Mastercard Chargeback Reason Code 4831: Transaction Amount Differ

What is Mastercard Chargeback Reason Code 4831?

The Mastercard chargeback reason code 4831 refers to disputes where the cardholder claims the final transaction amount differs. It falls under the “point of interaction” error and can occur for both online and offline sales. Furthermore, oversight on your end or cardholder negligence can cause chargebacks under this code.

Checkout pages always display the final transaction amount with other charges, like non-refundable fees. We see that often in hospitality businesses where guests pay a non-refundable charge. These extra charges cause the final transaction amount to be higher than the cost of the item or accommodation.

A similar thing occurs in in-store transactions, where you see the final charge on the receipt. Again, the final charge might exceed the original item's price. These extra charges can cause disputes that result in the chargeback reason code 4831.

Successful transactions occur when the cardholder sees the final price and agrees to pay it online or through point-of-sale. Issuers only initiate chargebacks under this code after receiving complaints from a cardholder.

Chargebacks under this code are easy to dispute and reverse. However, you must know where the cardholder claims are centered. Mastercard is ready to provide more clarity if needed for your second presentment.

We’ll provide a few preventive tips for chargebacks under this code. However, you should still expect it, as cardholders can initiate it unknowingly. Remain calm, find the root cause, and address it in the reply.

The first step is reviewing the disputed transaction to see if the cardholder was duly informed about the added charge. We expect the fee to be on the checkout page or receipt for the cardholder’s full authorization. Then, you can prepare your second presentment.

If you discover that the cardholder could not have been aware of the extra charge, then the chargeback stands. With that in perspective, let’s see how disputes of this nature can escalate to chargebacks.

Why Did It Happen?

Chargebacks with reason code 4831 occur when cardholders dispute final charges (payments) higher than expected or authorized. This code is now obsolete, with Mastercard opting for a new, broader code. Hence, you might receive chargebacks under 4834 to cover price change scenarios.

The following are prominent reasons why chargebacks under reason code 4831 may occur:

• The cardholder is unaware of the higher charge after approving a different amount: You may need to add extra charges to a customer’s purchase. That is understandable, considering regulations and other things. However, doing that without informing the cardholder will lead to disputes that can escalate to chargebacks.

Scenarios like this can mean including the extra charges in the final transaction without indicating them on the checkout page or receipt. The cardholder will undoubtedly dispute the charge on receiving the account statement.

• The cardholder forgot the adjusted pricing: Cardholders can forget their approval of the adjusted pricing. Of course, the next logical step is to contact you. That may not happen, as some cardholders go directly to their issuers.

Chargebacks in this category are easy to deal with. Contacting the cardholder can cause them to withdraw their dispute. Then, you can inform Mastercard of the cardholder’s withdrawal.

Friendly and intentional fraud

Some cardholders may intentionally dispute transaction amounts to get money back fraudulently. Hence, they might present a fierce defense. Submit the documents we recommend in the subsequent section to dispute the chargeback.

Currency conversions

International transactions are prone to price changes because of fluctuating exchange rates or a volatile forex market. The price at checkout might change during transaction authorization and approval. For example, the price might remain at $15 despite changes in the cardholder’s local currency.

Mastercard has a new code (4834) to address chargebacks in this category. However, we included it here because currency conversions can cause price changes. That often happens when you use a dynamic currency conversion system.

Differences in transaction amounts are also under the new code 4834. The chargeback message will specify the primary cause.

{{COMPONENT_IDENTIFIER}}

How to Fight Mastercard Chargeback Reason Code 4831: Transaction Amount Differs

Our explanations above should ease your mind if you received a chargeback under the reason code 4831. The steps to dispute it are simple. If you are at fault, the best thing to do is accept the chargeback and contact the cardholder to amend the relationship.

You have 45 days to prepare and send your reply to Mastercard. Failing to do that solidifies the chargeback and makes it irreversible.

Here are ways to dispute chargebacks with reason code 4831:

• If you informed the cardholder of the price adjustment and sought their approval: Submit proof of the cardholder’s authorization. That could be the checkout page or the receipt with the cardholder’s signature or approval. Ensure the document clearly shows the cardholder’s approval.
• If the final transaction was within the range provided to the cardholder: You may have been unable to display a specific amount during the approval. Hence, you opted to provide a range. Submit the document to show that the final amount was within the range the cardholder agreed to.
• If you refunded the cardholder before the chargeback: Submit proof showing your refund of the overcharge. This amount must tally with the one in the chargeback dispute.
• If you reached an alternative agreement with the cardholder: Submit details showing that the cardholder no longer wishes to dispute the transaction.

How to Prevent Mastercard Chargeback Reason Code 4831: Transaction Amount Differs

The most prominent preventive measure against chargebacks under this reason code is to inform the client. However, cardholders can still file claims ignorantly.

Here are other preventive measures you can take for chargebacks of this nature:

• Ensure clients are fully aware of any extra charges during checkout.
• Respond quickly to client complaints over price adjustments.
• Double-check transaction amounts before final processing to avoid input errors.
• Void any transaction if the cardholder wishes to use another payment method.
• Allow customers to opt for dynamic currency conversion. That way, they know the price adjustments that may occur before the final processing.
• Process additional charges for theft, loss, or damages separately and inform the cardholder.

‍