Chargebacks are a common occurrence in the world of credit card transactions. They occur when a cardholder disputes a charge made to their card, and the card issuer initiates a refund to the cardholder. In order to maintain fairness and prevent abuse of the chargeback system, there are specific time limits that dictate when a chargeback can be initiated. In this article, we will focus on Chargeback Time Limits Mastercard.

What is a chargeback time limit?

A chargeback time limit is the amount of time that a cardholder has to dispute a transaction and initiate a chargeback with their card issuer. These time limits are set by the card networks (such as Mastercard) and are designed to ensure that chargebacks are only used for legitimate reasons.

Mastercard chargeback time limits

Mastercard has specific chargeback time limits that merchants and cardholders must follow. These time limits vary depending on the reason for the chargeback.

Fraudulent transactions

If a cardholder believes that a fraudulent transaction has occurred on their account, they have 120 days from the transaction date to initiate a chargeback.

Authorization issues

If a cardholder believes that they were charged for a transaction that they did not authorize, they have 120 days from the transaction date to initiate a chargeback.

Processing errors

If a cardholder believes that they were charged an incorrect amount for a transaction or that the transaction was processed incorrectly, they have 120 days from the transaction date to initiate a chargeback.

Non-receipt of goods or services

If a cardholder did not receive the goods or services that they paid for, they have 120 days from the expected delivery date to initiate a chargeback.

Cancelled recurring transactions

If a cardholder cancels a recurring transaction (such as a subscription service) and continues to be charged, they have 120 days from the date of the transaction to initiate a chargeback.

Credit not processed

If a cardholder returns goods or services and does not receive a credit, they have 120 days from the expected date of the credit to initiate a chargeback.

Duplicate processing

If a transaction is processed twice (resulting in two charges to the cardholder), they have 120 days from the date of the second transaction to initiate a chargeback.

What happens if the chargeback time limit is exceeded?

If the chargeback time limit mastercard is exceeded, the cardholder may still be able to dispute the transaction, but it will not be processed as a chargeback. Instead, it will be treated as a claim, and the card issuer will review the dispute on a case-by-case basis. However, there is no guarantee that the card issuer will side with the cardholder in these situations.

Conclusion

Chargeback time limits are an important part of the chargeback process. They ensure that chargebacks are only used for legitimate reasons and prevent abuse of the system. Merchants and cardholders should be aware of these time limits and ensure that they initiate chargebacks within the allotted time frames. By following these guidelines, the chargeback process can be fair and efficient for all parties involved.