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Mastercard 4863 - Cardholder Does Not Recognize

Overview​

Used when the cardholder states they do not recognize the transaction but is not making a fraud claim. This is often a precursor to fraud claims or may indicate descriptor issues.

When This Code Applies​

  • Cardholder doesn't recognize the merchant name
  • Cardholder doesn't recall making the purchase
  • Transaction appears unfamiliar on statement
  • Cardholder confused by billing descriptor

Key Distinction from 4837​

CodeCardholder StatementImplication
4863"I don't recognize this"Confusion, not fraud
4837"I didn't do this"Fraud claim
Important

4863 is often used when cardholders are confused by poor merchant descriptors. Fixing your descriptor can significantly reduce these chargebacks.

Common Causes​

Descriptor Issues​

  • Business name differs from storefront name
  • Parent company name used instead of brand
  • Abbreviated or truncated names
  • Generic payment processor names

Legitimate Confusion​

  • Forgot about purchase
  • Family member made purchase
  • Subscription renewal
  • Delayed delivery charges

Precursor to Fraud​

  • Testing waters before full fraud claim
  • Genuine fraud they're unsure about
  • Account takeover discovery

Time Frames​

RegionChargeback Window
Standard90 calendar days
Europe ATM/Maestro120 calendar days

Representment Options​

1. Transaction Recognized After Inquiry​

When providing merchant details helps cardholder recognize:

  • Clear description of goods/services
  • Order confirmation details
  • Shipping information

2. Proper Merchant Descriptor​

When descriptor clearly identifies business:

  • DBA name matches advertising
  • Location included if helpful
  • Phone number on descriptor

3. Compelling Evidence​

Same evidence types as 4837:

  • Delivery confirmation
  • Customer correspondence
  • AVS match
  • Prior purchase history

4. Recurring Transaction​

When transaction is part of established pattern:

  • Previous undisputed charges
  • Subscription agreement
  • Regular billing history

Message Text Requirements​

DefenseMessage Text
Descriptor matchDESC MATCH
Prior transactionsPRIOR TXN
Recurring billingRECURRING
Compelling evidenceCOMP EVID

Second Presentment Time Frames​

RegionWindow
Standard45 calendar days
Costa Rica10 calendar days
Kazakhstan30 calendar days
Nigeria2 business days
Tanzania20 calendar days

Prevention Strategies​

Fix Your Descriptor​

Before:

  • PAYCO*12345 800-555-1234
  • GLOBAL MERCHANT SVC
  • UNKNOWN MERCHANT

After:

  • BRANDNAME.COM 800-555-1234
  • BRANDNAME*PRODUCT TYPE
  • BRANDNAME CITY ST

Best Practices for Descriptors​

  1. Use recognizable name - Brand name customers know
  2. Include phone number - Easy to call before disputing
  3. Be consistent - Same name across all touchpoints
  4. Include location - City/state for brick-and-mortar
  5. Match advertising - Same name in marketing

Communication​

  1. Clear receipts - Show exact descriptor
  2. Order confirmations - Preview statement appearance
  3. Shipping notices - Link to original purchase
  4. Account statements - Self-service history

For Recurring/Subscriptions​

  1. Pre-billing reminders - "You will be charged..."
  2. Consistent timing - Same day each cycle
  3. Clear descriptor - Include "SUBSCRIPTION" or "MONTHLY"
  4. Easy lookup - Customer portal for history

Win Rate Expectations​

ScenarioExpected Win Rate
Clear descriptor + delivery proof60-80%
Prior undisputed transactions50-70%
Customer acknowledged purchase80-90%
No evidence20-35%

Escalation Path​

4863 chargebacks can escalate to 4837 if not resolved:

  • 4837 - No Cardholder Authorization
  • 4853 - Cardholder Dispute

See Also​