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MasterCard® to Revise Chargeback Processing Procedures

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MasterCard logoEffective 13 April 2012 - EU

MasterCard changed its chargeback processing procedures on 13 April 2012.

MasterCard has defined “compelling evidence” that can be submitted under RC 37 – No Cardholder Authorisation. In a second presentment situation, such evidence is:
•    A receipt, work order or other document signed by the cardholder
•    A confirmed registration from the cardholder to receive electronic delivery of goods or services, or
•    Letters, email, faxes or other written correspondence between the you and the cardholder

Also, issuers will no longer have to submit a progressive cardholder letter under RC 37 to confirm fraud as long as:
•    The original chargeback documentation shows the date of the last valid transaction
•    The disputed transaction was authorised after that date, and
•    The cardholder does not provide new evidence after the second presentment.

MasterCard will retire the following RCs:
•    35 – Card Not Valid or Expired
•    47 – Requested Required Authorisation Not Obtained and Fraudulent Transaction
•    57 – Card-Activated Telephone Transaction
•    62 – Counterfeit Transaction Magnetic Strip POS Fraud