4853 – Addendum Dispute

PREVIEW

A high-level overview

You received this chargeback because the cardholder claims you mismanaged an addendum transaction. An addendum transaction is a separate transaction that occurs after — and is associated with — a valid purchase between the same merchant and cardholder.

The issuer can file this chargeback when the cardholder made an authorised purchase with you, but later, a second transaction was processed without cardholder consent.

These addendum disputes only impact merchants that process subsequent transactions that relate to an original purchase. For example, a rental car company charges the card on file when a traffic fine is issued for a vehicle that was in the cardholder’s possession.

In most situations, a chargeback with this reason code must be filed within 120 days of the subsequent transaction processing date.

If you — the merchant — have the required data and supporting documents, you can fight an addendum dispute. At most, you will have 45 days to respond.

Here are some tips to help prevent this type of chargeback in the future:

• Clearly explain the situations that might cause you to charge the card a second time.
• Have the cardholder read and agree to terms of service before processing the initial transaction.

NOTE

Because this chargeback impacts a very small portion of merchants, we aren’t going to elaborate on what causes this dispute or how to respond. If you are a merchant or acquirer and need additional details about this reason code, we recommend you consult the latest version of the Mastercard chargeback guide. You’ll find a section on addendum disputes in chapter 2 (dual message system chargebacks).