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MasterCard's 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.

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