53 – Cardholder Dispute

Dispute Condition Code

53

Category

Cardholder Dispute Chargebacks

Message System

Choose a CONDITION below:

Goods or Services Were Either Not as Described or Defective

Why did I get this chargeback?

The cardholder claims goods or services provided didn’t match the description listed or verbally provided at the time of purchase, were defective or damaged, or the quality wasn’t what was expected.

How long can a cardholder wait to file this chargeback?

The chargeback timeline can be based on one of four start dates. Either the dispute must be processed within 120 calendar days of:

  • the transaction processing date, or
  • the delivery date, or
  • the cancellation date, or
  • the date services ended (but not to exceed 540 days of the original transaction processing date)

However, if the customer returned merchandise or cancelled services, the issuer must let at least 15 calendar days pass before initiating a dispute.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Provide exceptional customer service and promptly acknowledge customers when they make contact.
  • If the cardholder contacts you to resolve the issue, promptly fulfill all valid requests for replacements or refunds.
  • Make sure all service and merchandise descriptions are complete, accurate, and not misleading.
  • Use the correct size boxes and sufficient packing material so items won’t break in transit.
  • Make sure your fulfillment department is familiar with your merchandise, has a complete understanding of what has been purchased, and knows what to ship.

Goods or Services Not Provided

Why did I get this chargeback?

The customer claims you didn’t provide the goods or services as promised.

How long can a cardholder wait to file this chargeback?

The chargeback timeline can be based on one of several start dates:

  • If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. However, the 30 day waiting period can be waived if you’ve gone out of business or otherwise won’t be able to fulfill your obligations. Or,
  • If the delivery date or service performance date was specified and has passed, the chargeback must be initiated within 120 calendar days of the transaction processing date. Or,
  • If ongoing services are terminated, the chargeback must be initiated within 120 calendar days of the date services ended (but not to exceed 540 days of the original transaction processing date). Or,
  • If the cardholder bought a prepaid gift card and you go out of business, a chargeback must be initiated within 120 calendar days of the card’s expiration date or within 540 calendar days of the transaction processing date if there is no expiration date on the card.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Abide by the delivery date you promised.
  • Have merchandise ready for pickup at the time you specified it would be available.
  • Make sure you accurately describe the services that will be provided.
  • Don’t charge the card until the merchandise has been shipped.
  • Notify the customer as soon as possible if merchandise is out of stock or the delivery will be delayed.

Digital Goods Purchase of $25 or Less

Why did I get this chargeback?

You asked the cardholder to provide card information to create an account that could be used to purchase digital goods at a later time, but you didn’t provide required purchase controls. As a result, unwanted or unauthorized purchases were made.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof you adhered to required purchase controls including purchases are disabled by default, authorization information must be re-entered after 15 minutes of inactivity, you clearly display the full transaction amount, and you allow the cardholder to confirm or cancel the purchase before processing, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Ensure that purchases are disabled by default; cardholders should opt-in to purchases.
  • Confirm with the cardholder that purchases can be made without a password or other form of authentication.
  • If the cardholder chooses to provide authentication information before each purchase, ask the cardholder to re-enter the information after 15 minutes of inactivity.
  • Clearly display the total transaction amount for each pending purchase and ask the cardholder to confirm or cancel.
  • Immediately send an email or text message to confirm a purchase was made.

Credit Not Processed

Why did I get this chargeback?

The cardholder claims a credit is due, but you haven’t acknowledged the request or refuse to comply.

How long can a cardholder wait to file this chargeback?

The chargeback timeline can be based on one of three start dates. Either the chargeback must be processed within 120 calendar days of:

  • the date on the credit documentation, or
  • the date the service was canceled, or
  • the date the goods were returned

The issuer must let at least 15 calendar days pass before initiating a dispute unless the cardholder has proof of an improperly disclosed in-store credit or a voided transaction receipt.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof you adhered to Mastercard’s Transaction Processing Rules, section 3.7 about cancellation and refund conditions, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • For card-present transactions, clearly disclose the cancellation or return policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure.
  • For card-present transactions, print the words “no refunds” or “in-store credit only” on all copies of the transaction receipt if you do not allow returns or have a limited return policy.
  • For online transactions, clearly disclose the cancellation or return policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase.
  • Don’t accept delivery of returned merchandise if it doesn’t comply with your policy.
  • Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
  • If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.

Counterfeit Goods

Why did I get this chargeback?

The cardholder claims you promised genuine merchandise, but the merchandise received was counterfeit.

How long can a cardholder wait to file this chargeback?

The chargeback timeline can be based on one of two start dates. Either the chargeback must be processed within 120 calendar days of:

  • the transaction processing date, or
  • the date the goods or services were received after a delayed delivery

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Only sell genuine merchandise.
  • Make sure all product descriptions are complete, accurate, and not misleading.

Cardholder Dispute of a Recurring Transaction

Why did I get this chargeback?

The cardholder claims either you didn’t disclose that the transaction was recurring or the cardholder tried to cancel and you continued to bill the cardholder.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
  • Send a notification after you’ve cancelled the recurring payment.
  • If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
  • Clearly and concisely communicate your terms and conditions for recurring transactions.
  • Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.

Issuer Dispute of a Recurring Transaction

Why did I get this chargeback?

Either the issuer has already filed a chargeback for a previous recurring transaction that you processed, or the issuer asked you to cancel the recurring bill–but you processed another transaction anyway.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • If a chargeback is issued for a recurring transaction, make sure future transactions are cancelled.
  • Promptly fulfill qualified cancellation and non-renewal requests.

Addendum Dispute

Why did I get this chargeback?

The cardholder made one authorized purchase with you, but a second, unauthorized transaction was processed.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the second transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof you adhered to Mastercard’s Transaction Processing Rules, section 3.8 about charges for loss, theft, or damage, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Clearly explain the situations that might cause you to charge the card that was provided to guarantee services including charges for loss, theft, or damage.
  • Have the cardholder read and agree to terms of service before processing the original transaction.

“No-Show” Hotel Charge

Why did I get this chargeback?

You either charged the cardholder when you shouldn’t have or didn’t tell the cardholder about the “no-show” fee before finalizing the reservation.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Fulfill all qualified cancellation requests promptly.
  • Clearly explain your cancellation and no-show policy, and have the cardholder agree to the terms before finalizing the reservation.
  • Train your staff so the guest won’t accidentally be charged a no-show fee if the accomodations were used or you offered alternate accommodations.

Transaction Did Not Complete

Why did I get this chargeback?

The cardholder believed the transaction wasn’t actually processed, so never used the goods or services.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Send a confirmation email as soon as the transaction has been processed.

Timeshares

Why did I get this chargeback?

The cardholder claims the timeshare was cancelled by you charged the cardholder anyway.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the cancellation date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Accept cancellations for at least 14 calendar days after the agreement date.
  • Inform cardholders of your cancellation policy before finalizing the agreement.
  • Fulfill all valid cancellation requests promptly.

Credit Posted as a Purchase

Why did I get this chargeback?

You processed a sale when you should have processed a credit.

How long can a cardholder wait to file this chargeback?

The maximum amount of time that can pass between the transaction date and the chargeback processing date is 120 calendar days.

What do I need to fight this chargeback?

Available chargeback response options include:

  • Explanation and documentation to refute the cardholder’s claim, or
  • Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements, or
  • Proof you have already refunded the transaction and credited the cardholder’s account, or
  • Proof the cardholder no longer wishes to dispute the transaction

How can I avoid this chargeback in the future?

  • Hold regular staff training sessions to ensure everyone on your team knows how to correctly process transactions, refunds, and adjustments.

More MASTERCARD Reason Codes

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