4834 – Charges for Loss, Theft, or Damages

PREVIEW

A high-level overview

You received this chargeback because the cardholder claims you billed for loss, theft, or damage in the same transaction as the underlying service.

In most regions and situations, this chargeback must be filed within 90 days of the transaction processing date.

If you — the merchant — have the required data and supporting documents, you can fight a loss, theft, or damages 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 including charges for loss, theft, or damage.
• Have the cardholder read and agree to terms of service before processing the original transaction.
• If you need to charge for loss, theft, or damage, process two transactions — the first for the initial service and the second for the additional fee.

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 chargebacks for loss, theft, or damages in chapter 2 (dual message system chargebacks).