MasterCard Time Limits for Interchange Procedures
Applicable MasterCard Time Limits for Cardholders, Issuers, Acquirers and Merchants
A structured time table for all aspects of payment processing helps regulate applicable entities. MasterCard has devised time limits for each stage of the payment processing cycle. It is essential for merchants to adhere to MasterCard time limits and understand the restrictions that apply to other entities.
Processing Payment Card Transactions
Processing a payment card transaction can be a lengthy process that involves a volley of communications between various entities. Interchange procedures apply to five stages: first presentment, first chargeback, second presentment, arbitration chargeback, and arbitration case filing.
Merchants submit a batch of transactions to the acquirer for processing. The acquirer facilitates the clearing of a transaction by communicating information through MasterCard to the issuer. This initiates the settlement process which moves the net value of the transaction to the merchant’s account from the cardholder’s account. This interchange procedure is known as first presentment.
After processing the initial transaction, the issuer may later determine the first presentment is invalid. The issuer can return the transaction to the acquirer with a first chargeback. The issuer can initiate the chargeback or act in accordance with a cardholder’s request.
If the acquirer has sufficient evidence to dispute the chargeback and prove the validity of the first presentment, interchange procedures allow for a second presentment. If the second presentment is found in the merchant’s favor, funds will be returned to the merchant’s account. This may initiate an arbitration chargeback from the cardholder, presenting alternate or supplemental dispute information. If the dispute cannot be resolved through the chargeback process, interchange procedures allow for an arbitration case filing.
The Central Site Business Date
MasterCard uses the Central Site Business Date to calculate most time limits. Time limits expire after a predetermined number of days has transpired since The Central Site Business Date. The interchange procedure in question will determine the Central Site Business Date.
- The date of the original transaction processing is considered The Central Site Business Date for a first chargeback.
- The date the acquirer processed the first chargeback is considered The Central Site Business Date for second presentment.
- The date the issuer processes the second presentment is considered The Central Site Business Date for an arbitration chargeback.
- The date the acquirer processed the arbitration chargeback is considered The Central Site Business Date for an arbitration case filing.
MasterCard Time Limits for First Presentment
Merchants and acquirers must submit transactions in a timely manner. Failure to do so could result in a declined transaction or a late presentment chargeback. However, an issuer is encouraged to accept a transaction outside the allotted time limit if the cardholder account is in good standing.
When calculating time limits, the transaction processing date is considered day zero.
| Transaction Type | MasterCard Time Limit to Present to Issuer |
| Completed with electronically recorded card information | 7 calendar days |
| Non intra-US manually recorded card information | 30 calendar days |
| Intra-US manually recorded card information | 14 calendar days |
Submission deadlines may be extended in extenuating circumstances, including national bank holidays and natural disaster.
MasterCard Time Limits for Retrieval Requests
In certain situations, a retrieval request may be issued prior to a chargeback. In these instances, the acquirer must ensure the issuer’s receipt of the requested TID (transaction information document) within 30 calendar days of the Central Site Business Date, or the day the acquirer received the retrieval request.
Acquirers must retain interchange documents for a minimum of 13 months after the transaction processing date.
MasterCard Time Limits for a First Chargeback
The time limit for issuers to instigate a first chargeback are calculated based off the Central Site Business Date (the processing date of the first presentment) and are usually 60, 90, or 120 days in duration. MasterCard time limits vary depending on the applicable reason code.
| Reason Code | Time Limit |
| 4807 – Warning Bulletin File | 90 calendar days of the Central Site Business Date |
| 4808 – Authorization Related Chargeback | 90 calendar days |
| 4812 – Account Number Not on File | 45 calendar days |
| 4831 – Transaction Amount Differs | 120 calendar days of the Central Site Business Date |
| 4834 – Point-of-Interaction Error (formerly known as Duplicate Processing) | 120 calendar days of the Central Site Business Date |
| 4837 – No Cardholder Authorization | 120 calendar days of the Central Site Business Date |
| 4840 – Fraudulent Processing of Transactions | 120 calendar days of the Central Site Business Date |
| 4841 – Canceled Recurring or Digital Goods Transactions | 120 calendar days |
| 4842 – Late Presentment | 120 calendar days of the Central Site Business Date |
| 4846 – Correct Transaction Currency Code Not Provided | 120 calendar days of the Central Site Business Date |
| 4849 – Questionable Merchant Activity | 120 calendar days |
| 4850 – Installment Billing Dispute (Participating Countries Only) | 120 calendar days of the Central Site Business Date |
| 4853 – Cardholder Dispute | 120 calendar |
| 4854 – Cardholder Dispute, Not Elsewhere Classified (U.S. Region Only) | 120 calendar days |
| 4863 – Cardholder Does Not Recognize, Potential Fraud | 120 calendar days of the Central Site Business Date |
| 4870 – Chip Liability Shift | 120 calendar days of the Central Site Business Date |
| 4871 – Chip/PIN Liability Shift | 120 calendar days of the Central Site Business Date |
As of May 10, 2016, the MasterCard Chargeback Guide pared down the list of chargeback reason codes significantly.
The current active reason codes are listed below, along with the former reason codes absorbed into the new code, and the time frame in which a cardholder may file a chargeback using each reason code
| Active Reason Code | Former Reason Codes Merged into New Reason Code | Time Frame |
| 4808—Authorization-Related Chargeback |
|
90 Days |
| 4834—Point-of-Interaction Error |
|
120 Days |
| 4853—Cardholder Dispute |
| 120 Days |
| 4837 – No Cardholder Authorization | 120 Days | |
| 4840 – Fraudulent Processing of Transactions | 120 Days | |
| 4849 – Questionable Merchant Activity | 120 Days | |
| 4863 – Cardholder Does Not Recognize–Potential Fraud | 120 Days | |
| 4870 – Chip Liability Shift | 120 Days | |
| 4871 – Chip/PIN Liability Shift | 120 Days |
An issuer may continue to use the previous reason codes, but they will eventually be eliminated as valid message reason codes.
Also, merchants should note that exceptions do apply to the above mentioned time limits. The date used for calculating the time limit will vary depending on the conditions of the dispute. Merchants are advised to consult the official MasterCard regulations, especially since updates are routinely made.
MasterCard Time Limits for Second Presentment
The time limit for all second presentments is 45 calendar days from the Central Site Business Date. More than 45 days shall not pass between the date the acquirer received the first chargeback and the date the issuer processes the second presentment.
MasterCard Time Limits for an Arbitration Chargeback
The time limit for all arbitration chargebacks is 45 calendar days from the Central Site Business Date. More than 45 days shall not pass between the day the issuer receives the second presentment and the date the issuer submits an arbitration chargeback.
MasterCard Time Limits for Arbitration Case Filing
If the issue is not resolved with the first chargeback, second presentment or arbitration chargeback, entities may proceed to arbitration. Entities may not request arbitration if 45 calendar days have transpired since the filing of the arbitration chargeback.
MasterCard time limits help ensure standardization and equitable processes for all entities involved in the interchange procedures.
Last Update: June 17, 2016
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