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Mastercard 4854 - Cardholder Dispute (US Region)

Overview​

US domestic catch-all dispute code covering various cardholder claims including goods/services issues, billing errors, and other disputes for transactions within the United States.

When This Code Applies​

  • US domestic transactions only
  • Goods or services not received
  • Goods not as described or defective
  • Credit not processed
  • Duplicate processing
  • Other billing disputes

Sub-Reason Codes​

Mastercard 4854 uses sub-reason codes to specify the dispute type:

Sub-CodeDescription
4854.1Goods/services not received
4854.2Goods/services not as described
4854.3Credit not processed
4854.4Duplicate processing
4854.5Recurring billing dispute

Conditions for Valid Chargeback​

Cardholder Must​

  1. Have a valid dispute reason
  2. Attempt resolution with merchant (typically)
  3. File within timeframe
  4. Be within US jurisdiction

Transaction Must Be​

  • US domestic (US issuer, US acquirer)
  • Covered by one of the sub-reason categories

Time Frames​

StageWindow
Chargeback90 calendar days from transaction
From delivery90 days from expected/actual delivery
Second Presentment45 calendar days

Representment Options by Sub-Code​

4854.1 - Not Received​

Evidence required:

  • Proof of delivery
  • Tracking confirmation
  • Signature if applicable
  • Digital delivery logs

4854.2 - Not as Described​

Evidence required:

  • Product listing/description
  • Photos of actual product
  • Terms and conditions
  • Cardholder correspondence

4854.3 - Credit Not Processed​

Evidence required:

  • Refund transaction record
  • ARN (Acquirer Reference Number)
  • Settlement confirmation
  • Timing of credit

4854.4 - Duplicate Processing​

Evidence required:

  • Transaction records showing single charge
  • Different transaction IDs
  • Separate purchases
  • Itemized receipts

4854.5 - Recurring Billing​

Evidence required:

  • Subscription terms
  • Cancellation policy
  • No cancellation request received
  • Renewal reminders sent

Prevention Strategies​

For Goods Not Received​

  1. Trackable shipping - Always use tracking
  2. Delivery confirmation - Signature for high-value
  3. Status updates - Keep customer informed
  4. Clear timelines - Set delivery expectations

For Quality Disputes​

  1. Accurate descriptions - Match reality
  2. Quality photos - Show actual product
  3. Clear return policy - Easy to find
  4. Customer service - Resolve before dispute

For Credit Issues​

  1. Process promptly - Within 3-5 days
  2. Send confirmation - Email with ARN
  3. Match card - Credit to same card
  4. Track refunds - Log all credits

For Recurring​

  1. Clear terms - Upfront disclosure
  2. Reminder emails - Before each charge
  3. Easy cancellation - Simple process
  4. Confirmation - Acknowledge cancellation

Win Rate Expectations​

Sub-CodeExpected Win Rate
Not received (with delivery proof)65-80%
Not as described (accurate listing)50-70%
Credit issued (with proof)85-95%
Duplicate (separate transactions)70-85%
Recurring (terms + no cancel)55-70%

Common Mistakes​

  1. No delivery tracking - Can't prove receipt
  2. Inaccurate listings - Sets up quality disputes
  3. Slow refunds - Customer files before credit
  4. Hidden recurring terms - Creates subscription disputes

Difference from 4853​

48534854
InternationalUS domestic only
Multiple regionsUS-specific rules
Global time framesUS time frames
  • 4853 - Cardholder Dispute (International)
  • 4855 - Goods or Services Not Provided
  • 4837 - No Cardholder Authorization

See Also​