Mastercard reason code 4860: what it means and how to respond
Mastercard 4860 covers a promised or required refund that was not processed. See when it applies, how to respond, and the deadlines.
What code 4860 means and when it applies
Mastercard 4860, “Credit Not Processed,” covers a refund the merchant promised or owed but did not process. The cardholder acknowledges participating in the purchase. The dispute is therefore not about fraud. It is about whether the refund was due and what happened after the sale.
Code 4860 is a legacy code, but it can still be used for transactions in the Dual Message SystemThis is Mastercard’s flow in which authorization and financial presentment for a purchase are sent in separate messages. Code 4860 remains permitted in this flow except for domestic transactions in mainland China.. Mastercard recommends 4853 and says it will eliminate 4860 in the future, without giving a date. The code should therefore not be treated as retired while the rule still permits its use.
For a 4860 chargeback to be valid, all of these requirements must be met:
- The cardholder participated in the transaction. If the cardholder denies the purchase, the claim is fraud and must follow a different code.
- At least one of the five refund conditions occurred. The issuer must identify the condition supporting the chargeback.
- The issuer received one of the accepted forms of documentation. The required support depends on the source of the claim.
- The filing met the applicable waiting period and time limit. The general rule requires a 15-day wait and limits filing to 120 days, subject to the exceptions below.
The five conditions are alternatives. At least one is enough:
- The merchant promised a refund but did not process it. The agreement may appear in communications with the cardholder or another merchant document.
- The refund policy was not disclosed. The merchant did not disclose the terms at the time of sale and later refused to accept a product return or service cancellation.
- The merchant did not respond. The cardholder tried to return the product or cancel the service but received no response.
- The refund was reduced without proper notice. The merchant returned only part of the amount without properly disclosing that condition.
- The tax credit was not issued. The merchant did not provide the value-added tax credit, identified in the rule as VAT.
Source for the requirements, five conditions, and status of the code: Mastercard Chargeback Guide, Merchant Edition, “Cardholder Dispute Chargeback” chapter, pp. 150 and 272–276.
The issuer’s supporting documentation also follows alternative routes. It must have at least one of these three forms:
- A letter, email, or direct message from the cardholder, or a Form 1221This is the Dispute Resolution Form—Cardholder Dispute Chargeback. The issuer completes it from a conversation with the cardholder to record the claim and the dispute requirements.. The statement must explain how at least one condition occurred, why the refund is expected, and what goods or services were purchased.
- A document from the merchant showing that a credit is due to the cardholder.
- Proof that store credit was not properly disclosed, accompanied by the cardholder’s explanation.
Source for the required documentation: Mastercard Chargeback Guide, Merchant Edition, pp. 273–274.
Code 4860 does not apply to domestic transactions in mainland China, which use 4853. There is also a specific exclusion for transactions identified by MCCsMerchant Category Codes are numbers the card scheme uses to identify the merchant’s business. Under this rule, certain travel and entertainment codes follow a separate condition when the merchant provides a voucher for future use. 3000 through 3999, 4411, 4511, 4722, 6513, 7011, 7512, 7519, and 7922 when the merchant provided a voucher for future use and properly disclosed that remedy in its terms. In those cases, the applicable travel and entertainment subcondition under 4853 must be assessed.
Deadlines for each party under Mastercard 4860
1 block represents 10 calendar days.
- IssuerWait 15 days before filing the 4860 chargebackThe waiting period starts when the refund document is issued, the service is canceled, or the product is returned, unless an immediate-filing exception applies.15-calendar-day waiting period
- IssuerFile the 4860 chargebackThe clock starts when the refund document is issued, the service is canceled, or the product is returned; for a VAT credit, the transaction is settled.Up to 120 calendar days
- AcquirerFile the second presentmentThe clock starts when the chargeback is settled.Up to 45 calendar days
- IssuerFile pre-arbitrationThe clock starts when the acquirer’s second presentment is settled.Up to 30 calendar days
- AcquirerAccept or reject pre-arbitrationThe clock starts when the issuer submits pre-arbitration in Mastercom.Up to 30 calendar days
- IssuerAsk Mastercard to decide the caseThe clock starts when the acquirer rejects pre-arbitration.Up to 15 calendar days
Who files the dispute and what happens next
The issuer, the bank or institution that issued the card, files the 4860 chargeback on the cardholder’s behalf. Under the general rule, it waits 15 calendar days from the date of the refund document, service cancellation, or product return. It may then file within 120 calendar days of the same event. For a VAT credit, the 120 days begin on the transaction’s Settlement DateThis is the date Mastercard records for settlement of the transaction. It is day zero for the VAT-credit filing limit and other case deadlines..
The issuer may file before 15 days have passed when waiting would cause the 120-day limit to expire. It may also file immediately if it has a merchant document directing the cardholder to obtain the refund through a chargeback, proof of improperly disclosed store credit, or a transaction receipt the merchant voided. If the refund document is undated, the clock starts on the date of the cardholder’s statement. If that statement is also undated, the clock starts when the issuer receives it.
Source for the deadlines and immediate-filing exceptions: Mastercard Chargeback Guide, Merchant Edition, pp. 274–276.
After filing, the acquirer, the institution that represents the merchant on the Mastercard network, may submit a second presentmentThis is the acquirer’s formal response to the chargeback. The acquirer selects a permitted ground and submits the merchant’s records that answer the cardholder’s claim. through MastercomThis is Mastercard’s system where issuers and acquirers submit disputes, responses, and case documents.. The card scheme’s standard deadline is 45 calendar days from the chargeback Settlement Date. The acquirer or processor may request the merchant’s documents before that deadline.
If the issuer does not accept the response, it generally files pre-arbitrationThis is the step in which the issuer asks for another review after the second presentment and before asking Mastercard to decide the case. within 30 days. The cardholder’s new statement must be dated after the second presentment and address the defense. The acquirer has 30 days to accept or reject it; without action, the acquirer accepts financial liability. After a rejection, the issuer has 15 days to take the case to Mastercard arbitration. Pre-arbitration is optional for ATM and Maestro disputes, which have their own escalation rules.
Source for second presentment, pre-arbitration, and arbitration: Mastercard Chargeback Guide, Merchant Edition, pp. 276–293.
Before building a defense, check whether this dispute is invalidProving any one condition is enough to challenge the dispute's validity.
- The cardholder denies participating in the transaction. That is a fraud claim, not a refund-not-processed claim.
- None of the five permitted claims occurred: an agreed refund was not processed; an undisclosed refund policy was followed by refusal of the return or cancellation; the merchant did not respond; the refund was reduced without proper disclosure; or a VAT credit was not issued.
- The issuer does not have at least one accepted form of support: a detailed cardholder statement or Form 1221; a merchant document showing that a credit is due; or proof of an improperly disclosed store-credit policy accompanied by the cardholder’s explanation.
- The only claim is buyer’s remorse that conflicts with a refund policy disclosed at the time of sale. When the terms were disclosed, the cardholder must follow them.
- The transaction belongs to one of the excluded travel and entertainment MCCs, and the merchant provided a voucher for future use under properly disclosed terms.
- It is a domestic transaction in mainland China. Mastercard requires 4853, not 4860, in that case.
- The issuer filed the chargeback outside the applicable window or before the required waiting period without an immediate-filing exception.
Source:Mastercard Chargeback Guide, Merchant Edition (19/05/2026), capítulo Cardholder Dispute Chargeback, pp. 150 e 272–286
How to reduce the risk of receiving a 4860 chargeback
The steps below follow from Mastercard’s filing and defense conditions:
- Show the policy before payment. Return, cancellation, restocking, partial-refund, store-credit, or no-refund terms must appear at the time of sale. Keep the version the cardholder accepted.
- Record every refund promise. Link the communication or receipt to the purchase, the amount, and the promised date. Track the case until processing is confirmed.
- Keep the refund reference. Record the date, amount, payment method, and transaction reference. This proves the credit was issued and helps prevent a duplicate refund.
- Respond to returns and cancellations. Document receipt of the request, the decision, and the remedy offered. A merchant’s failure to respond is one of the conditions that permits the chargeback.
- Explain any reduction before applying it. If the policy permits a fee deduction or store credit only, the disclosure and acceptance must exist before the purchase.
Source for the measures derived from the filing and defense conditions: Mastercard Chargeback Guide, Merchant Edition, pp. 272–282.
Evidence the merchant should gather
The merchant gives its records to the acquirer, which responds in Mastercom. Mastercard permits a second presentment when at least one of these five grounds applies:
- The cardholder was not entitled to a refund.
- The documentation used for the chargeback appears to be partly altered or falsified.
- The returned product reached the merchant in a condition different from the original item.
- The refund had already been processed.
- The chargeback is invalid, for example because a requirement is missing, it was filed late, it is a duplicate, the reference does not match, or the documentation is missing, illegible, incomplete, or belongs to another case.
Source for the five second-presentment grounds: Mastercard Chargeback Guide, Merchant Edition, pp. 276–286.
To dispute whether the refund was due, exactly one of two routes applies to the same disputed amount:
- The refund was already processed. Keep the date, amount, and ARDAcquirer Reference Data is the transaction reference sent by the acquirer. In the defense, it identifies the refund that resolved the disputed amount.. If the credit went to the same Mastercard account, the rule does not require an additional document, but the acquirer identifies the date and reference in DE 72This is the Data Record field in the message sent to Mastercard. For this defense, it carries the text CRED, the refund date, and the reference.. If the refund was issued by another method, gather proof that the cardholder received the funds.
- The refund was not due. Provide the merchant’s explanation. If it depends on special terms, also provide the policy shown and accepted at the time of sale, such as an in-person receipt with the printed terms or a record of click-to-accept consent in ecommerce.
Do not combine these two routes as if both were required. For the same amount, either the merchant returned the funds or maintains that it did not have to return them. A partial refund requires separating the amount already refunded from the amount the policy permitted the merchant to retain.
For the other grounds, the evidence must address the specific cause. If a document appears altered, explain specifically what was changed or falsified. If the returned product was modified, document its receipt, inspection, and differences from the item sold. If the failure is procedural, identify the exact requirement the issuer did not meet. A generic statement that “the sale was valid” does not answer a 4860 chargeback.
Source for the evidence and route logic: Mastercard Chargeback Guide, Merchant Edition, pp. 277–286.
Frequently asked questions
What does Mastercard chargeback code 4860 mean?
It is the legacy Credit Not Processed code. It applies when the cardholder participated in the purchase but claims that a promised or required refund was not processed. It also covers an undisclosed refund policy, no response to a return or cancellation, a partial refund without proper disclosure, and an unissued VAT credit.
Can Mastercard code 4860 still be used?
Yes. In the Dual Message System, Mastercard still permits 4860 except for domestic transactions in mainland China, although it recommends 4853. The rule says 4860 will eventually be eliminated but gives no date. A 4860 notice received today should not be treated as an error or as a retired code.
What does the issuer need to file a 4860 chargeback?
All general requirements must be met: the cardholder participated in the transaction, at least one of the five permitted claims occurred, the issuer received one of the accepted forms of documentation, and the filing met the applicable waiting period and deadline. When the cardholder provides the explanation, it must state how the condition occurred, why the refund is expected, and what goods or services were purchased.
How can the merchant dispute a Mastercard 4860 chargeback?
The merchant sends its records to the acquirer, which files the second presentment. To dispute whether a refund was due for the same amount, exactly one of two routes applies: prove that the refund was already processed or prove that it was not due under terms disclosed at the time of sale. Separate grounds also apply to altered documents, returned goods that were changed, or a procedurally invalid chargeback.
What is the deadline to respond to a Mastercard 4860 chargeback?
Mastercard generally gives the acquirer 45 calendar days from the chargeback Settlement Date to file the second presentment. The acquirer or processor may require the merchant to provide documents earlier. At filing, the issuer normally waits 15 days and has up to 120 days from the refund documentation, cancellation, or return; the rule includes exceptions.
View all Mastercard chargeback reason codes or return to Knowledge.