Mastercard's New Chargeback Rules: What Changed in 2025
Mastercard updated response timeframes based on transaction type. Digital goods now have 30-day deadlines, while physical goods get 45 days.
📋 Key Changes in This Guide:
Mastercard's Transaction-Type Based Deadlines
While Visa reduced their response window across the board, Mastercard took a different approach in 2025: they created separate timelines based on whether goods are digital or physical.
New Mastercard Response Timeframes:
- Digital goods/services: 30 calendar days
- Physical goods: 45 calendar days
- Mixed transactions: 30 days (defaults to shorter window)
Why Different Deadlines for Different Products?
Mastercard's reasoning is that digital goods disputes require different evidence types. Physical goods need shipping documentation, which takes time to obtain from carriers. Digital goods have instant delivery proof through download logs and access records.
However, this creates complexity for merchants who sell both physical and digital products, or hybrid offerings like subscription boxes with digital content.
How Mastercard Classifies Your Transaction
The classification is determined by your Merchant Category Code (MCC) and transaction details. Here's how common business types are categorized:
💻 Digital Goods 30-day deadline | 📦 Physical Goods 45-day deadline | ⚠️ Hybrid Cases Defaults to 30 days |
|---|---|---|
| • Software subscriptions (SaaS) | • E-commerce shipped products | • SaaS + Hardware bundle |
| • Digital downloads (ebooks, music) | • Subscription boxes (physical) | • Consulting + deliverables |
| • Online courses & education | • Print-on-demand products | • Digital + physical subscriptions |
| • Virtual goods (in-game items) | • Retail merchandise | ↓ When in doubt |
| • Streaming subscriptions | • Consumer electronics | Assume 30-day window |
| • Web hosting & domains |
Pro Tip: When in doubt, assume the shorter 30-day window applies. It's better to respond early than risk missing the deadline.
Evidence Requirements by Product Type
Digital Goods
30-day deadline
Since you can't provide tracking numbers, focus on:
- ✓Access logs: IP addresses, login timestamps, duration of use
- ✓Download records: What was downloaded, when, from which IP
- ✓Feature usage: Which features the customer used and how often
- ✓Account history: Previous successful transactions, saved preferences
- ✓Email confirmations: Welcome emails, renewal notices, receipts
Physical Goods
45-day deadline
Traditional evidence still applies:
- ✓Tracking information: Carrier tracking showing "delivered" status
- ✓Delivery proof: Signature confirmation if available
- ✓Shipping address: Confirmation it matches billing or verified address
- ✓Product description: What customer saw at purchase time
- ✓Photos/documentation: Pictures of item as shipped
Updated Mastercard Reason Codes
Mastercard also refined several reason codes in 2025:
- 4837 (No Cardholder Authorization) - Now requires more robust fraud prevention proof
- 4853 (Goods/Services Not Provided) - Split into digital vs physical sub-categories
- 4855 (Non-Receipt of Merchandise) - Enhanced delivery proof requirements
Impact on Multi-Product Merchants
If you sell both physical and digital products, you need to:
1. Track Transaction Types
Know which of your products are classified as digital vs physical. This affects how you organize evidence.
2. Maintain Separate Evidence Files
Physical goods need tracking info, digital goods need usage logs. Don't mix up evidence types or you'll confuse reviewers.
3. Assume Shorter Deadlines for Hybrid Sales
If a customer buys both a physical product and digital download in one transaction, Mastercard defaults to the 30-day digital goods window.
Comparison with Other Networks
Mastercard's 2025 approach is more generous than Visa's new 9-day window but more complex:
Response Timeline Comparison:
- Visa: 9 days (US/Canada) - All products
- Mastercard: 30 days (digital) / 45 days (physical)
- Amex: 20 days - All products
- Discover: 20 days - All products
Mastercard's approach is more forgiving than Visa's but requires merchants to understand how their products are classified.
5 Best Practices for Mastercard Disputes in 2025
Verify Your Product Classification
Contact Mastercard or your payment processor to confirm how your goods are categorized. Don't guess - wrong classification means wrong deadline.
Action: Ask your processor: "Are my transactions classified as digital goods (30 days) or physical goods (45 days)?"
Organize Evidence by Product Type
Keep digital evidence (logs, screenshots) separate from physical evidence (tracking, photos). Mixing evidence types confuses reviewers and weakens your case.
Tip: Create separate folders: "Digital Evidence" and "Physical Evidence" - only submit the relevant one.
Don't Wait the Full 30 or 45 Days
Respond as quickly as possible. Early responses show good faith and give you buffer time if something goes wrong with your submission.
Target: Submit within 7-10 days of receiving the dispute notification, regardless of your deadline.
Use Reason Code-Specific Evidence
Each Mastercard reason code has different evidence requirements. Generic responses lose.
Example: 4837 (fraud) needs authorization proof, while 4853 (not provided) needs delivery proof.
Document Everything From Day One
Save all transaction records, communications, and delivery proof immediately. Don't wait for disputes to start collecting evidence.
Automate: Set up automatic exports of order data, shipping info, and customer emails weekly.
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