Fraud Notification

Mastercard's Fraud Notification Service tracks the number of fraud-related or Cardholder does not recognize chargebacks by primary account number (PAN) and expiration date, if present. An issuer loses the right to chargeback a transaction for a fraud-related or ‘cardholder does not recognize’ fraud reason code for transactions authorized after the date of the second fraud chargeback on that account. The purpose of our service is to provide merchants with chargeback representment guidance.

If you have received a Mastercard fraud-related or Cardholder does not recognize chargeback, the Chargeback Case Detail screen includes a fraud notification message. The message contains the Fraud Notification Date returned by Mastercard, and may include a representment recommendation. The Fraud Notification Date indicates the date when the second fraud-related chargeback occurred on the cardholder’s account.

The Historical Win Percentage field is impacted when a Fraud Notification is received, and rather than a percentage value, the field provides basic representment guidance. See Understanding the Historical Win Percentage for information on each of the possible values for this field.

The Mastercard Fraud Notification Service applies to First Chargebacks only.

If the authorization date associated with the current chargeback is after the Fraud Notification date in the message, we recommend that you represent this chargeback, as the issuing bank is prohibited from authorizing transactions after this date.

If the authorization date associated with the current chargeback is before the Fraud Notification date in the message, we recommend that you do not represent this chargeback.