4834 – Improper Merchant Surcharge

PREVIEW

A high-level overview

You received this chargeback because the cardholder claims you added an improper surcharge to the transaction amount.

This reason code can only be used for Canada domestic, intra-European, and inter-European transactions. It can’t be used for ATM transactions or commercial payments accounts. And the chargeback amount can only be for the surcharge amount.

If the transaction was processed with a Maestro card, the chargeback must be filed within 120 days of either the date goods or services were delivered or the date the transaction was processed.

For transactions processed with a Mastercard, the chargeback must be filed within 90 days of either the date goods or services were delivered or the date the transaction was processed.

If you — the merchant — have the required data and supporting documents, you can fight a Improper Merchant Surcharge dispute. At most, you will have 45 days to respond.

Here are some tips on how to avoid this chargeback in the future.

• Understand Mastercard’s rules for surcharges. Know when and how a surcharge can be applied.
• Clearly disclose your surcharge policy to cardholders before transactions are finalised.
• Make sure your surcharge strategy is dynamic and can adjust for region-specific requirements.

NOTE

Because this chargeback impacts a 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 Improper Merchant Surcharge chargebacks in chapter 2 (dual message system chargebacks).