“American Express Chargeback Reason Codes | Sift”. Date Option. Credit not processed for cancelled or returned goods and services 2. Reason. Banks, however, categorize chargebacks or disputes depending on the card used when a chargeback occurs. Chargeback Reason Code . 2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Technical. Chargeback stands If you don’t reply in time or with the right documentation, the Chargeback will stand. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. Click on “report a problem” and select the transaction in question. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Contact us here or call us at 1. Chargeback amount is equal to or less than the exceeded limited /authorised amount. Offer shipment and delivery tracking. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. An ACH dispute results in a chargeback for the business that processed the payment. Click “add filter”. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. The rules which will take effect in April 2023 are meant to reduce the volume of friendly fraud occurring over the card network. P01. Why Midigator; Feature. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. One catch is that CE3. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. for chargeback reason code 4863 (Cardholder Does Not Recognize). The cardholder initiates contact with their bank or credit union to file a dispute. We also included the reason code descriptions and an indication of when the allowable time frame begins. S. Reason Code P01 Category Processing Errors DESCRIPTION Why did I receive this chargeback? You have processed a transaction using an invalid or otherwise incorrect. NEW. 1, 5 January 2016. Description: Reason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. A reason code helps explain why a transaction was disputed. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. Chargeback reason code 11. Additionally, Amex uses a fifth "Miscellaneous" category. Chargeback reason code 10. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Not recognizing your billing descriptor on a statement. Another downside is that chargebacks on annual subscriptions. Specify the invoice date and net due date to assign to chargebacks. Consider Deadlines. Protect cardholder data. “Visa has 28 different reason codes. Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2. DD: Unearned (disallowed) discount amount. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 1. 4. 1 Different workflows Disputes will be routed in two different workflows, called Allocation and Collaboration. Chargeback fees. 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. Essentially, even a $50 chargeback can become $125 with all the extra fees. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Unauthorized returns (R05, R07, R10, R29, R51): 0. 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 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. Tap “>” beside the charge to see an accurate timeline view of the disputed transaction. Code. US and Canada. 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). The system does not accept blank as a value, even if it is defined in the user defined code table. Scenario 2. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. Before the cardholder can file a chargeback, they must give a reason to their card provider. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. 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. 4 applies to eCommerce, whereas code 10. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. "Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. When customers dispute charges to their accounts, you can incur chargebacks. Chargebacks. in time or with the requested documentation, the Chargeback will stand. P07. Dec 6, 2021 — Betty's bank issued the chargeback for $9. Once filed, the merchant generally has 20 days to respond to the chargeback. What is Visa chargeback reason code 12. Use this guide as a quick resource for Visa chargeback reasons at a. 31. P01. 4. The good news is that most of these invalid claims are disputable by the merchant. Documentation must be a direct result of cardholder communication. . REQUEST A DEMO. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. The cardholder may be the customer or the someone who lent their card to a friend or relative. To help you identify what happened, look up the code you received for the dispute below. The Fintech Times. 2. Take the time to note the following dispute reason codes for Visa. Visa, MasterCard, and American Express all list compelling evidence by reason code. Ideally, the chargeback reason code will determine the type of evidence you share. There are two types of invalid chargebacks. PCI DSS v3. 3 falls under the “Authorization” category. Once filed, the merchant generally has 20 days to respond to the chargeback. Specify the default reason code to. Case Studies. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. On the home screen, tap “Disputes. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. Note. When a SEPA chargeback occurs, we will notify you by sending a webhook. Solution. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Values are: Blank: Use the receipt G/L date. Amex. American Express. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. Most reason codes apply to any merchant, regardless of what’s being sold. The third digit indicates the specific reason within that category. Reason codes are created by the major. Reason Code. Here’s how your store can prevent and deal with chargebacks. the Chargeback. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. The Electronic Fund Transfer Act is a piece of US legislation that requires banks to provide certain information to customers regarding electronic fund transfers (EFTs). A chargeback happens when a customer requests for a transaction to be. 5 billion lost in 2020. 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. Visa chargeback reason codes. 103. Each card issuer follows their own standards for defining reason type, code and its format. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. 1. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. ACH Return Codes. P03. P03 – Credit Processed as Charge. SEPA chargeback webhook. Now, compliance cases go through Visa Resolve Online (VROL). Notification of Fraud. R05 – Unauthorized debit to consumer account using Corporate SEC code. It also has a multiplier effect that extends damages well beyond the amount of the disputed charge in question. Reversal. 3: Goods or services were not as described: C31: RM: 13. Chargeback reason codes. 102. Always swipe the card once in the direction of the arrow shown on the reader. 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. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. ”. The existing 22 chargeback reason codes will be replaced by new reason codes and grouped into 4 categories: 1. ; reason: Reason for the chargeback. Common return codes in this category include:Step #2 | Report the Scam to PayPal. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Save fulfillment costs, stop chargebacks, furthermore improve customer fulfillment. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. Merchants who believe they have received an invalid chargeback under reason code 13. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of payment and was There are over 80 unique return codes, and each one represents a different type of return. Amex Chargeback Reason Code P01: Unassigned Card Number Description The buyer’s bank found incorrect or mismatched account number with the posted. P04 – Charge Processed as Credit. dispute successfully and on time, we’ll undo the Chargeback. By entering your email, you agree to receive marketing emails from Shopify. 1 Allocation Fraud and Authorization related chargebacks will be processed through an automated workflow. Mastercard: Reason Code 4859 Service not rendered. Chargebacks can pile up your expenses and can be annoying. Be transparent about your products. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. Every dollar disputed represents a loss to the merchant of $3. 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 CardholderWhen you receive notification of a chargeback, the first thing you want to do is look up the reason code. The chargeback reason code. As we touched on earlier, chargebacks can happen due to technical errors. Chargeback Reason Codes and Descriptions. 196Learn about the different chargeback reason codes and what they mean. Those reasons are explained through the corresponding reason codes. LP – Late. UA02 Fraud – Card Not Present Transaction. Category. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing. The issuing bank reviews the information. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. 1. American Express chargeback reason codes are divided into five categories: authorization, cardmember disputes, fraud, processing errors, and miscellaneous. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. EMV Liability Shift Counterfeit Fraud. Amex Dispute Codes Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. The reason code used to describe the dispute will determine the chargeback time limit. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Try Shopify free for 3 days, no credit card required. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Chargebacks. You must tailor your representment case — including the compelling evidence — to the reason code under. Actions: This is where you respond to a case. The merchandise was as described or was not defective. 4846. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. 1: goods not received. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. Banks, however, categorize chargebacks or disputes depending on the card used when a chargeback occurs. 3? Visa chargeback reason code 13. If you believe you have received an ACH return in error, you can contact your bank. 1 Quick Reference Lead. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. Depending on the reason code, chargeback disputes may have different time limits. MASTERCARD. So don’t spend another second worrying about chargebacks. Visa has recently announced changes to its chargeback rules. American Express is incentivized to keep their customers happy. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. They can also be caused by a merchant failing to process a cancellation promptly. Request for Information. 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. Not only do you need to know how long the timeline is, but you also need to know when the clock. 4853 – Cardholder Dispute – Goods or Services Not Provided. Include any terms relevant to the transaction, including return, cancellation and. It was originally just one facet. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. P04 – Charge Processed as Credit. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. An ACH dispute results in a chargeback for the business that processed the payment. Discover: Reason Code 4755 Non-receipts of goods or services. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. The chargeback transfers funds from the acquirer to the issuer. Simplify reason codes; Let’s look at each of these objectives a little more closely. F02. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. Time Limit (Issuer/Cardholder) 120 Days. 1. P01 – Unassigned Card Number. Administrative returns (R02, R03, R04): 3%. When one cardholder initiates a dispute with their issuing bank, a. These chargebacks occur to resolve chargeback-related disputes between network members. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 60 due to merchandise, fees, overhead, and other sources of loss. 0 initiative to update compelling evidence requirements for dispute reason code 10. If the order was genuinely not as described, then the cardholder has a case. The implication is that the merchant is at fault. Effective for Transactions completed on or after 15 April 2016, A Transaction for which Authorization was obtained after a Decline Response was received for the same purchase. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Reason Code 53 Re-presentment Conditions. You can be inducted into both programs at the same time. It depends on the chargeback reason code associated with the dispute. Braintree Support Articles. Reason code 4808 – Authorization-Related Disputes; Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift; Reason code 4834 – ATM Dispute; Chargebacks filed with these reason codes are supported by a great deal. the Chargeback. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. Visa chargeback reason codes. Spot these types of chargebacks using. The formal definition for R16 ACH return code is: Account Frozen/Entry Returned per OFAC Instruction: 1) Access to the account has been restricted due to legal action or specific action undertaken by the RDFI, or 2) the OFAC (The Office of Foreign Assets Control of the US Department of the Treasury) has instructed the Gateway or. Having a Lax Attitude Toward Industry Rules & Regulations. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. P01: Unassigned Card Number: P03: Credit. P01 - Unassigned Card Number (All other countries 4523) Reason. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaReason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. On the other hand, PayPal—which can serve as a credit card. Some crucial examples of specific documents used as compelling evidence are as follows: Delivery confirmation of the order; Conversations with the customer; Verification codes (AVS, Authorization, Card Security Code, 3D Secure 2. 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. 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. A “No Authorization” code chargeback can also be the. Chargeback Reason Codes; Payment Industry Glossary; Frequently Asked Questions; Book a Demo. About American Express chargeback reason codes. Q. P01. Instead, the merchant provides an. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Step 2: Customer initiates the chargeback. P01: Unassigned C/M Account Number. This typically. If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. Credit Processed as Charge. 3. 4, 12. Spot these types of chargebacks using the below reason codes. Accessed October 31, 2022. The Visa Digital Goods Merchant Fraud Monitoring Program is effective as of April 1, 2023. compliance process depending on whether a chargeback right exists. 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). If the conflict can be settled, the acquiring and issuing banks do so. P01 UnassignedCard number . Tap “View Details. 5158. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. Even though these codes are not detailed enough, they are crucial when it comes to successfully preventing and fighting chargebacks. Here are some chargeback reason codes by card type. As such, it is limited to merchants in the following merchant category codes (MCCs): MCC 5735 — Record Stores. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. It is associated with a chargeback reason code, and it is specific per Card Scheme. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. 6. 3: Goods or services were not received: C08: RG: 4855: 13. many chargeback reason codes that exist today. 3: Goods or services were not received: C08: RG: 4855: 13. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. 4834. 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. This ranges anywhere from roughly 60 to 90 days after purchase. Reason Code Number. 3: Goods or services were not received: C08: RG: 4855: 13. Card networks send these codes to merchants to indicate why a chargeback has been filed. The codes for each card brand are listed below along with the recommended documentation to provide. Knowing these codes can help you dispute chargebacks more effectively. 08. Reason Codes Category 4: Processing Errors. Category. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. 1 alpha followed by 2 numeric digits. ; Chargeback Prevention Alerts Decide customer disputes quickly before they become chargebacks. Each code has a different timeline. Discover uses unique codes to explain those reasons to merchants. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. Any time. Each code corresponds to an issue or problem. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. France saw a drop of roughly 50% during the same period. 3. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. 4841 Canceled Recurring or Digital Goods Transactions. Both EFM and ECM measure compliance at the MID level. Description: Reason code for applying handling fee. Chargeback. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. P08 – Duplicate Charge. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). 1: Use the corresponding dates from the invoice. 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. 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 andA TC40 data claim occurs when a customer makes a fraud claim against a merchant. Unassigned Card Number. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 1 Goods and Services Related Issues 1. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 65% with at least 75 total disputes. Listed as American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040, customers file fraudulent chargebacks when they believe fraud has occurred. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. 3: Goods or services were not received: C08: RG: 4855: 13. On that note, below are some vendor missteps that could result in Visa reason code 13. paper processing and mailing costs. Each bank card network has its owner list of reason codes banks must prefer from. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableDisputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program,” are excluded from program monitoring. All chargebacks start with a customer making a purchase in person, in an app, or online. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Chargeback Reason Code 30 - Services Not Provided or Merchandise Not Received The chargeback time limit is calculated based on one of the following: 120 calendar days after the transaction processing date 120 calendar days after the last date the cardholder expected to receive the goods or services (not to exceed 540 days of the transaction. 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. 2 Compliance CasesECM monitors first presentment chargebacks regardless of reason code or transaction type. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. ” -This reason code is used for the unusual circumstance of processing a transaction using an invalid or otherwise incorrect card number. If a payment is unsuccessful, PayPal usually gets the return message from the ACH. 6). 3: Goods or services were not as described: C31: RM: 13. Solutions. 15, 2021. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. 3: Goods or services were not received: C08: RG: 4855: 13. If you fulfilled the cancellation request but the cardholder continued to use the services, provide documentation that proves the charge covers services used after the cancellation. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 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. WEX began issuing chip cards in Q4, 2020. But cardholders and merchants have different time limits. ” -This reason code is. The system does not accept Blank as a value, even if it is defined in the UDC table. 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. Supporting Documents You could potentially reverse a Chargeback by providing the necessary supporting The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. 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. Categories For Reason Codes. This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. You have submitted a transaction to us for an invalid or otherwise incorrect cardholder account number, and we are unable to identify the correct. Charge Processed as Credit. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Chargeback reason code. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. With VCR regulations, the risk of breaching fraud-to-sales thresholds increases. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U. 105. Bank of America issues both Mastercard- and Visa-branded cards, so the exact requirements may vary depending on the Mastercard reason code or Visa reason code . Otherwise, the acquiring bank sends a chargeback notification.