I already refunded the customer. Why did I still get this chargeback?

Usually timing: the refund had not posted when the cardholder contacted their bank, or it went to a different card than the one they were watching. Respond with the refund's ARN, amount, and date so the issuer can match the credit. Never refund again after the chargeback arrives, or you pay twice.

Can a customer file credit-not-processed if my policy says no refunds?

They can file, but a properly disclosed policy is a defense. The policy must have been presented before purchase, near the payment action, and agreed to. Buried terms discovered post-purchase generally will not hold, and for canceled recurring arrangements Mastercard's rules override no-refund language for charges after cancellation.

Mastercard · Consumer Disputes

Reason code 4860: Credit Not Processed

A credit-not-processed claim means the merchant promised a refund, accepted a return, or issued a credit voucher, and the money never made it back to the card. Formerly standalone code 4860, it now lives as a dispute condition under 4853 (Cardholder Dispute). These disputes are largely self-inflicted: the merchant already agreed the customer was owed money and then failed to deliver it fast enough.

Issuer filing window

typically 120 days from the date the credit was due or the merchant's refund promise

Merchant response window

typically 45 days to respond via second presentment

Why 4860 chargebacks happen

A refund was approved in your support system but never executed in the payment gateway, leaving the customer with a promise and no money.
Returned merchandise was received but sat unprocessed past the refund window your policy promised.
A refund was issued to the wrong card or a closed payment method, so the customer never saw the credit post.
The customer canceled within your stated policy and was told a credit was coming, then disputed when it had not posted within a couple of statement cycles.
Store credit was issued where the customer expected, and your policy promised, a card refund.

How to fight a 4860 chargeback

If the credit was processed, provide the refund transaction with its ARN and processing date so the issuer can locate the posting.
If the credit posted after the chargeback was filed, say so explicitly and provide the ARN; do not issue a second refund on top of the chargeback.
If no refund was owed, submit the return policy as disclosed at checkout showing the transaction was final sale or outside the return window, along with the cardholder's acceptance.
For merchandise-return claims, show the return was never received, with RMA records demonstrating no inbound package arrived.
Document what the customer was actually told; a support transcript showing no refund was promised undermines the core of the claim.

How to prevent 4860 chargebacks

Automate the path from refund approval to gateway execution so a promised refund cannot silently fail between systems.
Process refunds within a fixed SLA measured in days, and email confirmation with the expected statement posting timeframe.
Audit pending-refund queues weekly for stuck items, and alert on any approved refund older than your SLA.
Disclose final-sale and store-credit-only terms conspicuously before payment, since undisclosed policies do not bind the cardholder in a dispute.
When a card is closed or expired, follow your processor's guidance for refunding to the original card anyway, as networks route credits to the replacement account.

Frequently asked questions

I already refunded the customer. Why did I still get this chargeback?: Usually timing: the refund had not posted when the cardholder contacted their bank, or it went to a different card than the one they were watching. Respond with the refund's ARN, amount, and date so the issuer can match the credit. Never refund again after the chargeback arrives, or you pay twice.
Can a customer file credit-not-processed if my policy says no refunds?: They can file, but a properly disclosed policy is a defense. The policy must have been presented before purchase, near the payment action, and agreed to. Buried terms discovered post-purchase generally will not hold, and for canceled recurring arrangements Mastercard's rules override no-refund language for charges after cancellation.

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