Mastercard Chargeback Reason Code 4834: Point of Interaction Error

What is Mastercard Chargeback Reason Code 4834?

Mastercard’s chargeback reason code 4834 covers several scenarios. Its primary reason is that the cardholder believes they are not responsible for a transaction. For example, a cardholder may initiate a transaction but dispute it because of extra charges or a duplicate transaction.

Mastercard has collapsed several chargeback reason codes under this code, and they include:

• 4831: Transaction amount differs
• 4842: Late presentment
• 4846: Correct transaction currency code not provided

You may still receive these chargeback reason codes, but the new reason code 4834 covers them. An example is a buyer initiating a card purchase from you but believing it to be debited twice for the same transaction. The buyer will contact the issuer with the claims, causing this chargeback.

Why did it happen?

The primary cause of this point of interaction error is a cardholder claim disputing the transaction. It could be due to duplicate charges, overcharged amounts, or incorrect currency conversion. Nevertheless, you can incur a chargeback if you fail to provide the presentment on time.

With that in mind, here are several reasons you might incur this chargeback from the issuer:

• ATM disputes: The cardholder can submit claims of not receiving the cash or receiving a partial amount from the machine. Another reason is the cardholder's filing of claims of double debits for one ATM transaction. The latter will amount to a duplicate transaction, as earlier mentioned.
• Loss, theft, or damages: The cardholder may dispute your addition of charges for loss, theft, or damages in a transaction. It is typical if you are at a hotel or rental agency. The primary reason is that these charges were added to the main purchase without notifying the buyer.
• Duplicate transaction: The cardholder claims to have been debited more than once for the same purchase. It could be on the same card or debiting the buyer after they used a different payment method.
• Currency errors: The cardholder may claim to have experienced a currency loss if they did not choose the currency or you made an error with the conversion. A dynamic currency conversion is often at the center of this dispute.
• The amount debited differs from the amount the buyer authorized for the transaction.
• Late presentment: You can receive this chargeback if you fail to submit the transaction presentment within seven days of the payment and the buyer’s account is closed.
• The cardholder believes the final charge on a transaction is unreasonable

These reasons will cause this chargeback. Knowing which applies to your case before fighting it is essential. That is because the evidence needed differs.

Friendly Fraud and Duplicate Transactions

Duplicate transactions have the following:

• The same terminal ID
• The same transaction amount
• The exact date and time

A cardholder might mistake a recurring payment for a duplicate transaction. They can also mistake similar purchases for being the same. Hence, they can file claims for duplicate transactions.

This case is a friendly fraud, as the claims are false. Even so, you must be prepared to fight it effectively.

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How to Fight Mastercard Chargeback Reason Code 4834: Point of Interaction Error

The first step is identifying the underlying cause of the chargeback. Then, you can provide counterevidence to fight the chargeback.

Let’s address this section on a case-by-case basis. These are the things you need to do to fight chargeback reason code 4834: Point of interaction error:

ATM Dispute

You’ll need either of the following to counter this claim:

• A legible copy of the ATM audit tape
• A readable copy of the internal transaction report

These documents must show any terminal financial activity before and after the chargeback transaction. Also, you can only use an internal transaction report if there is no audit tape from the ATM. The data on the report should be from the ATM journal only.

Ensure the internal report contains sufficient information for the issuer to confirm the disbursement of funds by the ATM. If necessary, include a key to explain different elements in the report.

Currency Errors

Provide documents that prove that the correct currency was provided and the buyer was adequately notified. This will invalidate the buyer’s claims and validate your charge.

Late Presentment

You have only two ways to fight this chargeback, and they are as follows:

• Prove that the transaction date was within seven calendar days before the central processing date of the presentment.
• Prove that the buyer’s account was not permanently closed before submitting the presentment.

Duplicate Processing

Fighting this chargeback involves proving that the transactions were separately authorized or that you credited the buyer after the second debit. Hence, you can do the following:

• provide documentation demonstrating that the two or similar transactions received sufficient PIN authorization.
• Provide proof of crediting the buyer if the error was on your end.

There is a third case for fighting this chargeback, and that is if there is an invalid data record. You can dispute it if the issuer has no original ARD in DE 72 for the chargeback.

Damages, Loss, or Theft

You’ll need proof of the following:

• Adequately informing the buyer of these charges
• Authorization from the buyer to process the payment with the charges

Unreasonable Amount

Provide adequate evidence that the buyer agreed to a specified range for a transaction. You can also provide proof of a refund if you were in error.

How to Prevent Mastercard Chargeback Reason Code 4834: Point of Interaction Error

The following are ways you can prevent this chargeback:

• Refund customers promptly when ATM errors occur.
• Ensure the buyer agrees to the terms of sale, including the charges (loss, theft, or damages), before authorizing a transaction.
• Allow the customers to decide if they want to use dynamic currency conversion.
• Ensure buyers see transactions in their preferred currency before processing payments.
• Possess a refund immediately if there is a duplicate transaction.
• Submit presentments within the allowed timeframe to avoid late presentment chargebacks.
• Void a card transaction immediately if the buyer uses another payment method.
• Repair out-of-balance ATMs promptly.
• Clear transactions within one business day to ensure prompt presentment.
• Use efficient systems to manage multiple currency payments.

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