Chargeback flow and transaction types

Chargeback terms

Name	Description
Retrieval Request	An Issuer`s request for a Transaction Receipt, which could include the original, a paper copy of facsimile, or an electronic version thereof
Chargeback	A Transaction that an Issuer returns to an Acquirer. The Issuer can only make chargeback for a valid reason as described in VISA/MC rules
Representment	an Acquirer rejects or responds to the chargeback made by the Issuer and sends the transaction back to the Issuer and supports it with additional documentation that remedies the disagreement The Acquirer can only make representment for a valid reason as described in VISA/MC rules As this is the 2nd time that Acquirer presented this transaction to the Issuer, it is called representment
Arbitration Chargeback	A Transaction that an Issuer returns to an Acquirer for the 2nd time. The Issuer can only make chargeback for a valid reason as described in MC rules
Prearbitration	An attempt to resolve the dispute before filing with VISA/MC Arbitration Committee
Arbitration	A process whereby financial liability for Transactions processed through Interchange that are presented and charged back is determined by VISA/MC
CPD (Central Processing Date)	A date when a record (transaction, chargeback, retrieval request etc) has been processed by international payment card schemes
Compliance	A process whereby disputes that arise from violations of any rules governing a Transaction, and no Chargeback right is available, are determined
Good Faith Letter	An attempt to resolve the dispute when no chargeback of compliance rights exist
SAFE/Fraud Advice TC40	A record prepared by an Issuer to inform VISA/MC of fraudulent merchant activity
TID (Transaction information document)	Term used for transaction documentation, such as form sets, records, sales slips, terminal receipts, and record of charges

MasterCard Chargeback Guide

Chargeback Flow

Chargeback Stages

	Stage	Description	MIT-Function Code(s)	API Method
	First Presentment	Acquirer submits the transaction to the issuer	1240-200	sale	45/60/120/540 days
30 days	Retrieval Request	Issuer may request a copy of the sales ticket to support or identify a potential chargeback NOTE Most chargebacks do not require a retrieval request	1644-603	retrieval
30 days	Retrieval request fulfilment
45 days	Chargeback	Issuer initiates a chargeback within the time frame applicable to the specific message reason (Refer to section 3, MasterCard Message Reason Codes—Dual Message System Transactions for details.) NOTE If an issuer receives a legible copy of the TID through a second presentment for message reason code 4802—Requested/Required Information Illegible or Missing, and after viewing the item for the first time determines that it has another right of chargeback for a different message reason code, the issuer must start the process again with a new chargeback. Refer to section Message Reason Code 4802—Requested/Required Information Illegible or Missing for more information	1442-450(full amount) 1442-453(partial amount)	chargeback
45 days	Second Presentment	When applicable, the acquirer may process a second presentment within 45 calendar days of the Central Site Business Date (PDS 0158 [Business Activity], subfield 5 [Business Date]) of the chargeback	1240-205(full amount) 1240-282(partial amount)	chargeback_reversal	45 days
45 days	Arbitration Chargeback	When applicable, the issuer may initiate an arbitration chargeback within 45 calendar days of the Central Site Business Date of the second presentment	1442-451(full amount) 1442-454(partial amount)	prearbitration	45 days
45 days	Arbitration Case Filing	The acquirer may file an arbitration case to MasterCard for a decision on the dispute within 45 calendar days of the Central Site Business Date of the arbitration chargeback	N/A	arbitration

Visa Chargeback Guide

Chargeback Flow

Chargeback Stages

	Stage	Description	API Method
	First Presentment	Acquirer submits the transaction to the issuer	sale	75/120/540 days
30 days	Retrieval Request	Issuer may request a copy of the sales ticket to support or identify a potential chargeback	retrieval
30 days	Retrieval Request Fulfil
45 days	Chargeback	Issuer initiates a chargeback within the time frame applicable to the specific message reason	chargeback
45 days	Representment	When applicable, the acquirer may process a second presentment	chargeback_reversal	29 days	60(30*) days
30 days	Prearbitration Attempt	Before filing for Arbitration, the requesting Member must make a pre-Arbitration attempt using Visa Resolve Online, at least a full 30 calendar days prior to the Arbitration filing date if any of the following conditions apply: New documentation or information is being provided to the opposing Member about the dispute The Acquirer represented with Compelling Evidence. The Issuer must certify in its pre-Arbitration attempt that it attempted to contact the Cardholder to review the Compelling Evidence. The Issuer changes the reason code for the dispute after the Representment was processed The Acquirer provided evidence that the Cardholder no longer disputes the Transaction. The Issuer must certify in its pre-Arbitration attempt that the Cardholder still disputes the Transaction	prearbitration	29 days
30 days	Prearbitration Response			30 days
	Arbitration	If the opposing Member does not accept financial responsibility for the disputed Transaction, the requesting Member may pursue Arbitration	arbitration
	Arbitration Appeal	The decision on any permitted appeal is final and not subject to any challenge

* 30 days apply if no prearbitration attempt

Visa Compliance Guide

Chargeback Stages

Stage	Description	API Method
First Presentment	Acquirer submits the transaction to the issuer	sale
Cardholder or issuer disputes the first presentment
Pre-Compliance	Before filing for Compliance, the requesting Member must attempt to resolve the dispute with the opposing Member. This attempt must include all of the following: Attempt date Clear identification as pre-Compliance attempt Planned Compliance filing date All pertinent documentation Specific violation of the Visa International Operating Regulations A pre-Compliance attempt must include the information required in the Pre-Compliance Attempt Questionnaire. The pre-Compliance attempt must be sent electronically, using Visa Resolve Online, at least a full 30 calendar days prior to the Compliance filing date
Pre-Compliance Acceptance	If the opposing Member accepts financial liability for the disputed Transaction, it must credit the requesting Member for the last amount received by the requesting Member through VisaNet within 30 calendar days of the pre-Compliance attempt date
Non-Acceptance of Financial Liability for Pre-Compliance	If the opposing Member does not accept financial liability for the disputed Transaction, the requesting Member may pursue Compliance