4853 - Cardholder Dispute - Cardholder Dispute of a Recurring Transaction
Why did I receive 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 the issuer wait to file a chargeback?
The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.
What compelling evidence is needed to respond?
Your chargeback response must include at least one of the following items:
- Explanation and documentation to refute the cardholder’s claim
- Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements
- Proof you have already refunded the transaction and credited the cardholder’s account
- 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.
- If you use negative option billing, comply with Mastercard’s regulations. Learn more here.