Consumer Disputes
4850 Installment Billing Dispute
Details
This code is used when a cardholder disputes an installment billing arrangement, claiming the terms were not properly disclosed or the merchant failed to honor agreed-upon installment terms.
- Cardholder claims installment terms were not properly disclosed
- Merchant allegedly failed to honor installment agreement
- Applicable to buy-now-pay-later and installment payment plans
Timing to raise the dispute (Issuer/Cardholder)
120days
Timing to respond to the dispute (Acquirer/Merchant)
45days
How to respond?
Provide evidence of:
- Signed installment agreement with clear terms
- Cardholder acknowledgment of installment schedule
- Transaction receipts showing installment breakdown
- Communication confirming cardholder accepted terms
How to prevent?
To prevent this chargeback:
- Clearly disclose all installment terms before purchase
- Obtain explicit cardholder consent for installment plans
- Send confirmation emails with payment schedule
- Maintain records of all installment agreements