Other Fraud—Card Present Environment. SolutionsChargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. A chargeback happens when a customer requests for a transaction to be reversed. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. We also included the reason code descriptions and an indication of when the allowable time frame begins. 4846. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Now, compliance cases go through Visa Resolve Online (VROL). The shorthand description is “Credit Not Processed. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. Check with the issuing banks to determine what time limits may apply to you. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. A new chargeback notice is created. Mastercard Chargeback Reason Code 73: Duplicate Transaction. The cardholder initiates contact with their bank or credit union to file a dispute. Mastercard Chargeback Reason Code 71: Disputed Amount. M10. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. ” This. In fact, the total costs of chargebacks exceed $30 billion per year, which is more than the revenue of many Fortune 500 companies, like McDonald’s and Netflix. Transaction unauthorized make up 30% of all. ” This code indicates an unauthorized charge was made to a chip-and-PIN card in a card-present transaction. Use clear and consistent billing descriptors. Write customer-friendly policies. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. 10 Tips to Prevent Fashion Chargebacks. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. M10. 0: Updated report version from 1. Chargebacks: Your Guide to Reducing Hassle and Cost. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. The same is true of all chargeback reason codes. Merchants who believe they have received an invalid chargeback under reason code 13. 1 Goods and Services Related Issues 1. Step 2: Customer initiates the chargeback. Collect Compelling Evidence. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Subsection5. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. What is Visa chargeback reason code 10. Pages 124 This preview shows page 90 - 93 out of 124 pages. All card brands have their own number of codes). If you’re not, there’s a good chance you’re about to see a high volume of chargebacks with “fraud” reason codes come pouring in. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Read the Chargeback Advice letter carefully. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. 0 only applies to reason code 10. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. American Express chargeback reason code C42. Try Shopify free for 3 days, no credit card required. Fraud. But friendly fraud is much more ambiguous. 3? Visa chargeback reason code 13. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. 5 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. The good news is that most of these invalid claims are disputable by the merchant. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. 1? Visa chargeback reason code 10. The following chargeback reason codes are related to EMV: Visa: 10. You should place a Code 10 call when. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. pdf - Free download as PDF File (. Unauthorized returns (R05, R07, R10, R29, R51): 0. 4540. Try Shopify free for 3 days, no credit card required. If you leave this processing. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Written by Chargeback Gurus. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. In that way, winning one dispute may help prevent the next chargeback to come after it. The reason codes are grouped into several broad. Visa - 10. However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Product or service issues; Returned merchandise; Non-receipt of merchandise or services; Credit not. Code 4807: Fraudulent Card-Present Transaction. Chargeback Reason Codes by Industry. 9808 info@chargebacks911. Assemble Your Evidence. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Only an issuer can initiate the chargeback process. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Chargeback Reason Codes by Mesh - 2023 Guide. message. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. Chargeback. MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. The main chargeback reasons look like this: Malicious fraud. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. 9% with at least 100 total disputes. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). Chargeback Reason Code . reasonable and that the transaction did not exceed this amount range. Reason codes. The merchandise was as described or was not defective. If the customer’s story matches. 6. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. Reason Code. FR2 Fraud Full Recourse Program. 5, and all aspects of chargeback reason codes, with proprietary. You must tailor your representment case — including the compelling evidence — to the reason code under. The status of the claim is set to S1 in the DDR. Save finalize leaders includes the chargeback good codes off each of the four major card networks. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The assigned chargeback reason code outlines why a customer submitted the dispute. 1 falls under the “Fraud” category. 196First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. 3 Changed Discover Reason Codes to match what is shown in the UI. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. 1 Chargeback. The chargeback fee debit appears in the STL as T0106. com; Europe; Vantage House;Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Chargeback. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. There are multiple situations in which this can occur. 60 due to merchandise, fees, overhead, and other sources of loss. There are two types of invalid chargebacks. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. Invalid Authorisation (ISO 4521) / Charge amount exceeds Authorisation amount (A01). For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. The transaction amount and authorization number (ARN. If a chargeback is issued, the cardholder’s bank reverses the fraudulent charge by giving them a provisional credit. 3 applies when a cardholder claims a charge—made in a card-present environment—was. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. American Express chargeback reason code M10 falls under the “Inquiry/Miscellaneous” category. Every time a merchant processes a transaction, they are supposed to send an. Once you hear from. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Standard Threshold: Reaching a chargeback ratio of 0. Late Presentment Rules: Mastercard. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1Chargeback. The terminal action codes are in Table 122 of the 4. 2 Added chapter providing information about the DiscoverUse fallback options—like manually entering transaction data—as a last resort. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 4 Fraud – Card-Absent Environment. Discover uses unique codes to explain those reasons to merchants. Which definitely guide includes the chargeback motive. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. 3. Credit not processed for cancelled or returned goods and services 2. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. Chargeback . FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. “Late Presentment” is a reason code description for three of the four card brands (reason code 12. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment. Field name: reasonCode. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. 11, 16. FR4 Immediate Chargeback Program. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. 634. Merchants who believe they have received an invalid chargeback under reason code 10. While there are many chargeback reason codes, all chargebacks fall into one of three categories:What is Visa chargeback reason code 10. Documentation must be a direct result of cardholder communication. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. This chargeback occurs when merchants do not adequately provide currency information. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Apparel retailers and suppliers must proactively address chargeback issues. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. Message. . Chargebacks from all three categories can show . 1. This may be done by either the merchant or the issuing bank. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. The list of chargeback reason codes in this article. com Europe. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. Reason codes are very crucial to assist. 2. Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Each chargeback comes with a code that designates the reason it was filed. It’s generally more efficient to take a proactive stance when it comes to chargeback management. How you respond is determined by the chargeback reason code: Embed This Graphic. Some credit card companies also include a short phrase describing the code and chargeback. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. The Chargeback Reason is fraud-related and the Chargeback Notice identifies that one of the below chargeback codes (each, an "Acceptable Reason Code") applies: Acceptable Reason Codes. Reason code 83 represents a chargeback categorized as. Reason Code. 9905. 103. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. . UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)These chargebacks occur to resolve chargeback-related disputes between network members. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. 5. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. United States. Chargeback Reason Codes. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). ’With an eCommerce transaction, 3-D Secure technology works like an online PIN code. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. If the order was genuinely not as described, then the cardholder has a case. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Updated August 23, 2023. Solutions. 10. If the merchant has a signature showing that the order was delivered, or evidence that the. 3. F01. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. Duplicate Processing - 81These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. These may impact the dispute time limits. A reason code is an alphanumeric code selected from a predetermined list by the issuing bank to indicate the reason the cardholder gave for requesting a chargeback. 3. September 2011: 5. This can be transaction receipts, proof of. Most reason codes apply to any merchant, regardless of what’s being sold. 46 4. 9808; info@chargebacks911. 2. Administrative returns (R02, R03, R04): 3%. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Your firm needs to embrace a customer-centric approach focused on transparency and. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. Now, the cardholder claims the purchase was unauthorized. Pursuant to the Fair Credit Billing Act. What Are Chargeback Reason Codes?. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. 196First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. Let’s say you got a Visa chargeback with reason code 13. They are provided to the merchant by the issuing bank, and they help all involved parties categorize disputes and determine next steps. And chargeback guarantees aren't without. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. 1. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. The 12 calendar day response time period begins from the dispute filing date in the DDR. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. 4 chargebacks. As we touched on earlier, chargebacks can happen due to technical errors. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. If you don’t reply in time or with . Info Us; In and. It’s even more frustrating if you don’t understand what the chargeback code means. The system does not accept blank as a value, even if it is defined in the user defined code table. 5%. Chargeback reason codes. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. There are plenty of reasons as to why this would happen, hence the many. Contact us here or call us at 1. Documentation must be a direct result of cardholder communication. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to. In short: yes. Visa chargeback reason code 75 is filed as an honest mistake. Always ask for authorization regardless of the transaction amount. Paymentology will submit the chargeback using the appropriate chargeback reason code. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. By entering your email, you agree to receive marketing emails from Shopify. It is very similar to: Mastercard's 4853- Defective/Not as Described Reason Code. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. Date Option. Let’s say you got a Visa chargeback with reason code 13. Understanding these codes is essential because they'll guide your response strategy. Each reason code has its own set of regulations regarding: Proper and. Thanks for following the Chargeback Gurus blog. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. 2. 1: goods not received. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. 1. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 1 EMV Liability Shift 10. An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. FAQ: What remains Chargeback Representment? TIPS. The chargeback transfers funds from the acquirer to the issuer. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. 2. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. By entering your email, you agree to receive marketing emails from Shopify. 975. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. Include any terms relevant to the transaction, including return, cancellation and. All online retailers have to deal with at least some false positives. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. 1=1010,. It is important for the merchant to know about the American Express Chargeback Reason Codes when dealing with a chargeback. A “No Authorization” code chargeback can also be the. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. While creating the reason codes, the. Plus, get valuable tips to prevent and fight chargebacks with greater accuracy. The shorthand description is “Goods/Services Not as Described. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Specify the default reason code that you want the system to assign when you enter a chargeback amount. [noun]/* chahrj • bak • rə • pôrt/. message. Fraudulent TransactionsEvery chargeback comes with a reason code. This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. Updated the following columns - card type, response due date. You’ll put that reason code, the transaction amount and authorization number, and state that the. This may be done by either the merchant or the issuing bank. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. The sales receipt and/or date and amount of the authorization if other than the transaction date. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Now, compliance cases must be submitted through Visa Resolve Online (VROL). Reason Codes: 08 / 20 / 71 / 72 A card was used either before or after its valid date Never process a transaction on a card prior to, or after, the valid date. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. Eligible Chargeback Reason Codes . The shorthand description is “Vehicle Rental – Capital Damages. UA02 Fraud – Card Not Present Transaction. If more information is needed, you’ll either receive an Inquiry or a Chargeback. Once you hear from. . Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Regardless, merchants must respond to the given reason code. Mastercard Chargeback Reason Code 71: Disputed Amount. Chargeback reason codes. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Representment Documentation. If more information is needed, you’ll either receive an Inquiry or a Chargeback. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. ; Help Center Find answers to common questions about Midigator’s technology,. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Scenario 2. The system does not accept blank as a value, even if it is defined in the user defined code table. 4853 – Cardholder Dispute – Goods or. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. txt) or read online for free. Responding to Mastercard Reason Code 4853 Chargebacks. What is Visa chargeback reason code 12. Here are the two possible scenarios: 1. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. A reason code is an alphanumeric code that explains the reason behind the dispute. 4846 — Incorrect Currency Code. Visa, MasterCard, and American Express all list compelling evidence by reason code. 2. underlying your chargeback. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. 3? Visa chargeback reason code 13. Chargeback Reason Codes All received credit card disputes include a reason code. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of payment and was 4853 – Cardholder Dispute – Credit Not Processed. That suggests that in the times when merchants. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). So don’t spend another second worrying about chargebacks. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. 2. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Specifically, these updates only pertain to transactions that are charged back after Oct. com. 00 EUR as a Withdrawal fee. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. 5 Categories of Visa Chargeback Reason Codes. Merchants. Different card networks have different reason code systems.