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Halyard Pay policy

Chargeback Handling

28 proposed revisions across 5 of 5 reviewed releases, including 3 breaking changes.

Current policy

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

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

Source authority: Mastercard SPME §10.1.

rules.yaml

program: Chargeback Handling
authority: Mastercard SPME §10.1
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
agent_owner: chargeback_agent

Authorized by

SPME §10.1 — Chargeback — Dispute Lifecycle and ProcessingSPME §10.3 — Second Presentment and Pre-Arbitration

Proposed changes across releases

Jun 2022 → May 2023
5 changes
substantive §11.5 MATCH Reason Codes substantive §8.5 Issuer Monitoring Program (IMP) substantive §8.6 Coercion Program substantive §8.6.5 Chargeback Responsibility substantive §8.7.5 Assessments, Recovery Amounts, and Fees
May 2023 → Sep 2023
10 changes
substantive §10.3 Responsibilities in Connection with ADC Events and Potential ADC Events substantive §10.3.1 Time-Specific Procedures for ADC Events and Potential ADC Events substantive §10.3.2 Ongoing Procedures for ADC Events and Potential ADC Events substantive §10.6.5 Determination of Fraud Recovery (FR) substantive §10.7 Assessments and/or Disqualification for Noncompliance substantive §5.1.2 ATM Card Retention substantive §5.1.3 Payment of Rewards substantive §8.4.6 Mastercard Determination substantive §8.4.7 Chargeback Responsibility substantive §8.7.5 Assessments, Recovery Amounts, and Fees
Sep 2023 → Feb 2024
5 changes
substantive §11.5 MATCH Reason Codes substantive §8.4.3 of this manual, or breaking §8.6.5 Chargeback Responsibility substantive §8.7.1 Definitions substantive §8.7.3 Mastercard Notification to Acquirers
Feb 2024 → Sep 2024
7 changes
substantive §10.1 Applicability and Defined Terms substantive §10.3 Responsibilities in Connection with ADC Events and Potential ADC Events breaking §10.3.1 Time-Specific Procedures for ADC Events and Potential ADC Events breaking §10.3.2 Ongoing Procedures for ADC Events and Potential ADC Events substantive §10.6.2 Potential Reduction of Financial Responsibility substantive §10.7 Assessments and/or Disqualification for Noncompliance substantive §8.4.7 Chargeback Responsibility
Sep 2024 → May 2025
1 change
substantive §10 Not use, or allow the use of, any type of technology or other organization measures that