Mastercard Chargeback Reason Code 4842: Late Presentment

What is Mastercard Chargeback Reason Code 4842?

Merchants must present all transactions for appropriate processing within the allocated timeframe. The chargeback reason code 4859 refers to a late presentment. Also, it falls under the broader “point-of-interaction error” category in Mastercard’s merchant dispute guide.

Issuers often initiate chargebacks with this code, which deals directly with their laid-down operational guidelines. Notwithstanding, you still have a window to dispute the chargeback and win a refund.

Transactions for goods and services may occur instantly in the cardholder’s presence. Otherwise, the card issuer will process previously approved transactions later. The latter approach depends heavily on what you present to the card issuer.

With late presentment, getting appropriate authorization doesn’t matter. As seen subsequently, that is not a prudent approach when fighting chargebacks under this reason code. The bone of contention boils down to the timeframe allocated for presentments.

Chargebacks under reason code 4853 rarely occur if you are used to same-day transaction processing. When they do, the card issuer is often correct, meaning the merchant delayed beyond the approved timeframe. Notwithstanding, errors or oversights can cause card issuers to process chargebacks with the reason code.

Transaction initiation, a request for authorization approval, and the final presentment to the issuer might occur after a day. Such scenarios bring out the risk of incurring chargebacks under reason code 4853. To the issuer, you took too long to submit the final presentment for complete processing.

Your defense is only based on doing the presentment within the allocated time. You have little to work with when disputing chargebacks under this reason code outside of that.

This brief guide will explore Mastercard’s guidelines for proper transaction presentment. You’ll see what to avoid when handling transactions that take a day or more to process. Most importantly, you’ll learn how to dispute the chargeback and win a refund.

Let’s begin with the primary cause.

Why Did It Happen?

Chargebacks under reason code 4842 occur when you present transactions outside the allocated time. The allocated time can be a few days or up to several months.

A cardholder can close down an account before you submit the presentment. Hence, Mastercard will process chargebacks based on any of the following:

• You submitted after seven days from the transaction date, and the account is closed
• You submitted the transaction more than 180 days after the original transaction date. This case doesn’t consider the account status, whether closed or still active.

Near-instantaneous transactions are the norm in today’s e-commerce. Many cardholders expect payment processing within seconds or a few minutes. As such, the confirmation page should load immediately, confirming their purchase of goods or services.

Sometimes, you may have to wait more than a day before finalizing a transaction. The common reasons include the following:

• Sorting out the delivery details before final processing
• Placing the approval on hold pending when the goods will be in stock for delivery

Mastercard allows seven days to present a transaction if the cardholder closes the account. That means it will process the transaction even if the cardholder closes the account on the second day and you submit it within seven days.

Card issuers can file chargebacks under this reason code in error. However, we won’t bank on that happening often. The bulk of the blame often boils down to the merchants.

Again, card issuers can use this code improperly, leaving room for you to dispute it. We’ll show you the best approach to dispute chargebacks under this reason code. Notwithstanding, we encourage you to pay more attention to preventive measures.

Don’t expect any inquiries from the card issuer before these chargebacks. Inquiries are often based on cardholder disputes, as card issuers ask for more clarifications.

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How to Fight Mastercard Chargeback Reason Code 4842: Late Presentment

Mastercard allows two valid approaches to dispute chargebacks under reason code 4842. You must submit the second presentment within 45 days of receiving the chargeback message. Failing to do that validates the chargeback, making it irreversible.

Chargebacks under this reason code do not hold for transactions involving a Mastercard Commercial Payments Account (MAP). That means the MAP was the PDS 0002 in the first presentment. If that is the case, you can easily dispute the chargeback by showing that a Mastercard Commercial Payments Account was involved.

That said, here are the best approaches to dispute chargebacks under reason code 4842:

• The transaction date is within seven days: Show that the transaction date was within seven days of the central processing date of the presentment. You must submit records with the dates to validate your claims. Also, the initial transaction approval and final processing must have the same amount to show they refer to the same payment.
• The account is still active or temporarily closed: This approach is a long shot and more challenging. You must prove that the account is still active or under temporary closure. For example, a cardholder might temporarily block their account due to a stolen card.

Contact the cardholder or the cardholder’s bank for clarification. Ensure you obtain evidence within a legal framework.

Processing the second presentment may incur additional charges. Contact Mastercard for any clarifications.

There isn’t much to go by when disputing chargebacks under reason code 4842. Investigate thoroughly before submitting your second presentment. If you are at fault, accept the chargeback and take preventive measures.

You can contact Mastercard for advice. Even so, submitting your first presentments within seven days should keep you in the clear.

How to Prevent Mastercard Chargeback Reason Code 4842: Late Presentment

The best approach to preventing chargebacks under reason code 4842 is to process transactions within 24 hours. Also, you can use an authorization hold if delays are unavoidable. Authorization holds are also helpful if you cannot determine the total amount at the time of payment.

Here are a few more ways to prevent chargebacks under reason code 4842:

• Obtain authorization approval on all transactions immediately.
• Send completed transactions within the same day.
• Ensure the cardholder is aware of any delays and subsequent processing.
• Have alternative means, like escrow, if payment depends on milestones.

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