4853 – Goods/Services Not as Described/Defective

DESCRIPTION

Why did I receive a ‘goods or services were either not as described or defective’ chargeback?

You received this chargeback because the cardholder claims the goods or services you provided were not as described, damaged, or defective.

Need help managing Mastercard 4853 chargebacks?

Let AltoShield help you create a comprehensive chargeback management strategy that can lower risk, reduce costs, boost approvals, and improve processing sustainability.

VALIDITY

What would make this chargeback invalid?

An issuer can’t use this reason code in certain situations.

This reason code is not applicable if you have properly disclosed the conditions of the goods at the time of the purchase, such as when goods are sold in as-is condition.

This reason code is also not valid if your business has one of the following MCCs and you provided a voucher for future use (and properly disclosed the provisions of the voucher in your terms and conditions). Instead, a Travel/Entertainment Services Not Provided/Not as Described chargeback would be appropriate.

• MCCs 3000 through 3999
• MCC 4411
• MCC4511
• MCC4722
• MCC6513
• MCC7011
• MCC7512
• MCC7519
• MCC7922

CLASSIFICATION

How does Mastercard classify this dispute?

Mastercard nests several subcategories under general, overarching reason codes. This ‘not as described/defective’ subcategory is part of reason code 4853 – cardholder dispute chargeback.

Cardholder disputes are typically the result of mistakes or misunderstandings. Either you made a mistake and didn’t fulfil expectations or the cardholder misunderstood what was supposed to happen.

Mastercard has two transaction processing workflows: dual message and single message. Reason code 4853 is for the dual message workflow.

ISSUER TIME LIMIT

How long can the issuer wait to file a ‘goods or services were either not as described or defective’ chargeback?

The issuer must file the chargeback within 120 days of one of the following start dates:

• the transaction processing date
• the delivery date (but must wait 15 days to give you, the merchant, time to remedy the situation)
• the cancellation date (but must wait 15 days to give you, the merchant, time to remedy the situation)
• the date services ended (but not to exceed 540 days of the original transaction processing date)

Timelines vary slightly for mainland China.

SECOND PRESENTMENT

Can I fight a ‘goods or services not as described/defective’ chargeback?

Yes. You can fight this chargeback — a process called representment or second presentment — in the following situations.

• Goods or services were repaired, replaced, delivered, or provided as agreed.
• The cardholder’s supporting documentation is suspected to be partially altered or completely falsified.
• The original goods were returned to the merchant in an altered state.
• You have already refunded the transaction.
• The chargeback was invalid.

There are a couple of reasons why this 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 does not match what was sent in the original transaction record.
• The cardholder did not provide the required supporting documentation.
• The cardholder’s supporting documentation was illegible or incomplete.

SUPPORTING DOCUMENTATION

What supporting documents are needed for a ‘goods or services were either not as described or defective’ chargeback?

If an issuer inaccurately files a cardholder dispute chargeback and it can be challenged, your acquirer’s chargeback technology may automatically catch the error and respond on your behalf.

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

Create a chargeback rebuttal letter and explain why the chargeback should be reversed. Include information that supports your case and is relevant to the reason for fighting the chargeback. If you want to be extra helpful, you could also provide the acquirer with Mastercard’s required message code.

• 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 filed 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).
• If you are disputing a chargeback because the cardholder didn’t provide supporting documents, you can simply reply with the message code: 2002 (Non-receipt of Required Documentation to Support Chargeback).
• If you are disputing a chargeback because the cardholder’s supporting documents are illegible or incomplete, you can simply reply with the relevant message code: 2709 (Documentation Received was Illegible) or 2710 (Scanning Error-Unrelated Documents or Partial Scan).

The majority of the time, your acquirer probably won’t catch the issue and you’ll be responsible for challenging the chargeback yourself.

There are a couple situations that don’t require supporting documents — just specific data elements included in the rebuttal letter.

• If you are disputing a chargeback because a refund has already been issued to the cardholder’s Mastercard account, 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 you suspect the cardholder altered or falsified documents, you need to clearly explain what has been manipulated. The message code is 2001 (Suspected Altered or Falsified Documentation).
• If you are disputing a chargeback because you suspect return merchandise fraud, you need to clearly explain what you think has happened. For example, the returned goods were altered (such as yogurt in place of face cream) or the merchandise is not in the same condition as when it was provided to the cardholder (such low-quality parts in place of the originals). The message code is 2004 (Suspected Return Fraud).

The remainder of the time, your second presentment package does need documents to support the claims you made in your rebuttal letter.

If you are disputing a chargeback because the goods or services were repaired, replaced, delivered, or provided as agreed, you should send one or both of the following:

• Proof that the goods were repaired or replaced.
• Proof that the goods or services were delivered or provided as promised, were not damaged, and were not defective.

If you are disputing a chargeback because you have already issued a refund — but it was not to the cardholder’s Mastercard account — you need to prove where and how you returned the funds to the cardholder. For example, store credit, check, cash, prepaid card, etc.

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.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

In most situations, a second presentment (also referred to as a representment or chargeback response) must be submitted to the issuer within 45 calendar 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
• 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 ‘not as described/defective’ chargeback?

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

An issuer can file pre-arbitration if the original chargeback was valid and one of the following happens after the second presentment:

• Your second presentment doesn’t resolve the dispute.
• The cardholder continues to claim that the goods or services were not as described, damaged or defective.
• The cardholder refutes your claim that the goods, services, or documents were manipulated.
• The issuer claims the supporting documents weren’t legible or weren’t submitted within the time frame.

If the issuer escalates the case to pre-arbitration, you — the merchant — have the chance to respond. You can either accept or reject liability. If you reject the pre-arbitration case, the issuer will likely proceed to arbitration. If that happens, you could be responsible for paying the expensive filing fees.

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

NOTE: Pre-arbitration is optional for ATM transactions. Issuers are encouraged to direct file arbitration.

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.

• Provide exceptional customer service and promptly acknowledge customers when they make contact.
• If the cardholder contacts you to resolve the issue, promptly fulfill all valid requests for replacements or refunds.
• Make sure all service and merchandise descriptions are complete, accurate, and not misleading.
• Use the correct size boxes and sufficient packing material so items won’t break in transit.
• Make sure your fulfillment department is familiar with your merchandise, has a complete understanding of what has been purchased, and knows what to ship.
• Clearly disclose how refunds will be handled and have the cardholder agree to your terms before completing the transaction. For example, are all sales final? Do you only offer store credit? Make sure you explain what the cardholder can expect.

Want more information about preventing cardholder dispute chargebacks? Visit our detailed guide about chargeback prevention.

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.