Chargebacks can be complex, but acting quickly and following the right steps can help you resolve disputes successfully. Here's an easy-to-follow overview of the Mastercard chargeback process and what you need to do at each stage:
1. Notification of Chargeback (NoC)
What Happens: You’re notified of a chargeback.
Your Action: Submit defense documents to contest or accept the chargeback.
Key Point: The chargeback amount will usually be debited from your account a few days after notification.
2. First Chargeback
What Happens: The disputed amount is withdrawn from your account.
Your Action: Upload defense documents within 40 days, or accept the chargeback.
Key Point: If you don’t act in time, the process ends here.
3. Information Supplied
What Happens: PbN submits your defense documents to Mastercard.
Key Point: Once submitted, you cannot make any changes to the documents.
4. Chargeback Reversed
What Happens: The disputed amount is temporarily credited back to your account while your defense is reviewed.
Key Point: If your defense is accepted, the chargeback is resolved in your favor.
5. Pre-Arbitration
What Happens: If your defense is rejected, the issuer files a Pre-Arbitration case within 45 days of your defense submission.
Key Point: After this stage, there’s no option for arbitration.
6. Pre-Arbitration Outcome
If Won: Your defense is accepted, and the chargeback is resolved in your favor.
If Lost: A second chargeback is processed, and the dispute process ends.
7. Second Chargeback
What Happens: If your defense is declined, a second chargeback is finalized.
Key Point: This is the final step, with no further options for resolution through Mastercard.
Submitting Defense Documents
Accepted File Formats:
JPG and TIFF: Max file size 10 MB per file.
PDF: Max file size 2 MB per file.
Mastercard Rules: Defense documents must be no more than 19 pages.
Essential Documents for a Strong Dispute Defense
Depending on the reason for the chargeback, include the following:
General:
Invoice copy and service descriptions.
Proof of credits/refunds not addressed by the issuer.
Evidence the cardholder used the service or didn’t cancel.
Screenshots of terms/conditions agreed upon.
For Specific Scenarios:
Already Paid:
Proof cardholder hasn’t paid or refunds were issued.
Email communications confirming payment status.
Canceled Services:
Evidence cardholder was informed of your cancellation policy.
Proof of services used before cancellation.
Logs showing the cardholder didn’t contact you.
Canceled Transaction:
Invoices, service descriptions, and confirmation emails.
Proof of service provided (e.g., emails, invoices).
Verification details like CVV checks or IP/device data.
Canceled Recurring Transactions:
Proof cardholder agreed to your policies.
Evidence services were used before cancellation.
Records showing the cardholder didn’t try to resolve the issue.
