Mastercard Chargeback Reason Code 4859: Addendum, No-show, or ATM Disputes

What is Mastercard Chargeback Reason Code 4859?

Purchases are not the only things that can bring chargebacks your way. You can still be liable for one if you operate an automated machine. In this case, the Mastercard chargeback reason code 4859 covers disputes at ATMs where the cardholder did not receive the correct amount.

Although rare, cardholders can receive debit statements on ATM transactions where the cash was not disbursed. They can also be shorted from the actual amount entered into the machine. These occurrences force cardholders to file complaints with their issuers.

They can contact you directly if your service center is close to the ATM. That allows you to resolve the malfunction before it escalates to chargebacks. Nevertheless, we don’t count on that happening.

The Mastercard reason code 4859 also applies to addendum or no-show charges. This applies primarily to hospitality services (restaurants, accommodations, lounges, etc.).

Addendums and no-show disputes often involve return policies. Most cardholders do not expect to incur charges when they don’t use the merchant services. Hence, charging them results in disputes that issuers can escalate to a chargeback.

You must handle chargebacks with reason code 4850 with the utmost care. Often, they point back to merchant errors. For example, a faulty ATM may not disburse the right amount of cash.

Your defense against chargebacks with this reason code falls back on your thorough and careful business operations. We’ll show you how to dispute them when they occur. Then, we’ll wrap up with some preventive and implementable measures for your business.

Chargebacks with reason code 4859 do not occur with Mastercard Commercial Payments Account (MAP) transactions. Mastercard lists the documents required to dispute these chargebacks, provided your ATM disburses the correct amount.

With that in mind, let’s delve into the possible causes for chargebacks under this reason code.

Why Did It Happen?

Chargebacks under reason code 4859 occur when issuers receive complaints of incomplete or zero cash disbursements from ATMs. That involves card-present transactions where cardholders physically insert their cards. Notwithstanding, it can occur in online transactions involving addenda and no-shows.

The following are the possible causes for chargebacks under reason code 4859:

• Your ATM did not disburse cash to the cardholder. However, the cardholder received a debit statement for the failed transaction without any refund.
• Your ATM disbursed the required amount in part. However, the cardholder received a debit statement for the entire amount required.
• You charged a no-show fee to the cardholder’s account

The first two reasons point to a faulty ATM. Mechanical errors can occur, causing the machine to count cash incorrectly. The result will be a partial or zero disbursement to the cardholder.

Network glitches and errors can prevent ATMs from disbursing cash even after debiting the cardholder’s account. Reversals often occur immediately or within 24 hours. Some cardholders may not wait that long, resulting in issuers escalating their disputes to chargebacks.

Cardholders are among the underlying causes of chargebacks under reason code 4859. They may lose cash on the way, leading them to believe the machine disbursed a lesser amount. Similarly, they may miscount the cash disbursed and, without patience, file claims with their issuers.

Some cardholders can file a fraudulent chargeback intentionally. This accounts for actual fraud against your business. Even so, the burden of proof that the cardholder acted fraudulently rests on your shoulders.

Your no-show fee policy might be unclear to some cardholders. That causes them to dispute the charge when they find it on their account statements.

The Mastercard chargeback reason code applies primarily to ATM disputes. However, expect them on no-show charges or addenda.

The Case of Seized Cards

ATMs do not primarily seize cards. That is not their design. However, they can do that as a security measure. These include the following:

• The provider blocked the card for violations
• You entered the wrong PIN more than three times
• The card is reported as lost

This occurrence can still result in debit transactions. They will invariably result in chargebacks as cardholders race to get their money and cards.

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How to Fight Mastercard Chargeback Reason Code 4859: Addendum, No-show, or ATM Disputes

Mastercard has specific requirements for issuers to process chargebacks under this reason code. The most obvious is the timeframe of 120 days. You can look into the date of the disputed transaction. The chargeback will not hold if it exceeds 120 days.

Other ways to dispute chargebacks under reason code 4859 involve proving that the ATM disbursed the correct amount. You can provide a copy of the ATM audit tape if the chargeback includes an ATM transaction modifier. This evidence must show what happened at the ATM before and after the cardholder’s “failed” disbursement.

As per Mastercard standards, your evidence must contain the following:

• Primary Account Number read from track 2 of the magnetic stripe or the chip (DE 2)
• Transaction type and account accessed (DE 3)
• Transaction amount in local currency (DE 4)
• Transaction trace or System Trace Audit Number (DE 11)
• Transaction date and time (DE 12)
• Terminal ID (DE 41)
• Terminal status (only required in case of partial or no dispense)

You can also include an error report for partial or zero disbursements. Regarding no-show charges, prove the cardholder agreed to the charge during payment. Your evidence should include the policy and the cardholder’s signature or approval.

Other message codes may apply when disputing chargebacks under this code. You can ask Mastercard for more clarification.

Present evidence if you have processed a refund before the chargeback.

How to Prevent Mastercard Chargeback Reason Code 4859: Addendum, No-show, or ATM Disputes

Service and update your ATMs regularly. Ensure clean and new bills are used often on the machines. Other preventive measures are as follows:

• Inform customers of your no-show or addendum policies.
• Ensure customers agree to your no-show policy before paying for your service.
• Reconcile your ATM transactions regularly and quickly to detect discrepancies that may escalate to chargebacks.
• Notify any shorted cardholders and process refunds promptly.
• Address software glitches quickly.
• Respond to customer complaints promptly.

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