Understanding Mastercard Chargeback Reason Code 4846: Correct Transaction Currency Code Not Provided

Cardholders raise Mastercard reason code 4846 when they believe a payment was converted into another currency without consent. The dispute often appears in cross-border sales and dynamic currency conversion. Mastercard has merged this dispute type into Code 4834, but disputes sometimes appear under the old code.

Key Takeaways

• What it means: The cardholder says the payment used the wrong currency or an unauthorised conversion.
• Causes: Wrong currency code, automatic dynamic currency conversion, staff mistakes, or friendly fraud.
• How to respond: Supply proof of the correct currency code, cardholder approval, and the exact amount charged.
• How to prevent: Quote prices in the buyer’s currency. Ask before applying the conversion. Train staff on correct procedures.

What is a Mastercard Reason Code 4846 Chargeback?

Note: Reason Code 4846 has now been discontinued and is included under Reason Code 4834. However, the advice below is still relevant to Reason Code 4834 chargebacks relating to incorrect currency codes.

Reason code 4846 sits in Mastercard’s “Point-of-Interaction Error” group. It applies when the cardholder claims the correct transaction currency code was not provided. In practice, the buyer argues that they did not agree to the currency shown on the statement or to the exchange rate applied at the point of sale. 

The dispute may stem from in-store or online purchases, and it usually involves at least two currencies. Unlike pricing errors, this code focuses on currency notation. A shopper can object if the merchant used the wrong ISO currency code or switched to another currency without permission. For example, a tourist pays £100 for goods in London. The terminal silently runs a dynamic currency conversion into US dollars. When the statement arrives, the amount is higher due to the conversion spread. The cardholder files a 4846 claim, stating they never chose USD billing. 

Mastercard rules give issuers the right to debit the merchant while the matter is reviewed. Merchants can fight the chargeback if they can show the shopper approved the currency before authorising the payment.

Primary Causes for a Code 4846 Chargeback

Most 4846 cases trace back to merchant error. A cashier may pick the wrong currency on the terminal. An e-commerce site might default to a home-market currency even though the shopper selected a different one at checkout. Automatic dynamic currency conversion is another trigger. Some terminals prompt “Pay in your home currency?” but staff click “Yes” without speaking to the customer. 

Others apply conversion by default, breaching Mastercard rules that require clear consent. Card scheme regulations also state that any fees tied to conversion must be visible before acceptance. If they are hidden in fine print or appear only on the receipt, a dispute is likely. Friendly fraud plays a part as well. Travellers sometimes forget that they chose conversion, then object to the higher total once they review the bill. 

Chargebacks may also arise when exchange rates change between authorisation and settlement. This may make the posted amount higher than expected. Finally, simple data-entry mistakes—such as entering “USD” instead of “EUR” can cause this dispute. By tracking these root causes, merchants can refine procedures and protect revenue.

Time Limit for Disputing a Mastercard Reason Code 4846 Chargeback

The timetable for 4846 follows standard Mastercard cycles. Issuers have 120 calendar days from the settlement date to raise the dispute. Once the chargeback appears, the acquirer relays it to the merchant. From that point, the merchant has 45 days to respond. A timely, accurate reply is key. Late or incomplete submissions are usually rejected without review. Evidence must be concise. Mastercard does not allow extra rounds of clarification outside the set windows. If the claim is ignored or answered after the deadline, liability remains with the merchant. 

Merchants, therefore, need internal alerts that flag new chargebacks the moment they arrive. Automated workflows that collect receipts, order confirmations, and currency disclosure screens save time. Tracking the countdown is especially important for cross-border sellers. Shipping delays might push delivery documents close to the expiry date. Keeping clear logs of authorisation, settlement, and refunds helps when reconciling timelines. Adhering to the strict 45-day limit is one of the simplest ways to fight 4846 effectively.

What 4846 Means for Consumers & Issuers

For consumers, reason code 4846 acts as a safety net. It lets them dispute unexpected exchange rate costs or billing in an unfamiliar currency. This builds trust in card payments, especially while travelling. Issuers must balance that protection with fair treatment for merchants. They review the cardholder’s claim, confirm that the statement amount differs, and decide if the code applies. If so, they debit the acquirer for the disputed sum. Issuers also monitor patterns of repeat claims that might signal friendly fraud. They are required to reject a dispute if clear cardholder consent to currency conversion is shown. 

Education is also part of the issuer's role. Cardholders need to know the difference between an authorisation total and a final settlement figure. They also need to understand how currency choices and exchange rates affect them. Clear statements and mobile app alerts can reduce unnecessary disputes. When a 4846 case is valid, issuers reclaim the funds and credit the cardholder swiftly. When it is not, they must side with the merchant. The code serves as a check-and-balance tool within the payment system.

What 4846 Means for Merchants

For merchants, a 4846 notice signals potential loss of funds, extra fees, and operational overhead. Each chargeback includes a network fine that erodes margins. The reversal also skews sales data and can push a business toward monitoring programmes if ratios climb. Moreover, repeated currency errors can harm brand reputation among international customers. Merchants who rely on tips, hotel bookings, or car hire are especially exposed. A single mis-clicked terminal prompt can wipe out the profit on a small sale once fees and labour are added. 

The dispute also highlights gaps in staff training or checkout design. On the bright side, 4846 is often winnable. If the merchant has a signed receipt that displays “Currency: USD” next to the approved amount, the representment stands a good chance. Keeping tight control over foreign currency procedures limits risk. It also helps protect revenue by preserving legitimate sales. Online stores can add currency selectors and upfront exchange quotes to reduce dispute rates.

How to Respond to a Code 4846 Chargeback

The first step is to review the chargeback packet for accuracy. Confirm that the card number, date, amount, and currency match your records. If the dispute stems from a simple entry error, a correction and a refund in the proper currency may solve the matter. When you intend to fight, gather evidence straight away. You will need the transaction log showing the ISO currency code, the authorisation response, and the settlement record. Attach the checkout page or terminal screen that displayed the chosen currency. Include any signed receipt or digital acceptance check box. 

If dynamic currency conversion was offered, include the opt-in screen with the mark of approval. Explain that the cardholder agreed to pay, reference the correct code, and state the amount in both currencies if applicable. Keep wording clear and avoid adding unnecessary documents; Mastercard often rejects bulky files. Submit the packet through the acquirer within the 45-day limit. After filing, monitor the case. If the cardholder has already been refunded, supply proof to prevent duplicate credits.

Proactive Prevention: The Ultimate Defence

Prevention starts with clear currency rules. Quote prices in the shopper’s billing currency whenever possible. If you offer conversion, make it optional and gain active consent. Train staff to read terminal prompts aloud and wait for the customer’s answer. For online stores, ensure currency selectors are clear. Update totals immediately when a new currency is selected. Display exchange fees before checkout, not after. For extra security, try out Chargeback.io. This is an early-warning service that flags incoming chargebacks. A quick response lets you refund or clarify where possible, avoiding hits to your ratios.