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What It Means: Mastercard Chargeback Reason Code 4837: No Cardholder Authorization, happens when a cardholder claims they didn’t approve a transaction on their account. It's basically the cardholder saying, "I didn't buy this."
Common Causes of 4837: No Cardholder Authorization
- Fraud: Someone used the cardholder’s info without their permission.
- Identity Theft: Another person used the cardholder’s personal details to make the purchase.
- Processing Errors: Mistakes during the transaction process, leading to unrecognized charges.
Time Frame to Resolve 4837: No Cardholder Authorization
- For Cardholders: They have up to 120 days from the transaction date to dispute the charge.
- For Merchants: Merchants get up to 45 days to respond and provide proof that the transaction was authorized.
How to Prevent or Handle 4837: No Cardholder Authorization
- Use Strong Security: Implement secure payment methods like chip cards, 3D Secure, and tokenization to verify cardholder identity.
- Watch for Fraud: Use advanced tools to detect and stop suspicious activities.
- Keep Good Records: Maintain detailed transaction records, including receipts and customer communications.
- Secure Payment Systems: Make sure your payment systems are secure and comply with PCI DSS standards to protect customer data.
- Communicate with Customers: Send timely receipts or notifications to help customers recognize legitimate charges.
- Handle Disputes Quickly: Respond promptly to customer inquiries or disputes about unauthorized transactions to resolve issues before they become chargebacks.
