Hello,

I work for a third-party vendor processing chargebacks for a Mastercard issuing Credit Union. We've recently been asked to process chargebacks where we know we do not have a valid CB right, with the direction of "let the merchant represent". I have my own ethical concerns with this approach, but I'm trying to locate documentation from MC that states this is against the rules. I've reviewed the "Mastercard Rules" as well as the "Security Rules and Procedures", but have not been able to find anything regarding knowingly processing invalid disputes. I can not ask our Mastercard representative, as it will out our client.

Any direction is most appreciated.

Thank you.

Is there no way to ask in a generalized manner?

Mr. Representative, we've had situations where institutions are requesting invalid chargebacks. These are invalid because of reason A, reason B, and reason C. Are we obligated to process?

I know it's not a direct answer, but that's the best I can offer. Good Luck! (Though I would be curious to know the final answer).

They are our only Mastercard client. Everyone else is Visa, so asking at all is going to make it obvious which issuer we're talking about.

Speak with your supervisors and explain your concerns. Maybe notify the credit union directly about the moral and ethical concerns your have. I'm making the assumption here that the CU employee(s) are aware these are invalid requests. If the employee(s) don't know, then perhaps this is a way for you to let them know.

I'm one step below the C suite, and the request is coming from CU leadership. We've shared our concerns, but they continue to push forward due to "High value members". I'm hoping I can find something within the MC docs that will explicitly call out filing bad chargebacks.