What is Mastercard chargeback reason code 4837, no cardholder authorization, and how can you win it? Don’t waste time defending chargebacks, make your company more profitable by preventing them. Combine card acceptance rules compliance with the latest technology to shift fraud liability is the number one method to prevent chargebacks.

What is Mastercard chargeback reason code 4837, no cardholder authorization?

The cardholder did not authorize the transaction.

What are some reasons why this happens when there is an existing relationship with the customer?

• The card issuer can initiate a chargeback for invalid authorization; for example, a card present authorization was not settled within 24 hours
• The merchant has a stored card on file, but did not follow proper protocols for storing and using stored cards.

Key Examples To Shifting Fraud Liability

• Card present, support EMV chip and pin debit
• Ecommerce, use cardholder authentication with 3D Secure which shifts liability for this type of situation back to the issuer.
• Phone orders- comply with card not present authorization rules, including settlement time frames

While the steps above may seem simple, most developers, consultants and merchants are unaware of the nuances for authorization compliance. The assumption is that the payment gateway supports all merchant needs, but that is not the case. As rules complexities continue to increase, many payment gateways, regardless of size, have failed to keep up. This creates new risk for merchants who are unaware, and nobody is informing them otherwise.

Want a 3DSecure v2.2.0 compliant payment gateway for your business? Call Christine Speedy, 954-942-0483, 9-5 ET.