You check your dispute dashboard and spot another chargeback. This one’s labeled as a chargeback Reason Code 4837. Great. Another puzzle from Mastercard that somehow makes you both the suspect and the detective. If you’re here, you’re probably wondering what this code means, why it landed on your plate, and how to respond without losing your mind—or the money.
Let’s break it all down, step-by-step, so you know exactly how to handle a 4837 chargeback when it shows up.
What Is Chargeback Reason Code 4837?
Mastercard Reason Code 4837 refers to No Cardholder Authorization, meaning the cardholder claims they didn’t authorize the transaction. In Mastercard’s dispute system, this falls under fraud-related chargebacks. It typically means one of two things:
- The card was used without the cardholder’s permission.
- The cardholder denies they made or authorized the purchase.
This reason code often shows up in cases of card-present fraud (like lost or stolen card use) or card-not-present fraud (like online purchases made with stolen card details). It's a serious code because it implies criminal activity, even if that's not actually what happened.
When Does Reason Code 4837 Happen?
1. Lost or Stolen Card Transactions
If someone finds (or steals) a card and uses it at a physical terminal, the true cardholder may dispute the transaction when they notice it on their statement.
For example, a fraudster uses a lost Mastercard at a gas station. Since there’s no chip-and-pin or biometric verification, the merchant accepts the payment. A few days later, the cardholder files a dispute: they never made that purchase.
2. Online or E-commerce Fraud
With card-not-present transactions, it’s easier for stolen credentials to be used without detection.
Here’s another example: suppose your online store gets an order from a new customer. It ships, gets delivered, and two weeks later, you’re hit with a 4837 chargeback. The buyer claims they didn’t authorize the payment. Now you’re out of the product and possibly the cash.
How to Respond to a 4837 Chargeback
Mastercard fraud disputes aren’t unbeatable, but they require the right kind of documentation. You need to prove that the cardholder did, in fact, authorize the transaction, or that fraud wasn’t possible under the circumstances.
Step 1: Verify Your Fraud Tools
If you used fraud detection tools (like 3-D Secure, device fingerprinting, IP analysis, or address verification), gather those logs. Mastercard may accept these as evidence, especially for digital goods or CNP transactions.
Step 2: Provide Proof of Authorization
This could include:
- A signed receipt or PIN verification (for in-store purchases).
- AVS and CVV match data.
- 3-D Secure authentication logs.
- Delivery confirmation to the cardholder’s verified billing address.
- IP address and device ID matching previous legitimate orders.
Step 3: Check for Friendly Fraud
Not all 4837 claims are legitimate fraud. Sometimes cardholders forget about a purchase, don't recognize the statement descriptor, or let family members use their card.
In these cases, you can win the dispute by showing:
- Recurring billing agreements.
- Prior successful transactions from the same cardholder.
- Proof of refund policies and customer communication.
Prevention Tips: How to Avoid Future 4837 Chargebacks
Use Strong Customer Authentication (SCA)
For online transactions, implement 3-D Secure 2.0. It’s one of the strongest ways to reduce fraud-based chargebacks and can shift liability away from your business.
Improve Statement Descriptors
Confusing or unclear billing descriptors can lead to mistaken chargebacks. Make sure your descriptor includes a recognizable business name and contact info.
Flag High-Risk Orders
Watch for:
- Mismatched billing/shipping addresses.
- Unusual purchase amounts.
- Multiple failed attempts before a successful charge.
Use machine learning fraud tools or manual review to stop suspicious orders before they go through.
Educate Your Customer Support Team
Make sure your team knows how to handle refund requests quickly. Sometimes, a fast refund can prevent a customer from filing a dispute altogether.
The Best Way to Dispute Reason Code 4837
Here’s the truth: the best way to dispute this chargeback is to be organized and submit compelling evidence quickly. Mastercard’s timeline for response is tight—usually 45 days from the dispute notice.
Focus on:
- Proving that the transaction was authorized.
- Providing fraud filters used at checkout.
- Showing that the cardholder has a history with your business.
- Arguing against friendly fraud when appropriate.
You may also want to involve your payment processor, which can help you package the response and submit it properly within Mastercard’s frameworks.
FAQ: Chargeback Reason Code 4837
Is Mastercard's Reason Code 4837 the same as Visa's fraud code?
Not exactly. While similar in nature, Visa uses Reason Code 10.4 (Other Fraud—Card Absent Environment). The codes function similarly but operate under different rule sets.
Can I win a 4837 chargeback?
Yes, but it depends on the evidence. If you have strong proof of cardholder authorization, successful 3DS use, or a clear history of legitimate transactions, your chances improve significantly.
Is 3-D Secure enough to stop 4837 disputes?
It can help, but it’s not foolproof. It can shift liability away from you in some cases, but it won’t stop every fraud dispute, especially if there’s suspicion that the merchant is complicit or negligent.
What happens if I don’t respond to the dispute?
You automatically lose. The transaction amount is debited from your account, and it counts against your chargeback ratio.
Conclusion
Mastercard chargeback reason code 4837 is a fraud-related dispute that can hit hard, especially if you sell digital goods or operate in a high-risk vertical. Understanding what triggers it and how to fight it is key to protecting your revenue. Don’t wait until you’re swamped in disputes to tighten your fraud prevention tactics.
Be proactive. Be clear. And always keep receipts.
Seeing More Fraud-Related Chargebacks Than Usual?
If your team’s wasting time chasing fraud claims instead of scaling growth, it might be time for a smarter approach to chargeback defense.
Chargeblast helps businesses like yours streamline dispute resolution, detect friendly fraud patterns, and act before issues turn into losses.
Want to stop reason code 4837 from draining your revenue? Request a demo or get started today and see how real-time alerts and smarter workflows can keep fraud from winning.
