The chargeback initially results in the debit or credit card charge being reversed and the funds that you received for the payment being returned to the customer. Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Supporting Documents You could potentially reverse a Chargeback by providing the. Description. On the home screen, tap “Disputes. Otherwise, the acquiring bank sends a chargeback notification. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. As we touched on earlier, chargebacks can happen due to technical errors. 2. com. 4. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. List of Chargeback Reason Codes. Chargeback. Submitted: The response has been sent and the issuer is. 3. Other Fraud—Card Absent Environment. 1. 10201. Upfront Chargeback If we determine we have sufficient information to pursue a Chargeback, we may debit your account up front. Expedited Dispute Resolution forms will not be allowed. Get definitive guide includes the chargeback reason codes from all of the to majority card networks. Also, just like American Express, Discover functions as both a card network and an. American Express reason code 155, Visa reason code 30, MasterCard reason code 4855, and Discover reason code 4755 are all specific reason codes for Shopify payment chargebacks. Updated Visa Reason Codes. MasterCard - 4855 Goods or Services Not Provided. Most commonly the payer is a consumer. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Below is a list of Mastercard chargeback codes used in eCommerce. The goal is to reduce. Your establishment is on an Immediate Chargeback agreement with American Express. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud. Please see the below “cheat sheet” for the new 4 byte reason codes. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Save finalize leaders includes the chargeback good codes off each of the four major card networks. As a merchant, your focus should be on finding and retaining customers--not chargebacks. Common reason codes Mastercard. Added the following fields - Store ID, Credit Card Chargeback Reason Code. There is a USD 25 limit for the First Chargeback (Reason Code 22). Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Try Shopify free for 3 days, no credit card required. This can also. ”. FR4:. The incorrect amount being charged. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. Here are some chargeback reason codes by card type. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaChargeback reason code 11. Chargeback reason code 10. 16, 2021. EMV Liability Shift Counterfeit Fraud. 3. All chargebacks start with a customer making a purchase in person, in an app, or online. See the list of reason codes below: Card Network. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. If more information is needed, you’ll either receive an Inquiry or a Chargeback. Provide exemplary customer service. txt) or read online for free. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. Valid Values/Format: 22 - First Chargeback Handling Fee. 196First, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U. The assigned chargeback reason code outlines why a customer submitted the dispute. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. Always swipe the card once in the direction of the arrow shown on the reader. A chargeback can happen when a customer initiates a transaction dispute. Expedited Dispute Resolution forms will not be allowed. The Merchant Reviews the Partial Chargeback Claim. 1. However, it's advisable to respond to whatever reason code you received from the bank. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Documentation must be a direct result of cardholder communication. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. Some credit card companies also include a short phrase describing the code and chargeback. Visa - 13. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. 103. MASTERCARD. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. Updated August 23, 2023. Chargebacks have both short and long-term ramifications for merchants. 2. A08 Authorization Approval Expired. Specifically, these updates only pertain to transactions that are charged back after Oct. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. manual processing by uploading chargeback documents instantly. FR4: Fraud: Immediate Chargeback Program: This is a program that allows American Express to process any dispute immediately as cardholder. Other Fraud—Card Present Environment. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. 3. Having a Lax Attitude Toward Industry Rules & Regulations. Moreover, there are other two categories to handle the Amex chargeback: inquiry and chargeback programs. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Never swipe a card back and forth or at an angle, as it may cause the reader to misread the stripe. FR4: Immediate Chargeback Program. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. A01 | A02 | A08. Every chargeback comes with a reason code. In the distribution industry,. Updated Disputes/Chargeback Policy Coming April 20244853 – Cardholder Dispute – Credit Not Processed. 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). 3: Goods or services were not as described: C31: RM: 13. Codes are not often shared between issuers which means it can be difficult to remember the details of each. 2. processed the transaction correctly. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. 10301. What is Visa chargeback reason code 12. 4 spec (Section 8. American Express Chargebacks / Disputes. 4 –. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. The client will send this dispute to Paymentology’s Global support team via email – [email protected] The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. But, it could be up to 540 days, in some situations. Code Reason (for Visa) 10. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Authorization. One catch is that CE3. Select a tab to see the possible. MasterCard does not have an equivalent reason code. If you get a chargeback,. The cardholder does not recognize your name on their statement. 3. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Documentation must be a direct result of cardholder communication. 104. 1 for Visa transactions, or reason code 4834 for Mastercard. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Complete Guide to Visa Compelling Evidence Update CE 3. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. Goods / Services Damaged or Defective. 0: Changed report name from Downloadable Dispute Report to Case Report. Products. April 2018_Chargeback Reason Code Encyclopedia. FR4 FR6 M01 M10 P01 P03 P04 P05 P07 P08 P22 P23 R03 R13 Select a code to see the details QUICK REFERENCE Time to respond: 20 days from date of chargeback. Chargeback /Dispute; Merchant Response. It is associated with a chargeback reason code, and it is specific per Card Scheme. 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. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. 101. 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. 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. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. Visa recently shortened chargeback time limits from 45 days to 30. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Chargeback. You should be. Number two: Product Not Received chargebacks. 36. 04/09/14 Discover: DC, U02. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. However, the disputes themselves are still categorized by the issuing. 1. Mastercard Chargeback Reason Code 70: Chip Liability Shift. DD: Unearned (disallowed) discount amount. Time Frames by Chargeback Type and Reason Code. When the customer disputes a charge, the issuing bank then begins the chargeback process. 15, 2021. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. AT Authorization Noncompliance. In friendly fraud, the cardholder. The list of chargeback reason codes in this article is organized by card brand and type of dispute. MASTERCARD. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Chargeback time limits vary depending on the reason for the dispute. Reason. Please discontinue all future billings, if. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. The EFTA was first enacted in 1978. April 2018_Chargeback Reason Code Encyclopedia. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Additionally, Amex uses a fifth "Miscellaneous" category. Apparel retailers and suppliers must proactively address chargeback issues. It gets worse. Unfortunately, it is pretty challenging to prevent friendly fraud. Visa chargebacks can be a major inconvenience for merchants. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. A chargeback happens when a customer requests for a transaction to be reversed. Here’s how your store can prevent and deal with chargebacks. The cardholder does not recognize your name on their statement. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Description: Reason code for applying handling fee. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. You’ll earn Membership Rewards points, which you can redeem for any transactions. Here’s how your store can prevent and deal with chargebacks. Summary of Changes, 13 December 2018Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. It is a valuable resource for anyone involved in the payments industry. Chargeback codes Chargeback codes Last updated: August 16, 2023 Below you'll find a list of chargeback codes along with an explanation of what each one. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. The charge was flagged by the Amex Fraud Full Recourse Program. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. The best way to counter them is to know them deeply. Thus, a reason code of one network does not necessarily match with a reason code of another network. ” 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. This list was generated 5/4/2022. Fraud. It was originally just one facet of legacy reason code 81. 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. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. If the conflict can be settled, the acquiring and issuing banks do so. As. Even if the chargeback is later canceled, the merchant will still have to pay fees and administrative costs. 3. Expedited Dispute Resolution forms will not be allowed. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. A02 No Valid Authorization. 104. Receive the Chargeback. Tap “>” beside the charge to see an accurate timeline view of the disputed transaction. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. A08. 4853 – Cardholder Dispute – Credit Posted as a Purchase. However, even if you meet all deadlines and the chargeback request is fully substantiated with documentary evidence, there are three additional obstacles that you must overcome before a credit card dispute can be processed: You have to choose the correct reason code. 0 initiative to update compelling evidence requirements for dispute reason code 10. Write customer-friendly policies. Stage #1: Awareness - be aware of the chargeback response time limitCE 3. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. Card Member cancelled, refused or returned goods and/or services American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and Miscellaneous. Check with the issuing banks to determine what time limits may apply to you. S. 1 Merchandise/ Services Not Received. The network plans to reduce response times even further to just 20 days in the near future. The terminal action codes are in Table 122 of the 4. API Integration: Alipay’s API can be integrated into the website's checkout process for online merchants. While the service is expensive, and only certain merchant processors know how to facilitate this, it might be a viable option for bustling e-commerce businesses as a way do decrease costly. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Reason Code 53: Not as Described or Defective Merchandise. PCI DSS v3. Based on the information provided, Paymentology will investigate the transaction being disputed. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card. Compare account numbers. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. Chargeback Reason Code. First 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. Time Frames by Chargeback Type and Reason Code The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. This will be referenced in the chargeback notice you received. 4807 Warning Bulletin File. There are a variety of issues that can serve as the root causes of a chargeback, ranging from fraud to improper card processing to dissatisfaction with the quality of the goods or services provided. 4. Description. Click “add filter”. 2. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. 2 Declined Authorization. Chargebacks are a problem that is growing worse across the board, and gas station. 7: Defective goods and services: C32: RM: 13. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andAccording to Discover, cardholders officially have 120 days from the date of the transaction to initiate a chargeback, although the network may accept claims filed outside of that window on a case-by-case basis. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. The issuing bank assigns each case a code according to the consumer’s claim, and the merchant must adhere to the time limits for that specific code. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Ensure that the digits of the. See the definitions of the various chargeback codes you maybe receive during the chargeback process. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. Chargeback Reason Codes and Descriptions. The cardholder alleges they never received the products or services. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. These codes are broken down into five different category. 3 No Authorization. Reason Code 11. The merchant generates a QR code for the transaction, which the customer scans using the Alipay app on their smartphone to complete the payment. This can be transaction receipts, proof of. A new 4 byte reason code will be used moving forward. FAQ: What remains Chargeback Representment? TIPS. Chargeback reason codes. Most losses come from friendly fraud, or chargeback, first party, or return fraud. 3. . To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. Complete Guide to Visa Compelling Evidence Update CE 3. The keys to this are improved communication, enhanced customer satisfaction measures, and effective dispute resolution when necessary. Download this sample Chargeback Rebuttal Letter. ”. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Each time a consumer files a chargeback, the merchant is hit with a fee ranging from $20 to $100 per transaction. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 5%. “It’s a lot tougher with Mastercard because they only use four main codes. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F29, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. No Valid Authorization. Reason Code 53 Re-presentment Conditions. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Availability Date: October 24th, 2021. American Express . . For more information on these and other updates, check out our complete chargeback reason. Chargeback Reason Codes by Industry. The chargeback is ordered by the bank that issued the consumer's payment card. Invalid Reasons for a. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. Scenario 1 — upfront chargeback. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. How you respond is determined by the chargeback reason code: Embed This Graphic. Try Shopify free for 3 days, no credit card required. Chargebacks. Visa Reason Code 13. There are four primary phases to a Visa dispute: After Visa. VCR Dispute Reason Code 10. 3. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. This typically. 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. Click the Update Chargeback link to edit the chargeback details. the requested documentation, your account will be debited. Batch chargeback process. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. This is a fairly common chargeback reason that can. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Versions Affected: v5, v6. Truth is, only 30% of chargebacks involve criminal fraud. A “No Authorization” code chargeback can also be the. So the company has more incentive to side with customer during cardholder. Late Presentment Rules: Mastercard. If you don’t reply in time or with . A02. The reason codes are grouped into several broad. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Try Shopify free for 3 days, no credit card required. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. If the available information indicates that the customer dispute is a valid one, American Express will automatically debit your merchant account for the amount of the disputed transaction and will send you a chargeback notification for you to review. C08 - Goods or Services Not Received or Only Partially Received F29 - Card Not Present How to Respond One of the following must be provided in your response: Evidence that. Assemble Your Evidence. You can learn more about each one by visiting the Mastercard Chargeback Guide. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. 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. 105. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. A chargeback happens when a customer requests for a transaction to be. A02 No Valid Authorization. That said, looking up purchases using this number can make it easier to provide info following an. . 1 Merchandise/ Services Not Received. Shopify has four status categories for chargebacks and inquiries: Open: No response has been sent yet and evidence can still be added. 1 EMV Liability Shift Counterfeit Fraud 10. Chargeback Reason Codes by Network - 2023 Orientation. 1=1010, 10. Category. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. 1 Quick Reference Lead. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Transaction unauthorized make up 30% of all chargeback reason codes. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. 60. Chargeback. The Fintech Times. If more information is needed, you’ll either receive an Inquiry or a Chargeback. Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT. Goods and services not as described or cardholder received defective goods or services 3. 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. Click “filter orders”. Updated: Valid values updated. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Reason code 4808 – Authorization-Related Disputes; Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift; Reason code 4834 – ATM Dispute; Chargebacks filed with these reason codes are supported by a great deal. All ACH return reason codes consist of the letter “R” followed by two. Visa - 13. Notification of Fraud. Boy, are chargebacks a pain. The merchant did not receive any returned merchandise. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. Explanation. The merchandise was as described or was not defective. /HealthCare IIAS Auto-sub Data Retrieval Request 70 Int'l only Effective Change Date AMEX F24 FR4 FR5 M01 M04 M10 P01 P04 P05 R03 R13 Duplicate Billing Captial damages M19 Offset adjustment Non-Matching Account Number. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. It gets worse. Updated August 23, 2023. 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. Other Fraud—Card Present Environment. 41 4841 Cancelled Recurring Transaction 53 4853 Not as Described or Defective Merchandise 57 4840 Fraudulent Multiple Transactions 62 4870/4871 Counterfeit Transaction Being familiar with the potential chargeback reason codes gives recurringChargeback or chargeback dispute: A claim against a transaction initiated by a customer with their bank, resulting in a forced payment reversal. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying.