Chargeback Rules for MasterCard

CreditCards.com illustrates a chargeback as a sales transaction that is reversed. A MasterCard customer can dispute a charge, and the credit card company will remove the charge from the MasterCard bill if the dispute is legitimate. Then, MasterCard will go back to the merchant and request the money be returned to the credit card company or bank. The merchant will lose the money from the transaction, but the customer and the bank will not.

MasterCard’s Chargeback Guide explains the time requirements for submitting chargebacks. Chargebacks should not exceed 540 days for any reason. Chargeback limits are 45, 60, 120 and 540 days depending on the reason for the chargeback. Credit card holders have 60 days to file a chargeback once the charge appears on his or her credit card bill, according to the California Department of Justice. If you purchased a good or service and the delivery of that service or good was delayed, you have 120 days to file for a chargeback. Interrupted services have the same filing date requirement, so if your service is interrupted for any reason and you are still billed, you can file a chargeback within 120 days. Any resubmitted chargeback must occur within 45 days from the previous chargeback decision.

"Understanding the Perspectives of Chargebacks" by Jared Isaacman shows that not all chargebacks are the result of fraud or bad businesses. Merchant Card Services states that a valid charge could be duplicated on the credit card bill. If there is a duplicate charge, you are able to file for a chargeback. There may also be situations when a good or service is misrepresented. In these cases, the client has the right to request a chargeback, according to the California Department of Justice. If the good or service is not the correct quantity or quality that was promised by the merchant, the credit card holder is not responsible for the charge, and the bank will pursue a chargeback. MasterCard's rule mirrors the state of California's Department of Justice rule.

Under federal law, you cannot pursue a chargeback if the amount is less than $50, according to the California Department of Justice. The cardholder must also have made an effort to receive a refund from the original merchant prior to pursuing a chargeback. If you wait for more than 60 days to file a claim with MasterCard, and the merchant is more than 100 miles from your home, MasterCard can reject your chargeback claim.