4853 - Cardholder Dispute - Credit Not Processed
Why did I receive this chargeback?
The cardholder claims a credit is due, but you haven’t acknowledged the request or refuse to comply.
How long can the issuer wait to file a 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 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 you adhered to Mastercard’s Transaction Processing Rules, section 3.7 about cancellation and refund conditions
- 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?
- 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.