Mastercard Chargeback Reason Code 4855: Goods or Services Not Provided

What is Mastercard Chargeback Reason Code 4855?

The Mastercard chargeback reason code 4855 represents cardholder disputes and is used when a cardholder denies receiving the purchased goods or services. The “Goods or Services Not Provided” description will be attached to the chargeback message. "Even if this description isn't explicitly stated, the code still represents this specific issue.

You may wonder why you would render your services or send a product but receive this chargeback. The reason code only tells part of the story. Thus, it's essential to investigate potential causes, take appropriate actions, and, if justified, contest the chargeback to seek a refund.

This reason code applies to e-commerce and point-of-sale transactions. It is more common in e-commerce or card-not-present transactions, but there are POS transactions where goods are not immediately picked up. An example would be rendering service on a future wedding date.

Let’s imagine another scenario. A buyer enters your store and orders an item that is not immediately available. You receive or process the payment with the promise to deliver the merchandise on a specific date.

The buyer can file a chargeback claim if the merchandise does not arrive on the agreed date. That would fall on you to fix the error. Still, the chargeback must follow specific rules, like a waiting period from the agreed date before being processed.

Violation of any Mastercard rules is an opportunity for you to fight the chargeback. However, you must ensure you did everything correctly before filing your representment.

Important Notice

It's important to note that Mastercard has now included this reason code under the broader category of 4853, specifically under 'Goods or Services Not Provided'. Notwithstanding, you may still receive chargebacks under it.

Why Did It Happen?

This chargeback will occur if a cardholder files a claim of not receiving purchased goods or services from you. Ideally, that means the delivery date has passed without any goods or services being provided. It can occur for card-present and card-not-present transactions.

The issuer may provide additional reasons with the code where necessary. However, the underlying cause remains the claim of non-delivery of goods and services purchased.

Could this occur due to errors on your end? Of course, but that is only sometimes the case. You can deliver goods or services and still receive this chargeback if the cardholder files non-receipt claims.

E-commerce sellers are especially prone to delivery delays that might deviate from the projected timeline. We’d assume you did not communicate these delays to the customer, or maybe you did. The cardholder can file a chargeback with a valid claim that the goods or services were not delivered on the agreed date.

That will only hold if you are in error. What if you communicated the delays, and the buyer acknowledged them but still filed a chargeback? That will violate Mastercard’s rules, which we’ll see subsequently.

The cardholder’s claims will include any of the following:

• Possible claims by the cardholder may include non-shipment or non-provision of the agreed merchandise or service. This might even extend to scenarios where the buyer received an empty box.
• You did not send the merchandise or provide the service on an agreed-upon date.
• You did not ship the merchandise to the agreed-upon pickup location.
• The goods were unavailable for pickup.

Those are not the only reasons for this chargeback. Hence, we recommend thoroughly investigating any claims.

This chargeback can also apply to travel services. You’ll need documents to fight it.

Friendly or Actual Fraud

Another potential cause for this chargeback is 'cyber shoplifting', where customers falsely claim non-receipt of purchased items. It is where a customer orders your merchandise but files a chargeback, claiming they never received the products. Alternatively, the claims could be for damaged products.

These claims result in stealing merchandise or receiving refunds without returning it. That would be actual fraud.

Conversely, friendly fraud may occur when the chargeback is filed before the agreed date. It could happen if no actual date was stated for the delivery.

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How to Fight Mastercard Chargeback Reason Code 4855: Goods or Services Not Provided

A primary strategy to contest this chargeback involves presenting documentation that refutes the cardholder's claims. However, you must investigate the circumstances that led to the chargeback. Study any additional reasons stated in the chargeback message before you file your representment.

The following documents are necessary to fight this chargeback:

• Proof that the buyer confirmed receiving the goods or services. A signed receipt can suffice as evidence. Email acknowledgments are also viable.
• Evidence that the cardholder refused to provide the purchased goods or services.
• Evidence that you agreed to provide the merchandise or services after the date the cardholder claims was the agreed date. This could have been an agreement at the time of the transaction, overriding an earlier agreed-upon date.

Failed Travel Merchant Dispute

For Intra-EEA and Domestic European transactions, specific documents are required to contest the chargeback. Also, you must file your representment within 45 days of the chargeback settlement date. Here are the documents you need to fight it:

• Evidence showing that the traveler or cardholder received your refund, a bonding authority, or any scheme allowed by the local law
• Documents explaining or proving that the travel services purchased will be provided or made available to the traveler
• Evidence that the purchased travel services are under a bonding authority or a similar scheme allowed by the local law. Also, there should be evidence that the traveler has recourse to receive reimbursement. In this case, you must provide instructions on how the traveler can request a refund.

This approach may not be viable in some countries. You can contact Mastercard for further clarification.

How to Prevent Mastercard Chargeback Reason Code 4855: Goods or Services Not Provided

You can prevent this chargeback with the following tips:

• Ensure you ship the merchandise and deliver it on the agreed-upon date.
• Ensure you send the correct products in good condition.
• Maintain a signed receipt confirming delivery. The cardholder will be conscious of receiving the products, hence a lesser chance of filing for a cashback.
• Provide tracking information to improve trust and proof that you’ve shipped the products.
• Describe your products or services adequately.
• Notify the cardholder of any delays and request acknowledgment.
• Process transactions after shipping the merchandise.

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