Mastercard Chargeback Time LimitUnderstanding Dates & Deadlines for Mastercard Disputes

What Consumers and Merchants Need to Know About Mastercard Chargeback Time Limits

Are you a merchant fighting an unfair chargeback claim? Or, are you a cardholder dealing with criminal fraud? In either case, Mastercard chargebacks come with built-in time limits you need to know about.

Merchants and consumers face strict time limits for each phase of the dispute. Miss one of these deadlines, and they risk their case being thrown out, no questions asked. If that happens, they lose any hope of recovering the money in question.

In this post, we’ll answer some of the most important questions about Mastercard chargeback time limits. What are the basic Mastercard time limits for merchants and cardholders? What Mastercard reason codes have different guidelines? And, why being aware of these time limits is important for both merchants and consumers.

Have more general questions about chargeback time limits, or want to see the rules for other card brands?

Learn More About Chargeback Time Limits

How Long Do Cardholders Have to File a Mastercard Dispute?

How Long Do Merchants Have to Respond to a Mastercard Dispute?

The deadline for US merchants to respond in a Mastercard chargeback situation is 45 days. Note, however, that the time windows presented here don’t only apply to merchants. Other parties, such as acquirers and processors, may also have actions to perform in the same timeframe (more on this later).

Mastercard Chargeback Time Limits for Cardholders

Mastercard chargeback time limits are in place to guarantee the swift resolution of disputes and to avoid any unnecessary delays. These rules are outlined in the Mastercard Chargeback Guide.

Each Mastercard chargeback reason code has its own time limit. This outlines the specific timeframe in which a dispute filed using the reason code in question must be initiated. Not adhering to these time limits could lead to the inability to dispute the chargeback or recover the funds.

Here are all of the Mastercard chargeback time limits for cardholders, broken down by reason code:

Authorization-Related Mastercard Reason Code Time Limits

Mastercard Reason Code	Description	Time Limit
4808	Warning Bulletin File	90 Days
4808	Authorization-Related Chargeback	90 Days
4808	Account Number Not on File	90 Days
4808	Required Authorization Not Obtained	90 Days
4808	Expired Chargeback Protection Period	90 Days
4808	Multiple Authorization Requests	90 Days
4808	Cardholder-Activated Terminal (CAT) 3 Device	90 Days

Point of Interaction Error Mastercard Reason Code Time Limits

Mastercard Reason Code	Description	Time Limit
4834	Point of Interaction Error	90 Days
4834	Transaction Amount Differs	90 Days
4834	Late Presentment	90 Days
4834	Point-of-Interaction Currency Conversion	90 Days
4834	Duplication/Paid by Other Means	120 Days
4834	ATM Disputes	120 Days
4834	Loss, Theft, or Damages	90 Days

No Cardholder Authorization/Fraud-Related Mastercard Reason Code Time Limits

Mastercard Reason Code	Description	Time Limit
4837	No Cardholder Authorization	120 Days
4849	Questionable Merchant Activity	120 Days
4870	Chip Liability Shift	120 Days
4871	Chip / PIN Liability Shift	120 Days

Cardholder Dispute Mastercard Reason Code Time Limits

Mastercard Reason Code	Description	Time Limit
4853	Cardholder Dispute of a Recurring Transaction	120 Days
4853	Goods or Services Not Provided	Variable**
4853	No-Show Hotel Charge	120 Days
4853	Addendum Dispute	120 Days
4853	Credit Not Processed	120 Days
4853	Goods/Services not as Described or Defective	120 Days
4853	Digital Goods $25 or less	120 Days
4853	Counterfeit Goods	120 Days
4853	Transaction Did Not Complete	120 Days
4853	Credit Posted as a Purchase	120 Days

Miscellaneous Mastercard Reason Code Time Limits

Mastercard Reason Code	Description	Time Limit
4850	Installment Billing Dispute	120 Days
4854	Cardholder Dispute Not Classified Elsewhere (US)	120 Days

**For Mastercard reason code 4853 (Goods or Services Not Provided), the timeline is generally 120 days, but may be based on different start dates. See the “Exceptions & Special Circumstances” section below for more information.

Mastercard Chargeback Time Limits for Merchants

Unlike cardholder time limits, which may vary depending on the reason code, the Mastercard chargeback time limit for merchants is 45 days. This same time limit applies to all Mastercard reason codes.

The timer begins ticking as soon as the chargeback is initiated. Merchants need to keep a close eye on this starting date to make sure they don't exceed the specified time limit for each reason code.

As mentioned above, though, the official Mastercard chargeback time limits can make it appear that merchants have a lot more time at their disposal than they really do. Other parties, such as acquirers and processors, have actions to perform in the same timeframe. The acquirer, for example, needs to receive, process, and forward the claim to the issuer. The time allocated to this comes out of the time allotted to the merchant.

These acquirers and processors have the power to impose their own deadlines to give themselves more time. In many cases, merchants may only have 5-10 days in which to respond to a chargeback.

4 Phases of the Mastercard Chargeback Process

From start to finish, disputing a charge can often take 45 to 90 days. Mastercard chargeback time limits exist to try and ensure that claims are resolved in as timely a manner as possible.

There are four basic phases to a Mastercard dispute:

• Chargeback
• Second Presentment (Representment)
• Arbitration Chargeback (Pre-arbitration)
• Arbitration

The timeframe for each phase starts the same day the phase starts. Mastercard refers to this date as the “Central Site Business Date” or CSBD. While the entire Mastercard chargeback process typically takes 45 to 90 days, it’s obviously in everyone's best interest to resolve claims as quickly as possible.

Also, remember that the point which qualifies as "Day One" will reset at each stage of the chargeback process. So, while the Mastercard chargeback time limits are predetermined, it will still move around as one progresses to a different stage of the dispute:

Exceptions & Special Circumstances

As we stated above, most Mastercard dispute time limits are well-defined. Cardholders have 120 days, while merchants are locked in at 45 calendar days. The primary exception would be for merchants, who may have less than 45 days, depending on the specific rules imposed by their acquirer or processor.

There are a few other exceptions to the rules, though. A few select Mastercard chargeback reason codes have different Mastercard chargeback time limits. All but two fall under Mastercard chargeback reason code 4853 (Cardholder Disputes):

The timeline for this type of chargeback is complex. Essentially, the start date for the time window varies based on the specifics of the dispute:

Condition	Timeframe
The actual date of delivery or service performance was unspecified.	The issuer must wait a minimum of 30—but no more than 120—calendar days after the transaction processing date to initiate a chargeback. This 30-day waiting period may be waived if the merchant has gone out of business.
The date of delivery or service performance was specified but has since passed.	The chargeback must be initiated no later than 120 calendar days after the transaction processing date (not the Central Site Business Date).
Ongoing services were terminated.	The chargeback must be initiated no more than 120 calendar days following the date services ended (not to exceed 540 days of the original transaction processing date).
Prepaid gift cards for a merchant that has since gone out of business.	The chargeback must be initiated within 120 calendar days of the gift card’s expiration date. If the card has no expiration date, the chargeback must be initiated within 540 calendar days of the transaction processing date.

For cases in which the cardholder did not receive an expected credit, chargebacks must be processed within 120 calendar days of one of the following:

• The date on the credit documentation
• The date of service cancellation
• The date the merchandise was returned

For cases in which the cardholder claims the merchandise received (or service provided) differs greatly from the description available at the time of purchase, the dispute must be processed within 120 calendar days of one of the following:

• The transaction processing date
• The date the merchandise was delivered
• The service cancellation date
• The date services ended

The chargeback may not be filed more than 540 days past the original transaction processing date.

If the cardholder received counterfeit merchandise, disputes must be processed within 120 calendar days of the transaction processing date. But, in cases of delayed delivery of said goods, disputes may be processed up to 120 calendar days after the date the goods were received.

Mastercard reason code 4854 is a catch-all for disputes that don’t fall neatly under any other category. The issuer is still limited to processing the chargeback within 120 calendar days of the transaction’s Central Site Business Date. However, merchants are also allowed 60 calendar days to respond after first learning of the dispute from the cardholder.

Working With Mastercard Dispute Deadlines

Mastercard chargeback time limits are confusing…much like many other parts of the Mastercard dispute process. Without knowing how different factors affect the timeframe, however, means merchants are much more likely to miss a deadline and automatically lose a case.

If you're a merchant, outsourcing chargeback management to the right professionals can free up time and ensure a much higher win rate. In fact, Chargebacks911® offers a guaranteed ROI for all chargeback disputes we compile on your behalf. Contact us today to learn more about recovering revenue amid restrictive chargeback time limits.