4808 – Required Authorization Not Obtained

DESCRIPTION

Why did I receive a ‘required authorisation not obtained’ chargeback?

You received this chargeback because you were supposed to request authorisation but didn’t.

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CLASSIFICATION

How does Mastercard classify this dispute?

Mastercard nests several subcategories under general, overarching reason codes. This ‘required authorisation not obtained’ subcategory is part of reason code 4808 — authorisation-related chargebacks.

Authorisation-related disputes usually happen when an issuer claims a transaction was not properly authorized.

Mastercard has two transaction processing workflows: dual message and single message. 4808 is a dual message reason code.

ISSUER TIME LIMIT

How long can the issuer wait to file a ‘required authorisation not obtained’ chargeback?

In most regions and situations, issuers must file a ‘required authorisation not obtained’ chargeback within 90 days of the transaction processing date.

For ATM and Maestro transactions when both the issuer and acquirer are located in Europe, the time limit is 120 days from the transaction processing date.

For mainland China domestic transactions, the issuer must act between 5 and 90 days of the transaction settlement date.

SECOND PRESENTMENT

Can I fight a ‘required authorisation not obtained’ chargeback?

Technically, yes, you can fight a ‘required authorisation not obtained’ chargeback. The process is called second presentment (or representment or submitting a chargeback response).

However, you should proceed with extreme caution.

If you submit an incomplete or incorrect second presentment, the issuer can skip the pre-arbitration phase and proceed directly to arbitration. If this happens, you’ll have to pay the expensive arbitration filing fee.

We recommend you only challenge 4808 chargebacks if you have indisputable evidence that the chargeback wasn’t warranted.

Mastercard allows you to fight a chargeback with this reason code in the following situations:

• You obtained proper authorisation. The transaction was authorized and presented within the applicable chargeback protection period.
• You had one authorisation with multiple clearing records. In order to fight a chargeback for this reason, you would have had to include one of the following codes in the original transaction message: 1403 (Previously approved authorisation—partial amount, multi-clearing) or 1404 (Previously approved authorisation—partial amount, final clearing). Also, make sure the total of all clearing records does not exceed the approved amount.
• You have already refunded the transaction.
• The chargeback was invalid.

There are a couple of reasons why a chargeback might be invalid.

• The chargeback does not meet Mastercard’s filing requirements.
• The chargeback was processed after the time limit.
• A single transaction had more than one chargeback.
• The primary account number (PAN) and acquirer reference number (ARN) used in the chargeback do not match what was sent in the original transaction record.

SUPPORTING DOCUMENTATION

What supporting documents are needed for a ‘required authorisation not obtained’ chargeback?

If an issuer files an authorisation-related chargeback in error and it can be challenged, your acquirer’s system should automatically catch the mistake and respond on your behalf.

If your acquirer doesn’t automatically respond, you can challenge the chargeback yourself. Here’s how.

Any time you fight a chargeback, you need to explain why you think the chargeback should be overturned. This is typically done with a chargeback rebuttal letter.

For some reason codes, a chargeback rebuttal letter needs to be accompanied by supporting documents. But for this reason code, supporting documents aren’t required.

You can simply share relevant data elements in your rebuttal letter. You could even go one step further and provide your acquirer with the required message code. This level of efficiency would probably be much appreciated!

The information you share depends on the reason for fighting the chargeback.

• If you are disputing a chargeback because you did obtain authorisation, share the authorisation date and the authorisation response code provided by the issuer (or Mastercard, if stand-in approval was used). The message code is 2008 (Issuer Authorized Transaction).
• If you are disputing a chargeback because there was one authorisation with multiple clearing records, provide the approval date for the disputed transaction. The message code is 2713 (Invalid Chargeback).
• If you are disputing a chargeback because a refund was previously issued, provide the date and acquirer reference data (ARD) for the refund. The message code is 2011 (Credit Previously Issued).
• If you are disputing a chargeback because the issuer didn’t follow Mastercard’s rules, explain why the chargeback was invalid in your rebuttal letter. The message code is 2713 (Invalid Chargeback).
• If you are disputing a chargeback because it was filed after the time limit, share the transaction processing date and the chargeback processing date. The message code is 2702 (Past Chargeback Time Limit).
• If you are disputing a chargeback because the issuer had previously issued a chargeback for the same transaction, provide the processing date and the reference number for the first chargeback. The message code is 2701 (Duplicate Chargeback).

NOTE: This information applies to chargebacks processed with the dual message system (which nearly all card-not-present transactions use). Chargebacks for single message transactions use a slightly different process. Mainland China has different rules too.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

In most situations, a second presentment (sometimes called a representment or chargeback response) must be submitted to the issuer within 45 days of the chargeback processing date.

However, there are a few timeline exceptions. The following countries have alternate time limits in certain situations — either 10, 20, or 30 days instead of 45.

• Costa Rica
• Kazakhstan
• Mainland China
• Nigeria
• Poland
• Tanzania

NOTE: These time limits are for the acquirer — not you, the merchant. Merchant time limits are usually much shorter. Review your chargeback notice or check with your acquirer to find out how long you have to respond.

ADVANCING THE CASE

Are pre-arbitration and arbitration an option for a ‘required authorisation not obtained’ chargeback?

Yes, in most situations and regions, an issuer can advance the dispute after completing the chargeback and second-presentment stages of the dispute lifecycle.

For this subcategory of reason code 4808, Mastercard does not require pre-arbitration in most regions — it’s optional. In fact, “Mastercard strongly recommends skipping the optional pre-arbitration case step and proceeding to filing an arbitration case.” The only exceptions are Costa Rica and Tanzania.

If an issuer files pre-arbitration, you — the merchant — have an opportunity to respond or accept liability. If the issuer files arbitration, you could be responsible for paying the expensive filing fees.

Check our Mastercard pre-arbitration and arbitration guide to learn more.

PREVENT

How can I avoid chargebacks like this in the future?

Here are steps you can take to avoid this type of chargeback in the future.

• Always send an authorisation request before processing a transaction.
• Avoid partial refunds or reversals when possible. Only resolving part of the issue means the remaining transaction amount can still be disputed.
• If you process transactions with multiple authorisations or clearings, make sure you fully understand Mastercard’s rules and regulations.
• Promptly issue refunds for qualified requests. And let cardholders know when they can expect their account to be credited.

Want more information about preventing authorisation-related chargebacks? Visit our detailed guide on authorisation.

NOTE

Mastercard chargeback rules are complex. The guide is over 1,500 pages long — compared to 67 pages for Visa — and contains detailed rules for both issuers and acquirers.

In an attempt to simplify the complex, we are only sharing information that is most relevant to merchants. If you are an acquirer and in need of more details, reach out to our team. We’d be happy to walk through the specifics with you.