Handling Disputes

Overview

Dispute events, previously known as chargebacks, raised against your account can be found in the Frauds section of the Hub.

Customers who are seeking money back from a purchase can either request a refund via the business or initiate a dispute via their card issuer.

Disputes can occur when a cardholder believes that they are not responsible for a charge against their card or they are dissatisfied with the goods/services provided. The cardholder contacts their card issuer, who raises a formal dispute case via the relevant card scheme. As a business, you can then challenge the claim but you have to respond within a certain time frame (10 calendar days). If successful in your challenge, the business will have the taken funds returned, instead of being returned to the cardholder. However, it is important to note that an admin fee is applied whenever an issuer raises a dispute on behalf of their customer.

Managing disputes

Creating a Dispute Defence Pack

The dispute functionality in the Acquired.com Hub, aims to significantly improve the overall dispute defence process for you.

The dispute functionality allows you to:

Create dispute packs which can be customised and tailored to your needs.
Defend disputes directly within the Hub.
Track the status of a dispute.

We will now outline the required steps to create a Dispute Defence Pack:

Login into the Hub.
Go to the Settings menu and select the Company > MIDs.
From the relevant MID row, click in on the ellipsis in the Action menu and select Dispute Response Pack.
You will now be redirected to the dispute pack screen. Firstly, add the required title for your defence pack. (We recommend creating a dispute pack for each of the dispute workflows. For more information on this please contact [email protected].)
Enter your business address and contact details. We will use this information to insert into the dispute defence letter.
We encourage you to enter your company logo to add to the authenticity of the dispute pack.
In the Pack Content section include the text that will form the body of the dispute letter. In this section make sure you address why you are contesting the dispute.
Include screenshots of the process that your user's completed during sign-up in the Customer Journey section.
In the Terms & Conditions section, submit a copy of your standard documentation.
Once you have added all the relevant detail, hit Preview to see how the defence pack will look.
Click Save.

Defending disputes within the Hub

The Dispute Report provides an overview of how your business is performing from a dispute perspective. Information displayed includes the dispute count, dispute amount and overall dispute rate for each of the card schemes.

Go to the Frauds menu and open the Dispute Detail tab.
Here you will see a list of disputes with their current dispute status. Locate the required dispute and click on the ellipsis in the Action menu and select Raise Response.
Once you click to Raise Response you will be redirected to the Dispute Response Pack screen. Select the required defence pack from the dropdown list.
Add any additional supporting evidence in the Custom Field to strengthen your dispute defence.
Select the type of Transaction Receipt from the dropdown list.
If required, add the Proof of Delivery and Application History attachments.
Once you have added all the relevant information, click Preview to see how your defence pack will appear to the customer.
If you are happy with everything, click Submit.

Dispute Details

You can track disputes from either the Dispute Report and the Dispute Detail menu. The current status of the dispute will always be displayed.

See below a list of the four dispute statuses:

Status	Description
No Action	There has been no action taken on the dispute raised.
Defended	A defence pack has been submitted, your defence is currently in progress.
Lost	The dispute was upheld and deemed as lost by the card schemes.
Pre-Arb	The issuer has rejected your initial dispute and raised to the next stage.
Recovered	The transaction has been recovered and you have been credited the funds.

Dispute reason codes

The next section details all of the dispute reason codes and provides information on how to handle your response. All disputes must be responded to within 10 days (this is an Acquired.com protocol and not a scheme). The reason codes are broken down into Visa and Mastercard sections.

Visa

10.1 - EMV Liability Shift Counterfeit Fraud

Overview

A cardholder claims he or she did not participate in the transaction you processed. A counterfeit EMV-chip card was used in a card-present environment. And one of two things have occurred: The transaction did not take place in a chip-reading terminal; OR [online only] the transaction was chip-initiated. But your card processor didn’t transmit all of the chip data to Visa in the authorisation request.

Category

Fraud

How to win reason code

Provide documentation that the EMV chip was read and that all of its data was transmitted to Visa. Some documentation include: Proof of the terminal being EMV PIN-compliant; AND an imprint or signature that was created by the cardholder. If you already processed credit or a reversal: Provide documentation of the reversal; AND include the transaction amount and the date it was processed.

10.2 EMV Liability Shift Non-Counterfeit Fraud

Overview

This code indicates that an unauthorised charge was made and the cardholder does not believe that they should be responsible for paying for the transaction.

Category

Fraud

How to win reason code

Provide evidence that the EMV chip and PIN were compatible with documentation to show that the transaction was correctly authorised and processed. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have already resolved the issue directly with the cardholder, provide proof that they no longer wish to dispute the charge (i.e. written correspondence).

10.3 - Other Fraud - Card Present Environment

Overview

This dispute reason indicates that the transaction was improperly authorised and the cardholder does not believe that they should be responsible for paying. This dispute could occur at unattended terminals or self-checkout stations. The underlying cause of this chargeback could be true fraud, friendly fraud or merchant error.

Category

Fraud

How to win reason code

Provide documentation that proves that the cardholder authorised the transaction, whether it is an unattended or in-person transaction. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have already resolved the issue directly with the cardholder, provide proof that they no longer wish to dispute the charge (i.e. written correspondence).

10.4 - Card Absent Environment

Overview

This dispute reason code indicates that the cardholder claims that they did not authorise in a card-not-present transaction, therefore, it must be fraudulent. Most card frauds now occur online, where eCommerce merchant have fewer safeguards in place than in card-present environments. The underlying cause of this chargeback could be true fraud, friendly fraud or merchant error.

Category

Fraud

How to win reason code

Merchants can fight this code by providing evidence that the cardholder authorised the transaction or by showing that the responsibility of fraud lies wit the bank/card network rather than the merchant. Provide documentation that proves the CVV2 or AVS validation was either successfully authorised by the issuing bank or successfully attempted by you. If you have any other forms of identity verification or records of communication with the customer that proves the transaction was authorised, submit these documents.

10.5 - Visa Fraud Monitoring Program

Overview

This reason code occurs when Visa flags a transaction as fraudulent under the Visa Fraud Monitoring Program (VFMP). VFMP is a fraud mitigation program for merchants who experience a high rate of fraudulent transactions. Visa may automatically file chargebacks against merchants when fraud-related disputes are raised, due to this, friendly fraud chargebacks may slip through.

Category

Fraud

How to win reason code

Merchants will struggle to fight these disputes, as it is the Visa Fraud Monitoring Program. If another dispute has already been issued and refund processes for the transaction in question, the 10.5 chargeback will be reversed.

11.1 - Card Recovery Bulletin

Overview

This reason code is assigned when a merchant processes a transaction against a card that is listed on the Card Recovery Bulletin for their region. This is a document that lists all card numbers that have been reported lost or stolen, known to be counterfeited or have other issues. It is the cardholders responsibility to notify the issuing bank when a card has any of these issues. The chargeback occurs when a merchant processes the card or doesn't obtain authorisation approval, even though they have been notified that the card shouldn't be used for processing.

Category

Authorization

How to Win Reason Code

To win this reason code, provide documentation with proof of an approved authorisation request or documentation that a refund has already been issued. For EMV chip transactions, provide proof that the PIN was entered. For other transactions, provide proof that the card number was not on the list when it was processed. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

11.2 - Declined Authorisation

Overview

This reason indicates that the merchant sent an authorisation approval request, received a 'decline' response, but submitted the transaction anyway. OR, it could be possible that there was an error when the issuer or card network filed the transaction.

Category

Authorization

How to Win Reason Code

Merchants can only fight against this reason code if they have evidence that a mistake was made by the issuer or card network when filing the transaction. If the merchant received a 'decline' response and authorisation was approved, provide documentation that proves you received an approval response code. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

11.3 - No Authorization

Overview

This reason code indicates that the merchant has processed a transaction without obtaining valid authorisation approval. Merchants are supposed to send an authorisation approval request to the issuer for every transaction. This code usually occurs because of the merchants error. It could be the case that the merchant is persuaded by the cardholder, payment terminal is down or the merchant knows the customer. However, all these reasons are ultimately the individual choice of the merchant.

Category

Authorization

How to Win Reason Code

Merchants can fight the dispute if an error was made when filing the transaction or if the merchant has records proving that the authorisation procedures were followed. If the authorisation request was sent, provide documentation that shows the response code received. If the transaction required special authorisation procedures, provide detail of all the authorisation requests sent. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

12.1 - Late Presentment

Overview

This reason code occurs when the transaction took to long to be processed and the account was no longer in good standing when the transaction was completed. It is possible that a few days can pass between start and end of a transaction, and in this time the card could be rendered unusable (card expired, exceeded credit limit etc.), meaning that the merchant becomes vulnerable to this type of dispute. However, it is ultimately the merchants error by allowing the transaction process to be prolonged.

Category

Processing Errors

How to Win Reason Code

The merchant can only challenge this dispute, if the charge was processed before the applicable deadline or if the cardholder has already been refunded. Provide evidence including documentation such as a transaction receipt, proving that late presentment did not occur. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

12.3 - Incorrect Currency

Overview

This reason code is sent when the transaction specified a different currency type that was actually processed by Visa (i.e. if you processed the transaction via the incorrect MID). This occurs mainly due to merchant error or it could occur as a result of friendly fraud.

Category

Processing Errors

How to Win Reason Code

The merchant needs to prove that the correct currency was used for the transaction and that the cardholder agreed to the currency conversion. The merchants dispute response must include documentation proving that Dynamic Currency Conversion was used and the correct currency was also processed. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

12.4 - Incorrect Account Number

Overview

This reason code typically relates to PIN transactions and not ECOM.

This reason code is used when a transaction is posted to the incorrect account number. To actually process a transaction using an invalid account number, the merchant would have disabled or ignored a number of safeguards, or system errors could have occurred.

Category

Processing Errors

How to Win Reason Code

The merchant must have evidence that the issuer made a mistake and the dispute case is false, in order to be able to win this dispute. Provide documentation, such as a transaction log or sales receipt, to prove that the transaction was processed against a valid account number. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

12.5 - Incorrect Amount

Overview

This reason code typically relates to an ATM transaction and not ECOM.

When a merchant receives this dispute reason code, it means that the cardholder is claiming that the amount of the disputed transaction is incorrect. This dispute reason code can be caused by the merchant charging an incorrect amount, a failure to disclose potential changes in the final transaction amount, or by a cardholder committing friendly fraud.

Category

Processing Errors

How to Win Reason Code

In order to challenge the dispute, you must provide documentation that proves that the cardholder agreed to pay the full amount of the transaction. If you have already processed the refund, provide documentation that shows that you have credited the account.

12.6 - Duplicate Processing/Paid by Other means

Overview

This reason code occurs when a cardholder disputes the transaction as a duplicate charge. This is likely merchant error and can occur for a number of reasons. The cardholder could have changed their mind on the transaction midway through and the transaction isn't fully voided. Or a duplicate payment on a recurring transaction.

Category

Processing Errors

How to Win Reason Code

The merchant must provide evidence that the charges were on separate purchases or that the duplicate charge was already refunded. The dispute response should contain individual transaction receipts that prove each transaction was processed separately and proof that you didn't receive any other form of payment for the goods.

12.7 Invalid Data

Overview

Your customer did not authorised or participate in the transaction. This reason code is usually initiated from the issuing bank and occurs when there is incorrect data within the transaction (i.e. wrong MCC). These errors occur for a number of reasons, including user error or corrupted data.

Category

Processing Errors

How to Win Reason Code

Merchants can get this dispute reversed if there is evidence that the data they submitted was accurate. Provide documentation that proves that authorisation approval was sent in response to accurate transaction data. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.1 - Merchandise/Services Not Received

Overview

This reason code means that the cardholder is raising a dispute by claiming that they never received the merchandise or services that they purchased. This could occur due to merchant errors related to fulfilment of the order or due to friendly fraud.

Category

Consumer Disputes

How to Win Reason Code

In order to win this dispute, you must provide evidence that the goods or services were delivered. This could be proved by providing documentation showing that the merchandise or service was delivered to the cardholder. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.2 - Cancelled Recurring

Overview

Your customer withdrew permission to charge their account on a recurring basis OR the transaction amount was not previously agreed with the customer and you failed to formally communicate the amount to the customer. Recurring billing transactions are often a cause for disputes, as cardholders sign up for subscriptions without being fully aware of what they are agreeing to (friendly fraud dispute). It could be the case that a merchant makes it difficult to cancel services or may overlook a cancellation request.

Category

Consumer Disputes

How to Win Reason Code

In order to win these kinds of disputes, the merchant must provide proof that the cardholder did not follow the merchant's cancellation policy or continued to use the service after the cancellation date. The merchant must provide evidence that the transaction was part of an instalment payment plan or that the transaction covers services that were used before the cancellation took place. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.3 - Not As Described or Defective Merchandise/Services

Overview

This code indicates that the cardholder is claiming the goods or services they received do not match the description or the goods and services provided were deemed defective. The two common causes of this reason code are that there was an error on the merchants and the customer received a damaged/defective item or friendly fraud from the customer.

Category

Consumer Disputes

How to Win Reason Code

The merchant can fight this dispute by providing evidence that the products or services were accurately described or that the cardholder never attempted a return or exchange. Your response to the dispute must include a detailed rebuttal of the cardholder's claim and proof that the cardholder never contacted you in regards of a refund/exchange. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.4 - Counterfeit Merchandise

Overview

This code indicates that the cardholder is claiming the merchandise they received was counterfeit. The merchant could be unaware that they were selling knockoff products, or they were doing so knowingly.

Category

Consumer Disputes

How to Win Reason Code

To challenge this dispute you must provide evidence that the goods in question are genuine or documentation that the refund has already been processed. Documents could include, certificate of authenticity or original purchase receipts. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.5 - Misrepresentation

Overview

The dispute reason code indicates that the cardholder does not feel that the descriptions of the products or services purchased were inaccurate and they feel misled - for example, false advertisement. This dispute is likely to occur when the merchant is selling a 'too good to be true' product or service (i.e. investments with huge returns).

Category

Consumer Disputes

How to Win Reason Code

Merchants can challenge this dispute by proving that the goods/services purchased were described properly or that the cardholder has already been refunded. The merchant could provide documentation that establishes the terms of sale agreed between themselves and the cardholder, proving how your obligations have been met. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.6 - Credit Not Processed

Overview

The cardholder would raise this dispute when they believe that they were going to receive a refund, but no credit to their account has been processed. This dispute reason code usually arises due to merchant error, the merchant neglected or forgot to process a credit transaction. It could also be a result of friendly fraud, where the customer is not fully aware of the return or cancellation policies.

Category

Consumer Disputes

How to Win Reason Code

Merchants can challenge this dispute by proving that the cardholder was never promised a credit and is not entitled to one under the policies. The merchant should provide evidence, including, documentation showing that the return policy was fully disclosed at the time of sale. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.7 - Cancelled Merchandise/Services

Overview

The cardholder is claiming that they returned merchandise or cancelled their services with the merchant, but have not received a refund. This dispute could be caused by merchants delaying the processing of a refund in defiance of their own policies, or by the customer feeling entitled to a refund that has been refused.

Category

Consumer Disputes

How to Win Reason Code

To challenge this dispute, the merchant must provide a copy of the return or cancellation policy, with proof that the cardholder agreed to the policy prior to sale. You should also include documentation that proves either the item was never returned to you, the item was in non-returnable condition, the cardholder did not cancel their services in accordance with the stated policies or you cancelled the service and the cardholder continued to use the service. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

13.8 - Original Credit Transaction Not Accepted

Overview

This reason code indicates that the cardholder didn't accept the Original Credit Transaction from the merchant. Original Credit Transactions can be performed faster than regular card transactions and they don't require the same payment credentials or authorisation process. However, there is limitations to what countries these transactions can be processed in. This dispute usually occurs when the merchant identifies a cardholder who is entitled to a refund or credit and processes this by an Original Credit Transaction, but does not notify or get confirmation of approval from the cardholder first.

Category

Consumer Disputes

How to Win Reason Code

The merchant can resolve this dispute by providing documentation to prove that the Original Credit Transaction was reversed and shouldn't be subject to a dispute. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

13.9 Non-Receipt of Cash or Load Transaction Value

Insights from Rules and Regulations

This reason code is only applicable to ATM transactions and indicates that the cardholder made a withdrawal at an ATM and didn't receive the full amount they were charged for.

Category

Consumer Disputes

How to Win Reason Code

Merchants can challenge this dispute by providing evidence that the proper amount of cash was dispensed or that the cardholder was already issued a refunded.

Mastercard

4802 - Requested/Required Information Illegible or Missing

Overview

This code indicates that the merchant has failed to provide all the necessary information, or some of the information is not legible.

Category

Authorization

How to Win Reason Code

To challenge this dispute the merchant should resubmit the full receipt or invoice information.

4808 - Requested/Required Authorization Not Obtained

Overview

Reason code 4808 has replaced several older reason codes that have since been retired. It indicates that the merchant did not obtain authorisation approval. This is common when authorisation is invalid or incorrect (wrong account information, pin, etc.), the transaction was processed after authorisation for the card was declined, the account number doesn’t match any numbers on the acquirer’s file, or the card has expired.

Category

Authorization

How to Win Reason Code

Merchants can challenge this dispute if the cardholder's claims are false and the transaction was properly authorised. The merchant must provide proof that the transaction was presented within 7 days of authorisation and also provide documentation with the authorisation response. Or provide evidence that the dispute does not comply with Mastercard's rules. If you have already processed the refund, provide documentation that shows that you have credited the account.

4834 - Point-of-Interaction Error

Overview

This dispute reason code is used for various processing errors, such as duplicate processing. Friendly fraud could be a cause of these disputes when a cardholder mistakes similar or recurring payments for duplicate transactions.

Category

Point-of-Interaction Error

How to Win Reason Code

The merchant can dispute this by proving that the cardholder's claims are false. The merchant's response should include documentation to prove that the transaction was not a duplicate, such as receipts or proof that credit has already been issued to the customer.

4837 - No Cardholder Authorization

Overview

This reason code means that the cardholder has disputed the charge claiming that they didn't authorise it. The most common causes of this dispute are fraudsters making purchases with stolen payment credentials or a cardholder failing to recognise legitimate charges.

Category

Fraud

How to Win Reason Code

To dispute this charge, the merchant must provide documentation that proves that the cardholder authorised the transaction or provide evidence to show that the dispute does not comply with Mastercard's policies. For recurring transactions, the merchant should provide a description of the goods/service, the date of initial transaction, proof that the CVC2 code was provided and validated and documentation of any earlier undisputed transactions. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge. If you have already processed the refund, provide documentation that shows that you have credited the account.

4840 - Fraudulent Processing of Transactions

Overview

This code indicates that the cardholder place an authorised card transaction wit a merchant, but received non-authorised transactions within the time they were with the merchant. This dispute can be caused by a merchant committing fraud or making an error when processing the transaction. The customer could also have forgotten that they made multiple purchases (friendly fraud).

Category

Fraud

How to Win Reason Code

To challenge this dispute merchants must provide evidence that the additional transactions were authorised. Provide documentation supporting the appropriate use of multiple transactions and proof that these transactions were all authorised. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

4846 - Correct Transaction Currency Code Not Provided

Overview

This reason code is sent when the cardholder claims to have not agreed to a currency conversion that took place. This dispute usually occurs due to merchant error, where the merchant selects the wrong currency or applies the Dynamic Currency Conversion service without having permission from the customer.

Category

Point-of-Interaction Error

How to Win Reason Code

To challenge this dispute, merchants must provide evidence that the transaction and currency code were correct and a receipt to prove that the correct currency was used.

4849 Questionable Merchant Activity

Overview

This reason code means that a merchant has processed a transaction in violation of the Mastercard rules. These disputes occur when Mastercard suspends a merchant of committing fraud and has placed them under enhanced scrutiny. Only merchants in the Global Merchant Audit Program will receive these.

Category

Fraud

How to Win Reason Code

The only way a merchant can challenge this dispute is if they can provide proof that they are not listed in a GMAP Merchant Annoucement or prove that the transaction did not occur within the time frame specified.

4853 - Cardholder Dispute - Defective Merchandise/Not As Described

Overview

This reason code indicates a disputed transaction that the cardholder does not believe they should be responsible for. Cardholder's will often claim that the goods or services were defective or improperly marketed, which entitles them to a dispute. This dispute could be causes by true fraud, friendly fraud or merchant error. This dispute will contain a description that provides additional information as to why the cardholder is challenging the transaction.

Category

Cardholder Disputes

How to Win Reason Code

To challenge this dispute the merchant must provide proof that the cardholder's claims are false. The merchant must provide evidence with documentation that proves the cardholder agreed to all aspects of the transaction. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

4854 - Cardholder Dispute - Not Elsewhere Classified (US Region Only)

Overview

This dispute reason code indicates that the cardholder attempted to resolve the issue with the merchant, but the merchant refused to address the problem. This dispute is usually caused by unavailable or poor customer service, but could also be caused by a customer making unreasonable demands (the merchant may stand their ground on principle).

Category

Cardholder Disputes

How to Win Reason Code

To challenge this dispute, the merchant must provide evidence that the claims made by the card holder are false and the dispute is illegitimate. Merchant's can do so by showing that the dispute does not comply with Mastercard's rules. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

4870 - Chip Liability Shift

Overview

This dispute indicates that the cardholder does not believe that the transaction was authorised properly and doesn't believe they are liable to pay from a card-present environment. This dispute usually occurs when a fraudster targets POS terminals that can't read EMV chips or convinces the merchant to swipe the card. Friendly fraudsters could also take advantage of the liability shift rules by swiping their EMV card so they can later dispute it.

Category

Fraud

How to Win Reason Code

To challenge this dispute, the merchant must provide evidence that the cardholder authorised the transaction, the card didn't have an EMV chip or the EMV chip was properly scanned. They must respond with documentation to prove the cardholder authorised, or, proof that the card didn't contain an EMV chip, or, evidence to show that the dispute does not comply with Mastercard's policies. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

4871 - Chip/PIN Liability Shift

Overview

This dispute indicates that a counterfeit chip/PIN card was used to make a purchase and the merchant didn't follow the procedure for chip/PIN transactions. The EMV chip standard was designed to prevent fraud in card-present environments. These disputes usually occur when a fraudster targets a merchant whose POS terminals don't support PIN entry or convinces the merchant to bypass PIN requirements. They could also be a result of friendly fraud.

Category

Fraud

How to Win Reason Code

To challenge this dispute, the merchant must provide evidence that the cardholder authorised the transaction and the proper authorisation procedures were followed. They must respond with documentation to prove the cardholder authorised, or, proof that the card didn't contain an EMV chip, or, evidence to show that the dispute does not comply with Mastercard's policies. If you have already processed the refund, provide documentation that shows that you have credited the account. If you have resolved the issue directly with the cardholder, provide evidence that proves that they no longer wish to dispute the charge.

4999 - Domestic Chargeback Dispute (Europe Region Only)

Overview

This indicates that a cardholder claims that a transaction charged on their account was supposed to be a credit. This usually occurs due to merchant error, but it could also be a result of friendly fraud. Responses to these disputes are varied based on the details provided from the cardholder and issuer.

Category

Point-of-Interaction Error

How to Win Reason Code

To challenge this dispute, the merchant must prove that the debit transaction was legitimate and authorised by the cardholder. The merchant should also provide transaction receipts to show that the disputed transaction was correctly posted. If you have already processed the refund, provide documentation that shows that you have credited the account.