Chargeback in Mastercard transaction disputes

  • Release version: Australia
  • Updated March 12, 2026
  • 1 minute to read

    • After a chargeback is initiated, the chargeback request is sent to Mastercard, which alerts the merchant. Mastercard requests collaboration from merchants, who either provide a voucher, refund, or First-Party Trust evidence as response. If the merchant doesn’t respond, the process escalates to formal chargeback procedures.

    Chargeback stages

    The Chargeback stage in Mastercard is described in these stages:
    1. Initiation of chargeback and collaboration:
      • The agent initiates a chargeback request with Mastercard.
      • When Mastercard receives the chargeback request, it first attempts to resolve the dispute informally by connecting the merchant and the cardholder directly through a collaboration step that is supported by Ethoca's collaboration services. The merchant and the cardholder have to collaborate and resolve the dispute within a time frame of 72 hours.
      • If the merchant accepts the collaboration request, the Review and respond to collaboration task displays.
      • If the merchant doesn’t respond or collaborate within the 72-hour time frame, Mastercard proceeds with the chargeback process and informs the merchant's bank with the chargeback request.
      • The merchant then has the option to initiate a second presentment request.
    2. Second presentment review
      • If the merchant submits documentation to contest the dispute, the agent reviews the response. The task Review chargeback response and decide on pre-arbitration or arbitration is displayed.
      • Based on the review, either of the following applies:
        • The agent accepts the second presentment.
        • The agent escalates the case to pre-arbitration or arbitration.
        • If the merchant doesn't respond within the specified time frame, the agent manually acts on the disputed transaction based on Mastercard's response that displays on the agent's Landing page
          Note:
          The agent can access Mastercard's response from Landing Page > Acquirer deadline expired tasks. For more information, see Dispute agent workspace

    Submitting supporting documents

    Agents attach supporting documents as a .zip file for each task in the Chargeback stage as required.

    When integrated with Mastercard's Mastercom APIs, the system automates the submission of supporting documents for each task throughout the Chargeback stage. It automatically checks attached files against Mastercard requirements for file type and size. When agents submit multiple attachments, the system compresses them into a single zip file and alerts the agent when any attachment doesn’t meet Mastercard requirements. For more information, see Mastercard document requirements.