MasterCard Chargeback Reason Codes
Each chargeback is identified by a code that specifies the reason why an issuer is disputing a transaction’s validity. Visa and MasterCard use different Reason Codes and often a code used by one of the Associations does not have an exact equivalent with the other. Visa’s Reason Codes are two-digit numbers, while MasterCard uses four-digit numbers. This article will review MasterCard’s Reason Codes.
The following codes are used by MasterCard issuers to identify the first chargeback and specify the portion of the transaction amount that is being disputed:
| MTI | First Chargeback / 1442 |
| Function Code 450 | Full Amount |
| Function Code 453 | Partial Amount |
An issuer can process a First Chargeback / 1442 message if it determines that a transaction can be charged back to the processing bank for one of the valid chargeback reasons specified in the table below.
| Code | Chargeback Reason |
| 4801 | Requested Transaction Data Not Received |
| 4802 | Requested / Required Information Illegible or Missing |
| 4807 | Warning Bulletin File |
| 4808 | Requested / Required Authorization Not Obtained |
| 4812 | Account Number Not on File |
| 4831 | Transaction Amount Differs |
| 4834 | Duplicate Processing |
| 4835 | Card Not Valid or Expired |
| 4837 | No Cardholder Authorization |
| 4840 | Fraudulent Processing of Transaction |
| 4841 | Canceled Recurring Transaction |
| 4842 | Late Presentment |
| 4846 | Correct Transaction Currency Code Not Provided |
| 4847 | Requested / Required Authorization Not Obtained and Fraudulent Transaction |
| 4849 | Questionable Merchant Activity |
| 4850 | Credit Posted as Purchase |
| 4853 | Cardholder Dispute – Defective / Not As Described |
| 4854 | Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only) |
| 4855 | Nonreceipt of Merchandise |
| 4857 | Card-Activated Telephone Transaction |
| 4859 | Services Not Rendered |
| 4860 | Credit Not Processed |
| 4862 | Counterfeit Transaction Magnetic Stripe POS Fraud |
| 4863 | Cardholder Does Not Recognize – Potential Fraud |
| 4870 | Chip Liability Shift |
| 4871 | Chip / PIN Liability Shift |
An issuer can only process one first chargeback per presented transaction within the time frame applicable for the chosen chargeback reason code (typically 180 days). To generate a chargeback, the issuer must submit the First Chargeback / 1442 message with the applicable message reason.
MasterCard’s Corporate Purchasing Department Account Program does not have chargeback rights for the following message reason codes:
- 4835 – Card Not Valid or Expired.
- 4837 – No Cardholder Authorization.
- 4840 – Fraudulent Processing of Transactions.
- 4847 – Requested / Required Authorization Not Obtained and Fraudulent Transaction.
- 4862 – Counterfeit Transaction Magnetic Stripe POS Fraud.
- 4863 – Cardholder Does Not Recognize – Potential Fraud.
We have reviewed in detail the causes for chargebacks designated with some of the Reason Codes mentioned in this post and have suggested preventive measures in separate articles and will do so for the others in the near future.
Learn how to minimize chargebacks and fraud
Learn how to minimize chargebacks and reduce your processing costs. The Chargeback Management kit contains a video and an e-book:
- E-Book – Chargeback Manual (40 pages).
- Video – Card Acceptance Best Practices for Lowest Processing Costs (18 min).
