Mastercard SPME §8.6.5 · Jun 2022 → May 2023

Chargeback Responsibility

substantive

⚠ Extraction warning — review against source PDF. One side of the Mastercard SPME text below appears to contain only the page-running header, not body content. This usually means the section heading fell on a page boundary and the body was attributed to a neighbouring section in the source PDF. The AI summary and proposed edit below may be misleading. Verify in: Jun 2022 · page 85 ↗ · May 2023 · page 92 ↗.

The updated text specifies exact chargeback reason codes (4849 for Dual Message System and 49 for Single Message System Debit Mastercard transactions) to be used when disputing confirmed coerced transactions, enhancing clarity on processing these chargebacks.

Sources Mastercard SPME · Jun 2022 · page 85 PDF Mastercard SPME · May 2023 · page 92 PDF Chargeback Handling current

Also in §8.x this release substantive §8 Separation control substantive §8.5 Issuer Monitoring Program (IMP) substantive §8.6 Coercion Program substantive §8.6.1 Issuer Submissions substantive §8.6.2 Investigation Process substantive §8.7.5 Assessments, Recovery Amounts, and Fees

Why these edits? The update specifies exact chargeback reason codes for disputing confirmed coerced transactions, which directly impacts chargeback handling procedures and the appropriate use of reason codes 4849 and 49.

Mastercard SPME §8.6.5

This section was substantively restructured between versions (3% text overlap). Compare the texts directly below.

Before · Jun 2022 · page 85

Security Rules and Procedures—Merchant Edition • 22 February 2022

After · May 2023 · page 92

Chargebacks for confirmed coerced Transactions must use reason code 4849 (Questionable Merchant Activity) for Dual Message System transactions, and reason code 49 (Questionable Merchant Activity) for Debit Mastercard transactions processed on the Single Message System. Mastercard Fraud Control Programs

Halyard Pay · 2 files

Chargeback Handling · rules.yaml

program: Chargeback Handling
- authority: Mastercard SPME §10.1
+ authority: Mastercard SPME §10.1, §8.6.5
acknowledgement_business_days: 1
lifecycle_states:
  - first_presentment
  - chargeback
  - second_presentment
  - pre_arbitration
  - arbitration
evidence_requirements:
  first_presentment:
    - transaction_receipt
    - authorization_record
  chargeback:
    - merchant_rebuttal_letter
    - delivery_confirmation
    - customer_communication
  second_presentment:
    - compelling_evidence
    - signed_cardholder_agreement
  pre_arbitration:
    - full_dispute_record
    - prior_correspondence
  arbitration:
    - full_dispute_record
    - arbitration_filing
+ chargeback_reason_codes:
+   coerced_transactions:
+     dual_message_system: 4849
+     single_message_system_debit_mastercard: 49
agent_owner: chargeback_agent
+ 
+ # Note: Added explicit mappings for chargeback reason codes 4849 and 49 concerning confirmed coerced transactions as specified by Mastercard SPME §8.6.5.

Chargeback Handling · policy.md

Chargeback Handling

Chargebacks are cardholder-initiated disputes against a transaction. Halyard Pay, as the

acquirer, is responsible for managing the full dispute lifecycle on behalf of its

merchants from initial first presentment through arbitration. Each stage of the

lifecycle has specific evidence requirements and strict response deadlines imposed

by Mastercard network rules.

Lifecycle overview

Disputes progress through a defined set of states: first presentment, chargeback,

second presentment (re-presentment), pre-arbitration, and arbitration. Failure to

respond within the applicable timeframe at any stage results in an automatic ruling

against the acquirer.

Required actions

Acknowledge each incoming chargeback within one business day of receipt.
Gather required evidence for the relevant lifecycle state.
Submit a second presentment (re-presentment) where merchant liability can be

contested, including compelling evidence.

Escalate to pre-arbitration and arbitration only after second presentment is

rejected by the issuer.

For confirmed coerced transactions, ensure chargebacks use the specified reason

codes: 4849 for Dual Message System transactions and 49 for Debit Mastercard

Single Message System transactions.

6. Maintain complete case records for audit and regulatory reporting.

Source authority: Mastercard SPME ~~§10.1.~~10.1, 8.6.5.

policies/chargeback_handling/policy.md — after applying change

Chargeback Handling

Chargebacks are cardholder-initiated disputes against a transaction. Halyard Pay, as the

acquirer, is responsible for managing the full dispute lifecycle on behalf of its

merchants from initial first presentment through arbitration. Each stage of the

lifecycle has specific evidence requirements and strict response deadlines imposed

by Mastercard network rules.

Lifecycle overview

Disputes progress through a defined set of states: first presentment, chargeback,

second presentment (re-presentment), pre-arbitration, and arbitration. Failure to

respond within the applicable timeframe at any stage results in an automatic ruling

against the acquirer.

Required actions

Acknowledge each incoming chargeback within one business day of receipt.
Gather required evidence for the relevant lifecycle state.
Submit a second presentment (re-presentment) where merchant liability can be

contested, including compelling evidence.

Escalate to pre-arbitration and arbitration only after second presentment is

rejected by the issuer.

For confirmed coerced transactions, ensure chargebacks use the specified reason

codes: 4849 for Dual Message System transactions and 49 for Debit Mastercard

Single Message System transactions.

6. Maintain complete case records for audit and regulatory reporting.

Source authority: Mastercard SPME ~~§10.1.~~10.1, 8.6.5.

Source authority: Mastercard SPME §8.6.5.

--- a/policies/chargeback_handling/rules.yaml
+++ b/policies/chargeback_handling/rules.yaml
@@ -1,5 +1,5 @@
 program: Chargeback Handling
-authority: Mastercard SPME §10.1
+authority: Mastercard SPME §10.1, §8.6.5
 acknowledgement_business_days: 1
 lifecycle_states:
   - first_presentment
@@ -24,4 +24,10 @@
   arbitration:
     - full_dispute_record
     - arbitration_filing
+chargeback_reason_codes:
+  coerced_transactions:
+    dual_message_system: 4849
+    single_message_system_debit_mastercard: 49
 agent_owner: chargeback_agent
+
+# Note: Added explicit mappings for chargeback reason codes 4849 and 49 concerning confirmed coerced transactions as specified by Mastercard SPME §8.6.5.
--- a/policies/chargeback_handling/policy.md
+++ b/policies/chargeback_handling/policy.md
@@ -21,6 +21,11 @@
    contested, including compelling evidence.
 4. Escalate to pre-arbitration and arbitration only after second presentment is
    rejected by the issuer.
-5. Maintain complete case records for audit and regulatory reporting.
+5. For confirmed coerced transactions, ensure chargebacks use the specified reason
+   codes: 4849 for Dual Message System transactions and 49 for Debit Mastercard
+   Single Message System transactions.
+6. Maintain complete case records for audit and regulatory reporting.
 
-Source authority: Mastercard SPME §10.1.
+Source authority: Mastercard SPME +10.1, +8.6.5.