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4812- Account Number Not on File

4812- Account Number Not on File

Mastercard Chargeback Reason Code 4812 – Account Number Not on File

Mastercard chargeback reason code 4812 – Account Number Not on 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; Account Number Not on 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 an “Account Number Not on File” Chargeback?

The Account Number Not on File reason code was used to cover an occasional situation in which a transaction was processed, but the account number given was no longer active and on file. Alternately, the account number may simply have not existed at all.

When the number on the payment card doesn’t match the actual card number used by the issuer, it shouldn’t receive authorization. If a transaction does somehow make it all the way to the issuing bank without a valid account number, the bank will file a chargeback against the merchant to recover the funds involved in the transaction.

How does this happen? Merchants do have a few ways to circumvent a lack of authorization and manage to process a transaction that should not go through. More likely, there are other circumstances that cause the error. It may be caused by a fraudster using a fake payment card or account number, or it could be the result of a glitch in the processing software.

Chargebacks with reason code 4812 might also mean that the merchant processed the sale on an account that had already been closed.

On the other hand, the chargeback may be reversed if the merchant can provide evidence the sale was legitimate. Such evidence may include a physical imprint of the card, a magnetic stripe reading, or proof of credit issued. This is why carefully recording the card number, properly entering account data, or swiping the card through the terminal plays a role in reducing chargebacks.

Multiple Authorization Requests Chargebacks: Conditions and Prevention

With Mastercard reason code 4812, issuers have a limited timeframe in which to file chargebacks claiming an account number was not on file. Disputes must be filed within 90 calendar days of the transaction processing date. The merchant (or acquirer) has 45 calendar days to respond to 4812/4808 chargebacks after they are filed.

Again, banks shouldn’t really be using reason code 4812. Account Number Not on File chargebacks should be filed under code 4808, with 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.

For the most part, chargebacks of this type are preventable. Vigilance and training are key, but merchants should also implement best practices for accepting payment cards:

  • Install EMV chip terminals for payments.
  • 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 4812, 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.

Struggling with Mastercard reason code 4812 - Account Number Not on File claims? Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience-based expertise. Contact us today for a free ROI analysis to learn how much more you could save.

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