MasterCard chargeback rules guide – Every card network has their own reason codes or rules to deal with the chargeback. The Visa has just launched their updated reason codes to deal with the chargeback, which we have discussed in our earlier articles. The MasterCard chargeback rules are just as important in order to deal with the chargeback efficiently.
The MasterCard last updated their rules on May 10, 2016, which has some changes that can help you while dealing with the chargeback in your enterprise. The notable MasterCard chargeback rules guide is discussed in this article. The majority of the card network has almost the same protocols. Here we will concentrate on the MasterCard’s protocol.
For more details related to the MasterCard chargeback rules guide, you can contact the Chargeback Expertz and one of our specialists will assist you.
What is Chargeback according to the MasterCard?
According to the MasterCard, the Chargeback is described as:
“A dispute resolution process that is used to determine the responsible party in a chargeback-related dispute. The process has three cycles in which stakeholders can resolve the dispute amongst themselves. If they do not resolve the case within these three cycles, the case must be sent to arbitration. In arbitration, MasterCard becomes the decision maker.”
The chargeback cycle according to the MasterCard follows like this:
- The Chargebacks are initiated by the customers followed by the issuing bank which is called the first presentment.
- Now the acquiring bank informs the merchant about the chargeback.
- The acquiring bank and merchant presents the second presentment with details supporting their case. This is called Chargeback Representment.
- If the issuers refuse the second presentment then the chargeback is taken to the MasterCard. This is called Chargeback Arbitration.
MasterCard Chargeback Rules Guide for Merchant
The MasterCard new rules have clearly set out some reason codes for the Merchant, Customer, and Banks. If you are a Merchant then you must understand the various chargeback rules. Contact the Chargeback Expertz at the toll-free number +1(855) 465-4723 for details and to know about chargeback reason codes.
The MasterCard Chargeback Timeline
The MasterCard has clearly explained the timeline of the chargeback depending on the reason code. The most important thing for the merchant is to quickly respond to a chargeback. No matter what timeline you have, you must try to resolve the chargeback as quick as possible.
The Chargeback Expertz team is here to help you with the Chargeback MasterCard reason codes. Call us at the toll-free number +1(855) 465-4723 or visit chargebackexpertz.com for Mastercard chargeback rules guide.
The Excessive Chargeback Program
The MasterCard has designed a program that constantly monitors the chargeback activity of the merchants. Here is what Excessive Chargeback Program does according to MasterCard chargeback rules guide:
- It is the Bank’s job to report to the MasterCard when a merchant exceeds the chargeback threshold.
- Each month the chargeback rate is calculated and on the basis of chargeback rate, the MasterCard fines if required.
- To calculate the chargeback ratio, the MasterCard takes the number of chargeback of current month and divides it with the number of chargeback of the previous month.
- Firstly, the merchant gets a fair warning with a minimal fine for the exceeding the chargeback threshold.
- After that, the merchant is subjected to a heavy fine and in some cases termination of the merchant license.
Cons of MasterCard Chargeback Rules
The chargeback rules are primarily designed to secure customers from the frauds. But what about the Merchants? The Merchant is also subjected to frauds. The friendly fraud is a good example and one of the cons of the chargeback rules. The MasterCard chargeback rules guide has some disadvantages too especially for merchants.
- Firstly, there is no strict law against the Friendly Frauds.
- The final step is arbitration.
- If the merchant loses the cases at the arbitration, there no other way he can prove his case again.
- Exceeding number of chargeback frauds are also going to be added when chargeback ratio is calculated.
- The only method left to secure a business against chargeback is equipping your business with more security.
- This means more investment on the security which leads to expense without profit.
- The security measures like secured payment gateways are not 100% chargeback fraud-proofs.
These are some of the issues faced by the merchant while dealing with the MasterCard Chargeback. And sometimes it is really frustrating to deal with MasterCard chargeback rules.
But with proper guidance and assistance, you can handle the chargeback and other issues too. For assistance, contact the Chargeback Expertz at the toll-free number +1(855) 465-4723 and get a specialist to guide you. You can also try the Sky and get MasterCard chargeback rules guide.