Chargeback Time Limits, Stage by Stage
Every stage of a chargeback runs on a clock. Here is who has how long, when each clock starts, and what happens when a deadline is missed.
A chargeback is not one event. It is a chain of events, and each link has its own deadline. The cardholder has a window to file. The merchant has a window to answer. If the fight goes on, each side gets more windows for pre-arbitration and arbitration. This page walks through each stage and gives the numbers each card network states for itself. Cardholders can read how long do i have to dispute credit card charge and how long do you have to do a chargeback.
What a chargeback time limit is and whose clock is running
A time limit is the span a side has to act before it loses the right to act. The clock does not start the same way for everyone. A cardholder's clock usually starts at the transaction. A merchant's clock starts when the network contacts it. Later clocks start at the chargeback, or at a response, or at a rejection.
That is why one number never fits all. The answer to "when does the chargeback clock start" depends on which clock you mean. It also depends on the card network. The networks do not share one set of deadlines, and each one states its own.
The cardholder's window to dispute a charge
The first clock belongs to the person who paid. American Express states a cardholder number in its own guide. An American Express cardholder, not the merchant, has up to 120 days from the transaction date to dispute a charge.
That window can stretch. American Express says a cardholder can have longer to dispute a charge for goods not received, returns or cancellations. So a package that never arrives may open a longer window than a bad charge on day one.
Visa and Mastercard state their limits for the issuer, the bank that issued the card. Visa's rules say the time limit for an issuer to start a dispute is set by each dispute condition. Mastercard ties the issuer's time limit to the chargeback reason code. So the bank files the chargeback, and the network's rules set how long the bank has to do it. More on the cardholder side is in chargeback credit card time limit.
The merchant's window to respond
Once a chargeback lands, the clock flips to the merchant. American Express gives a clean number here. A merchant has 20 days to respond to an Inquiry or Chargeback from American Express with supporting documents.
The start point matters. The merchant's 20 days to respond start once American Express contacts it with an Inquiry or a Chargeback. So the clock does not start at the sale. It starts at the notice.
Visa handles this one differently. Visa says the merchant's time to respond is the time on the acquirer's request, and it may vary by acquirer. The acquirer is the merchant's bank. So a merchant on Visa may get a different deadline than the one down the street, even for the same kind of dispute.
American Express time limits, step by step
The steps look like this.
First, the cardholder. An American Express cardholder has up to 120 days from the transaction date to dispute a charge. The window can be longer for goods not received, returns or cancellations.
Second, the merchant. American Express contacts the merchant with an Inquiry or a Chargeback, and the merchant then has 20 days to respond with supporting documents. To avoid a No reply or Insufficient reply Chargeback, American Express says a merchant should answer an Inquiry within 20 days.
Third, the stakes. If a merchant does not reply to American Express in time or with the requested documents, its account is debited. That is the whole penalty in one sentence. The money leaves.
American Express also gives merchants a tool for tracking. An American Express online account shows each dispute's details, deadlines and response options in one place. More on that network is in amex chargeback.
Mastercard time limits, step by step
Mastercard states its deadlines in calendar days, and each one starts at a different event.
The chargeback itself. Mastercard ties the issuer's time limit to the reason code. As one example, Mastercard generally gives the issuer 90 calendar days from the transaction to charge back when required authorization was not obtained.
Second presentment. Mastercard generally gives the acquirer 45 calendar days from the chargeback to send a second presentment. That is the merchant's bank putting the sale back through with its evidence.
Pre-arbitration. Before the issuer can escalate, Mastercard makes the issuer wait at least eight calendar days for promised second presentment documents. After that, Mastercard generally gives the issuer 30 calendar days from the second presentment to file a pre-arbitration case.
Arbitration. Mastercard generally gives the issuer 15 calendar days after a pre-arbitration rejection to file an arbitration case. For ATM and Maestro disputes, the window is different. Mastercard gives the issuer 45 calendar days from the second presentment to file arbitration in those cases.
Appeals. A party must get its appeal to Mastercard within 45 calendar days of the Mastercard ruling.
One more rule from Mastercard cuts the other way. Mastercard lets the acquirer second present when the chargeback was sent after its time limit. So a chargeback filed late by the issuer can be answered on that ground alone.
Visa time limits, step by step
Visa splits its deadlines by dispute type, so the same stage can carry two different numbers.
The dispute itself. Visa's rules say the time limit for an issuer to start a dispute is set by each dispute condition. As one example, Visa gives the issuer 120 calendar days from the Transaction Processing Date to file a dispute under condition 10.4.
The response. In processing error and consumer disputes, Visa gives the acquirer 30 calendar days from the Dispute Processing Date to send a Dispute Response. The merchant's own deadline, as noted above, is the time on the acquirer's request.
Pre-arbitration. In processing error and consumer disputes, Visa gives the issuer 30 calendar days from the Dispute Response Processing Date for a pre-arbitration attempt. In fraud and authorization disputes, Visa gives the acquirer 30 calendar days from the Dispute Processing Date for a pre-arbitration attempt.
The pre-arbitration response. In processing error and consumer disputes, Visa's rules say the acquirer has 30 calendar days from the pre-arbitration attempt to respond to it. In fraud and authorization disputes, Visa's rules say the issuer has 30 calendar days from the pre-arbitration attempt to respond to it.
Arbitration. In processing error and consumer disputes, Visa's rules say the issuer may file for arbitration within 10 calendar days of the pre-arbitration response. In fraud and authorization disputes, Visa's rules say the acquirer may file for arbitration within 10 calendar days of the pre-arbitration response.
What happens when a deadline is missed
Visa and American Express both state what happens when a deadline is missed.
Visa's rules say a side that does not respond in time closes the dispute cycle and is responsible for the amount. American Express says a merchant that does not reply in time, or does not send the requested documents, gets its account debited.
Time limits also count when Visa decides a case. Visa, when deciding a case, looks at whether time limits were met and documents were supplied, readable and translated.
How to track your deadlines
Write down the start event next to the deadline. Write down what started the clock, not only the date due. Was it the transaction? The notice? The chargeback? The response? Each network counts from its own events, so note which one applies.
American Express merchants have one built in. An American Express online account shows each dispute's details, deadlines and response options in one place. American Express says a merchant should always answer an Inquiry by its reply due date. Watch that due date, not the date the dispute arrived.
For cardholders, the move is simpler. Ask your bank how long you have, and ask early. The bank files the chargeback, inside the network's time limit.