What is Mastercard Reason Code 4853: Goods or Services Not Provided?

January 4, 2024/ Jarrod Wright /

Mastercard’s chargeback reason code 4853, labeled “Goods or Services Not Provided,” is used in customer disputes to indicate a discrepancy between what was promised and what was delivered.

This code falls under the broad “Cardholder Dispute” category, implying that the cardholder is dissatisfied with a purchase and holds the merchant responsible. It encompasses various specific situations, often accompanied by supplementary codes to pinpoint the exact nature of the complaint. For instance, the once separate reason code 4855 is now integrated into 4853, and additional details are provided to clarify the specific type of chargeback claim.

How is Mastercard Reason Code 4853 Triggered?

Mastercard reason code 4853, related to the “Goods or Services Not Provided” category, can be triggered under specific circumstances where a cardholder claims they did not receive the goods or services they paid for. This code is used in situations where a cardholder initiated a chargeback because:

• The merchant failed to deliver the goods or services at the agreed-upon date or within a reasonable time frame after the transaction. This could be due to various reasons, such as shipping delays, backorders, or service interruptions.
• The merchant ceased operations or went out of business before providing the goods or services. In such cases, the customer might not have received what they paid for because the merchant was no longer able to fulfill the order.
• The transaction was billed, but the cardholder either canceled the service or returned the goods according to the merchant’s cancellation or return policy, yet the merchant failed to issue a refund.

The specific conditions under which the chargeback is filed require clear communication and documentation from both the cardholder and the merchant to validate the claim and resolve the dispute effectively.

Conditions for Filing a Dispute

Filing a dispute under Mastercard’s reason code 4853 involves specific conditions that the cardholder must meet. This code is used when a cardholder claims that they did not receive the goods or services they paid for. The key conditions for filing a dispute under this code include:

• The cardholder must provide evidence that the goods or services were not delivered or performed as agreed. This could be in the form of communication with the merchant, shipping or tracking information showing non-delivery, or other relevant documentation.
• The cardholder needs to show that the transaction occurred on a specific date and that the goods or services were expected by a certain date. If the delivery date was not explicitly agreed upon, the cardholder must allow a reasonable delivery time, typically defined by Mastercard’s regulations.
• Before filing a dispute, the cardholder is usually required to attempt to resolve the issue directly with the merchant. This includes contacting the merchant to inquire about the status of the goods or services and requesting a resolution, such as delivery, a substitute service, or a refund.
• If the merchant fails to respond adequately to the cardholder’s inquiries or refuses to provide the goods or services or a refund, the cardholder can then proceed with the dispute under code 4853.
• Mastercard has specific timeframes within which a cardholder must file a dispute. This timeframe generally starts from the transaction date or the date on which the cardholder is expected to receive the goods or services.
• The cardholder must provide accurate details about the transaction, including the amount, date, and nature of the goods or services that were not provided.

It’s important for cardholders to keep detailed records of their transactions, communications with the merchant, and any other relevant documentation. This information is crucial in substantiating their claim under reason code 4853. Additionally, understanding the specific policies and procedures of their issuing bank and Mastercard’s regulations regarding chargebacks is essential for successfully navigating the dispute process.

Evidence to Fight a “Goods or Services Not Provided” Chargeback

When a merchant decides to fight a chargeback filed under the “Goods or Services Not Provided” category, they need to provide compelling evidence to refute the claim. This evidence should clearly demonstrate that the goods or services were indeed provided to the customer as agreed.

Key types of evidence include:

• For physical goods, this can include delivery confirmation receipts, tracking numbers, and signed delivery notes indicating that the items were delivered to the customer’s address. The delivery confirmation should show the date of delivery, the address to which the goods were delivered, and, ideally, the recipient’s signature.
• For services, documents such as signed contracts, work orders, completion certificates, or email correspondences acknowledging receipt or satisfaction of services can be used. Any time-stamped evidence showing the provision of service, like photographs or service logs, is also beneficial.
• Copies of any communication between the merchant and the customer, including emails, messages, or call logs, particularly those where the customer acknowledges the receipt of goods or satisfaction with the services provided.
• Copies of the original transaction record, including invoices, receipts, and detailed descriptions of the goods or services purchased. This should match what the customer was billed for.
• If applicable, the merchant’s return, refund, or cancellation policies, along with terms and conditions agreed upon at the time of purchase. This is especially relevant if the dispute involves a claim of non-receipt by a date that falls within a reasonable fulfillment period as defined in the merchant’s policies.
• If the goods or services were customized or personalized for the customer, evidence of this personalization could demonstrate that the goods or services were indeed provided as per the customer’s specifications.
• Logs or electronic records showing the customer’s access to or download of the digital product can be crucial for digital goods or online services. IP address logs, timestamps, and usage records can be used to establish that the customer received what they paid for.

The quality of the evidence and its alignment with the card network’s guidelines (such as Mastercard’s in this case) are critical in successfully contesting a chargeback. Each piece of evidence should be clear, detailed, and directly related to the transaction in question.

5 Tips to Prevent “Goods or Services Not Provided” Chargebacks

To prevent this brand of reason code 4853 chargebacks, merchants can take several proactive steps to ensure clear communication and transparency with their customers. Here are five tips to help minimize the risk of these types of chargebacks:

#1. Clear Communication of Delivery Timelines

Clearly communicate the expected delivery dates for goods or completion dates for services. This includes setting realistic expectations on your website, during checkout, and in confirmation emails. Keep customers updated on any delays or changes in the delivery schedule.

#2. Provide Detailed Descriptions and Documentation

Make sure that all goods and services are described in detail on your website and in the transaction records. This includes accurate descriptions, prices, and any relevant terms and conditions. Detailed invoices or receipts should be provided to the customer, which can also serve as evidence in case of a dispute.

#3. Use Delivery Confirmation and Tracking

For physical goods, use shipping methods that include tracking and delivery confirmation. For high-value items, consider requiring a signature upon delivery. Keep these records organized and easily accessible for quick response in case of a dispute.

#4. Offer Excellent Customer Service

Make it easy for customers to contact you with inquiries or complaints. Prompt and effective handling of customer issues can often prevent chargebacks. Ensure that your customer service team is trained to resolve disputes amicably and efficiently.

#5. Implement a Clear Return and Refund Policy

Have a transparent and easily accessible return and refund policy. Make sure that customers are aware of this policy at the time of purchase. Process returns and refunds promptly to avoid disputes escalating into chargebacks.

By following these best practices, merchants can significantly reduce the likelihood of facing “Goods or Services Not Provided” chargebacks. This helps create a trustworthy and transparent environment where customers feel confident in their purchases, and their concerns are addressed promptly and effectively.

Last Update: January 4, 2024