Mastercard Chargeback Reason Code 4854: Cardholder Dispute - Not Elsewhere Classified (NEC)

What is Mastercard Chargeback Reason Code 4854?

The Mastercard chargeback reason code 4854 refers to cardholder disputes where the cardholder claims their demands were unmet. It often comes after an unsuccessful attempt by the buyer to resolve a dispute. Given the varying nature of disputes, it's broadly categorized as 'Cardholder Dispute—Not Elsewhere Classified.’

This reason code applies to US regions only and to transactions involving goods and services. It is the fallback code if no other code applies to the situation or dispute. Still, it is not out of your reach to fight it and receive a refund if you feel unfairly treated.

We could quickly point to poor customer service as the cause of this reason code. For instance, consider a scenario where a buyer contacts you post-purchase to lodge a complaint. However, communication ceased halfway into the resolution, forcing the cardholder to contact the issuer and file for a cashback.

This implies that the buyer has tried all available avenues for an amicable resolution. The issuer will use 4854 as the underlying code if there is no suitable Mastercard chargeback reason code. Also, the reason will be stated in the chargeback message for more clarity.

You’ll often find the reason when contesting the chargeback. That is, if it was not initially stated in the message.

Did you just receive a chargeback under this message? Merchants are not always to blame for this deduction. It's important to note that customers may sometimes erroneously claim an unresolved dispute.

This chargeback is delicate, and you must learn the reason before fighting. We’ll give you different reasons for its occurrence, including ways to fight it and receive a refund. You’ll also learn tips to put yourself in a good light and prevent the chargeback from occurring.

Why Did It Happen?

You will receive this chargeback if a cardholder files a claim that they received an unsatisfactory or failed dispute resolution from you. It arises after the purchase of goods or services. Nonetheless, the issuer can only charge you back if specific conditions are met.

These conditions include the following:

• The buyer tried to resolve a dispute with you but failed
• The issuer and you are located in the US region
• A qualifying condition is that the transaction takes place in the same state as the buyer's billing address.
• The transaction occurred within 100 miles of the cardholder’s billing address. A non-face-to-face transaction will qualify as an exception to this condition. Also, the cardholder’s designated address will serve as the transaction location.
• The original transaction amount is above $50

You’ll receive the chargeback if the cardholder provides the document to show the dispute they had with you. However, that may tell only half the story.

While poor customer service may cause this chargeback, some buyers may have unreasonable demands. In such cases, you might find their demands unfeasible or choose not to accommodate them, seeking alternative resolutions instead.

Let’s see an example that would qualify for this chargeback. A cardholder purchases an item from you but later sees a more attractive item and wants that one. They can demand a return of the previously purchased item even when they’ve not met your return policy.

Your refusal to be responsible for returning the product can lead to this chargeback. We understand such scenarios. However, the burden of proof will fall on you to show adequate evidence that you did no wrong.

Another example is accepting a return with the promise to refund the customer when you receive the product. Then, the customer files this chargeback claim, asking for a refund when they have yet to fulfill their bargain.

Conditions that Bind This Chargeback

Let’s see a few conditions that bind this chargeback before exploring how to fight it. A violation of these conditions gives you an even better ground to fight it and less explanation to do. They include:

• The cardholder must contact you before filing the dispute. Also, the document must show the ending of your conversation.
• The cardholder must state and prove any failed attempt to contact you.
• You have 15 days from the date of a merchandise return to process a credit before the issuer can process a chargeback. This condition is only for cases involving returned products or services.

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How to Fight Mastercard Chargeback Reason Code 4854: Cardholder Dispute - Not Elsewhere Classified (NEC)

If violated, the conditions in the previous section give you the right to fight the chargeback. For example, an issuer charging you back within 15 days of an item return has not given you enough time to verify and process a credit. You can easily file a representment to dispute it and receive a refund.

With that in mind, your written rebuttal may include the following:

• Present documentation demonstrating the invalidity of the chargeback, particularly if there is insufficient evidence supporting the claim against you.
• Proof of an invalid chargeback if the cardholder paid the disputed amount before contacting you or the issuer to file the dispute.
• Documentation asserting that the chargeback is invalid due to insufficient documentation to back the claim against you

You can also use several second presentment message reason codes to dispute this chargeback, and they include the following:

• 2002: Applicable if you did not receive the required documents to support the chargeback.
• 2004: Applicable if you received documentation but the Acquirer Reference Data on the chargeback is invalid
• 2700: You remedied the chargeback
• 2011: You issued a credit previously
• 2709: The documentation you received was not readable
• 2702: The chargeback is past the time limit Mastercard allows

How to Prevent Mastercard Chargeback Reason Code 4854: Cardholder Dispute - Not Elsewhere Classified (NEC)

Acknowledging the challenge of maintaining 24/7 customer support, it's crucial to address every complaint diligently. However, you should strive to address every customer complaint and bring it to a reasonable conclusion. Cardholders often file disputes that result in this chargeback if they feel unheard or left out of the loop.

Address customer complaints immediately. Other ways of preventing this chargeback include

• Process a credit or refund immediately. There is no need to keep the cardholder waiting if they comply with your policies.
• Maintain records of conversations and conflict resolutions.

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