4853 – Timeshares

PREVIEW

A high-level overview

You received this chargeback because the cardholder claims the timeshare was cancelled before the deadline, but you charged the cardholder anyway.

To be compliant with Mastercard rules, timeshare cancellations must be made within 90 days of the agreement date for intra- and inter-European transactions and within 14 days of the agreement date for all other regions.

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

If you — the merchant — have the required data and supporting documents, you can fight a timeshare chargeback. At most, you will have 45 days to respond.

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

• Accept cancellations for at least 14 days after the agreement date.
• Inform cardholders of your cancellation policy before finalizing the agreement.
• Fulfill all valid cancellation requests promptly.

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 timeshare chargebacks in chapter 2 (dual message system chargebacks).