Skip to main content

Mastercard 4837 - No Cardholder Authorization

This is Mastercard's primary fraud chargeback code and the most commonly filed reason code.

Overview​

Used when the cardholder claims they did not authorize or participate in the transaction.

When This Code Applies​

  • Cardholder denies authorizing the transaction
  • Card was lost, stolen, or never received
  • Account takeover occurred
  • Counterfeit card was used
  • Card-not-present fraud

Transactions Ineligible for This Chargeback​

  • Transaction occurred more than 120 days before chargeback (90 days standard)
  • Properly authenticated transaction with liability shift
  • Transaction already charged back under different reason code
  • PAN does not match
  • Transaction was properly flagged as recurring with valid initial consent

Time Frames​

RegionChargeback Window
Standard90 calendar days from Central Site Business Date
Mainland China domestic5-90 calendar days from settlement
ATM/Maestro (Europe)120 calendar days

Representment Options​

1. Addendum Charges​

When additional charges were properly disclosed and cardholder participated.

Requirements:

  • Original transaction was undisputed
  • Addendum charges were disclosed at time of original transaction
  • Cardholder signed or otherwise agreed to terms

2. Address Verification Service (AVS)​

Requirements:

  • AVS response was X or Y
  • Goods shipped to AVS-confirmed address
  • NOT available for Maestro or Mainland China transactions

Documentation needed:

  • Proof of AVS response X or Y
  • Proof merchandise sent to AVS-confirmed address
  • Shipping carrier confirmation

3. Authenticated Transaction​

When transaction was authenticated via 3D Secure/Identity Check.

Message text for DE 72:

  • AUTH MMDDYY/NNNNNN SL 1 for SLI value 1 (first-party authentication)
  • AUTH MMDDYY/NNNNNN SL 2 for SLI value 2 (delegated authentication)

4. Compelling Evidence (E-commerce/MO/TO)​

Provide AT LEAST ONE of:

Evidence TypeDescription
Signed receiptReceipt or work order signed by cardholder
Delivery confirmationWritten confirmation of electronic delivery registration
CorrespondenceEmail, SMS, or chat with cardholder about the transaction
Pickup statementMerchant statement documenting in-store pickup location
Partial shipmentFor partial shipments: initial transaction auth details

Message text: Include COMP EVID in DE 72

5. Compelling Evidence (Registered Account)​

When merchant requires registration before purchase, provide:

Evidence TypeRequired
Undisputed purchasesOther transactions from same registered account
Device/IP matchTransaction from registered device/IP address
Purchase detailsFull order information
Delivery proofSigned proof of delivery
Digital deliveryEmail addresses for digital goods
Product registrationDisputed goods registered for warranty/updates
Usage proofEvidence disputed goods were used
Identity CheckFully enabled Identity Check used for PAN registration
Guest Checkout

This defense does NOT apply to guest checkout purchases.

6. Compelling Evidence (Airlines)​

Provide AT LEAST ONE of:

Evidence TypeDescription
Boarding documentsFlight ticket or boarding pass with passenger name
ManifestFlight manifest/itinerary with passenger name
Connected chargesUpgrades, baggage, in-flight purchases
ID linkagePassenger ID linked to cardholder
Loyalty creditsFrequent flyer miles credited
Ticket deliveryProof of ticket receipt (signed delivery, email)

7. Compelling Evidence (Recurring/Installments)​

Provide ALL of:

  1. Description of goods/services provided
  2. Start date with:
    • Original transaction authorization date
    • Authorization approval code
    • CIT value (if present)
  3. Proof transaction was properly flagged as recurring in both authorization and clearing

8. Gaming Payment Transactions​

When cardholder received gaming payouts after disputed funding transaction.

Documentation required (per gaming payment):

  • Date of each Gaming Payment Transaction
  • Switch Serial Number or ARN
  • Transaction amount

9. Guaranteed Reservation ("No-Show")​

For hotel no-show charges meeting all requirements:

  • Proper disclosure of cancellation policy
  • Cardholder failed to cancel within policy window
  • Reservation was not used

10. Refund Previously Issued​

When merchant already refunded the transaction.

Documentation:

  • Proof of refund with date
  • Refund ARN or transaction ID
  • Amount refunded

11. Invalid Chargeback​

Chargeback may be invalid when:

ReasonDescription
Account takeoverMerchant can prove ATO vs. card fraud
Counter exceededFraud chargeback counter exceeds threshold
Prior fraud CBsTwo or more previous fraud chargebacks on account
No fraud reportNot reported to Fraud and Loss Database
ContactlessContactless transaction at unattended terminal
PIN verifiedPIN transaction
Invalid filingChargeback doesn't meet requirements
Time framePast allowable filing window
DuplicateSame transaction already charged back
PAN mismatchPAN/ARN don't match dispute
DocumentationSupporting docs not received, illegible, or incomplete
Message textInvalid or missing message text

Second Presentment Time Frames​

RegionWindow
Standard45 calendar days
Costa Rica10 calendar days
Kazakhstan30 calendar days
Mainland China30 calendar days
Nigeria2 business days
Tanzania20 calendar days

Pre-Arbitration​

When Issuer Can File Pre-Arbitration​

After receiving second presentment:

  • Chargeback was valid
  • AVS evidence invalid or goods not shipped to confirmed address
  • Transaction was not authenticated
  • Compelling evidence insufficient
  • Gaming payment evidence insufficient
  • Refund was not issued

Issuer Must Provide​

For AVS disputes:

  • Denial that positive AVS was given, OR
  • Denial merchandise sent to AVS address, OR
  • Cardholder continues to dispute + confirmation address belonged to cardholder

For Compelling Evidence disputes:

  • Explanation why evidence is not compelling, OR
  • New cardholder statement (letter, email, Form 0412) dated after second presentment

Pre-Arbitration Time Frames​

RegionWindow
Standard30 calendar days from second presentment
Costa Rica10 calendar days
Tanzania10 calendar days

Documentation Waiting Periods​

Before filing pre-arbitration, issuer must wait:

  • ATM/Maestro: 10 calendar days for documentation
  • All other: 8 calendar days for documentation

Arbitration​

If pre-arbitration doesn't resolve dispute:

  • Must file within 75 calendar days (from second presentment for ATM/Maestro, from pre-arbitration response for others)
  • English translation required for non-English documentation
  • Mastercard makes final ruling
  • Filing fee: $500 (winner recoups)

Prevention Strategies​

For E-commerce​

  1. Implement 3D Secure authentication - Shifts liability to issuer
  2. Use AVS and CVV verification - Document the results
  3. Require account registration - Enables compelling evidence defense
  4. Send order confirmations - To verified email addresses
  5. Use delivery confirmation - With signature when possible
  6. Maintain detailed logs - Device fingerprints, IP addresses, session data

For Recurring/Subscriptions​

  1. Get clear consent with terms - Document agreement
  2. Send reminders before billing - 7 days minimum
  3. Provide easy cancellation - Same channel as signup
  4. Flag transactions properly - As recurring in auth and clearing
  5. Keep original authorization details - For compelling evidence

For High-Risk Transactions​

  1. Use fraud scoring tools - Pre-transaction screening
  2. Implement velocity checks - Multiple orders, same parameters
  3. Review new account orders - Higher scrutiny for first purchases
  4. Flag address mismatches - Billing ≠ shipping

Win Rate Expectations​

Defense TypeExpected Win Rate
3D Secure authenticated60-80%
AVS match + delivery proof40-60%
Compelling evidence (strong)30-50%
Compelling evidence (weak)15-30%
No evidenceUnder 10%
  • 4863 - Cardholder Does Not Recognize
  • 4870 - Chip Liability Shift
  • 4871 - Chip Lost/Stolen/NRI

Next Steps​

Got this chargeback?

  1. Check if Identity Check (3DS) was used → Liability may have shifted
  2. Check for prior undisputed transactions → Compelling evidence defense
  3. Gather evidence → Representment Workflow
  4. Respond within 45 days (Mastercard)

Prevent future 4837 chargebacks:

  1. Implement 3D Secure for liability shift
  2. Configure velocity rules to catch fraud patterns
  3. Set up dispute alerts to refund before chargeback

See Also​