Mastercard Chargeback Reason Code 4807 – Warning Bulletin File
Mastercard chargeback reason code 4807 – Warning Bulletin File is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. We say the given reason because it may or may not reflect the true reason.
Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. Chargebacks were designed to be a “last-resort” for disagreements that cannot be resolved with the merchant. However, they’re more and more often used as a tool to commit fraud.
Reason code 4812 indicates the broad category of “authorization-related chargebacks.” This generally means the transaction was processed without the official go-ahead. The code is now considered obsolete; Warning Bulletin File chargebacks should be filed under reason code 4808. That said, the code is still operation, at least for now. Usage is not preferred by Mastercard, but it will still work.
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What is a “Warning Bulletin File” Chargeback?
The Warning Bulletin is a list of credit cards which have been reported canceled, stolen, or past due. This online list is updated in real time, and is created and maintained by MasterCard and Visa. It basically lists all cards flagged for improper use.
The Warning Bulletin—also known as the “hot card list” or “restricted card list”—is meant to help prevent credit card fraud. Merchants are required to follow specific mandates when they discover counterfeit or unauthorized cards, which include safely confiscating the card in question and forwarding it to the issuer.
The Warning Bulletin File reason code was used to cover situations in which a transaction was processed using a card or account number listed in the Warning Bulletin. If merchants process a charge without consulting the bulletin, the bank will file a chargeback against the merchant to recover the funds involved in the transaction.
The most obvious example of such a situation is when a fraudster or some other unauthorized user attempts to make illegitimate purchases. The account could’ve been closed, with or without the knowledge of the cardholder. It could even be the result of a glitch in the processing software.
Regardless of the circumstances, if the card is listed in the bulletin at the same time a merchant processes a transaction, the issuer will typically file a chargeback with reason code 4807 (or 4808).
Warning Bulletin File Chargebacks: Conditions and Prevention
Issuers have a limited timeframe to file chargebacks claiming an incorrect transaction amount. Disputes must be filed within 90 calendar days of the transaction processing date. The merchant (or acquirer) has 45 calendar days to respond to 4807/4808 chargebacks after they are filed.
Again, banks should not really be using 4807. Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. This should include notation that indicates the specific reason for the chargeback. For the time being, however, merchants should be aware that banks may still use the legacy code.
While most payment systems are designed to stop merchants from running unauthorized transactions, there are ways to bypass these protections. When this happens, the issuer and cardholder have clear grounds to file a chargeback, while the merchant has few valid defenses.
For the most part, chargebacks of this type are preventable. Processing systems are programmed to stop unauthorized transactions before they go through. There are, however, methods of circumventing such safety checks. In these situations, the merchant may receive a reason code 4807 chargeback.
Vigilance and training are keys to preventing these claims. Merchants should also implement best practices for accepting payment cards:
- Always request authorization before processing a transaction.
- If the transaction is declined, terminate the sale and request an alternate method of payment.
- Train staff members to understand and adhere to these practices.
For more detailed information on causes and prevention of chargebacks filed under 4807, merchants should refer to our article on Mastercard Reason Code 4808.
Chargeback Prevention: A Wider View
While merchants can take many steps to help prevent legitimate claims, fraudulent chargebacks are another matter. Friendly fraud is post-transactional in nature, meaning there’s no sure way to identify it beforehand. Merchants can do everything “right,” yet still have a dispute filed against them.
It’s generally more efficient to take a proactive stance when it comes to chargeback management. However, a truly-effective strategy must encompass both preventing chargebacks and disputing cases of friendly fraud.
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