This process is called. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. The chargeback reason code. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. Log in to access your account, view transactions, download reports, and more. The most popular type of disputes of the chargeback category. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. 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. Try Shopify free for 3 days, no credit card required. Reason Code 12. Visa chargeback reason code 75 is filed as an honest mistake. See full list on chargebacks911. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. M49 Vehicle Rental – Theft or Loss of Use. When one cardholder initiates a dispute with their issuing bank, a. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. Reason Code 11. Solutions. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. The good news is that most of these invalid claims are disputable by the merchant. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Additionally, one clearing transaction. 9% with at least 100 total disputes. 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. 2 falls under the “Processing Errors” category. 3. Visa chargeback reason code 12. 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. A reason code is how banks categorize the reason for a chargeback. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. The chargeback can be for the total transaction amount or a lesser amount. Use this guide as a quick resource for Visa chargeback reasons at a glance. 0 to 5. Now, compliance cases must be submitted through Visa Resolve Online (VROL). 10. 4853 – Cardholder Dispute – Goods or Services Not Provided. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. 2. Reason Code 53 re-presentments must be processed within 45 calendar days from the. Having a Lax Attitude Toward Industry Rules & Regulations. There are two parts to this. ”. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. This can provide important information to fight the dispute. 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. By entering your email, you agree to receive marketing emails from Shopify. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. Documentation must be a direct result of cardholder communication. 4: Fraud—Card-Absent Environment. As a new (VCR) or Visa Claims Resolution Initiative, chargeback reason codes underwent major overhauling back in April 2018. By entering your email, you agree to receive marketing emails from Shopify. Updated these Visa Chargeback Codes: 30, 62, 85. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. Your actions in response to such a chargeback will be determined by the particular circumstances, the most typical of which are described in the table below: If: Then: The transaction was cancelled and credit issued. Identify issues within 24 hours of a cardholder dispute, rather than waiting. up under any number of different chargeback . Most reason codes apply to any merchant, regardless of what’s being sold. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. 5 Appendi New Reason Code 1150 – Addition of New Reason 69 x C23 “Chip Card Counterfeit Code 1150 under Transaction” added International Chargeback Reason Codes 04-09-2015 1. Documentation must be a direct result of cardholder communication. According to the 2022 Chargeback Field Report, global costs associated with chargebacks will have skyrocketed in recent years. 1. 9808; [email protected]: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. All chargebacks start with a customer making a purchase in person, in an app, or online. Chargebacks with the following reason codes are requested due to fraudulent activity. The charge you submitted did not receive a valid authorization approval code for the amount of the. What is Visa Reason Code 13. Protect stored cardholder data. ”. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. In simple terms, VCR introduced five definitive. Download this sample Chargeback Rebuttal Letter. Yes, it’s possible to win a reversal on a. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardECM monitors first presentment chargebacks regardless of reason code or transaction type. “American Express Chargeback Reason Codes | Sift”. 4860 Credit Not Processed. The 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. 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. Code. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. Visa Chargeback Reason Codes. These are only a handful of common Visa chargeback reason codes. 4846. Card Recovery Bulletin Authorization Visa Code: 11. Breakdown your chargeback data by some of the variables you collected in step #2: marketing source, product type, issuer BIN, customer’s country, reason code, price, billing cycle, and lag time (amount of time between the transaction and the dispute). Some credit card companies also include a short phrase describing the code and chargeback. Mastercard Collaboration will be a step in the right direction. 4853 – Cardholder Dispute – Credit Not Processed. The shorthand description is “Insufficient Reply. Here are some chargeback reason codes by card type. If the chargeback is upheld, the merchant must return the money to the customer, as well as pay an additional fee to the acquiring bank. Chargebacks. Customer Dispute. There are multiple situations in which this can occur. This ranges anywhere from roughly 60 to 90 days after purchase. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. The chargeback transfers funds from the acquirer to the issuer. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. Try Shopify free for 3 days, no credit card required. Common reason codes Mastercard. There are dozens of reasons why cardholders and issuers dispute transactions. You could also end up submitting the wrong evidence, which will cost you time, money, and standing with the bank. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. Discover uses unique codes to explain those reasons to merchants. 3 is the less common version for card-present transactions. If the. Different card networks have different reason code systems. 1 chargeback: 1. The problem continues to grow out of control with each year. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. 3 – Incorrect Currency 12. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Batch chargeback process. Acquirer Use of Message Reason Code 7623. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. In most cases, you will have 20-45 days in which to respond to a chargeback. Everyone has had the experience of buying. Late Presentment. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Provide exemplary customer service. About American Express chargeback reason codes. Managing Reason Code 41 chargebacks. If the case has to be settled by arbitration, the losing party will also be charged up to $500 in arbitration fees. 3 No Authorization . 1 Quick Reference Lead. 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. 634. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. There is a USD 25 limit for the First Chargeback (Reason Code 22). This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Both EFM and ECM measure compliance at the MID level. Values are: Blank: Use the draft G/L date. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. A second presentment transfers funds from an issuer to an acquirer. When card holders discover a criminal accessed their credit card data and used it to make fraudulent purchases, the customer may file a chargeback to recoup their funds. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. 7: Defective goods and services: C32: RM: 13. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. #4 step: The issuer assigns a chargeback reason code. That’s 50% more time than what the major card networks allow. 3: Goods or services were not as described: C31: RM: 13. 3. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. ”. Responding to Mastercard Reason Code 4853 Chargebacks. The merchant did not receive any returned merchandise. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. 15, 2021. 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. For perspective, the next highest. Only an issuer can initiate the chargeback process. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. Chargeback Reason Code. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described 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. According to Nilson, 56% of global card transactions were done on Visa in 2015. 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. We would like to submit compelling evidence that the purchase was legitimate. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. the chargeback reason code. Here’s a look at the reason codes for the same scenario from. 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. REQUEST A DEMO. Carefully analyze the reason provided by the cardholder for the chargeback. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. You must keep in mind, though: the reason code seldom gives the full story behind the chargeback. The cardholder initiates contact with their bank or credit union to file a dispute. Mastercard Chargeback Reason Code 71: Disputed Amount. Now, 10. Level 3/Phase 3: Second presentment, second chargeback, or pre-arbitration. About American Express chargeback reason codes. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Check the chargeback reason code. I have encountered each of these chargeback reasons at my previous job, where I helped resolve many disputes by identifying which reason code applied to each case. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. If the merchant has a signature showing that the order was delivered, or evidence that the. 1 The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. The situation grows more tenuous when you realize most of those chargebacks were likely the result of friendly fraud. Versions Affected: v5, v6. Whenever a card used in a transaction is declined, the sale should be terminated. September 2011: 5. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. You can see a reason code 11. The customer regrets their purchase. Step 4: Card Network Collects Dispute Information. 08. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. Each card company has its. '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. Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. 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. 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. for chargeback reason code 4863 (Cardholder Does Not Recognize). That’s 50% more time than what the major card networks allow. EMV has been a mostly global standard since 2004. 2 falls under the “Processing Errors” category. 2. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. 1. R13 No Reply. May 2011: 5. Valid Values/Format: 22 - First Chargeback Handling Fee. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Chargeback Reason Codes by Industry. Explanation. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. 6. 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:Visa recently shortened chargeback time limits from 45 days to 30. Thursday, February 10, 2022. R03 Insufficient Reply. 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. For best results, your chargeback win rate should be as close to 100% as possible. Step 2: Customer initiates the chargeback. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Inform your acquirer of the date that the credit was issued. The reason codes are grouped into several broad. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. Sometimes, customers get wrongly debited due to manual data entry errors by the merchant’s team. In fact, the same thing could be said of other chargeback reason codes, too. FR2 Fraud Full Recourse Program. A chargeback is the potential outcome of a disputed credit or debit card transaction. ”. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Ethoca alerts can prevent chargebacks before they hit your bank account. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. without a reason code will be assigned a default code of 1. 1: Use the corresponding dates from the invoice. Dec 6, 2021 — Betty's bank issued the chargeback for $9. As we touched on earlier, chargebacks can happen due to technical errors. A reason code is an alphanumeric code that explains the reason behind the dispute. Q. If the transaction date listed in the clearing record is incorrect, provide documentation that proves authorization was obtained on the correct date. Updated Disputes/Chargeback Policy Coming April 2024Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Below is a list of Mastercard chargeback codes used in eCommerce. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Step #2 | Report the Scam to PayPal. Chargeback reason codes have changed. One catch is that CE3. It doesn’t help matters that travel is a high risk industry for credit card payments and with 100+ reason codes across all issuers, making sense of them all is a challenge. PCI DSS v3. Updated August 23, 2023. Stop order fulfillment so cost of goods isn’t lost. M10 Vehicle Rental – Capital Damages. This will be referenced in the chargeback notice you received. The list of chargeback reason codes in this article is organized by card brand and type of dispute. There are several types of chargeback reason codes that can be used, including the following: 1. 0 is to make the chargeback process more efficient, transparent, and fair. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. 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. R03 Insufficient Reply. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. Chargeback Reason Codes and Descriptions. Log in to access your account, view transactions, download reports, and more. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. The incorrect amount being charged. Try Shopify free for 3 days, no credit card required. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. 6 –. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. g. Let’s say you got a Visa chargeback with reason code 13. That suggests that in the times when merchants are compelled to file a dispute, most of the time they will prevail. The assigned chargeback reason code outlines why a customer submitted the dispute. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. FR4 Immediate Chargeback Program. Chargeback prevention strategies vary based on the reason for the. 1 - Card Recovery Bulletin; 11. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Paymentology will submit the chargeback using the appropriate chargeback reason code. 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. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. Level 2/Phase 2: Chargeback. M10 Vehicle Rental – Capital Damages. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 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. You can learn more about each one by visiting the Mastercard Chargeback Guide. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR 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. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. And according. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. The Complete Chargeback Reason Codes List. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Updated: Valid values updated. The issuing bank will then pass on the chargeback to the merchant. Discover Chargeback Reason Codes Explained. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. Chargeback fees make up a big chunk of the total costs, so we’re going to take a. Discover - RG Non-Receipt of Goods, Services, or Cash. A reason code will be provided. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. But cardholders and merchants have different time limits. If the transaction has special authorization procedures, provide documentation that proves the first authorization request included an estimated amount; the subsequent authorization requests. ” Currently, merchants can already prevent many 10. To determine the problem, you need to examine customer interactions, transaction details, and business practices. Also, remember that the time frame for your response includes any processing required by the acquirer. Both Visa and MasterCard use special Reason Codes to designate chargebacks resulting from a late deposit of credit card transactions. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 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. What to Include in Your eCommerce Return PolicyRead chargeback reason code descriptions carefully, especially if they include any transaction modifiers. We’ll start with the bad news: Chargebacks increase by over 20% each year. EMV Liability Shift Counterfeit Fraud. Card Brand Code Description Days to Dispute Dispute Category;. Date Option. For example, 10. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Summary of Changes, 13 December 2018There are plenty of reasons as to why this would happen, hence the many. ; Resources. 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. The network plans to reduce response times even further to just 20 days in the near future. In simple terms, VCR introduced five definitive changes to the dispute resolution process: The timeframe for merchant response was shortened from 45 days to 30 days. 1130: No Authorization: up to 120 days: Authorization: Visa: 1210: Late Presentment: up to 120 days: Processing Errors: Visa: 1220: Incorrect. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderCardholder Disputes. If you did not receive the email, open Mave, Wave’s automated chatbot, and. The chargeback process is lengthy, time-consuming, and will always end up costing you more money than the original transaction was worth. Chargebacks from all three categories can show . Collect Compelling Evidence. 1. Chargeback prevention alerts require you to monitor and respond to notifications within a short time frame, usually 24 to 72 hours. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. 3 falls under the “Consumer Disputes” category. The impact of chargebacks on a business’ bottom line is significant. UA01 Fraud – Card Present Transaction. 3? Visa chargeback reason code 13. Updated August 23, 2023. 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). In the case of reason code 11. By entering your email, you agree to receive marketing emails from Shopify. Visa uses Reason Code 74 and its MasterCard’s equivalent is 4842. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. 1. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The most comprehensive guide to chargeback reason codes. 3 falls under the “Authorization” category. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card. 4 – Incorrect Account Number 12. Last updated: October 15, 2019 . 1. United States; 18167 US Highway 19 N; Clearwater, FL 33764; 877. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. Visa Chargeback Reason Codes; MasterCard. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. While the format of chargeback reason codes varies depending on the card network, all codes are. Mastercard has plans to follow suit. 3: Goods or services were not received: C08: RG: 4855: 13. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway.