Mastercard Chargeback Reason Code 4860: Credit Not Processed
Chargeback Reason Code 4860 is applied when issuing bank gets a notice from the card owner that the merchandise was returned, but merchant hasn’t refunded, or the credit hasn’t appeared on the bank statement. It usually occurs when the merchant doesn’t issue a credit, or issued but hasn’t deposited on time. Another reason could be that the merchant didn’t accept the return, and therefore didn’t credit the charge.
Most Common Causes
There are some causes that are associated with the merchant:
- Business or merchant didn’t return the credit.
- Has issued the credit, but couldn’t process on time.
- Didn’t apply limited return, policies weren’t properly disclosed, or cancellation policy wasn’t applied after the request from the client or at the time of sale.
- Business doesn’t accept returns and hence no refund. In this case merchant has to mention it in the policies, but if it is not mentioned, the fault lies on merchant’s end.
- The chargeback must not be filed on the amount larger than the original transaction amount. It should be under the value of the part of the cancelled or returned service(s).
- In case when product/merchandise is not received yet and merchant did not hear for cancellation from the cardholder the merchant must inform the bank, no cancellation proof required from the card owner.
- In case when cardholder returned the merchandise or cancelled the services according to the merchant’s return and cancellation policy, provide documents that shows that customer was aware of such policies at the time of purchase. The merchant can submit order receipt with cardholder’s signature on it.
- In case when cardholder returned merchandise or cancelled the services according to the merchant’s return and cancellation policy and also have been issued a refund, just provide proof of refund issued with the refund date on it.
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- Linda purchases a watch online but when it arrives she changes her mind and decides to return it. She contacts the merchant and asks for a refund upon returning the product. The merchant agrees and explains that the refund would appear in 3-5 days on her bank statement. Linda returns the product and waits for the refund that never arrived. She then decides to put a dispute through her bank under the Reason Code 4860: Credit Not Processed.
- George buys few cosmetics for her wife through an online merchant. He gifts them to his wife, but the cosmetics are not liked by his wife so she asks him to return them. However, the merchant denies to take the return as per their return policies that George completely missed while buying the product. George therefore, decides to dispute the charge hoping for a refund/credit from the merchant under the Reason Code 4860: Credit Not Processed.