MasterCard Chargeback Reason Code 4842 – Late Presentment

Description  

MasterCard uses reason code 4842 for late presentment chargebacks if the cardholder’s account is permanently closed and the acquirer presents transaction after one of the predetermined time limits. Such situations arise the sales receipt is not collected from the acquirer within the time limit specified in merchant’s guideline or agreement.

Usually time limit is 180 calendar days from the transaction date.

Action Taken

Transactions completed with electronically recorded card information (card-read or key-entered)

Applicable Region

All U.S. merchants

Late Presentment

More than 7 calendar days after the transaction date

Processing a credit card transaction involves multiple entities as well as four distinct stages: authorizing, batching, clearing and funding.

Most Common Causes=

• Limited time reversal rights. Allowed only if credit was issued. If proof can be presented that the sale was processed within the allotted time limit.
• The transaction amount was deposited on time. If the amount was deposited within the required time limit, provide your processor with a copy of the sales receipt to be represented by the card issuer.
• The transaction was deposited late and the account was closed. If the transaction was not deposited within the specified time limit and the account was closed, then the merchant should accept the chargeback. Do not issue a credit at this time.

Evidence Required

• Transaction acknowledgment deposited within time limit: If the transaction acknowledgment was deposited within the time limit specified by your acquirer bank, ask your acquirer bank to forward a copy of the acknowledgment to the card issuer.

Prevention

• Deposit order receipt with your acquirer as soon as possible, preferably on the day of the sale or within the time limit specified in the merchant agreement.
• Complete payment batches as immediately as possible.
• Process transactions within 180 days of the original purchase.

What is Merchant Response - 

If the sales receipt was deposited the frame, ask your acquirer to forward a copy of the receipt to the card issuer.

If the sales receipt was not deposited 180 days of the transaction date and the cardholder account has been closed, accept the chargeback. Get more information about Late Presentment and You ask any question related this blog. For more details go to the site - www.chargebackexpertz.com