day time limit.
Notes None
Message Reason Codes for Intra-European and Inter-European

Transactions
The following message reason codes are applicable to intra-European and inter-European POS,
e-commerce, PIN-based in-branch, and Maestro contactless transactions unless otherwise
indicated under the message reason code.
They apply to any type of Maestro transactions, such as Magnetic stripe or chip read
transactions and Signature, PIN, or non-PIN based transactions, unless otherwise indicated
under the message reason code.
automatically generated for each chargeback and second presentment by Mastercard via the
Mastercard Consolidated Billing System.
The Dispute Administration Fee does not apply when the transaction is coded with MCC
5499, 5735, 5815, 5816, 7311, or 7399.
Should the fee be debited unduly, for example, the acquirer collects the DAF with a second
impacted party using the miscellaneous Fee Collection/1740-700 message with reason code
7606. This fee collection message should be sent within 45 days after the dispute message
was sent which unduly triggered the DAF. DE 72 (Data Record) of the fee collection message
must contain the “10-digit chargeback reference number—collection of DAF.”
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

Intra-European Message Reason 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
Intra-European Message Reason Code 4808—Transaction Not Authorized

Proper Use of Intra-European Message Reason Code 4808

The issuer receives a complaint from the cardholder or otherwise determines a transaction
presented has not been properly authorized.
The issuer or his agent has:
• Never received an authorization request, or
• Declined the authorization request, or
• The processed amount is higher than the authorized amount.

Improper Use of Intra-European Message Reason Code 4808
• 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.

The issuer may not use this message reason code for POS chip transactions that were below
the applicable floor limit and authorized by the chip.

The condition shown below represents a valid use for issuer’s first chargeback.
Time Frame 120 days

Notes The full amount should be charged back, except when the processed
amount is higher than the authorized amount. In this case the difference
between both amounts may be charged back.


Other message codes may apply; refer to Second Presentment in this appendix for more
details.

Reason Code
Transaction authorized
Second Presentment Condition The acquirer can substantiate that the transaction was either
approved:
1. Online by the issuer
2. Offline by the chip
Supporting Documents 1. None

2. None
DE 72 (Data Record) 1. TRANS AUTH MMDDYY NNNNNN

2. CHIP TRANSACTION
Notes None
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.

DE 72 (Data Record) PREAUTH MMDDYY or AUTH MMDDYY or ACCOUNT NOT CLOSED

Notes If the transaction authorization was identified as a pre-authorization,

use PREAUTH. If the transaction authorization was not identified as
a pre-authorization, use AUTH. Replace MMDDYY with the
This remedy does not apply to Maestro contactless transit
aggregated transit transactions.

The acquirer is prohibited from using the second presentment when the PAN in the
Authorization Request Response/0110 message and in the First Presentment/1240 message
differs, but the acquirer should process a new first presentment.
If the chargeback is valid, the acquirer should process the transaction as a First Presentment/
1240 message with the correct PAN. The new presentment must be processed within thirty
days of the Central Site Business Date of the first chargeback for the acquirer to be protected
from a chargeback under message reason code 4880—Late Presentment.
Intra-European and Inter-European Message Reason Code 4831—Disputed Amount

Proper Use of Intra-European and Inter-European Message Reason Code 4831

This message reason code applies to the following transactions.
• E-commerce
• Point of Sale (POS)
• MO/TO (where permitted)
The issuer may use this message reason code as follows:
• The cardholder’s account has been debited for an amount that is higher than the original
purchase amount.
transactions only).
• Unreasonable Amount (Intra-European Economic Area [EEA] transactions, domestic
United Kingdom, Gibraltar domestic transactions, and United Kingdom domestic
transactions). Issuers in EEA countries, Gibraltar, and the United Kingdom may use this
message reason code if the cardholder alleges that the amount of an authorized
transaction for the purchase of goods or services was unreasonable, and all of the
following conditions are met:

– 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.

Billing Discrepancies. The issuer must provide a copy of the cardholder’s transaction receipt
or similar evidence and a copy of the cardholder’s written complaint.
Payment by Other Means. The issuer must provide documentation to establish alternate
payment to the merchant. Examples of such documentation include:
• Proof of payment by check or bank transfer
• For a payment in cash, a cash receipt
• For a payment made using the same Maestro card, the transaction detail (for example,
transaction amount and either ARD or switch serial number)
• For a payment made using a different Maestro card or another card, a card statement or
transaction details; a TID showing the card details is also acceptable.
For payment to a third party (such as a travel agent) to purchase a voucher or the like
representing payment to the merchant, the issuer must provide a cardholder letter, electronic
message, or completed Dispute Resolution Form stating that the voucher was accepted by the
merchant and documentation to prove that the same goods or services debited to the
cardholder’s account were covered by the voucher. Examples of such documentation include a
copy of the voucher, the itinerary prepared by the third party listing the goods and services
paid for, or a receipt of payment.
Alternate Payment via Travel Vouchers. A cardholder may claim that payment was made
using a travel voucher or similar instrument purchased from a travel agent. Upon accepting
the travel voucher, the merchant must not process a subsequent charge for the same goods or
services, even if the travel agent fails to pay the merchant.
The issuer may consider using message reason code 4855 against the acquirer of the travel
agent if the cardholder paid for the travel voucher using a Maestro card, and the travel agent
did not pay the merchant. The 120-day time frame is calculated from the date of the second
charge.
Billing Discrepancies and Payment by Other Means
Time Frame 120 Calendar Days

Supporting Documents Cardholder letter, electronic message, or completed Dispute Resolution

Form indicating that:
1. the amount billed was incorrect, and provide a copy of the TID or
other documentation to confirm the actual amount of the
transaction as agreed to by the cardholder
2. an unreasonable amount was charged.
3. the same goods or services debited to the cardholder’s account
were paid for in some other manner, and provide documentation
showing that payment was made by an alternate payment method.
DE 72 (Data Record) 1. None

2. UNREASONABLE AMOUNT
3. None
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.
Improper Merchant Surcharge (intra-European and inter-European transactions only)
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
Message Reason Code SURCHARGE

• A copy of the cardholder’s receipt or invoice showing the improper
surcharge.
• 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

Notes Only the amount reflecting the improper surcharge may be charged
back. The total transaction amount must not be charged back.


The condition shown below represent valid options that the acquirer may choose to process a
Chargeback Remedied

Reason Code
Chargeback Remedied
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.
Supporting Documents 1. Evidence that the transaction was correctly processed.

2. For unreasonable amount disputes, documentation showing
that the cardholder agreed to an amount range as reasonable
and that the transaction did not exceed this amount range; for
example,
– An itemized price list signed by the cardholder, and an
itemized transaction receipt showing the transaction amount
was calculated on the basis of this price list; or
– The cardholder’s written agreement to a recurring payment
arrangement with the merchant in which a maximum
amount for each payment was specified.
3. For payment by other means disputes, an appropriate
merchant explanation and documentation showing two
separate transactions.
Improper Merchant Surcharge (Intra-European and Inter-European Transactions Only)
Second Presentment Condition The acquirer can provide specific evidence of proper processing in
IPM Second Presentment 2700 (See Corresponding Documentation/Chargeback Remedied)
Message Reason Code
Supporting Documents The merchant’s explanation and documentation.

Intra-European Message Reason Code 4834—Duplicate Processing of Transaction
Notes Only the amount reflecting the improper surcharge may be charged
back. The total transaction amount must not be charged back.
details.
Intra-European Message Reason Code 4834—Duplicate Processing of Transaction


The issuer or the cardholder determines that a transaction has been submitted in duplicate.
A transaction is considered a duplication if the terminal ID, the transaction amount in the
original currency, the date, and the time of the transaction are the same.

Time Frame 120 days

DE 72 (Data Record) FIRST ARD NNNNNNNNNNNNNNNNNNNNNNN
Notes Issuer must provide the Acquirer Reference Data (ARD) of the first
transaction in DE 72.

details.

Reason Code
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).

DE 72 (Data Record) PIN MMDDYY NNNNNN, MMDDYY NNNNNN

Notes None

Reason Code
Credit previously issued
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.
DE 72 (Data Record) Credit MMDDYY (and optionally the Acquirer Reference Data (ARD))
Notes None
Chargeback Remedied

Message Reason Code
Chargeback remedied
Second Presentment Condition The acquirer provides two separate TIDs indicating two valid
transactions.
Supporting Documents Two separate TIDs indicating two valid transactions.
Notes None
Invalid Data Record

Reason Code
Invalid Data Record Text
Second Presentment Condition The chargeback is invalid because the issuer failed to provide the
original ARD in DE 72 (Data Record).
details.

Intra-European Message Reason Code 4837—No Cardholder Authorization
Intra-European Message Reason Code 4837—No Cardholder Authorization

Neither the length of time between authorization approval and transaction presentment, nor
the partial or full reversal of an approved authorization, have any effect upon the protection
that an authentication occurring during authorization provides against fraud-related
chargebacks (for example, Mastercard SecureCode authentication, chip validation, and/or PIN
verification).

This message reason code applies only to Non–PIN-based transactions.
The issuer is informed of a cardholder dispute such as the cardholder states that he or she has
neither participated in nor authorized a transaction. The issuer receives a cardholder dispute
letter, stating that the cardholder has neither participated in nor authorized a transaction.
Issuers may charge back:
• All intra-European and inter-European transactions completed using signature as the CVM
at magnetic stripe reading-only POS terminals
• Chip POS transactions completed without CVM
• Technical Fallback (chip to magnetic stripe) transactions performed without CVM
• E-commerce transactions for which the merchant site does not support the passing of
UCAF data (DE 48, subelement 42, subfield 3 equals zero or is missing).
• Mobile remote payment transactions for which the Remote Payments Program Type value
of 2 (Acquirer Domain) was present in Data Element 48, subelement 48, subfield 1 (Mobile
Program Indicators), and
• Maestro contactless transactions that exceed the applicable contactless CVM limit without
successful online PIN verification or on-device cardholder verification
• Parking garage and tollway transactions completed without CVM

This chargeback may not be used in the following situations.
• A Digital Secure Remote Payment (DSRP) transaction identified in authorization with a
value of 2 in DE 48, subelement 42 (Electronic Commerce Indicators), subfield 1 (Electronic
Commerce Security Level Indicator and UCAF Collection Indicator), position 3 (UCAF
Collection Indicator).
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.
• A Mastercard Consumer-Presented Quick Responses (QR) transaction that was properly

• 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
number [PAN], or PAN and expiration date) for message reason code 4837 or 4870.
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.

The issuer must supply the cardholder letter, electronic message, or completed Dispute
Resolution Form-Fraud (Form 0412) as supporting documentation. When using the Dispute
Resolution Form-Fraud (Form 0412), the Maestro card account must be closed and the
transaction must have been be reported to Fraud and Loss Database.
All fraudulent transactions must be reported to the Fraud and Loss Database.
Where a chargeback is being raised as a result of multiple fraudulent mobile phone
prepayment transactions performed with the same card, the issuer may combine the
transactions in question into a single First Chargeback/1442 message, providing supporting
documentation including a schedule showing dates and amounts of each transaction.

Previous Fraud-related Chargebacks on the Account. The Fraud Notification Service (FNS)
alerts the acquirer in the event that the issuer has submitted two or more chargebacks
involving the same account for reason code 4837 or 4870. FNS places the date on which the
issuer submitted the second such fraud-related chargeback in PDS 0200 (FNS—Fraud
Notification \ of the First Chargeback/1442 message. If PDS 0200 is present and contains a
date value that is earlier than the authorization approval date of the disputed transaction, the
acquirer may process a second presentment.
details.

Message Reason Code Invalid Chargeback

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).
number.

Message Reason Code
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
Supporting Documents 1. None

2. None
DE 72 (Data Record) 1. PIN MMDDYY NNNNNN

2. CHIP TRANSACTION
Notes None
Chargeback Remedied

Reason Code
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
Invalid Chargeback

Reason Code
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

Message Reason Code
Invalid Chargeback
4837 or 4870.

DE 72 (Data Record) One of the following:
1. FNS
Notes The following applies to the use of DE 72 (Data Record):

1. Use FNS when the authorization approval date of the disputed
transaction is later than the date value provided by the Fraud
Notification Service in PDS 0200 of the First Chargeback/1442
message.
2. Use NN MMDDYY for a previous chargeback by replacing NN
with the last two digits of the message reason code and
MMDDYY with the Central Site Business Date. For AUTH
MMDDYY, replace MMDDYY with the authorization approval
date of the disputed transaction.
details.
Improper Use for Acquirer's Second Presentment

Second presentments are not permitted for the following.
• Fraudulent parking garage and tollway transactions completed without CVM

Intra-European Message Reason Code 4841—Canceled Recurring or Digital Goods Transactions
• Fraudulent chip POS transactions completed without CVM or

• Non–PIN-based fraudulent transactions at terminals capable only of reading the magnetic
stripe. In this situation, the acquirer is held responsible even though a waiver may have
been granted.

Transactions

The issuer uses this message reason code if the merchant continued to bill a cardholder for a
recurring transaction after:
• Receiving notification of cancellation from the cardholder or issuer, or
• The issuer listed the cardholder’s account information on the Payment Cancellation Service
(PCS), or
• The cardholder was unaware of entering into a recurring transaction.
Confirm that the Transaction is a Recurring Transaction. This chargeback may be used if
the issuer believes the transaction is a recurring transaction, although a value of 4 (Cardholder
not present [standing order/recurring transaction]) is not present in DE 22 (Point of Service
Data Code), subfield 5 (Cardholder Present Data).
A recurring transaction allows for continuous billing without a specified end date. The
disputed transaction must be a recurring transaction and not installment billing.
Installment transactions involve a finite number of periodic payments with a specified end
date.
Examples of recurring and installment payments include the following.
• A cardholder contracted to pay EUR 250 on a monthly basis for three years for an
automobile. This transaction is an installment transaction because an end date is specified.
• A cardholder contracted to pay EUR 25 on a monthly basis for membership in a health
club. The contract specified that either the cardholder or the health club could cancel the
contract with 30 days’ notice. This transaction would qualify as a recurring transaction
because an end date is not specified.
• A cardholder enrolls in automatic bill payment with his or her utility provider, whereby the
cardholder enters into an agreement specifying that payments for utility services will be
billed to his or her card on a monthly basis. The agreement states that the cardholder could
cancel the automatic bill payments with two weeks’ notice. This transaction would qualify
as a recurring transaction because an end date is not specified.
Issuer May Cancel Recurring Billing. The issuer can charge back a transaction under
message reason code 4841 if it notified the merchant or acquirer before the transaction date
to cancel the billing on the cardholder’s behalf.
Digital Goods Purchases of EUR 25 or Less. 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). 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.

The following conditions represent valid options that the issuer can use to process a first
Recurring Transaction Canceled Before Billing
Time Frame 120 calendar days

Account Listed in Payment Cancellation Service (PCS)
Form stating that the merchant was notified of the cancellation before
the billing of the disputed transaction
DE 72 (Data Records) None
Note None
Account Listed in Payment Cancellation Service (PCS)

DE 72 (Data Records) RPCS MMDDYY
Note Replace MMDDYY with the date the account number was listed in the
Payment Cancellation Service (PCS).


eliminated:
Message System

Digital Goods

Notes
sale.
Digital Goods

• Digital goods were purchased in an e-commerce transaction that was
less than or equal to EUR 25 (or local currency equivalent)
• The cardholder’s account is not closed and is in good standing with
no associated fraudulent transactions

DE 72 (Data Record) DIGITAL GOODS
Note None
Subsequent Message Reason Code 4841 Chargeback

DE 72 (Data Records) CBMMDDYY ARD
XXXXXXXXXXXXXXXXXXXXXXX
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.

Proper Use for Acquirer's Second Presentment
Proper Use for Acquirer's Second Presentment

details.
Recurring Transactions

Reason Code
Second Presentment Condition The acquirer can substantiate one of the following:
• The transaction was not a recurring transaction. For example, the
merchant bills the cardholder in installments.
• The transaction was recurring and the cardholder failed to meet
the cancellation terms of the signed contract.
• The merchant can document that services are being provided to
and used by the cardholder after the cancellation date.
• The merchant can document that proper disclosure of entering
into the recurring transaction was provided to and accepted by
the cardholder.
Supporting Documents Documentation to support that the chargeback is remedied or

invalid.
Notes None
details.
Digital Goods

Reason Code See Corresponding Documentation/Chargeback Remedied
Second Presentment Condition The acquirer can substantiate that the merchant offered purchase
controls at the time of the transaction or transactions.
Supporting Documents Documentation to support that the chargeback is remedied or

invalid (for example, website screen images).
Notes None


The acquirer must not submit a second presentment if the chargeback indicates that the
cardholder canceled the recurring transaction and the merchant states that it was never
contacted.
Intra-European Message Reason Code 4846—Currency Errors


An incorrect amount is deducted from the cardholder’s account in the following
circumstances.
• The acquirer did not provide the correct transaction currency code (DE 49) for the currency
in which the transaction was completed.
• The transaction amount is provided in a different currency for information purposes, and
this currency is incorrectly processed as the transaction currency.
• POI currency conversion disputes:
– The cardholder states that he or she was not given the opportunity to choose the
desired currency in which the transaction was completed or did not agree to the
currency of the transaction; or
– POI currency conversion took place into a currency that is not the cardholder’s billing
currency; or
– POI currency conversion took place when the goods/services were priced in the
cardholder’s billing currency; or
– POI currency conversion took place when the cash was dispensed in the cardholder’s
billing currency.

The conditions below represent valid options that the issuer may choose to process a first
Incorrect Currency Transmitted

Notes The acquirer transmitted the incorrect currency code. The chargeback
must be for the full amount of the transaction.
POI Currency Conversion

Currency Conversion—Incorrect Cardholder Currency
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.
Currency Conversion—Incorrect Cardholder Currency

Supporting Documents To document the currency and amount billed to the cardholder, supply
• The cardholder’s billing statement, or
• The issuer’s internal transaction record.
DE 72 (Data Record) INCORRECT CARDHOLDER CURRENCY

Notes This chargeback option may be used for transactions for the following
types of disputes involving POI currency conversion:
• The transaction was converted into a currency that is not the
cardholder’s billing currency, or
• The cardholder billing currency is the same as the currency in which
the good/services are priced, or
• The cash was dispensed in the cardholder’s billing currency
The chargeback may be for a partial amount representing the amount
resulting from the double conversion, excluding any amount related to
the issuer’s conversion of the transaction.

Chargeback Remedied
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.
Supporting Documents Documentation proving the correct currency was provided or

specified.
Notes This remedy is not applicable for POI currency conversion disputes.
details.

The acquirer is prohibited from using the second presentment to argue the validity of the
cardholder’s claim regarding the selection of or non-agreement to the currency.
The contents of the transaction receipt are considered only in determining whether POI
currency conversion has occurred on a transaction. They neither prove nor disprove the

If the chargeback is valid and if the full amount was charged back, the acquirer should process
the transaction as a First Presentment/1240 message in the currency in which goods/services
were priced or in the currency that was dispensed.
The new presentment must be processed within thirty days of the Central Site Business Date
of the first chargeback for the acquirer to be protected from a chargeback under message
reason code 4880—Late Presentment.
When converting the new transaction to the cardholder’s billing currency, the issuer should
apply the conversion rate that was in effect on the date of the original transaction.
Intra-European Message Reason Code 4855—Goods or Services Not Provided


This message reason code applies only to the following transactions.
• E-commerce
• POS
• MO/TO (where permitted)
The cardholder’s account has been debited, but the goods or services that were to be shipped,
delivered, or otherwise provided by the expected delivery date were not received.

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
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).

Chargeback Conditions.
For Intra-EEA and domestic European Transactions, when the Cardholder contacted the Issuer claiming
– The Cardholder (or traveler) requested reimbursement from the bonding authority or similar
– For Swedish Domestic Transactions: no additional requirement. The Cardholder (or traveler) is
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.
law, or neither the Issuer nor Cardholder after reasonable effort can determine whether the travel
service was covered by a bonding authority or similar scheme according to local law.


Time Frame.
authority or similar scheme responded or not. The Issuer must wait at least 30 calendar days from
For German Domestic Transactions: Maximum 240 calendar days from the latest expected service
date, whether the bonding authority or similar scheme responded or not. The Issuer must wait at
least 60 calendar days from the date the request was sent prior to processing a chargeback,
unless a negative response was received, in which case, the chargeback may be processed upon
receipt of the negative reply.
For Polish Domestic Transactions: Maximum 540 calendar days from the Central Site Business
Date, whether the bonding authority or similar scheme responded or not. The Issuer must wait at
least 60 calendar days from the date the request was sent prior to processing a chargeback,
unless a negative response was received, in which case, the chargeback may be processed upon
receipt of the negative reply.
For Swedish Domestic Transactions: Maximum 120 calendar days from the latest expected service
date.
2. Maximum 120 calendar days from the latest expected service date.
In all cases, the Issuer does not have to wait for the latest expected service date before processing
will not be provided to the Cardholder (or traveler). The Issuer is still obligated to meet all other
applicable chargeback requirements, such as making a request for reimbursement from the
bonding authority or similar scheme.
Message Reason Code.

4855 (Goods or Services Not Provided) for Dual Message System transactions.
• A description of the Cardholder’s complaint in sufficient detail to enable all parties to understand
the dispute.
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)


Notes.
When the transaction is neither Intra-EEA nor domestic European, Customers should always refer to
the applicable scenario, namely Intra-European Message Reason Code 4855—Goods or Services Not
Provided or Interregional Message Reason Code 4855—Goods or Services Not Delivered. Bonding
authority requirements do not apply to such chargebacks.
reflect only the travel services not provided. If the Cardholder (or traveler) has received partial
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 arbitration case filing. The
arbitration case filing 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 claim does not extend
the arbitration case filing timeframe, so the Issuer should make a good-faith effort to determine bond
coverage prior to the initial chargeback.
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.

This chargeback does not cover situations where the goods or services provided by the
merchant do not meet the cardholder’s expectations.
of the following:
• Wallet Identifier in DE 48 (Additional Data—Private Use), subelement 26 (Wallet Program


Possible Acquirer Remedies. The acquirer can refute the chargeback if it shows proof that:
• The cardholder or a person that the cardholder authorized received the goods or services;
or
• The merchant attempted to provide the goods or services but the cardholder refused them;
or
• At the time of the transaction, or thereafter by agreement between the merchant and the
cardholder, the merchant agreed to provide the goods or services after the date the
cardholder alleges the goods or services were to be provided.
Chargeback Remedied
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.
details.
Failed Travel Merchant Dispute—Intra-EEA and Domestic European Transactions Only

Second Presentment Condition. The Acquirer can provide evidence in response to the Cardholder’s
claims.
Chargeback Remedied).

Intra-European Message Reason Code 4860—Credit Not Received

• Proof that the Cardholder (or traveler) received reimbursement from the merchant, a bonding
• The Merchant’s explanation and documentation showing that the travel services paid for will be
provided or were available to the Cardholder (or traveler).
• The Merchant’s explanation and documentation, specifically evidence that the travel services paid
for are covered by a bonding authority or similar scheme according to local law and that the
Cardholder (or traveler) has recourse to collect reimbursement. Instructions on how to request
reimbursement must be provided. An Acquirer statement that a bonding authority or similar
Transactions.

Notes. A Merchant or Acquirer statement that the Cardholder never contacted the bonding authority
Intra-European Message Reason Code 4860—Credit Not Received


This message reason code applies to POS, e-commerce, and (where permitted) MO/TO
transactions.
The issuer may use this message reason code when it receives a cardholder letter, electronic
message, or completes a Dispute Resolution Form stating one of the following:
• A merchant has not posted a credit to his or her account or that the merchant posted a
credit and reduced the amount of the credit due without proper disclosure.
• A merchant accepts a cancellation of merchandise that was to be picked up at a merchant
location and the cardholder did not take possession of the merchandise
• A merchant failed to provide a full credit refund for a time-share transaction or any similar
provision of services after the cardholder canceled the agreement within 90 calendar days
of the transaction date.
• A cardholder account has been inaccurately posted with a debit instead of a credit as a
result of an incorrect transaction code or keying error. For example, the merchant posted a
credit as a retail sale.
The issuer can submit a chargeback without a cardholder letter if the cardholder provides one
of the following:
• A credit receipt, credit advice issued by the merchant or its agent, or a TID voided by the
merchant. The documents must show an account number, an amount to be credited, and
a date.
• A merchant advisement (with or without an account number, date, or amount to be
credited) that instructs the issuer to charge back the transaction, if it is accompanied by
documentation showing the credit due.

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

If the cardholder knows that the merchant refused to issue credit or accept merchandise for
return or the cancellation of services, this chargeback would not be applicable.
of the following:
• Wallet Identifier in DE 48 (Additional Data—Private Use), subelement 26 (Wallet Program


The conditions shown below represent valid options to process a first chargeback for message
reason code 4860.

Supporting Documents A cardholder letter, electronic message, or completed Dispute Resolution
Form is required if any of the following:
• The credit voucher, advisement, or advice is undated, or does not have
an account number or an amount to be credited.
• The cardholder never received a credit, or a properly disclosed in-store
credit, and the merchant accepted returned merchandise or canceled
services.
• The merchant issued a partial or improper credit
A cardholder letter, electronic message, or completed Dispute Resolution
Form is not required if the documentation includes 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
• Copy of an improperly disclosed in-store credit
The issuer must supply the 23-digit ARD for the credit transaction in DE 72
(Data Record), if the merchant issued an improperly disclosed partial credit
to the cardholder.
DE 72 (Data Record) For improper partial credit only:


Timeshare
Notes Replace NNNNNNNNNNNNNNNNNNNNNN with the Acquirer Reference

Data (ARD) for the credit transaction.
Merchants are not obliged to accept returned merchandise or the
cancellation of services based on a cardholder whim or for “buyer’s
remorse.” For example, the cardholder changed his or her mind and there
is nothing wrong with the merchandise.
If a merchant accepts the return of goods or the cancellation of services,
the merchant must issue a credit to the cardholder’s account, unless the
merchant properly disclosed at the time of the transaction that other
conditions would apply for a return or cancellation (such as an in-store
credit or exchange only).
Timeshare

Supporting Documents A cardholder letter, electronic message, or completed Dispute Resolution
Form stating that he or she engaged in a transaction for a timeshare or any
similar provision of services and canceled the agreement within 90 calendar
days of the agreement date.
DE 72 (Data Record) 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.

Notes The chargeback amount must be twice the original transaction amount to
offset the error.

details.

Credit Issued
Credit Issued

Reason Code
Credit issued
Second Presentment Condition The acquirer can show that a credit or a reversal was processed.
DE 72 (Data Record) Credit MMDDYY (and, optionally, the Acquirer Reference Data
[ARD])
Cancellation or Returns

Reason Code
Second Presentment Condition Any of the following:

• The merchant did not give a credit slip or other advisement to
the cardholder.
• The merchant denies accepting the cancellation of services or the
return of the merchandise.
• The merchant states the merchandise was never returned.
• The merchant substantiates that the credit or cancellation policy
was properly disclosed to the cardholder at the point of
interaction.
Supporting Documents Merchant rebuttal

For example, the merchant states that the merchandise was never
returned or that the cancellation was not accepted.

Notes This condition is not applicable to Timeshare transactions where the
cardholder canceled the contract within 90 calendar days.
Purchase Properly Posted

Message Reason Code
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

Credit Previously Issued—Intra-European and Inter-European Transactions
details.
Credit Previously Issued—Intra-European and Inter-European Transactions

Credit previously issued.
Second Presentment Condition The acquirer provides the date that it processed the
credit.
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.
DE 72 (Data Record) One of the following corresponding to the

Supporting Documents:
1. CRED MMDDYY

Reason Code 4860—Arbitration Case Filing
Notes One of the following corresponding to the

Supporting Documents:
1. Replace MMDDYY with the date the credit was
performed. Optionally, replace
NNNNNNNNNNNNNNNNNNNNNNN with the
Acquirer Reference Data (ARD).
2. Replace MMDDYY with the date the credit was
performed. Replace XXXXXXXXXXXX with how
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).
Reason Code 4860—Arbitration Case Filing

When the credit was processed by other means than a credit to the card used for the original
purchase, the issuer will be allowed to pursue the dispute with an arbitration case filing with a
progressive cardholder letter if the cardholder maintains the credit was not processed and the
credit cannot be verified.
Intra-European Message Reason Code 4870—Chip Liability Shift

Proper Use for Intra-European Message Reason Code 4870

This message reason code applies only to POS, and PIN-based in-branch terminal transactions.
The issuer receives a cardholder letter, electronic message or completes a Dispute Resolution
Form-Fraud (Form 0412) alleging that the transaction was fraudulent, and the issuer must
provide this documentation. When using the Dispute Resolution Form-Fraud (Form 0412) the
Maestro card account must be closed and the transaction must have been be reported to the
Fraud and Loss Database.
The fraudulent transaction must be reported to the Fraud and Loss Database on or before the
date the chargeback is 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.

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. Refer to Appendix F for Digital Secure Remote Payment
transaction identification requirements.
the same Maestro card account (for this purpose, “account” means PAN, or PAN and
expiration date) for reason codes 4837 or 4870.
• The issuer submitted more than 15 chargebacks involving the same Maestro card account
(as defined above) for message reason code 4837 or 4870.
chargebacks for reason code 4837 or 4870 involving the same Maestro card account (as
defined above), and the issuer has already met or exceeded this amount for the account in
question.
• Properly identified and authorized contactless transactions

For counterfeit fraud and lost, stolen, or never received fraud, the following additional
requirements must be met.
For counterfeit fraud, all of the following additional requirements must be met:
• The transaction was conducted with a counterfeit card at a magnetic stripe reading-only
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.
(Form 0412) must state 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.
(Form 0412) must state 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, electronic message, or completed Dispute Resolution
Form-Fraud (Form 0412) that the card was lost, stolen, or never received at the time of the
transaction.

Previous Fraud-related Chargebacks on the Account. The Fraud Notification Service (FNS)
alerts the acquirer in the event that the issuer has submitted two or more chargebacks
involving the same account for reason code 4837 or 4870. FNS places the date on which the
issuer submitted the second such fraud-related chargeback in PDS 0200 (Fraud Notification
Date), subfield 1 (Fraud Notification Service Date) of the First Chargeback/1442 message. If
PDS 0200 is present and contains a date value that is earlier than the authorization approval
date of the disputed transaction, the acquirer may process a second presentment.
details.

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).
number.

Invalid Chargeback
Invalid Chargeback

Reason Code
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

Notes None

Reason Code
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.
DE 72 (Data Record) INV SERVICE CODE
Notes None

Reason Code
Invalid chargeback
4837 or 4870.

Intra-European Message Reason Code 4880—Late Presentment
DE 72 (Data Record) One of the following:

1. FNS
Notes The following applies to the use of DE 72 (Data Record):

1. Use FNS when the authorization approval date of the disputed
transaction is later than the date value provided by the Fraud
Notification Service in PDS 0200 of the First Chargeback/1442
message.
2. Use NN MMDDYY for a previous chargeback by replacing NN
with the last two digits of the message reason code and
MMDDYY with the Central Site Business Date. For AUTH
MMDDYY, replace MMDDYY with the authorization approval
date of the disputed transaction.
Other message codes may apply; refer to section Second Presentment Procedures in this
appendix for more details.
Intra-European Message Reason Code 4880—Late Presentment


An intra-European transaction is presented more than seven calendar days after the
transaction date and the account is permanently closed.

good standing.


Reason Code
Correct Transaction date provided
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.

Domestic Chargeback Rules

DE 72 (Data Record) Correct transaction date
details.
Domestic Chargeback Rules

The following section describes specific rules that are applicable to domestic Maestro
transactions. In addition to the international rules set by Mastercard, domestic transactions are
subject to the intra-European and inter-European Maestro rules, except where there is a
specific domestic rule that varies the intra-European or inter-European rule.
For a chargeback rule applicable only to intracountry Acquirer Domain Mastercard Mobile
Remote Payment transactions in Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and
Slovenia, refer to the Mastercard Mobile Intracountry Liability Shift: Guidelines and
Requirements (available upon request to MMRP_Europe@mastercard.com).
Additional Rules Applicable to Domestic Transactions in Ireland, Turkey, and France

This section contains rules applicable to Domestic Transactions in Ireland, Turkey, and France.

This message reason code may be used for Mail Order/Telephone Order (MO/TO) Transactions.

An Issuer may not raise a chargeback under this message reason code for a Mail Order/
Telephone Order (MO/TO) Transaction where it has been provided in an authorization request
with the CVC 2 on the card and the following.
• The Issuer fails to perform a check on the CVC 2; or
• The CVC 2 does not match the CVC 2 held by the Issuer.

The acquirer may process a second presentment following the chargeback of a MO/TO
transaction by providing one of the following.
• A cardholder authority or receipt that, in either case, bears the cardholder’s signature and
shows correct details of the transaction, including correct details of the cardholder’s card;
or
• A cardholder authority that bears a copy of the cardholder’s signature (such as a facsimile
document); or
• An invoice quoting the cardholder’s name; or
• A delivery receipt signed by the cardholder and quoting a billing address; or
• A document indicating a different merchant name than that shown in the clearing record;
or

• 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.

The issuer may continue the dispute providing a progressive cardholder letter, electronic
message, or completed Dispute Resolution Form-Fraud (Form 0412) refuting the
documentation received from the merchant in the second presentment.
Before filing for arbitration the issuer must process a pre-arbitration granting the filed-against
Customer 30 days to respond. After the 30 days have elapsed or the acquirer has rejected the
pre-arbitration attempt, the issuer may escalate the case to arbitration within 75 days of the
second presentment. All cases, including pre-arbitration, must be filed in the Mastercom Case
Filing Application.

CVM Limit Amounts
Appendix C CVM Limit Amounts

This appendix specifies CVM limit amounts for Mastercard® Contactless, and the Quick Payment
Service (QPS) program and contactless ceiling limit amounts for Maestro Contactless.
Overview.................................................................................................................................... 630
CVM Limit Amounts................................................................................................................... 630

CVM Limit Amounts
Overview
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.
CVM Limit Amounts

Access the CVM limit amounts in Microsoft Excel® file format, which can be copied and
pasted as needed.
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.

CVM Limit Amounts
CVM Limit Amounts
5. When the file opens, save it to a location on your computer.
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.

Domestic Chargebacks, Arbitration Case Filing, and Compliance Case Filing
Appendix D Domestic Chargebacks, Arbitration Case

Filing, and Compliance Case Filing
This appendix contains domestic chargeback, arbitration case filing, and arbitration case filing rules.
Participating Countries—Installment Billing Dispute (Reason Code 4850).................................... 635

Proper Use of Message Reason Code 4850.............................................................................635
Proper Use of Issuer’s First Chargeback................................................................................... 636
Incorrect Number of Installments....................................................................................... 636
Incorrect Installment Amount.............................................................................................637
Premature Processing of Installment...................................................................................637
Not an Installment Transaction........................................................................................... 637
Invalid Installment Acceleration..........................................................................................638
Message Reason Code 4837..............................................................................................638
Proper Use for Acquirer’s Second Presentment........................................................................638
Correct Number of Installments......................................................................................... 638
Correct Installment Amount...............................................................................................639
Installment Not Premature................................................................................................. 639
Valid Installment Acceleration............................................................................................ 640
Additional Remedies.......................................................................................................... 640
Arbitration Chargeback-For Chargebacks Initiated On or Before 16 July 2020.........................641
Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020.............................642
Cardholder Reasserts their Claim ...................................................................................... 646
Documentation Received with Second Presentment was Illegible or Scanning Error ........... 651
Required Documentation Not Received to Support Second Presentment ........................... 653
Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and Slovenia—Intracountry Acquirer
Domain Mobile Remote Payment Transactions............................................................................ 655
India........................................................................................................................................... 656
Mexico........................................................................................................................................656
South Africa................................................................................................................................656
U.S. Region—Cardholder Dispute—Not Elsewhere Classified (Reason Code 4854)...................... 656
Proper Use of Message Reason Code 4854.............................................................................656
Proper Use for Issuer’s First Chargeback.................................................................................. 658
Disputed Surcharge........................................................................................................... 659
Proper Use for Acquirer’s Second Presentment........................................................................659

Invalid Chargeback............................................................................................................ 660

Disputed Surcharge........................................................................................................... 660
Disputed Surcharge—Incorrect Pro-rated Calculation......................................................... 661
Additional Remedies.......................................................................................................... 661
Arbitration Chargeback-for Chargeback Initiated On or Before 16 July 2020.......................... 661
Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020.............................662
Cardholder Reasserts their Claim ...................................................................................... 667
Documentation Received with Second Presentment was Illegible or Scanning Error ........... 672
Required Documentation Not Received to Support Second Presentment ........................... 674
Acquirer Reference Data (ARD) Does Not Match or is Invalid ............................................. 677
U.S. Region—U.S. Shared Deposits............................................................................................. 681
Returned Item (Reason Code 20)............................................................................................ 681
Empty Deposit Envelope (Reason Code 24).............................................................................682
Error in Addition (Reason Code 25)........................................................................................ 682
Error in Settlement (Reason Code 26)..................................................................................... 683
Customer Keyed Wrong Amount (Reason Code 27)............................................................... 683
Non-Cash Item Deposited (Reason Code 28).......................................................................... 684
Foreign/Counterfeit Currency Deposited (Reason Code 29).....................................................685
Cardholder Disputed Amount (Reason Code 30).................................................................... 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

Acquirer Representment (Second Presentment).......................................................................688
General Use.......................................................................................................................689

Participating Countries—Installment Billing Dispute (Reason Code 4850)
Participating Countries—Installment Billing Dispute (Reason Code

4850)
The following sections provide information on the proper and improper use of message
reason code 4850. Issuers may use this message reason code only for a dispute involving
domestic transactions occurring in participating countries when the cardholder has agreed to
either acquirer-financed or merchant-financed installment billing, as described in the
Transaction Processing Rules manual.

The issuer may can use message reason code 4850 under any of the following circumstances.
• The cardholder claims that the total number of installments or the installment amounts
being billed is not in accordance with the installment billing arrangement agreed with the
merchant.
• An installment was billed prematurely.
• The acquirer submitted a clearing record to obtain payment from the cardholder in
connection with an installment billing arrangement after the total transaction amount as
reflected in the original authorization request and on the TID.
• The number of installments on the Financial Detail Addendum (Generic Detail)/1644
message differs from the number of installment authorized by the issuer on the
Authorization Response/0110 message.
• The transaction is not an installment billing transaction.
• The acquirer accelerated the processing of installments without the issuer’s consent.
• To charge back subsequent installments processed after the issuer charged back the first
installment using message reason code 4837.
For disputes involving the full amount of the transaction, the issuer must charge back only the
total amount of installments received to date. The installments may be charged back
individually.
For disputes involving a partial amount, the issuer may individually charge back the
installments received to date that represent payment of the disputed amount. When the
amount being charged back is less than the amount of the associated clearing records, the
issuer must use a function code of 453 (Partial Amount) in the First Chargeback/1442
message.
When individual installments are being charged back, any required documentation must be
provided with the first installment being charged back. As long as the documentation
addresses the additional installments being charged back, the issuer does not need to provide
the same documentation with each installment chargeback.
The total amount charged back in connection with a transaction processed in installments can
exceed the total amount of installments received as of the date of the first chargeback. In
such case, the issuer must provide documentation to validate that a chargeback right exists for
the amount charged back.


The issuer may not use this message reason code when the transaction was a Mastercard
Proper Use of Issuer’s First Chargeback

The following conditions represent valid options that the issuer can use to process a first
The issuer must use this message reason code for any subsequent installments that are
processed by the acquirer after the issuer charges back the first installment of the transaction
for message reason code 4837. The issuer must provide the original message reason code
4837 Chargeback Reference Number on the Data Record of each subsequent installment
chargeback.
Incorrect Number of Installments
Incorrect Number of Installments

Supporting Documents Documentation from the cardholder substantiating the correct number
of installments
DE 72 (Data Record) CORRECT INST NN

Incorrect Installment Amount
Notes In DE 72 (Data Record), replace NN with the correct number of

installments.

Supporting Documents Documentation from the cardholder substantiating the correct
installment amount
DE 72 (Data Record) CORRECT AMT $$$$$$$
Notes Replace $$$$$$$ with the correct installment amount. The chargeback
may only be for the difference between the correct installment amount
and the actual amount billed to the cardholder.
Premature Processing of Installment
Premature Processing of Installment

Supporting Documents Documentation from the cardholder or the issuer substantiating the
correct installment frequency
DE 72 (Data Record) PREMATURE
Notes None
Not an Installment Transaction
Not an Installment Transaction

Supporting Documents Documentation from the cardholder or the issuer to substantiate that
the transaction is not for installment payments
DE 72 (Data Record) NOT AN INSTALLMENT TRANS

Invalid Installment Acceleration
Notes None

DE 72 (Data Record) INVALID ACCELERATION
Notes None

Message Reason Code 4837
Subsequent Installments Charged Back After Chargeback of the First Installment for Message
Reason Code 4837
DE 72 (Data Record) 4837 CB REF NNNNNNN
Notes Replace NNNNNNN with the first chargeback reference number.

The following conditions represent valid remedies or options that the acquirer can use to
process a second presentment for message reason code 4850.
Correct Number of Installments

The following conditions represent valid remedies or options that the acquirer can use to
process a second presentment for message reason code 4850.

Reason Code

Correct Installment Amount

Second Presentment Condition The acquirer can substantiate that the number of installments in the
Financial Detail Addendum (Generic Detail)/1644 message is the
same as the number of installments agreed by the cardholder at the
POI.

• A copy of the TID or other documentation showing that the
cardholder agreed to the number of installments processed, or
• Proof that the acquirer corrected the discrepancy that led to the
dispute

Notes None

IPM Second 2700
Code
Second Presentment Condition The acquirer can substantiate that the installment amount indicated
in the Financial Detail Addendum (Generic Detail)/1644 message is
the same as the amount per installment agreed by the cardholder at
the POI.

• A copy of the TID or other documentation showing that the
cardholder agreed to the amount processed, or
• Proof that the acquirer corrected the discrepancy that led to the
dispute

Notes None
Installment Not Premature

IPM Second 2713
Invalid Chargeback
Code

Valid Installment Acceleration

Second Presentment Condition The acquirer can substantiate that the transaction is not an
installment billing and was not processed as such in the
authorization message or clearing record. For example, the
transaction represents a recurring payment rather than an installment
billing payment.
The issuer’s first chargeback claimed that the transaction was not for
an installment billing, and transaction was properly identified as an
Installment transaction in the Authorization Request/0100 message
and the issuer approve the sale.
Supporting Documents Documentation to support that the chargeback is invalid

Notes None

Reason Code
Invalid Chargeback
Second Presentment Condition The acquirer can provide documentation showing that the issuer
requested installment acceleration for the transaction.
Supporting Documents Documentation to support that the chargeback is invalid

Notes None
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
• 2701—Duplicate Chargeback
• 2710—Scanning error—unrelated documents or partial scan

Arbitration Chargeback-For Chargebacks Initiated On or Before 16 July 2020
Arbitration Chargeback-For Chargebacks Initiated On or Before 16 July 2020

When the first chargeback was valid and the acquirer failed to remedy the dispute properly,
the issuer may continue the chargeback with the same message reason code originally
processed (4850).
The issuer will have chargeback rights when the first chargeback was valid, and examination
of the documentation reveals a new valid chargeback reason. When the situation requires the
use of a different message reason code, the issuer must process the arbitration chargeback
using the appropriate message reason code.
Progressive Documentation. A progressive cardholder letter may be required with the
arbitration chargeback in response to new information (regarding transaction date, merchant
name, or location) or rebutting any merchant explanation provided with the second
presentment. The progressive cardholder letter must be dated after the second presentment.
Installment Billing Dispute

IPM Arbitration Chargeback 4850
Message Reason Code
Installment Billing Dispute
Arbitration Chargeback Details The cardholder continues to dispute the transaction.

Supporting Documents Progressive documentation from the cardholder disputing the new
information and rebutting any merchant explanation
DE 72 (Data Record) Reason for the return
Notes 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.
The issuer may use the following additional message reason codes to submit an arbitration
• 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.

Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020

applicable, an arbitration case when the issuer claims that the second presentment was
invalid.


• The original Cardholder Dispute-Not Elsewhere Classified chargeback was valid
• The second presentment supporting documentation failed to remedy the Cardholder Dispute-Not
Elsewhere Classified chargeback
second presentment.
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Cardholder Dispute-
Not Elsewhere Classified Installment Billing Dispute” (or similar phrase), or, “4850”.
Documentation.
Documentation corroborating the cardholder’s claim against the merchant with the pre-arbitration
case when challenged by the merchant with the second presentment. For example, when the
cardholder claims the merchant did not correctly repair his or her vehicle, the cardholder has to
provide written proof from a second vehicle repair shop documenting that the original merchant
provided incorrect or unnecessary repairs.
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.
case is filed.

• Accept the pre-arbitration case and financial responsibility for the disputed transaction.
reason code 7800 or a MCBS Billing Event
filing.
second presentment supporting documentation time frame expired, the issuer submitted the
pre-arbitration case before the applicable second presentment supporting documentation time
frame expired, or the issuer submits the pre-arbitration case beyond the applicable time frame
which did not provide the acquirer with 30 calendar days to respond.


transaction.


Cardholder Reasserts their Claim



second presentment.
When second presentment supporting documentation is provided earlier than 8 calendar days
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Installment Billing
Dispute” (or similar phrase), “4850”.
Documentation.
Chargeback (Form 1221) dated after the second presentment and specifically addressing the
Documentation.

chargeback.
case is filed.


filing.
in the pre-arbitration case and, when applicable, documentation. An example includes, but is
not limited to,
– The case was filed against the wrong acquirer
– The disputed transaction amount is incorrect, or the merchant is willing to accept
responsibility for part of the disputed transaction amount


transaction.
Acquirer Response to an Arbitration Case. An acquirer may take one of the following actions in
response to receiving an arbitration case filing:



Date of the second presentment when all of the following:
pages)
Sender Memo. The issuer must include in the Sender Memo field within the Case Filing application
that the reason for the filing is “Documentation Illegible”, “Scanning error”, “4902”, “4903”, or
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
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.

filing.

Issuer Submission of an Arbitration Case. An issuer may escalate the pre-arbitration to an

arbitration case when the issuer continues to believe the chargeback is valid and the acquirer failed to
remedy the pre-arbitration case. The issuer should provide a rebuttal and any relevant documentation
in support of that rebuttal. Any rebuttal and documentation must be provided within 10 calendar days
of escalation.
transaction.



of the following:
second presentment.
that the reason for the filing is “Required Documentation Not Received to Support Second
Presentment”, “4901”, or similar phrase describing the issue.


case was submitted.
filing.

transaction.

Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and Slovenia—Intracountry Acquirer Domain Mobile
Remote Payment Transactions

Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and Slovenia—

Intracountry Acquirer Domain Mobile Remote Payment Transactions
For a chargeback rule applicable only to intracountry Acquirer Domain Mastercard Mobile
Remote Payment transactions in Croatia, Cyprus, Czech Republic, Hungary, Slovakia, and

India
Slovenia, refer to the Mastercard Mobile Intracountry Liability Shift: Guidelines and
Requirements (available upon request to MMRP_Europe@mastercard.com).
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.
U.S. Region—Cardholder Dispute—Not Elsewhere Classified (Reason

Code 4854)

Issuers can use message reason code 4854 when a cardholder has made an unsuccessful
good-faith effort to resolve a dispute with the merchant that involves goods or services, and
the dispute reflects a claim or defense authorized against issuers or creditors according to
federal, state, or local truth-in-lending laws.
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.”

The issuer may not use this message reason code when the transaction was a Mastercard
Tort Claims.
Message reason code 4854 does not address torts, which are wrongful acts, damages, or
injuries done willfully or negligently, such as negligence or an incorrect medical diagnosis. For
example, a cardholder contracts with a painter to paint his or her living room for USD 500.
The painter accidentally spills paint on the couch, causing USD 300 worth of damage. The
issuer cannot use message reason code 4854 to charge back for the USD 300.

The following condition represents a valid option that the issuer can use to process a first
presentment for message reason code 4854.
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

Disputed Surcharge
Message Reason Code One of the following:

• 4854 Dual Message System transactions
• 54 for Debit Mastercard transactions processed on the Single
Message System
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)

Notes None
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
Supporting Documents Cardholder letter, email, Dispute Resolution Form—Cardholder
Dispute Chargeback (Form 1221) describing the nature of the
disputed surcharge.
Notes When the cardholder disputes only a part of the transaction
amount, the issuer must prorate the Surcharge amount.

The following conditions represent valid options that the acquirer can use to process a second
presentment for message reason code 4854.
Deficiency Corrected
Reason Code

Invalid Chargeback
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)

Notes None
Invalid Chargeback
Invalid Chargeback
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.)
DE 72 (Data Record) The reason for the invalidity
Notes None
Disputed Surcharge
Disputed Surcharge
Reason Code
Second Presentment Condition The acquirer substantiates that the surcharge was correctly
processed.
Supporting Documents Documentation proving the surcharge was correctly processed.
Notes None

Disputed Surcharge—Incorrect Pro-rated Calculation

Reason Code
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.
Notes None
Examples—Possible Chargeback Message Reason Code 4854 Remedies. The merchant’s

written rebuttal may include one of the following:
• An assertion based on the documentation that the merchant corrected the deficiency that
led to the chargeback or otherwise resolved the complaint. For example, the merchant
repaired or replaced the merchandise.
• Proof that the chargeback was invalid because the cardholder paid the disputed amount
before contacting the merchant or issuer about the dispute.
• An assertion that the chargeback was invalid because the issuer’s supporting
documentation was not sufficient to substantiate a claim against the merchant.
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
Arbitration Chargeback-for Chargeback Initiated On or Before 16 July 2020

When the first chargeback was valid and the acquirer failed to remedy the dispute properly,
the issuer may continue the chargeback with the same message reason code originally
processed (4854).
The issuer will have chargeback rights when examination of the documentation reveals a new
valid chargeback reason. When the situation requires a different message reason, the issuer
must process the arbitration chargeback using the appropriate message reason code. The

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
IPM Arbitration Chargeback Message 4854

Reason Code
Cardholder dispute—not elsewhere classified (U.S. region
only)
Arbitration Chargeback Details The cardholder continues to dispute the transaction.

Supporting Documents Progressive documentation from the cardholder disputing
the transaction and rebutting any merchant explanation.
See Additional Processing Notes below.
DE 72 (Data Record) Reason for the return
Notes 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
Chapter 6 Pre-Arbitration and Arbitration Case Filing-
Chargebacks Initiated On or After 17 July 2020.
Progressive Documentation. A progressive cardholder letter may be required with the

arbitration chargeback in response to new information or rebutting any merchant explanation
provided with the second presentment. The progressive cardholder letter must be dated after
the second presentment and specifically address the rebuttal provided with the second
presentment.
The issuer may use the following additional message reason codes to submit an arbitration
chargeback:
• 48xx—New valid message reason code
• 4901—Required documentation not received to support prior Second Presentment/1240
• 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 Chapter 6 Pre-Arbitration and


applicable, an arbitration case when the issuer claims that the second presentment was
invalid.


• The second presentment supporting documentation failed to remedy the Cardholder Dispute-Not
Elsewhere Classified chargeback
second presentment.
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Cardholder Dispute-
Not Elsewhere Classified” (or similar phrase), “54”, “4854”.
Documentation.
Documentation corroborating the cardholder’s claim against the merchant with the pre-arbitration
case when challenged by the merchant with the second presentment. For example, when the
cardholder claims the merchant did not correctly repair his or her vehicle, the cardholder has to
provide written proof from a second vehicle repair shop documenting that the original merchant
provided incorrect or unnecessary repairs.
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
case is filed.

reason code 7800 or a MCBS Billing Event
filing.


transaction.





• The original Installment Billing Dispute chargeback was valid
second presentment.
When second presentment supporting documentation is provided earlier than 8 calendar days
Sender Memo.
The Sender Memo tab of the Mastercom Case Filing Application must specify “Installment Billing
Dispute” (or similar phrase), or “4850”.
Documentation.
Chargeback (Form 1221) dated after the second presentment and specifically addressing the
Documentation.

chargeback.
case is filed.


filing.
in the pre-arbitration case and, when applicable, documentation. An example includes, but is
not limited to,
– The case was filed against the wrong acquirer
– The disputed transaction amount is incorrect, or the merchant is willing to accept
responsibility for part of the disputed transaction amount


transaction.
Acquirer Response to an Arbitration Case. An acquirer may take one of the following actions in
response to receiving an arbitration case filing:



Date of the second presentment when all of the following:
pages)
that the reason for the filing is “Documentation Illegible”, “Scanning error”, “4902”, “4903”, or

filing.

Issuer Submission of an Arbitration Case. An issuer may escalate the pre-arbitration to an

arbitration case when the issuer continues to believe the chargeback is valid and the acquirer failed to
remedy the pre-arbitration case. The issuer should provide a rebuttal and any relevant documentation
in support of that rebuttal. Any rebuttal and documentation must be provided within 10 calendar days
of escalation.
transaction.



of the following:
second presentment.
that the reason for the filing is “Required Documentation Not Received to Support Second
Presentment”, “4901”, or similar phrase describing the issue.


case was submitted.
filing.

transaction.






Date of the second presentment when all of the following conditions are met.
was invalid.
second presentment.
that the reason for the filing is “CORRECT REFERENCE NUMBER SUPPLIED” or similar phrase
Supporting Documentation. One of the following:
Supporting Documentation provided in the pre-arbitration resonse that was required (but not


• Accept the pre-arbitration case and financial responsibility for the disputed transaction. Accepting
the case must occur within 30 calendar days of the date the pre-arbitration case was submitted
filing.


transaction.


U.S. Region—U.S. Shared Deposits
U.S. Region—U.S. Shared Deposits

The following sections describe the U.S. shared deposits in the U.S. region.
Returned Item (Reason Code 20)

The acquirer may use this message reason code when the acquirer received a returned item or
notice of non-payment for a non-negotiable item.
Acquirer Adjustment
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.

Code

• A copy of the front and back of the returned item
• A copy of the notice of non-payment
Notes The original returned or non-negotiable 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, or, to
the extent permitted under the Check Clearing for the 21st Century
Act (“Check 21 Act”), 12 U.S.C. § 5001 et seq., a substitute check
meeting the requirements of the Check 21 Act must be transmitted
to the issuer within three business days of the adjustment processing
date. The copy of the returned or non-negotiable item that is
processed through the MasterCom system (the “MasterCom Copy”)
is not intended to qualify or meet the requirements of a substitute
check under the Check 21 Act, and under no circumstances shall the
acquirer or issuer treat such MasterCom Copy as a substitute check
under the Check 21 Act.

Issuer Chargeback
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.
Empty Deposit Envelope (Reason Code 24)

The acquirer may use this message reason code when an empty deposit envelope was
received.
Acquirer Adjustment
Adjustment Condition The acquirer has received an empty deposit envelope.
Time Frame Between 1 and 5 calendar days from the settlement date.

Code
Notes None
Issuer Chargeback
Error in Addition (Reason Code 25)

The acquirer may use this message reason code to correct an addition error with the
cardholder’s deposit.
Acquirer Adjustment
Adjustment Condition The acquirer is correcting an addition error with the cardholder’s
deposit.

Code

Issuer Chargeback
Notes None
Issuer Chargeback
Error in Settlement (Reason Code 26)

The acquirer may use this message reason code to correct a settlement error.
Acquirer Adjustment
Adjustment Condition The acquirer is correcting an error settlement.

Code
Notes None
Issuer Chargeback
Customer Keyed Wrong Amount (Reason Code 27)

The acquirer may use this message reason code to correct a keying error with the cardholder’s
deposit.
Acquirer Adjustment
Adjustment Condition The acquirer is correcting a keying error with the cardholder’s deposit.

Issuer Chargeback

Code
Notes None
Issuer Chargeback
Non-Cash Item Deposited (Reason Code 28)

The acquirer may use this message reason code when the acquirer received a non-cash item.
Acquirer Adjustment
Adjustment Condition The acquirer has received a non-cash item.
Time Frame One business day following receipt of the non-cash item.

Code
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
Issuer Chargeback
Foreign/Counterfeit Currency Deposited (Reason Code 29)

The acquirer may use this message reason code when foreign currency or counterfeit currency
was deposited into an ATM.
Acquirer Adjustment
Adjustment Condition The acquirer is reversing a foreign or counterfeit currency deposit.

Code
Notes None
Issuer Chargeback
Cardholder Disputed Amount (Reason Code 30)

The issuer may use this message reason code when the Shared Deposit adjustment is invalid.
Issuer Chargeback
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.
date.

Code

Notes None

An arbitration case filing is not available as a representment is not valid for this message
reason code.
Intra-U.S. Region and U.S. Territories—Defective/Not as Described

(Reason Code 53)
The issuer may use message reason code 53 when the cardholder contacted the issuer
alleging that the goods or services received were either defective or not as described.
Issuer Chargeback
The following table details the requirements for this message reason code.
General Use

• Both the issuer and the acquirer are located in the United States,
American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and/or
the U.S. Virgin Islands.
– 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 states that the quality or workmanship of the
product is not as described.
– The cardholder states that the specified color, size, or quantity is
not as described.
– Terms and conditions of a contract including, but not limited to,
100 percent money back guarantee, written promises, or return
policy.

General Use
Time Frame One of the following:

for issues of interrupted services.
or the delivery date the goods or services.
In addition,
• Returned Merchandise. The issuer must wait 30 calendar days from
the date the merchandise was returned before submitting a
chargeback. When waiting the 30 calendar days would cause the
issuer to exceed the 120 calendar day time frame, the issuer may
chargeback the transaction earlier than 30 calendar days.
• Delayed Delivery. When the date the goods or services were to be
provided as agreed upon by the merchant and the cardholder has
passed.
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’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.

Staged Digital Wallet. A transaction to fund a Staged Digital Wallet
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.
Supporting documentation must be in English or accompanied by an
Supporting documentation must be provided within 10 calendar days of
the chargeback settlement date.

Counterfeit Goods
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.
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
Notes Staged Digital Wallet. A transaction to fund a Staged Digital Wallet

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.
Supporting documentation must be in English or accompanied by an

The following table details the requirements of the second presentment for this message
reason code.
Second Presentment The acquirer can provide evidence of one of the following:
Condition • The dispute was corrected or resolved.
• The goods were not counterfeit.
Time Frame 45 calendar days of the chargeback settlement date

Second Presentment 13
Message Reason Code
Supporting Documents The merchant’s explanation and documentation supporting the Second

General Use
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.
Notes Supporting documentation must be in English or

A completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must
be the result of contact with the cardholder.

Counterfeit Goods
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.
– 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.
Notes The issuer should send an email message to

ipinquiries@mastercard.com to report the
cardholder’s allegation of an intellectual property
rights infringement.
Supporting documentation must be in English or
A completed Dispute Resolution Form—
Cardholder Dispute Chargeback (Form 1221) must
be the result of contact with the cardholder.

Lodging Merchant Services
Appendix E Lodging Merchant Services

This appendix provides Card acceptance requirements relating to the Guaranteed Reservations, and
Advance Resort Deposit services.
Guaranteed Reservations............................................................................................................ 692

Advance Resort Deposit.............................................................................................................. 693

Guaranteed Reservations
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.

Advance Resort Deposit
Advance Resort Deposit

A merchant participating in the Advance Resort Deposit service must follow these procedures:
1. Explain the terms of the advance resort deposit reservation to the cardholder, including the
cancellation and refunds policies. A "no refund" policy must be clearly disclosed to
the cardholder.
2. Request the card account and cardholder address information and confirm the room rate
and location.
3. Obtain authorization from the Issuer and include on the TID the reservation confirmation
number and the words “advance deposit” in place of the cardholder’s signature. The
merchant is recommended to note on the TID any special terms and conditions regarding
its cancellation and refund policy.
4. Provide confirmation, a copy of the TID (including the reservation confirmation number),
and information concerning its cancellation and refund policies (including a "no refund"
policy, when applicable) to the cardholder. This information must be provide by letter,
email, fax, or other message.
5. If a cardholder cancels his or her reservation in accordance with the agreed upon
procedures, the merchant must follow the cancellation and refund policy previously
disclosed to the cardholder.

Transaction Identification Requirements
Appendix F Transaction Identification Requirements

This appendix contains requirements for transaction identification.
Transaction Date......................................................................................................................... 695

Contactless Transactions............................................................................................................. 695
Contactless Transit Aggregated Transactions...........................................................................697
Contactless-only Transactions................................................................................................. 699
Quick Payment Service Transactions............................................................................................ 700
Payment Transactions..................................................................................................................701
Electronic Commerce Transactions.............................................................................................. 703
Digital Secure Remote Payment Transactions............................................................................... 704
Digital Secure Remote Payment Transactions Containing Chip Data........................................ 704
Digital Secure Remote Payment Transactions Containing UCAF Data...................................... 706
Partial Shipments or Recurring Payments Following Digital Secure Remote Payment
Transactions........................................................................................................................... 708
Mastercard Mobile Remote Payment Transactions....................................................................... 710
Mastercard Biometric Card Program Transactions........................................................................ 710
Mastercard Consumer-Presented Quick Response (QR) Transactions............................................ 711

Transaction Date
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”).

Contactless Transactions
Table 31: Contactless Transaction Values for Authorization Request/0100 or Financial

Transaction Request/0200 Messages

22 (Point of 1 (POS Terminal PAN One of the following:
Service [POS] Entry Entry Mode) • 07 (PAN auto-entry via contactless M/Chip)
Mode • 91 (PAN auto-entry via contactless magnetic stripe
—the full track data had been read from the data
on the card and transmitted within the
authorization request in DE 35 [Track 2 Data] or DE
45 [Track 1 Data] without alteration or truncation)
61 (Point-of- 11 (POS Card Data One of the following:

Service [POS] Data) Terminal Input • 3 (Contactless M/Chip)
Capabilities) • 4 (Contactless Magnetic Stripe)
Table 32: Contactless Transaction Values for First Presentment/1240 Messages
Data Element Subfield

22 (Point of Service Data Code) 1 (Terminal Data: Card Data One of the following:
Capability) • A (PAN auto-entry via
contactless magnetic stripe)
• M (PAN auto-entry via
contactless M/Chip)
7 (Card Data: Input Mode) One of the following:

• A (PAN auto-entry via
contactless magnetic stripe)
• M (PAN auto-entry via
contactless M/Chip)

Contactless Transit Aggregated Transactions

The Acquirer must identify each Contactless transit aggregated Transaction with the following
values.
Table 33: Contactless Transit Aggregated Transaction Values for Authorization

Request/0100 or Financial Transaction Request/0200 Messages

18 (Merchant One of the following:
Type) • 4111 (Transportation—Suburban and Local
Commuter Passenger, including Ferries)
• 4131 (Bus Lines)
• 4784 (Bridge and Road Fees, Tolls)
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)
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.
10 (Cardholder-Activated 0 (Not a CAT transaction)

Terminal Level)


11 (POS Card Data One of the following:
Terminal Input Capability) • 3 (Contactless M/Chip)
• 4 (Contactless Magnetic Stripe)
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)
3 (Terminal Data: Card 0 (No capture capability)

Capture Capability)
4 (Terminal Operating 2 (On merchant premises; unattended terminal)
Environment)
5 (Card Present Data) 0 (Cardholder present)
7 (Card Data: Input One of the following:
Mode) • A (PAN auto-entry via contactless magnetic stripe)
26 (Merchant One of the following:

Business Code • 4111 (Transportation-Suburban and Local
[MCC]) Commuter Passenger, including Ferries)
• 4131 (Bus Lines)
• 4784 (Bridge and Road Fees, Tolls)
PDS 0210 (Transit 1 (Transit Transaction One of the following:

Transaction Type) Type) • 03 (Mastercard Contactless Transit Aggregated)
• 06 (Maestro Contactless Transit Aggregated)

Contactless-only Transactions
Contactless-only Transactions
The Acquirer must identify each Contactless-only Transaction with the following values.
Table 35: Contactless-Only Transaction Values for Authorization Request/0100 or

Financial Transaction Request/0200 Messages

18 (Merchant An MCC approved to be Contactless-only as published
Type) from time to time in the Global Operations Bulletin.
22 (Point-of- 1 (POS Terminal PAN Any of the values shown in “Contactless Transaction
Service [POS] Entry Entry Mode) Values for Authorization Request/0100 or Financial
Mode) Transaction Request/0200 Messages.”
61 (Point-of- 1 (POS Terminal 1 (Unattended terminal)
Service [POS] Data Attendance)
3 (POS Terminal Location) One of the following:
• 0 (On premises of merchant facility)
• 1 (Off premises of merchant facility [merchant
terminal—remote location])
4 (POS Cardholder 0 (Cardholder present)

Presence)
7 (POS Transaction 0 (Normal request)
Status)
10 (Cardholder-Activated One of the following:
Terminal Level) • 1 (Authorized Level 1 CAT: Automated dispensing
machine with PIN)
• 2 (Authorized Level 2 CAT: Self-service terminal)
• 3 (Authorized Level 3 CAT: Limited-amount
terminal)
11 (POS Card Data One of the following:

Terminal Input Capability) • 3 (Contactless M/Chip)
• 4 (Contactless Magnetic Stripe)

Quick Payment Service Transactions
Table 36: Contactless-Only Transaction Values for First Presentment/1240 Messages

Service Data Code) Data Capability) • A (PAN auto-entry via contactless magnetic stripe)
4 (Terminal Operating One of the following:

Environment) • 2 (On merchant premises; unattended terminal)
• 4 (Off merchant premises; unattended)
• 6 (Off cardholder premises; unattended)
5 (Card Present Data) 0 (Cardholder present)

Mode) • A (PAN auto-entry via contactless magnetic stripe)
26 (Merchant An MCC approved to be contactless-only as published

Business Code from time to time in the Global Operations Bulletin.
[MCC])
Quick Payment Service Transactions

The Acquirer must identify each Quick Payment Service (QPS) Transaction with the following
values.
Table 37: QPS Transaction Values for First Presentment/1240 Messages

Service Data Code) Data Capability) • 2 (Magnetic stripe reader capability)
• 5 (Integrated circuit card [ICC] capability)
• B (Magnetic stripe reader and key entry capability)
• C (Magnetic stripe reader, ICC, and key entry
capability)
• D (Magnetic stripe reader and ICC capability)
• E (ICC and key entry capability)


4 (Terminal Operating • 1 (On merchant premises; attended terminal)
Environment) • 3 (Off merchant premises; attended terminal)
5 (Cardholder Present 0 (Cardholder present)

Data)
Mode) • 2 (Magnetic stripe reader input)
• B (Magnetic stripe reader input; track data captured
and passed unaltered)
• C (Online Chip)
• F (Offline Chip)
26 (Merchant An eligible Quick Payment Service (QPS) MCC.

Business Code
[MCC])
PDS 0044 2 (QPS/Contactless I (Ineligible for chargeback)—Value added by
(Program Chargeback Eligibility Mastercard.
Participation Indicator)
Indicator)
The Acquirer must identify each Payment Transaction, MoneySend Payment Transaction, and
Gaming Payment Transaction, as applicable, with the following values.
Table 38: Payment Transaction Values for Authorization Request/0100 or Financial

Transaction Request/0200 Messages

3 (Processing Code) 1 (Cardholder Transaction 28
Type)


18 (Merchant Type) One of the following for Payment
Transactions:
• 6532—for a Payment Transaction
processed by a Customer or its
authorized agent.
• 6533—for a Payment Transaction
processed by a Merchant.
• 7800—for Gaming Payment
Transactions (Government-owned
Lottery, U.S. Region only)
• 7995—for Gaming Payment
Transactions (Gambling Transactions,
Europe and MEA Regions only)
• A value specified for Payment
Transactions in the applicable
Customer-to-Customer intracountry, or
intercountry business service
arrangement, if one is in place.
• For MoneySend Payment Transactions,
as described in the MoneySend
Program Guide.
• For Payment Transactions (other than
MoneySend Payment Transactions), the
program-defined MCC as described in
the applicable Standards.
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.
Table 39: Payment Transaction Values for First Presentment/1240 Messages

3 (Processing 1 (Cardholder 28
Code) Transaction Type)
26 (Merchant As described for DE 18 (Merchant Type) in the
Business Code) Authorization Request/0100 message
48 (Additional PDS 0043 (Program Payment Transaction program type
Data—Private Use) Registration ID)

Electronic Commerce Transactions
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.
Electronic Commerce Transactions

The Acquirer must identify each electronic commerce Transaction with the following values.
Table 40: Electronic Commerce Transaction Values for Authorization Request/0100 or

Financial Transaction Request/0200 Messages
22 (Point-of-Service [POS] Entry 1 (POS Terminal PAN Entry 81 (PAN entry via e–commerce,
Mode) Mode) including chip)
61 ((Point-of-Service [POS] Data) 4 (POS Cardholder Presence) One of the following:

• 4 (Standing order/recurring
transactions) [If the
Transaction is the first
payment in a recurring
payment arrangement]
• 5 (Electronic order)
61 (Point-of-Service [POS] Data) 10 (CAT Level) 6 (Electronic commerce)

Digital Secure Remote Payment Transactions
Table 41: Electronic Commerce Transaction Values for First Presentment/1240

Messages
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)
Digital Secure Remote Payment Transactions
A Digital Secure Remote Payment Transaction is an electronic commerce Transaction that

contains cryptographic information, in the form of either full EMV chip data passed in DE 55
or a cryptographic value derived from an M/Chip cryptogram passed in the Universal
Cardholder Authentication Field (UCAF). Subsequent to the initial Digital Secure Remote
Payment Transaction, a related Transaction for a partial shipment may occur, in which case
cryptographic information is not passed. When a Digital Secure Remote Payment Transaction
contains tokenized account information, the Mastercard Digital Enablement Service performs
token mapping and cryptographic validation services.
Digital Secure Remote Payment Transactions Containing Chip Data
Table 42: Authorization Request/0100 and Financial Transaction Request/0200

Messages
Data Element Subfield/Subelement Value

22 (Point-of-Service [POS] Entry 1 (POS Terminal PAN Entry 09 (PAN entry via electronic
Mode) Mode) commerce, including remote
chip)
48 (Additional Data—Private 33 (PAN Mapping File Present when the Mastercard
Use) Information) Digital Enablement Service
performs token mapping.

Digital Secure Remote Payment Transactions Containing Chip Data
71 (On-behalf Services) Present when the Mastercard

Digital Enablement Service
performs token mapping:
Subfield 1 (On-behalf [OB]
Service) = 50 (Mastercard Digital
Enablement Service PAN
Mapping); and
Subfield 2 (On-behalf [OB] Result
1) = C (Conversion of Token to
PAN completed successfully)

performs cryptographic
validation:
• Subfield 1 = 51 (Mastercard
Chip Pre-Validation); and
• Subfield 2 = V (Valid)
61 (Point-of-Service [POS] Data) 3 (POS Terminal Location) One of the following:

• 2 (Off premises of card
acceptor facility [cardholder
terminal including home PC,
mobile phone, PDA]); or
• 4 (On premises of card
mobile phone, PDA])
4 (POS Cardholder Presence) 5 (Electronic order [home PC,

Internet, mobile phone, PDA])
10 (Cardholder-Activated 6 (Authorized Level 6 CAT:
Terminal Level) Electronic commerce)
Table 43: First Presentment/1240 Messages
Data Element Subfield/PDS Value

22 (Point-of-Service [POS] Data 4 (Terminal Operating One of the following:
Code) Environment)
• 2 (On card acceptor premises;
unattended terminal); or
• 4 (Off card acceptor
premises; unattended)

Digital Secure Remote Payment Transactions Containing UCAF Data
5 (Cardholder Present Data) 5 (Cardholder not present

[electronic order (PC, Internet,
mobile phone, or PDA)])
7 (Card Data: Input Mode) R (PAN Entry via electronic
commerce, including remote
chip)
48 (Additional Data) PDS 0023 (Terminal Type) CT 6 (CAT level 6 [electronic
commerce transaction])

Messages
Data Element Subfield/ Subelement Value

Mode) Mode) commerce, including chip)

42 (Electronic Commerce All of the following:
Indicators), subfield 1 (Electronic
Position 1 = 2
Commerce Security Level
Indicator and UCAF Collection Position 2 = 4
Indicator)
Position 3 = 2 or 6

1) = 50 (Mastercard Digital
Mapping); and
Service) = C (Conversion of
Token to PAN completed
successfully)


performs cryptographic
validation:
Subfield 1 = 51 (Mastercard
Digital Enablement Service Chip
Pre-Validation); and
Subfield 2 = V (Valid)
61 (Point-of-Service [POS] Data) 3 (POS Terminal Location) One of the following:

• 2 (off premises of card
mobile phone, PDA]); or
• 4 (On premises of card
mobile phone, PDA])
4 (POS Cardholder Presence) 5 (Electronic order [home PC,

Internet, mobile phone, PDA])
10 (Cardholder-Activated 6 (Authorized Level 6 CAT:
Terminal Level) Electronic commerce)

Code) Environment)

7 (Card Data: Input Mode) S (Electronic commerce)

Partial Shipments or Recurring Payments Following Digital Secure Remote Payment Transactions
PDS 0052 (Electronic Commerce All of the following:

Security Level Indicator)
Position 1 = 2
Position 2 = 4
Position 3 = 2 or 6
Partial Shipments or Recurring Payments Following Digital Secure Remote


Messages
Data Element Subfield/ Subelement Value

Mode) Mode) commerce, including chip)
42 (Electronic Commerce All of the following:
Indicators), Subfield 1 (Electronic
Position 1 = 2
Commerce Security Level
Indicator and UCAF Collection Position 2 = 4
Indicator)
Position 3 = 7
NOTE: DE 48, Subelement 43

is not required. Liability will
depend on the original UCAF
indicator value in the
matching initial DSRP
transaction.

Partial Shipments or Recurring Payments Following Digital Secure Remote Payment Transactions

Service) = 50 (Mastercard Digital
Mapping); and
1) = C (Conversion of Token to
PAN completed successfully)
Note: Value 51 (Mastercard
Digital Enablement Service Chip
Pre-Validation) does not appear
in a partial shipment or recurring
payment.

Code) Environment)

7 (Card Data: Input Mode) S (Electronic commerce)
PDS 0052 (Electronic Commerce All of the following:
Security Level Indicator
Position 1 = 2
Position 2 = 4
Position 3 = 7

Mastercard Mobile Remote Payment Transactions
Mastercard Mobile Remote Payment Transactions

The Acquirer must identify each Mastercard Mobile Remote Payment Transaction with the
following values.
Table 48: Mastercard Mobile Remote Payment Transaction Values for Authorization
Request/0100 or Financial Transaction Request/0200 Messages

22 (Point-of-Service [POS] Entry 1 (POS Terminal PAN Entry 82 (PAN auto entry via server [issuer,
Mode) Mode) acquirer, or third party vendor system])
48 (Additional Data—Private 1 (Remote Payments Program 1 (Issuer domain) or 2 (Acquirer Domain)
Use) Type Identifier)
Table 49: Mastercard Mobile Remote Payment Transaction Values for First Presentment/
1240 Messages

22 (Point of Service [POS] 7 (Card Data: Input Mode) T (PAN auto entry via server [issuer,
Entry Mode) acquirer, or third party vendor system])
48 (Additional Data) 1 (Remote Payments Program 1 (Issuer domain) or 2 (Acquirer Domain)
Data)
Mastercard Biometric Card Program Transactions
A biometric card transaction with successful biometric cardholder verification is identified as

follows:
• Byte 1 bit 5 of Tag 82 (Application Interchange Profile) is set to “0”
• The cardholder verification results (CVR) present in DE 55, specifically:
– Byte 1, bit 1 will contain a value of 1 to reflect that biometric was successful.
– Byte 2, bit 2 will contain a value of 1 to reflect that biometric was used.

Mastercard Consumer-Presented Quick Response (QR) Transactions
Mastercard Consumer-Presented Quick Response (QR) Transactions

The acquirer must identify each Mastercard Consumer-Presented QR Transaction with the
following values.
Table 50: Mastercard Consumer-Presented QR Values for Authorization Request/0100

or Financial Transaction Request/0200 Messages
Data Element Subelement/ Subfield Value

DE 22 (Point-of-Service (POS) 1 (POS Terminal PAN Entry 03 (PAN Auto-entry via bar code
Entry Mode) Mode) reader)
DE 48 (Additional Data — 21 (Acceptance Data) Subfield 2 11—Valid Position 1 and Position 2
Private Use) (Additional Terminal Capability Value Combinations
Indicator)
The use of chip data in DE 55
(Integrated Circuit Card [ICC]
System-Related Data) for
Mastercard Consumer-
Presented QR transactions.

Forms
Appendix G Forms
This appendix contains instructions for accessing the forms that are referred to in this guide.
Accessing Mastercard Connect....................................................................................................713

Referenced Forms...................................................................................................................715

Forms
Accessing Mastercard Connect

All forms associated with this Chargeback Guide can be located on Mastercard Connect™.
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.

Forms
4. Select Publications Application to access the Quick Link.
5. Select Forms from the Quick Links list.

Both above options provide access to the Forms selection screen.
6. Locate the desired form in the list. Forms may also be found by sorting under the category
of Clearing and Settlement.

Forms
Referenced Forms
Referenced Forms
The following forms have been referenced in this Chargeback Guide.
362 Fraud and Loss Database Optional Report Selection Form

412 Dispute Resolution Form-Fraud
500 MDS Exception Item Processing Request
682a Dispute Resolution Management Case Filing Form—SMS Linked Case Filing
1185 Expedited Billing Dispute Resolution Process Form—Pre-Compliance/Compliance
1221 Dispute Resolution Form—Cardholder Dispute Chargeback
1240 Dispute Resolution Form—Point-of-Interaction (POI) Errors

Notices
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.
Information Available Online

Mastercard provides details about the standards used for this document—including times expressed,
language use, and contact information—on the Publications Support page available on Mastercard
Connect™. Go to Publications Support for centralized information.


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What changes were made in the most recent publication?

What changes were made in the most recent publication?

What other changes were incorporated from announcements?

What other changes were incorporated from announcements?

Chargeback Guide

Summary of Changes, 14 May 2020

Description of Change Where to Look

©1988––2020 Mastercard. Proprietary. All rights reserved.

Summary of Changes, 12 May 2020

Description of Change Where to Look

©1988––2020 Mastercard. Proprietary. All rights reserved.

Summary of Changes, 30 April 2020

Description of Change Where to Look

Incorporated the changes announced in “AN Throughout

Chapter 1, General Information

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Update Second Presentment Condition table Dual Message System Chargebacks-Initiated On or

Update paragraph after bullet list Dual Message System Chargebacks-Initiated On or

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Incorporated the changes announced in “AN 2457—Revised Standards—Exit of the United

Chapter 3, Dual Message System Chargebacks-Initiated On or After 17 July 2020

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Update second paragraph Dual Message System Chargebacks-Initiated On or

Update Second Presentment Condition, Dual Message System Chargebacks-Initiated On or

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Incorporated the changes announced in “AN 2457—Revised Standards—Exit of the United

Incorporated the changes announced in “AN 3257—Revised Standards—Elimination of

Incorporated the changes announced in “AN 3822—Revised Standards—Transaction Amount

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Chapter 4, Single Message System Chargebacks

Incorporated the changes announced in “AN 1550—Announcing the Retirement of SAFE

Chapter 5, Arbitration Case Filing-For Chargebacks Initiated On or Before 16 July 2020

Chapter 6, Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After

Add new section Pre-Arbitration and Arbitration Case Filing-For

Incorporated the changes announced in “AN 3822—Revised Standards—Transaction Amount

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Appendix B, Chargebacks—Maestro POS Transactions

Incorporated the changes announced in “AN 2457—Revised Standards—Exit of the United

Incorporated the changes announced in “AN 3257—Revised Standards—Elimination of

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

©1988––2020 Mastercard. Proprietary. All rights reserved.

Description of Change Where to Look

Appendix F, Transaction Identification Requirements

©1988––2020 Mastercard. Proprietary. All rights reserved.

Summary of Changes, 14 May 2020...................................................................2

Summary of Changes, 12 May 2020...................................................................3

Summary of Changes, 30 April 2020..................................................................4

Chapter 1: General Information......................................................................... 36

Chapter 2: Dual Message System Chargebacks-Initiated On or

©1988––2020 Mastercard. Proprietary. All rights reserved.

Acquirer Reference Data (ARD) Does Not Match or is Invalid................................... 65

©1988––2020 Mastercard. Proprietary. All rights reserved.