Reason code

This reason code is used when a cardholder disputes a charge, claiming they were billed for a recurring transaction after canceling the subscription or for digital goods they did not authorize or receive. Common scenarios include:

• Canceled Subscriptions: The cardholder asserts they canceled a recurring service, but the merchant continued to bill them.​

• Unauthorized Digital Goods Charges: The cardholder claims they were charged for digital goods without their consent or did not receive the purchased digital items.​

It's important to note that Mastercard has phased out this reason code, consolidating it into Reason Code 4853: Cardholder Dispute. ​Issuers have been instructed to use 4853 instead.

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To address a chargeback under Reason Code 4841, you should provide evidence that the charge was legitimate. This may include:​

• Proof of Authorization: Documentation showing the cardholder agreed to the recurring charges or digital goods purchase.​

• Cancellation Records: Evidence that no cancellation request was received before the disputed charge date.

• Service Usage Logs: Records indicating the cardholder accessed or used the service or digital goods after the alleged cancellation.

Providing clear 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 4841 chargebacks:

• Clear Cancellation Policies: Ensure your cancellation procedures are straightforward and easily accessible to customers.​

• Prompt Processing: Handle cancellation requests immediately and confirm the cancellation with the customer.​

• ‍Transparent Billing Descriptors: Use recognizable billing descriptors so customers can easily identify your charges on their statements.