Reason code

This code is used when a cardholder disputes a transaction, claiming they did not authorize or participate in it. Common scenarios include unauthorized use of the card, family members making transactions without the cardholder's knowledge, or the cardholder not recognizing the transaction on their statement. This typically applies to card-not-present transactions but can also apply to card-present ones if the merchant bypassed normal security steps.

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What you submit depends on how the transaction was done. Tailor your response to show the cardholder authorized it:

• Online transaction? Submit screenshots of the checkout flow showing where the customer entered billing info, agreed to terms, or created an account.
  
  
• Recurring charge? Include a copy of the original subscription agreement, with timestamps showing opt-in and no cancellation before billing.
  
  
• In-store purchase? Send terminal logs showing the card was inserted or tapped, plus any security checks used (PIN entry, CVV, etc.).
  
  
• Account login or activity? Provide login timestamps, device info, and IP addresses that match the cardholder’s known location.

Providing clear and comprehensive documentation can help demonstrate the legitimacy of the transaction and may lead to the chargeback being overturned.

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To minimize the risk of chargebacks under 4837:

• Implement Robust Fraud Prevention Tools: Utilize Address Verification Service (AVS), Card Verification Value (CVV/CVC2), and Mastercard SecureCode to authenticate transactions.​
  
  
• Use Recognizable Billing Descriptors: Ensure that the business name appearing on cardholder statements is easily recognizable to prevent confusion.​
  
  
• Monitor Transactions for Suspicious Activity: Regularly review transactions for unusual patterns that may indicate fraudulent activity.​
  
  
• Promptly Address Customer Inquiries: Respond quickly to customer inquiries or complaints to resolve issues before they escalate to chargebacks.

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