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 is valid. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. 1 applies when the issuing bank receives the same transaction more than one time. Learn about the different chargeback reason codes and what they mean. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. The Visa chargeback reason codes take the form of two digits followed by a dot followed by a single digit. ”. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. What Is Visa’s Compelling Evidence 3. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargeback. Reason. All Rights Reserved. Thanks for following the Chargeback Gurus blog. 13. supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). 4 Funding Process. S. Learn more about chargeback reason codes here: Chargeback Reason Codes: List & Tips for MerchantsAcquirer Use of Message Reason Code 7623. 0, Visa’s goal was to create a set of requirements that, if met, would provide sufficient evidence to deny the customer’s. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. Visa ® has launched the CE 3. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). 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 andOtherwise, the bank may reject the transaction. This chargeback<br />. According to the customer, the product or service purchased was never received or used. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. Either the dispute must be processed within 120 calendar days of: the transaction processing date, or. 7 — Cancelled Merchandise/Services. Visa’s fraud reason codes list dispute reasons from 10. 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. 3 – CBK: Fraudulent Transaction: No Cardholder Authorization 10. 30 (1) 13. Get Reasoning Cipher Cheat Shelf. Using the same link provided above, contact PayPal to report the scam. To Visa chargeback reason codes user underwent one large overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. • Section 4: Chargeback Reason Codes— Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. ” This reason code indicates that the cardholder is disputing the transaction as a duplicate charge. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. In contrast, an AFT is basically the inverse of an original credit transaction, or OCT. Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback. Mastercard chargeback reason codes are four numerals without decimals. The shorthand description is “Transaction Not Recognized. 4853 – Cardholder Dispute – Credit Not Processed. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder. Reason Code (Condition #) New Dispute Condition. Reason Code – 10. Reason code 13. If you prefer to view this in PDF format you can. If the cardholder bases the claim on false or misleading statements, it is considered friendly fraud. In some cases it can be upwards of 540 days, though, depending on. If the cardholder provides a sufficient explanation, the issuer may choose not to reverse the chargeback. may be reversed if merchant can provide proof that the correct fare was quoted to Cardholder; That<br />. V30. There are some exceptions on the cardholder’s side, though. Goods / Services Damaged or Defective. A list of key Visa policies for merchants is also included. SECOND_CHARGEBACK. 1 — EMV. Visa chargeback Reason code 85 is applied when issuing bank gets a notice from card owner that merchandise was return, but merchant hasn’t refunded, and credit hasn’t appeared on bank statement. American Express: Reason Code C08 Goods or services not received. Each chart network—Visa, Mastercard, American Express, and Discover—defines and maintains their own extraordinary set of reason codes, which are applied toward disputes by the banks that issue credit and liability charts under their brands. 0 and its benefits; Difference between current and. 4: Fraud—Card-Absent Environment. ” This reason code indicates that the merchant processed a transaction using the wrong transaction code. Before VCR, Visa reason codes were two-digit numbers that often seemed like they were assigned completely at random. Chargeback reason code 10. Merchants should review these codes, track which ones they receive, and respond to inquiries and chargebacks with the appropriate supporting evidence. Chargeback reason code 4853 is used to designate “Cardholder Disputes,” or disputes involving transactions that a customer claims are incorrect in some way. Merchant processed transaction below floor limit without authorization. All other reason codes are up to 120 days from the transaction date. These codes tell you why the transaction is disputed. 0 program provide the same rules and policies for 3-D Secure 2. 1 Merchandise/Services Not Received. New Visa CE 3. And we know banks and credit cards. M10 Vehicle Rental – Capital Damages. The Visa chargeback reason codings system underwent a major overhaul in May 2018 as part of their new Visa Claims Resolution (VCR) initiative. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. 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 is valid. Reason Code – 13. As you can see above, VISA breaks things down in a manner that helps banks and merchants alike know exactly why a chargeback was initiated. American Express, Discovering,. A CVV2 code is a 3-digit code located on the back of a Visa credit, debit, or prepaid card. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. reason code information. American Express has its own set of chargeback reason codes, and they refer to situations that correspond to Visa and Mastercard reason codes you may already be acquainted with. Visa uses a numeric scheme for its chargeback reason codes. Notification of Fraud. With the overhaul of their reason code system, Visa divided reason. 196message. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. From mid April 2023, Visa will enforce the Visa Compelling Evidence 3. Declined Authorization Authorization Visa Code: 11. 5 and, more or less, associate the dispute with an issue related to a stolen credit card. The main chargeback reasons look like this: Malicious fraud. To return the originalReference in the SECOND_CHARGEBACK webhook: Log in to your Customer Area; Go to Developers > Webhooks. Fraudulent. , all rights reserved, to be used solely for the purpose of providing Visa. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. ”. 13. ”. A MATCH list reason code refers only to criteria for a merchant being added to the MATCH database. Valid Chargeback Reason #1:Criminal Fraud Valid Chargeback Reason #2:Authorization Errors; Valid Chargeback Reason #3:Processing Errors Valid Chargeback Reason #4:Fulfillment Errors; Valid Chargeback Reason #5:Merchant Abuse; Invalid Reasons to Dispute a Charge; Consumer Consequences for Illegitimate Disputes;. 0? Merchants that authenticate transactions using 3-D Secure 1. The shorthand description is “Credit Not Processed. 1: Card Recovery Bulletin:A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 1002 - Cardholder disputes billed amount. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. The shorthand description is “Goods/Services Damaged or Defective. 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 is valid. If using any other currency than this, it should be equivalent to the specified amount. 0 initiative to update compelling evidence requirements for dispute reason code 10. Reason codes vary by card brand. 5, and all aspects of chargeback reason codes, with proprietary. Visa Reason Codes. 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. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 — Updated Special Notes. Reason Code ≠ Reason 4. 13. 4, Fraud—Card Absent Environment. Condition 13. Mastercard: n/a This chargeback is caused by Authorization. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). 1 falls under the “Processing Errors” category. 1? Chargeback reason code 11. Fortunately, all major credit card networks provide clear information regarding chargeback reason codes. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. During this process, the representative of the institution examines the reasons’ list. Mastercard has the second largest payment network in the world after Visa. Visa, MasterCard, and American Express all list compelling evidence by reason code. The cardholder never used the product or service, since they believed the transaction was never processed, and the purchase was. . Paymentology will submit the chargeback using the appropriate chargeback reason code . In general, merchants will have 30 days to respond to each phase of a Visa or Discover chargeback. 2 Compliance Cases Visa Chargeback Reason Code 10. For each reason code, a definition isSome costs come directly from Visa and are set by the network. Some of these reason codes are specifically designated to apply to authorization-related issues. M49 Vehicle Rental – Theft or Loss of Use. 2. Updated Visa Reason Codes. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. Now, compliance cases go through Visa Resolve Online (VROL). Banks should not use code 4859, but some still do. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Use clear and consistent billing descriptors. 4 — other fraud – card-absent environment — asserts the merchant processed a card-absent, card-not-present, or digital payment for a customer who used the. Reason codes Visa dispute reason codes. This scenario applies when the arbitration was raised by either the. 4 Other Fraud – Card Absent Environment 93(1) 10. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. Chargeback reason code 13. Chapter 5: Mastercard Chargeback. Some of the reasons why the order did not reach the cardholder can be as follows: The merchant did not provide the services;Visa Dispute Reason Codes. Visa Credit Card Dispute Process. 5: The chargeback under normal situations should be executed in under 120 days in all religions other than US Domestic. UA02 Fraud – Card Not Present Transaction. With VCR regulations, the risk of breaching fraud-to-sales thresholds increases. PDF 39 KB June 16, 2010. Maintaining a low chargeback rate is easier for retailers if they can prevent chargebacks from. CE 3. ; Resources. Cardholder can dispute transaction up until Day 90 for reason code 4808 on MasterCard (see Appendix for details), Day 60 for reason codes 4801 and 4802 (see Appendix for details). Note the. What is Visa Reason Code 11. It is a valuable resource for anyone involved in the payments industry. Visa uses the four main categories to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Visa: 0028:. Each code has a different timeline. 3 Changed Discover Reason Codes to match what is shown in the UI. This alphanumeric code corresponds with the specific reason behind the chargeback, such as card-not-present fraud, incorrect currency, misrepresentation, or any other chargeback-eligible issue. 2 falls under the “Processing Errors” category. Authorization – Category 11; Processing Errors –Evidence Required. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 4853 – Cardholder Dispute – Goods or Services Not Provided. Four reason codes have modified time frames: Reason Code 10. Visa Fraud Chargeback Reason Codes 10. 2 Incorrect Transaction Code. Chargeback reason code 10. This reason code means that the customer claims to have received goods or services that were damaged, defective, or otherwise unacceptably faulty. Issuer Review; Allocation. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. . compliance process depending on whether a chargeback right exists. It was originally one of several possible scenarios covered by legacy Visa reason code 83. This chargeback occurs when merchants do not adequately provide currency information. 4846. Craft a clear and. Visa is introducing the Visa Compelling Evidence 3. Q. 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 is valid. 2 Other Fraud – Card Present Environment 81(1) 10. However, they must generally wait 15 days after the processing date before they can file a dispute on behalf of the customer. Section 2: Card-Present Transactions: Requirements and best practices. If the bank does file a chargeback, they’ll transmit the dispute information to the merchant’s bank. Below is a list of Mastercard chargeback codes used in eCommerce. Code 4807 was used to cover various authorization-related. Net (from Visa) supports all major credit cards, including Visa, Mastercard, American Express, Discover, Diner’s Club, and JCB. Stripe Category. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For all other transactions, the maximum amount of. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Chargeback /Dispute; Merchant Response. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. 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. You block specific users associated with fraudulent activity. This should include notation that indicates the specific reason for the chargeback. Only an issuer can initiate the chargeback process. 5? Visa chargeback reason code 13. ” This reason code indicates the cardholder had reason to believe they were going to receive a refund, but no credit to their account has been processed. Identifying the chargeback. Chargeback Reason Codes. For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Reason codes are very crucial to assist. Visa Chargeback Reason Codes. 1 — EMV Liability Shift Counterfeit Fraud; Visa Chargeback Reason Code 10. Each bank card network has its owner list of reason codes banks must prefer from. 4 Other Fraud – Card Absent Environment 93(1) 10. 1 –. Dynamic Cardholder Verification Method Best Practices. 2 falls under the “Consumer Disputes” category. ” This reason indicates a merchant sent an authorization approval request for a transaction, received a “Decline” or “Pick Up Card” response, but submitted the. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. July 2011 Chargeback and Exception Processing Guide. Preventing & Disputing Chargeback Reason Code 10. ” This code indicates that the cardholder claims the merchant processed a recurring billing transaction after they had submitted a cancellation request or. The first is a catch-all for claims of fraud, while the others typically involve customer disputes over undelivered items,. All of Visa’s existing reason codes were condensed into four principal groupers: fraud, authorization bugs, handling errors, and customer. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Learn more about chargeback reason codes here: Chargeback Reason Codes: List & Tips for Merchants Acquirer Use of Message Reason Code 7623. Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment) 2. 1: The chargeback time limits may be altered if the resources were assumed to deliver after the execution time period of the payment also. 9808; info@chargebacks911. For a more detailed explanation, as well as a list of Visa’s individual codes, please refer to our guide on chargeback reason codes . Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. An ISO allows retailers to process credit cards without having a. The sales receipt and/or date and amount of the authorization if other than the transaction date. 13. Each reason code has its own regulations set by the relevant card scheme. Mastercard. chargebacks, even on cases where you accept liability. Chapter 5: Mastercard Chargeback. This is Visa’s incentive for merchants to update to recommended terminal technology. Visa Chargeback Reason Code 13. 3 Incorrect Currency. Multiple fees can be attached to each claim, and they add up quickly. With CE3. 2: EMV Liability Shift Non-Counterfeit Fraud:A reason code or a chargeback reason code is a string of symbols (numbers and letters). Chargebacks may otherwise be rejected for a variety of reasons. 2 Declined Authorization; 11. This reason code is accompanied by a fraudulent reason code (UA). What is Visa chargeback reason code 11. About Visa chargeback reason codes. Chargeback reason codes (MasterCard only): 4870 Counterfeit. Visa Reason Codes. com;. reason code information. Reason code 83 represents a chargeback categorized as. Visa recently shortened chargeback time limits from 45 days to 30. UA06 Fraud – Chip and PIN Transaction. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This new ruleset expands the list of compelling evidence you can use to help undo an invalid customer. The shorthand description is “Warning Bulletin File. Documentation must be Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chapter 2 1. 1: Merchandise/services not received Visa uses this reason code when a customer claims they didn’t receive the goods or services they ordered from your business. All the major card networks use chargeback reason codes to convey the reason for a chargeback. Mastercard Chargeback Reason Code 70: Chip Liability Shift. Be sure you understand the cardholder’s claim. 00 Approved and completed successfully; 01 Refer to. For example, reason code 10. Steps to Prevention. Mastercard has plans to follow suit. Reason codes. Fraud Reason Codes Current Reason Code New VCR Reason Code 62(2) 10. ” This code indicates the cardholder is claiming that the descriptions of the products or services they purchased were vague, inaccurate, or insufficient, and they feel. 1=1010, 10. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Preventing & Disputing Chargeback Reason Code 10. The code replaces Visa’s legacy reason code 41. The Visa Fraud Monitoring Program, or VFMP, is a merchant compliance platform aimed at identifying and tracking merchants that receive too many chargebacks with “fraud”-related reason codes. 4 Other Fraud - Card Absent Environment. While these sets mostly cover the same situations, the numbers and groupings can vary significantly. American Express chargeback reason code C42. Chargeback Reason Code Quick Reference Guide. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. Learn about chargeback reason codes. 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. Reason Code 02: Common Point of Purchase: Account data is stolen from the card-present merchant and used with other merchants. These codes can help a merchant with an inquiry or chargeback reversal. These modifiers can range from where the transaction is processed to what kind of goods are purchased. 1 to 10. The latest chargeback rules set by Visa are the answer to the current fraud and chargeback landscape. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. CHARGEBACK REASON CODESTo avoid redundancy and confusion, we’ll use Visa’s chargeback reason codes as an example. 6. This code was phased out under the Visa Claims Resolution initiative. 1 is an updated version of legacy reason code 30, which was phased out under the Visa Claims Resolution initiative. ACH return codes are a type of shorthand for specific information concerning the return, much like the. Under Visa’s previous rules, merchants could dispute a reason code 10. 8 — Original Credit Transaction Not Accepted. Nor is the situation static. The shorthand description is “Declined Authorization. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Despite this being considered sufficient proof to reverse the chargeback, issuers occasionally rejected the claims, leaving the merchant liable for the. Fraud Blacklisting vs. 2. 5 Visa Fraud Monitoring Program Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. Code. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Except for Reason Code 75, the time limit is calculated from one of the following: Fraud chargeback reasons. American Express chargeback reason code C32 falls under the “Card Member Disputes” category. 1: Card Recovery Bulletin: 11. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. 1:Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Discover Chargeback Reason Codes Explained. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Issuer ACS unavailable - Visa generated CAVV. Our promise to you is this: We will invest 100% of our effort in your case and fight for you throughout the entire process. 2, which specifically deals with transactions billed by other means. 3 Other Fraud – Card Present Environment 83(1) 10. Some reason codes have modifiers that can change what evidence is required, or that require additional evidence in the chargeback response. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Documentation must be a direct result of cardholder communication. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Card Acceptance and Chargeback Management Guidelines for Visa Merchants i ©2008 Visa Inc. Get your completes guide to the new Visa reason codes, in all the detailed information, chargeback clock limits, and other important information you demand. 76 (2) 12. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This reason code is used for disputed Card Not Present (CNP) transactions without a 3D. 4. Visa Chargeback Reason Codes In Effect April 2018. Chargeback reason encrypted were created to standardize the list of acceptable reasons why a bank may file a credit card chargeback or debit chargeback on their customer’s behalf. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. 7 falls under the “Processing Errors” category. Card Sub-Type ISO Country Codes Benchmark Currency Codes Currency Codes Action Code (actionCode) - UPDATED ACTION CODE - OLD Point Of Service Data. 0 is an update to the rules for handling disputes filed under reason code 10. 7 – Cancelled Merchandise / Services. A blacklist is much like blocking a number on your phone. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. Invalid Reasons for a DisputeThe chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Chargeback reason codes vary but it all means the same thing - refund. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. Blog. Visa also overhauled its system of chargeback reason codes. 2? Visa chargeback reason code 11. Mastercard Chargeback Reason Code 71: Disputed Amount. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. 76 (1) 12. Chargeback Reason Codes List for Visa Chargeback Code Chargeback Reason 30 Services Not Provided or Merchandise Not Received 41 Cancelled Recurring Transaction 53 Not as Described or Defective Merchandise 57 Fraudulent Multiple Transactions 62 Counterfeit Transaction 71 Declined Authorisation 72 No Authorisation. ” This reason code means that the cardholder is disputing a transaction by claiming that they never received the merchandise or services. Mastercard: Reason Code 4859 Service not rendered. It was originally one of several possible scenarios covered by legacy Visa reason code 83. This could happen as a result of fraud or merchant abuse. This list was generated 5/4/2022. This service is usually provided in exchange for a percentage of the merchant’s sales. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. Visa Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. 1 for Visa transactions, or reason code 4834 for Mastercard. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution. Non-Receipt of Goods or Services Chargeback Reasons. Reason Code 04. Case Studies. These codes explain the reason why the chargeback was filed, and the reason. In the case of reason code 11. Chargebacks911® offers the industry’s only data-driven, fully managed solution for chargebacks. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. Chargeback reason code 10. Reason Code 02: Common Point of Purchase: Account data is stolen from the card-present merchant and used with other merchants: 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. Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. October 25, 2023. message. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Mastercard: n/a This chargeback is caused by Authorization. 6. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. For the time being, however, merchants should be aware that banks may still use the legacy code. When one cardholder initiates a dispute with their issuing. MDR removed some reason codes completely, including code 4863 – Cardholder Does Not Recognize. ” This code indicates the transaction was processed using the wrong Merchant Category Code, transaction type indicator, country or state code, or some other required field. Any Visa chargebacks submitted prior to April 15, 2018 will be handled under the previous legacy rules and timelines.