Managing Mastercard disputes

  • Release version: Xanadu
  • Updated October 24, 2024
  • 2 minutes to read
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    Summary of Managing Mastercard disputes

    The Dispute Rules Content Pack for Mastercard in ServiceNow streamlines the management of Mastercard card disputes by guiding data collection and mapping inputs to specific dispute reason codes. This ensures accurate categorization and processing of disputes, helping agents efficiently handle cases in alignment with Mastercard guidelines.

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    Creating and Managing Disputes

    Agents create and manage dispute cases using the card dispute service case and associated tasks. The process includes multiple stages that structure the handling of each case, ensuring thorough and consistent dispute management.

    Dispute Categories and Reason Codes

    Disputes are categorized into four main types:

    • Fraud: When the cardholder did not authorize or participate in the transaction.
    • Authorization: When a transaction was completed without required authorization.
    • Processing Error: Technical or operational errors by the merchant or transactions not following card network rules.
    • Consumer: Disputes related to the quality or receipt of goods or services.

    Each dispute is assigned a reason code that indicates the specific cause, enabling the issuing bank to evaluate chargeback eligibility. These reason codes are communicated to Mastercard for processing via Mastercom.

    Dispute Questionnaire and Decision Tables

    When a dispute is initiated, agents and cardholders encounter a tailored questionnaire designed to simplify information gathering. This improves clarity and speeds up case intake.

    The content pack includes decision tables that automate logic for:

    • Selecting the appropriate chargeback eligibility subflow.
    • Determining the correct Mastercard chargeback dispute reason code.

    Key Outcomes for ServiceNow Customers

    • Improved accuracy in dispute categorization and chargeback processing according to Mastercard rules.
    • Streamlined dispute intake through guided questionnaires, reducing errors and administrative overhead.
    • Efficient management of disputes with integrated decision logic, enabling faster resolutions and cost savings.
    • Access to comprehensive dispute details within ServiceNow, supporting better tracking and reporting.

    The Dispute Rules Content Pack for Mastercard leverages guided data collection and maps the data entered to a dispute reason code to ensure the proper categorization and processing of disputes.

    Creating card dispute case

    Agents can manage dispute cases for their customers by using the dispute service case and its tasks. To learn on how to create a card dispute case, seeCreate a card dispute service case.

    This process includes various stages. For more details on these stages, see Dispute workflows.

    Dispute categories

    Dispute categories include Fraud, Authorization, Processing Error, and Consumer Disputes. Each card network has its own set of rules and reason codes, but they generally fit into the following dispute categories:
    Fraud
    This applies when the cardholder did not authorize or participate in the transaction.
    Authorization
    This applies when a transaction required authorization but the merchant completed it without receiving it.
    Processing Error
    This applies when a transaction is processed incorrectly due to a technical or operational mistake by the merchant, or when it’s processed correctly but not according to card network rules.
    Consumer
    This applies when the cardholder disputes an issue with a merchant regarding the quality or receipt of goods or services.

    Dispute reason

    Reason codes indicate the reason for a dispute. For a list, see, Reason codes supported in Dispute Rules Content Pack for Mastercard.

    Dispute questionnaire

    When a dispute agent or cardholder opens a dispute, they are presented with a corresponding set of questions. Designing clear, simple questions streamlines information gathering, helping customers or front-office agents understand and respond easily. For more details on configuring the questionnaire, see Dispute intake.

    Dispute decision tables

    The following table lists the decision tables used in Dispute Rules Content Pack for Mastercard.

    Table 1. Dispute Rules Content Pack for Mastercard Decision Tables
    Decision table Description
    Mastercard Chargeback Eligibility Rules Subflow Mapping Determines which chargeback eligibility subflow to call.
    Determine Mastercard chargeback dispute reason code message Determines the chargeback reason code for Mastercard disputes.

    For more information on the Decision tables that provide the logic for processing card disputes, see Dispute decision tables

    Chargeback reason code

    Data captured in Dispute Management is used to determine a reason code. These codes help the issuing bank decide if the dispute is eligible for a chargeback.

    Reason codes are sent to Mastercard, which uses this information to process disputes through Mastercom.

    Using ServiceNow to access all dispute details allows for more efficient management of disputes with Visa, saving time and money by reducing incorrectly processed cases.

    For more information on the reason codes supported in Dispute Management, see Reason codes supported in Dispute Rules Content Pack for Mastercard.

    About the Dispute Rules Content Pack for Mastercard

    The Dispute Rules Content Pack for Mastercard provides your agents with questionnaires that they can use to intake dispute-related information for various dispute categories as per the Mastercard guidelines.