MasterCard Chargeback Rules

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Similar to Visa, MasterCard has its own set of rules regarding chargeback thresholds. Consequences for exceeding these thresholds include incurring excessive fees, your acquiring bank terminating your merchant account, and no longer qualifying to accept MasterCard payments.

MasterCard Chargeback Rules

Since 2001, Instabill has been a leading merchant account service provider for e-commerce businesses worldwide and we help our clients fight chargebacks every day. However, our new goal is to help merchants everywhere prevent MasterCard chargebacks by explaining the regulations set forth by the credit card company. Below you will find information regarding MasterCard chargeback thresholds as well as the most common MasterCard chargeback codes.

MasterCard Chargeback Thresholds

MasterCard has two merchant chargeback programs—the Chargeback-Monitored Merchants program and the Excessive Chargeback Merchants program. Once you exceed a 1% chargeback threshold and more than 100 chargebacks within one month, MasterCard will enroll you in the Chargeback-Monitored Merchants program. However, once you exceed a 1.5% chargeback threshold and more than 150 chargebacks within one month, the card company will enroll you in the Excessive Chargeback Merchants program.

Most Common MasterCard Chargeback Codes

From unauthorized transactions to cardholders not remembering purchases, Visa and MasterCard have hundreds of chargeback codes. However, two codes rank at the top of MasterCard's list.

  • ✕  MasterCard Chargeback Code 4855, Non-Receipt of Merchandise
  • ✕  MasterCard Chargeback Code 4859, Services Not Rendered

The code explanations are clear and understandable. Either the customer never received the goods or services they purchased or the merchant delivered them after the promised date. Regardless of how the chargeback occurred, the merchant could have easily prevented the situation completely.

As an honest business owner, you should always, always, ALWAYS deliver your goods and services as promised on your website. If you say that your customers will receive their products within five to seven business days, then make sure they receive them no later than that. Additionally, if there is a delay in delivering goods, make sure to contact your customer and inform him or her of the delay to .

MasterCard Chargeback Retrievals

When filing MasterCard chargeback retrievals, you have three days to submit documents to the credit card company. With Instabill as your merchant account service provider, we will submit the documents to the credit card company for you once you send them to us. However, you will need to format your retrieval documents according to MasterCard's three guidelines.

  • 1. All chargeback retrieval documents must be 8.5" by 14" in size and in TIFF format
  • 2. Label all files starting with the letter M, for MasterCard, followed by the pay ID number (e.g., M8702)

For multiple retrieval documents, label each file by including an underscore as well as sequential numbers (e.g., M8702_1, M8702_2, M8702_3). You can find more information about .

Chargeback Prevention with Instabill

If you want to process payments with a merchant account service provider that works to keep your MasterCard chargebacks at bay, then Instabill wants to hear from you. Fill out our simple sign up form to the right, speak with one of our expert merchant account managers, and submit your free application. Your success is our success, so let's work together to fight chargebacks!

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