1? Visa chargeback reason code 12. 1. As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. com; Europe; Vantage House;chargebacks, even on cases where you accept liability. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. . Find out the difference between the new and. . If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. Invalid chargebacks from Visa chargeback Reason Code 13. Reason Code 12. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with. Before starting your Disputes API integration, make sure that you: Understand the disputes process. Friendly fraud. United States. Find this type of chargeback with the below reason codes. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Credit and debit card issuers developed. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. The terminal action codes are in Table 122 of the 4. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. With that said, you still need to understand the reason codes with any chargebacks from Amex. Unauthorized returns (R05, R07, R10, R29, R51): 0. These codes are typically provided to the merchant through their payment processor, and understanding them is crucial for minimizing returns and improving payment processing. Compile Relevant Evidence: Review the documentation you've gathered and select the pieces of evidence that directly counter the cardholder's claim. Chargebacks with code 4836 were easy to file and hard to contest, meaning the code was commonly misused by cardholders and issuers. Visa groups its various reason codes into several broad dispute categories. While there are many chargeback reason codes, all chargebacks fall into one of three categories: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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Customer Dispute. 6: Credit not. For example, some reason codes offer cardholders over a year to file. Administrative returns (R02, R03, R04): 3%. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputesMastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. Whenever a card used in a transaction is declined, the sale should be terminated. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. “Visa has 28 different reason codes. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. 2, below. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. . Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. If you do perform a key-entered transaction, make a manual imprint of the card. About Discover chargeback reason codes. It’s important to note that time starts when the. Chargeback Reason Codes: 5 Things For Merchants to Know 1. The Merchant failed to obtain a valid Authorisation for the full amount of the Transaction. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). The initial release of this standard does not add, remove or change any Return Reason Codes. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). F01. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. 6 deals with chargebacks stemming from a credit not being processed. 11, 16. The Allocation workflow applies to any chargeback assigned a “Fraud” or “Authorization”. 5%. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. The merchant can choose whether or not the reason makes sense and. Chargeback reason codes are meant to help you understand the cause for the chargeback and determine the best way to validate the original transaction. Refer to Understanding disputes for a high level flow, and to Chargeback guidelines for scheme-specific information. If you're contesting a chargeback, you'll need solid evidence. Your first step is to identify the chargeback reason code, which is a kind of shorthand that indicates why the transaction is being disputed. This makes them nearly impossible to dispute. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 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. A dispute often has a reason code associated with it. It was originally just one facet of legacy reason code 81. Thus, the merchant is at fault for. compliance process depending on whether a chargeback right exists. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. The transaction took place in a "card-present" environment using a counterfeit EMV (chip) card. Visa chargeback reason code 75 is filed as an honest mistake. 2 Compliance CasesSome Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. 00 EUR as a Withdrawal fee. In theory, reason codes help merchants. Network reason code is available on the dispute object. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. When alerted about a potential chargeback, businesses can reach out to the customer promptly to understand and address their concerns. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Also, remember that the time frame for your response includes any processing required by the acquirer. Reason Code 12. 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. ”. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Mastercard: n/a This chargeback is caused by Authorization. ” 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. Use this guide as a quick resource for Visa chargeback reasons at a glance. Reason Code 05. This is commonly caused by either true fraud or friendly fraud. Only an issuer can initiate the chargeback process. Mastercard Authorization Chargeback Reason CodesAbout Mastercard chargeback reason codes. 2. In claims featuring a 4853 reason code, one of the possible causes is “Transaction Did Not Complete. It can also refer to situations where the cardholder’s account has been debited more than once for the same transaction. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. All of Visa’s existing reason codes were. To represent a chargeback, you need to resubmit the transaction and include a rebuttal of the cardholder’s claims and documented evidence that proves your case. A chargeback with reason code 4834 may refer to disputes in which the merchant failed to present the transaction within the required timeframe. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. The codes for each card brand are listed below along with the recommended documentation to provide. Mastercard Chargeback Reason Code 73: Duplicate Transaction. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. The aim of CE 3. 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. . Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. The cardholder claims they were charged multiple times for a single transaction. Chargeback reason code 11. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCardVisa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. 4860 Credit Not Processed. A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. Chargeback Reason Codes Page 2 of 5. 1 and Note on page 14 Chapters 1 and 2 Chapter 1Reason codes are alphanumeric codes that provide the justification for granting a chargeback. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. Visa uses a numeric scheme for its chargeback reason codes. In some cases, the reason code may not match the real reason. 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. It was originally just one facet of legacy reason code 81. This reason is made visible to all parties involved. This code applies when customers claim they never received the merchandise or services they purchased. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Different card networks have different reason code systems. Find a detailed explanation of the Visa reason codes, the new format of the reason codes, and the categories they fall under. For a Point-of-Interaction Currency Conversion dispute to be valid, one of the following conditions must apply: The cardholder claims they were not given the option of choosing the currency in which they wanted. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. About Visa chargeback reason codes. Exploring Visa Chargeback Reason Code 12. There are dozens of reasons why cardholders and issuers dispute transactions. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. 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. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. About Visa chargeback reason codes. Each code corresponds to an issue or problem. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). This can include. 2. The implication is that the merchant is at fault. The reason code will tell you this. Quality. It might be possible that the customer. This specific code applies when a cardholder claims that the terms of the sale were in some way misrepresented. There are dozens of reasons why cardholders and issuers dispute transactions. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. ACH Return Codes. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. For a late presentment chargeback to be valid, the following conditions must apply: The cardholder’s account must be permanently. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Request for Information. Now, compliance cases go through Visa Resolve Online (VROL). 180 First Chargeback: MTI 1442. 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. Feel free to submit topic suggestions, questions or requests for advice to:. Each bank card network has its owner list of reason codes banks must prefer from. The claim often, but not always, involves automated teller machines (ATMs). . Reason Codes Category 4: Processing Errors. 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. Even learning all the terms and rules won’t keep you. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Reason Code 03. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. Nevertheless, you must respond to the chargeback based on the given code. . 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. 180 S econd. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. It was originally one of several possible scenarios covered by legacy Visa reason code 83. Build & Submit a Representment Case in 4 StepsChargeback reason code 12. Knowing these codes can help you dispute chargebacks more effectively. . Originally filed under legacy reason code 85 (condition 3), this code applies when a credit transaction was not accepted, usually for one of two reasons: The cardholder did not accept the credit. FR4 Immediate Chargeback Program. Fraud. An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. Chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Understanding these codes is essential because they'll guide your response strategy. 100- 140 standards- , and will be removed in future releases. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 6 is an updated version of legacy reason code 85, which was phased out under the Visa Claims Resolution initiative. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. Chargeback reason code 12. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. In such circumstances, Mastercard may allow consumers to reverse a transaction by filing a chargeback. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Lack of proper chargeback reason codes. To help you identify what happened, look up the code you received for the dispute below. Chargeback reason code 11. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. The list of chargeback reason codes in this article. Fraud. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. About American Express chargeback reason codes. These codes are currently defined within the ANSI X9. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. Category. ”. 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. 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. 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 claim is valid. 6: Duplicate processing/Paid by other means. 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. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. In some cases, chargebacks from Visa Reason Code 12. Chargeback reason code 4853 can be used to indicate disputes in which the cardholder feels that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 5, and all aspects of chargeback reason codes, with proprietary. Now, 10. 1 falls under the “Processing Errors” category. Fraudulent TransactionsA reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. We say the given reason because it may or may not reflect the true reason. Visa Chargeback Reason Codes. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. 196ACH 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. These chargebacks occur to resolve chargeback-related disputes between network members. These codes can help a merchant with an inquiry or chargeback reversal. . [noun]/* rə • trē • vəl • rə • kwest/. Mastercard chargeback reason codes are four numerals without decimals. 1 Quick Reference Lead. 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. If the order was genuinely not as described, then the cardholder has a case. Which is meant to know the reason for the dispute. In most cases, the bank chooses a course of action based on information the cardholder provides. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Most such requests are made to. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. Chargeback reason code 4853 is used to designate “Cardholder Disputes,” or disputes involving transactions that a customer claims are incorrect in some way. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. The aim of CE 3. When one cardholder initiates a dispute with their issuing bank, a. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Chargeback alerts are a dispute prevention product provided by a chargeback management specialist. NF Non-Receipt of Cash from ATM. 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. As mentioned above, a reason code is a string of text that helps you, the business owner, decipher the chargeback. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. In order to compile the right kind of evidence, you need to know what justification the cardholder gave to the bank for requesting a chargeback. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. This can be the result of intentional merchant fraud, but it is more likely to be an honest mistake. 6. Chargebacks with the following reason codes are requested due to fraudulent activity. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. Discover Chargeback Reason Codes Explained. Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. What is Visa chargeback reason code 12. We say the given reason because it may or may not reflect the true reason. Learn how to identify and fight chargeback reason codes from Visa, Mastercard, American Express, and Discover, the four major US-based card schemes. Reason codes. Overview. The separation of the Return ReasonChargeback reason code 13. In all, there are four major categories of Chargeback Reason Codes. 1, multiple conditions must be met: A merchant processes a transaction, and the transaction is approved. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). 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. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. United States; 18167 US Highway 19 N; Clearwater, FL 33764; 877. If the chargeback is in the customer’s favor, the bank reverses the transaction and debits the business’s acquiring bank instead of crediting itAcquirer Use of Message Reason Code 7623. You can learn more about each one by visiting the Mastercard Chargeback Guide. Chargeback Reason Codes The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest. 4 Other Fraud Card Absent. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. About Visa chargeback reason codes. However, for simplification, they are divided into eight categories:. . Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. If the merchant is not EMV-compliant, the liability for a fraudulent transaction shifts from the card issuer to the actual merchant. Some payment service providers like PayPal and Stripe have their own reason codes as well. First presentment fraud chargebacks include those with chargeback reason codes 4837 (No cardholder Authorization) and 4863 (Cardholder does not recognize — potential fraud). Non-fraud reason codes represent customer disputes with product or services, shipping problems, and recurring billing chargebacks. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. AMERICAN EPRESS CARGEBACK CODES 10 REASON CODE 4521 Invalid Authorisation Chargeback Reason Any of the following reasons: 1. Fraud Category CodesThese reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. Visa, Mastercard and Maestro each have their own set of reason codes for chargeback cases. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Visa chargeback reason code 13. . message. Additionally, one clearing transaction. By offering timely. It is associated with a chargeback reason code, and it is specific per Card Scheme. All 1. 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. Again, banks should not really be using 4807. The chargeback process is mandated by law in the United States. Discover. Services industry for image exchange and the creation of IRDs. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. About Visa chargeback reason codes. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Each reason code has its own regulations set by the relevant card scheme. You must contact your Relationship Manager for information about the. 6). In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Each card network has their own set of chargeback policies and reason codes, and they frequently change them. Invalid Reasons for a DisputeFraud reason codes are those indicating disputes regarding fraudulent activity, authorization discrepancies, and EMV liability shift issues. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 4870 – Chip Liability Shift. At Visa they used to receive reason code 98. Visa uses a numeric scheme for its chargeback reason codes. F02. For digital goods, two or more of the IP address, device ID, or. Chargeback Reason Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Visa chargeback reason codes, for example, are numerals with decimals. '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. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. Some legacy codes are no longer supported by a chargeback reason. 0 only applies to reason code 10. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. Overall returns (all codes): 15%. However, it is important to note that this reason code is based on the reason given by the customer to their bank. Visa reason code 13. Chargeback reason codes are numbering systems set up by each card network as a way of identifying the cardholder’s complaint in the event of a chargeback. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The chargeback reason codes below explain why this happened. RG Non-Receipt of Goods, Services, or Cash. CHARGEBACK REASON CODES Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. 3 applies when a cardholder claims a charge—made in a card-present environment—was. Under Visa’s previous chargeback rules, merchants could contest a reason code 10. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. 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. Chargeback reason code 11. If the customer is still. The following are reason codes. Friendly fraud. 4 spec (Section 8. 15, 2021. 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:WEX began issuing chip cards in Q4, 2020. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. M01 Chargeback Authorization. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. Reason codes are alphanumeric codes that provide the justification for granting a chargeback.