Chargeback in Mastercard transaction disputes

After a chargeback is initiated, the chargeback request is sent to Mastercard, which alerts the merchant. Mastercard requests collaboration from merchants, who either provide a voucher, refund, or First-Party Trust evidence as response. If the merchant doesn’t respond, the process escalates to formal chargeback procedures.

The Chargeback stage in Mastercard is described in these stages:

1. Initiation of chargeback and collaboration:
   • The agent initiates a chargeback request with Mastercard.
   • When Mastercard receives the chargeback request, it first attempts to resolve the dispute informally by connecting the merchant and the cardholder directly through a collaboration step that is supported by Ethoca's collaboration services. The merchant and the cardholder have to collaborate and resolve the dispute within a time frame of 72 hours.
   • If the merchant accepts the collaboration request, the Review and respond to collaboration task displays.
   • If the merchant doesn’t respond or collaborate within the 72-hour time frame, Mastercard proceeds with the chargeback process and informs the merchant's bank with the chargeback request.
   • The merchant then has the option to initiate a second presentment request.
2. Second presentment review
   • If the merchant submits documentation to contest the dispute, the agent reviews the response. The task Review chargeback response and decide on pre-arbitration or arbitration is displayed.
   • Based on the review, either of the following applies:
     • The agent accepts the second presentment.
     • The agent escalates the case to pre-arbitration or arbitration.
     • If the merchant doesn't respond within the specified time frame, the agent manually takes an action on the disputed transaction based on Mastercard's response that displays on the agent's Landing page
       Note:

       The agent can access Mastercard's response from Landing Page > Acquirer deadline expired tasks. For more information, see Dispute agent workspace

• Initiate chargeback
  Initiate a chargeback for Mastercard transaction disputes and request collaboration from merchants.
• Review and respond to collaboration
  The merchant responds to the collaboration by either providing a refund, a voucher, or a First-Party Trust evidence. If the collaboration isn’t successful, then the second presentment is awaited.
• Review chargeback response and decide on pre-arbitration or arbitration
  Review second presentment for the chargeback and initiate pre-arbitration or arbitration, as required for the dispute workflow of the Chargeback stage. For Mastercard transaction chargeback, you can skip raising the pre-arbitration and directly raise the arbitration request.
• Review pre-arbitration response and escalate to arbitration
  After you raised a pre-arbitration request in the Chargeback stage of Mastercard transaction dispute, review the response and decide whether to accept, reject, or escalate the pre arbitration to arbitration.
• Review arbitration response
  Review the arbitration response received from Mastercard and proceed to resolve the dispute. This step occurs in the Mastercard dispute process when you’ve escalated from pre‑arbitration to arbitration or skipped pre‑arbitration and moved directly into arbitration.
• Reverse provisional credit
  Reverse the temporary credit issued by the bank to the card holder.
• Provide final credit to customer
  Issue immediate final credit to the card holder.
• Convert provisional credit to final credit
  Convert the provisional credit that was issued previously to a customer to a final credit issuance.