Understanding Mastercard Chargeback Reason Code 4859: Addendum, No-show, or ATM Disputes

Mastercard Reason Code 4859 covers two scenarios: ATM payout errors and unexpected additional fees for addendums or no-shows. Causes range from merchant error to hardware or software faults and friendly or actual fraud. While this code has now been merged under reason code 4853, it may appear on some chargeback notices.

Key Takeaways

• What it means: The cardholder claims an ATM payout error. Or, an unapproved addendum or no-show charge.
• Causes: Mechanical faults. Software glitches. Unclear policies. Counting mistakes. Deliberate fraud.
• How to respond: Supply clear evidence of ATM logs or customer consent to policies.
• How to prevent: Keep machines serviced. Spell out policies in writing. Monitor balances daily. Use chargeback alerts.

What is a Mastercard Reason Code 4859 Chargeback?

Note: Reason Code 4859 has now been discontinued and is included under Reason Code 4853. However, the advice below is still relevant to Reason Code 4853 chargebacks relating to ATM errors or additional fees.

A Mastercard reason code 4859 chargeback falls under the “Cardholder Disputes” group. It arises when a cardholder believes they were charged but did not receive the matching value. The most common scenario involves an ATM withdrawal where the device debited the account. However, it failed to dispense the right cash amount. The same code also covers addendum or no-show fees when the cardholder says the fee was never approved. 

In each case, the issuer reverses funds to safeguard the cardholder, pending proof from the merchant or ATM owner. While Mastercard has merged many older codes, 4859 may still appear and needs accurate treatment. A solid grasp of what it means helps acquirers, merchants, and operators keep disputes low, cut losses, and maintain trust in the network. Knowing the definition gives immediate direction on what documents will settle the matter and how long each side has to act.

Primary Causes for a Code 4859 Chargeback

Several root causes can trigger this claim. First, hardware failure can make an ATM jam, miscount notes, or retract cash after a timeout. This leaves the user empty-handed while still being debited. Software faults or network drops can log a completed transaction even though the cash slot never opened. A merchant may apply a no-show or addendum fee without clear advance notice. This leads the cardholder to dispute the entry on their statement. 

In other cases, the customer may miscount the notes, lose some money on the way, or forget accepting the fee, sparking friendly fraud. Genuine fraud also exists, where the cardholder knowingly files a false claim to gain cash. Unclear or missing refund steps can cause frustration. A customer may then file a chargeback rather than wait for merchant support.

Time Limit for Disputing a Mastercard Reason Code 4859 Chargeback

Time limit rules decide who keeps the funds. For reason code 4859, the issuer must raise the chargeback within 120 days of the transaction or of the date the cardholder should have received cash, whichever is later. Once the acquirer receives the notice, the merchant or ATM operator normally has 45 days to reply. Failing to act in that window almost always ends the case in favour of the cardholder. 

Speed, therefore, matters. Merchants should retain ATM audit tapes, electronic journals, and policy agreements for at least six months to ensure that these documents are readily available when needed. Clear internal alerts that flag large or repeated 4859 claims also help teams react before the deadline. Setting diary reminders, automating dispute inboxes, and using acquirer portals daily are simple but effective ways to meet Mastercard’s deadline. Respecting the time limit shows professionalism and gives the best chance to protect revenue through a successful representment.

What 4859 Means for Consumers & Issuers

For consumers, the code exists as a safety net. If cash fails to arrive or a fee looks wrong, the cardholder can contact their bank confident that the scheme rules support a reversal. That reassurance keeps trust high in self-service machines and hotel booking channels. Issuers, on the other hand, must balance cardholder care with fair treatment of merchants. They need to log the complaint, gather the cardholder’s statement, and submit the chargeback only when it meets Mastercard rules.

Incorrect or late filings can bring financial penalties and higher fraud ratios for issuers. Both parties want a quick resolution: the cardholder wants the money back; the issuer wants to close the case and move on. By understanding what it means, issuers can guide cardholders on next steps, request any missing details, and pass a clean, rule-compliant claim to the acquirer. This approach keeps operating costs low and maintains good relations across the network.

What 4859 Means for Merchants

Merchants and ATM operators face direct financial exposure when code 4859 arrives. A single mishandled claim can wipe out the sale or withdrawal value plus added fees. Repeated losses raise dispute ratios, which can lead to monitoring programmes, higher processing costs, or even account termination. Aside from money, the code flags operational gaps: a machine may need service, cash handling may be sloppy, or booking terms may be unclear. 

Each chargeback is, therefore, both a cost and a warning. Merchants who heed the warning can fix faults early and protect revenue in the long term. They also keep their reputation intact; customers remember a smooth fix more than the original error. Merchants should maintain daily ATM balance logs, note dispenser error records, and circulate clear policy wording at both booking and check-in. Training staff to reply politely and quickly to payout questions also helps, often stopping a dispute before it reaches the issuer.

How to Respond to a Code 4859 Chargeback

Responding to a Code 4859 chargeback hinges on solid evidence. For ATM cases, pull the electronic journal or audit tape covering the period ten minutes before and after the disputed transaction. Record the Primary Account Number, transaction type, amount, time, System Trace Audit Number, terminal ID, and dispenser status. If the log shows full payout or an automatic reversal, highlight that entry. Add any internal error report that supports the reading. For addendum or no-show disputes, attach the signed registration card, online checkout page, or any written statement that shows the cardholder agreed to the fee. 

Where a refund was already processed, supply the credit receipt with the bank reference. Package all documents in the acquirer’s required format and submit them within the 45-day window. Keep language factual and concise. Point out any breach of the 120-day filing rule if applicable. Good record-keeping and prompt replies raise win rates and deter future speculative claims.

Proactive Prevention: The Ultimate Defence

The best defence is prevention. Schedule routine maintenance for every ATM. Replace worn belts, load fresh notes, and apply software patches quickly. Match machine balances to host totals daily and act on any mismatch the same day. Publish booking, addendum, and no-show terms in simple text at every stage of the customer journey. Collect explicit acceptance. Train staff to explain fees on the spot. Finally, try out chargeback alerts so you know about inbound disputes as early as possible.