chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Fight; Prevent;. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. 2: No Authorization Legacy Code: 71. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. 2 Declined Authorization. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. You may know that every dispute you receive is attached to a chargeback reason code. in. 11. 1: goods not received. 1 Card Recovery Bulletin or Exception File. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Support; Login. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Chargeback reason codes. CHARGEBACK REASON CODESIn Merchant News and Info, Credit Card Processing Chargebacks are a part of business life. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. The following chargeback reason codes are related to EMV: Visa: 10. The aim of CE 3. Chargeback. UA06 Fraud – Chip and PIN Transaction. Visa chargebacks can be a major inconvenience for merchants. Spot these types of chargebacks using. The cardholder claims they were charged multiple times for a single transaction. For example, Mastercard has a code which indicates a ‘consumer dispute. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. There is a violation of a Visa or MasterCard rule, for which there is no chargeback reason code. Field name: reasonCode. Below is a list of Mastercard chargeback codes used in eCommerce. In order to fight a chargeback effectively, however, you'll need to know the reason code. Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s. You win, but a second dispute is filed: The issuer has the right to file a second chargeback for the same transaction. We also included the reason code descriptions and an indication of when the allowable time frame begins. Non Matching Account Number. Each chargeback is disputed by a specific reason code. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. VCIPayments; NMI;. What is a chargeback? March 10, 2023. 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. Solutions. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Here are some steps you can take to handle chargeback requests: 1. Specify the default reason code that you want the system to assign when you enter a chargeback amount. This extra step can be frustrating for Card Members and lead to lost sales. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. Whenever an incorrect account number is processed, or the. Thanks for following the Chargeback Gurus blog. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. Reason codes. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Please note that the most common Chargeback reason code for Allocation disputes is 10. 4853 – Cardholder Dispute – Credit Not Processed. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. A few days later, the same order, but with a different chargeback code of 98-Compliance Chargeback CB_RTM. Others require banks to wait for a certain period before they can issue a chargeback. There are over 80 unique return codes, each representing a different return type. The sales receipt and/or date and amount of the authorization if other than the transaction date. 4808 Authorization-Related Chargeback. Choose the representment amount. Updated Disputes/Chargeback Policy Coming April 2024Section5. The codes also appear on financial reporting associated with disputes. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. United States. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. Reason codes are very crucial to assist. 6). Versions Affected: v5, v6. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Chargeback reason codes. . Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity 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. Issuing banks follow standard rules to validate a chargeback and then associate it with a specific reason code according to the evidence that was provided. Try Shopify free for 3 days, no credit card required. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 65 - Withdrawal limit exceeded: The transaction would exceed the. Mastercard Chargeback Reason Codes. 2. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Regardless, merchants must respond to the given reason code. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Reason codes vary by card brand. According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. Protect cardholder data. Reasons for a second filing might include the discovery of new information or a change of the reason code. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. . Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. What is the chargeback reason code? The reason code is an alphanumeric 2 to 4-digit code provided by the issuing bank that identifies the reason for the dispute. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. 4808: This code can refer to: Account Number Not on File. Visa Chargeback Reason Codes; MasterCard. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. The reason code. 0900 (-1. These numeric codes vary via card brands, yet all hypothetically fill the same need: to provide explanation behind the chargeback dispute. Encrypt transmission of cardholder data. Our research suggests that friendly fraud will represent 61% of all chargebacks by 2023. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. 1: Use the corresponding dates from the invoice. Section5. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. United States. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. EMV has been a mostly global standard since 2004. A reason code or a chargeback reason code is a string of symbols (numbers and letters). This code helps you identify the exact cause of the dispute. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Step 4: Card Network Collects Dispute Information. 00. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Protect cardholder data. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. 98: Other: Good Faith Collection: 99: Other:Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. 77. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. There are plenty of reasons as to why this would happen, hence the many. An XCK entry may be returned up to sixty days after its Settlement Date. Both EFM and ECM measure compliance at the MID level. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: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. See moreChargeback reason code 98 was used to describe any exception that fell into that category. Today, we at Chargebacks911 are proud to call ourselves the industry’s leading name in end-to-end chargeback management. 1 EMV Liability Shift 10. MASTERCARD 98 Good Faith Collection Other NO YES MASTERCARD 99 Pre-Compliance Other NO YES Chargeback Reason Codes Page 2 of 5. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include. The scammer claims to be from the bank, and is seeking to confirm a specific transaction, which the victim denies. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. 11/03/15 Updated these MasterCard. 1, "Compelling Evidence for goods/services not4846 — Incorrect Currency Code. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. That said, looking up purchases using this number can make it easier to provide info following an. 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. 1 chargeback: 1. Each response needs to be unique. The exact time frame will vary based on factors such as the reason code or the card network. Currently, the MCC guidelines are maintained by the International Organization for Standardization. 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 recurringConcerning Native Expres chargeback reason codes. 1 falls under the “Processing Errors” category. . The list of chargeback reason codes in this article. Visa Chargeback Reason Codes. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. Cardholder-Activated Terminal (CAT) 3 Device. The most effective chargeback professionals can deliver customized solutions for chargeback management with every facet of your dispute process. You’ll put that reason code, the transaction amount and authorization number, and state that the. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 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. While there are many chargeback reason codes, all chargebacks fall into one of three categories:The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 1UA01 Fraud – Card Present Transaction. 9808 info@chargebacks911. In some cases it can be upwards of 540 days, though, depending on the reason. MasterCard: Reason Code 4859 Services not rendered. Clearing. Vantage HouseChargeback Reason Codes; BIN Lookup; ROI Tool; Company. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. Clerical There are over 80 unique return codes, and each one represents a different type of return. 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. 6). 8% with at least 1,000 total disputes. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 4 Funding Process. This chargeback occurs when merchants do not adequately provide currency information. The specific reason for the decline shouldn’t be reported to the customer. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Updated August 23, 2023. Please refer NPCI OC- 93 for details. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 11. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. A08 Authorization Approval Expired. Please see the below “cheat sheet” for the new 4 byte reason codes. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Faxing and Mailing Agencies: There is a violation of a Visa or MasterCard rule, for which there is no chargeback reason code. ). 1 The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. Some credit card companies also include a short phrase describing the code and chargeback. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. High-Risk (Excessive): Reaching a chargeback ratio of 1. The chargeback filing period for cardholders is usually 120 days. F02. 4 – Other Fraud, Card-Absent Environment. Across open networks and include account numbers sent over email, instant messaging, text, or chat. Chargeback /Dispute; Merchant Response. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 3? Visa chargeback reason code 13. 634. 99. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For defective or “Not as Described” reason codes. The claim often, but not always, involves automated teller machines (ATMs). These codes are established by the payment brands to categorize the incoming dispute requests by reason. The situation grows more tenuous when you realize most of those chargebacks were likely the result of friendly fraud. At Visa they used to receive reason code 98. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. How long can the issuer wait to file a chargeback? A good faith investigation can be launched up to two years after the original transaction. The reason for the dispute was false or inaccurate. These chargeback reason codes are broken down into four categories: fraud, authorization, processing errors, and service disputes. Now, 10. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. 3 – Other Fraud, Card-Present Environment 10. August 2021 Marks the 10 th Anniversary of Chargebacks911®. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. Chargeback reason code. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingChargeback Reason Codes All received credit card disputes include a reason code. Issuer Review; Allocation. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. 4. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. Category. Reason codes are important to help merchants address recurring. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Here’s how your store can prevent and deal with chargebacks. ”. Required Authorization Not Obtained. The chargeback transfers funds from the acquirer to the issuer. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Learn about the different chargeback reason codes and what they mean. For most cardholders, the easiest way to dispute a charge is to contact their issuing bank through their preferred customer service channel. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. processed the transaction correctly. 4. 4 spec (Section 8. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. 0 and its benefits; Difference between current and. Fraud 10. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. 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. Chapter 2 1. However, Visa is the largest card brand in both the United States and the world. Visa, MasterCard, and American Express all list compelling evidence by reason code. 1. The customer regrets their purchase. Which is meant to know the reason for the dispute. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. And according. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. The cardholder wins: The bank upholds the chargeback, and the funds are not returned to your account. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. 3 Changed Discover Reason Codes to match what is shown in the UI. R13 No Reply. This list was generated 5/4/2022. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. 3 No Authorization. Reasons for a second filing might include the discovery of new information or a change of the reason code. Thus, the easiest way to prevent chargeback reason code 75 from being. A reason code will be provided. Step 2: Find your case. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Retrieval Request/ Copy request Reason Codes. Check with the issuing banks to determine what time limits may apply to you. On xx/xx/xxxx, we received a chargeback under the reason code 11. Chargebacks were introduced as a form of consumer protection against. A chargeback happens when a customer requests for a transaction to be reversed. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. Incorrect transaction amount or account number. com Europe. 14. 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. 4812 Account Number Not On File. A chargeback happens when a customer requests for a transaction to be reversed. Card Type Reason Code Reason Text. [noun]/* rēzən kōd / 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. It was originally just one facet of legacy reason code 81. removing certain restrictions from chargeback reason code 4849 that will allow issuers to exercise their chargeback rights resulting directly. 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. M49 Vehicle Rental – Theft or Loss of Use. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Chargeback reason code 11. To help you identify what happened, look up the code you received for the dispute below. For example, a thief takes someone’s card data and makes a purchase at a store. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. As a merchant, you face the brunt of chargeback losses. [2] JUSTT. M01 Chargeback Authorization. Code 10. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. g. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. Discover: Reason Code 4755 Non-receipts of goods or services. Step 2: Customer initiates the chargeback. It depends on the chargeback reason code associated with the dispute. The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. A02 No Valid Authorization. 9808 [email protected] immediately identifies a chargeback as being the result of first-party misuse. There are two parts to this. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. The most comprehensive guide to chargeback reason codes. 5 Ways I’m Using AI to Make Money in 2023. Processors handle exception items outside of the chargeback management system, however the merchant will see them designated as a chargeback, with an assigned reason code (e. Everyone has had the experience of buying. FR2 Fraud Full Recourse Program. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. g. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. Each bank card network has its owner list of reason codes banks must prefer from. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. In short, the bank didn’t have a. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. Customer Dispute. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. However, the 30 day waiting period can be waived if you’ve. 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. 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: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. 1: Use the corresponding dates from the invoice. Instead, it needs to be presented as a generic decline. “Credit Card Chargebacks – A Merchant’s Guide“. 4: Other Fraud–Card-Absent Environment. Technical. Each chargeback comes with a code that designates the reason it was filed. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. Please refer to chapter 5 for more information. It can range from 60 to 120 days from the billing date. WEX began issuing chip cards in Q4, 2020. In most cases, disputes need to be filed within 60 days. Accessed October 31, 2022. Some payment service providers like PayPal and Stripe have their own reason codes as well. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. PCI DSS v3. 6. Availability Date: October 24th, 2021. Any time. . 3. 9% with at least 100 total disputes. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. But friendly fraud is much more ambiguous. For QSRs, which deal in a large volume of relatively small transactions, the financial impact of a high chargeback rate can be severe. UA01 Fraud – Card Present Transaction. 4. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. 1. These companies can also handle the entire representment process. 3. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. S. Specifically, these updates only pertain to transactions that are charged back after Oct. A02 No Valid Authorization. Also, remember that the time frame for your response includes any processing required by the acquirer. About American Express chargeback reason codes. For perspective, the next highest. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. These are only a handful of common Visa chargeback reason codes. A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. Specify the invoice date and net due date that you want the system to assign to chargebacks. . Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the cardholder's account. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes.