The reason codes are grouped into several broad. Overview. The cardholder may be the customer or the someone who lent their card to a friend or relative. Understanding these codes is essential because they'll guide your response strategy. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. . Like other parts of the process, learning all the types and exceptions of chargeback time limits will take a lot of effort and money. All of Visa’s existing reason codes were. Reason codes identify why the chargeback was issued. The most relevant Mastercard chargeback codes for the majority of merchants can be broken down into four main categories—authorization, cardholder dispute, fraud, and point of interaction. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12,. Many subscription payment disputes are made under code 13. About American Express chargeback reason codes. Use this guide as a quick resource for Visa chargeback reasons at a glance. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Visa chargeback reason codes are used to categorize the reasons for a chargeback. When a cardholder has an issue with a transaction, they can contact their bank to dispute the charge. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. This provided a number of insights into the typical. 4 billion online transactions every year, representing clients in 87 different countries. . The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Refer to Understanding disputes for a high level flow, and to Chargeback guidelines for scheme-specific information. The following tables show the Stripe categories for each card network’s dispute reason codes. This code collects all the. Declined Authorization Authorization Visa Code: 11. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 6: Duplicate processing/Paid by other means. The merchant can choose whether or not the reason makes sense and. Chargeback reason code 12. DP Duplicate Processing. 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. This broad umbrella category includes an array of chargeback causes. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. Each bank card network has its owner list of reason codes banks must prefer from. . It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 3: Goods or services were not as described: C31: RM: 13. For example, 'R04' indicates that an invalid account number was. Now, compliance cases must be submitted through Visa Resolve Online (VROL). CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Any time. 9808; [email protected] is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. It depends on the chargeback reason code associated with the dispute. 7 Violation for Coercion Claim. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Only an issuer can initiate the chargeback process. . “At the end. This is commonly caused by either true fraud or friendly fraud. Each card company has its own set of codes that indicate the specific reason that a cardholder initiated a dispute. 4 Other Fraud Card Absent. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2. 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. In this case, the customer files for the pre-compliance chargeback (aka reason code 98). The terminal action codes are in Table 122 of the 4. 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 valid. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. 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. 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. Unauthorized returns (R05, R07, R10, R29, R51): 0. This can be transaction receipts, proof of. When a chargeback is filed, a bank selects the code that best fits the reason a chargeback was filed. In most cases, the bank chooses a course of action based on information the cardholder provides. Nevertheless, you must respond to the chargeback based on the given code. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 634. It was originally just one facet of legacy reason code 81. 1Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831. Each chargeback is assigned a reason code that explains the justification for the chargeback. 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. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. . Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback applies to the claim. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. Identifying the chargeback. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. The problem continues to grow out of control with each year. You probably won’t know for certain that you’re being targeted until the fraudster contacts you for an overpayment refund. Lack of proper chargeback reason codes. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. . Retrieval Request. The following chargeback reason codes are related to EMV: Visa: 10. F02. Visa Fraud Chargeback Reason Codes 10. 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. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. The implication is that the merchant failed to deliver the goods or services, but this reason. eCommerce grew too fast for the payments industry to respond. Reason Codes Category 4: Processing Errors. The chargeback filing period for cardholders is usually 120 days. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. Chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. VCR Dispute Reason Code 10. In most cases, you will have 20-45 days in which to respond to a chargeback. It is associated with a chargeback reason code, and it is specific per Card Scheme. Chargeback Reason Code 13. Each of these causes has a designated “reason code,” and banks assign the appropriate code to. 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 CardholderIn the case of reason code 11. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase. Code. A recurring transaction is a payment card charge that automatically reoccurs on a. 2: Canceled Recurring Transaction. Chargebacks with code 4836 were easy to file and hard to contest, meaning the code was commonly misused by cardholders and issuers. Reason codes are created by the major card networks: American Express, Discover, MasterCard, and Visa. F01. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. MDR removed some reason codes completely, including code 4863 – Cardholder Does Not Recognize. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Chargeback Reason Codes. Reason codes are very crucial to assist merchants to. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. RM Cardholder Disputes Quality of Goods or Services. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. Cardholder-Activated Terminal (CAT) 3 Device. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2. The chargeback can be for the total transaction amount or a lesser amount. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. That’s because customers often use the chargeback process incorrectly, either as an intentional attempt to get something for free or an innocent misunderstanding. With this information, you can determine the root causes of your chargebacks and take. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Code Reason (for Visa) 10. 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. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. 6. The cardholder claims they were charged multiple times for a single transaction. 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. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. . . 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. How Can I Fight Shopify Chargebacks? Inside or outside of Shopify, the basic approach for fighting chargebacks is fairly straightforward: Find out the reason for the chargeback, as identified by the chargeback reason code; Determine the appropriate evidence necessary to prove the transaction should be upheld; Represent the charge. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity There are over 80 unique return codes, and each one represents a different type of return. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. Reason 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. The following are reason codes. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. Feel free to submit topic suggestions, questions or requests for advice to:. . . Multiple Authorization Requests. Learn how to identify and fight chargeback reason codes from Visa, Mastercard, American Express, and Discover, the four major US-based card schemes. . As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment. 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. We say the given reason because it may or may not reflect the true reason. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. FR4 Immediate Chargeback Program. 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. Visa uses a numeric scheme for its chargeback reason codes. 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. Each card network has their own set of chargeback policies and reason codes, and they frequently change them. Retry after 8 days. The shorthand description is “Paid by Other Means. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. There are two parts to this. 1, which covers duplicate processing errors, and 12. F02. This will help you tailor your response. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. Another downside is that chargebacks on annual subscriptions. 4 applies to eCommerce, whereas code 10. About Visa chargeback reason codes. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. 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. Chargeback Reason Codes by Industry. Chargeback reason code 11. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Each reason code has its own regulations set by the relevant card scheme. About American Express chargeback reason codes. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Each reason code has its own set of regulations regarding: Proper and. When alerted about a potential chargeback, businesses can reach out to the customer promptly to understand and address their concerns. These codes are established by the payment brands to categorize the incoming dispute requests by reason. 6). 1 and Note on page 14 Chapters 1 and 2 Chapter 1Reason 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. Knowing these codes can help you dispute chargebacks more effectively. 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. Discover uses unique codes to explain those reasons to merchants. 3 is the less common version for card-present transactions. Visa Chargeback Reason Codes; MasterCard. Take the time to note the following dispute reason codes for Visa. ” 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. Some legacy codes encompass multiple reasons; new mapping recognizes the individual reasons as separate number and reason combinations. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. FR2 Fraud Full Recourse Program. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. The request comes from the credit card issuer or cardholder and goes to the acquirer or merchant. Identifying the chargeback. The Merchant failed to obtain a valid Authorisation for the full amount of the Transaction. youtube. © Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. Code 10. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback. However, a truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. 3 applies when a cardholder claims a charge—made in a card-present environment—was. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Merchants can find a. Chargeback reason code 4853 can be used to indicate disputes where the cardholder claims that unauthorized purchases were made from a digital account with a merchant (among other conditions). Code. Chargeback reason code 4853 is used to designate “Cardholder Disputes,” or disputes involving transactions that a customer claims are incorrect in some way. . 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. 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. Chargeback Message Reason Codes. The chargeback reason codes below explain why this happened. Reason Code 04. In the case of friendly fraud, that reason could be completely invalid and. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. 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. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. Chargeback reason code 12. . When one cardholder initiates a dispute with their issuing. Mastercard chargeback reason codes are four numerals without decimals. To easily accomplish accepting cases that you are not going to provide a response to, you may select chargeback(s), (up to 50 cases at a time), by dollar amount or reason code and select “Accept Chargeback”. If you believe you have received an ACH return in error, you can contact your bank. 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. A “No Authorization” code chargeback can also be the. This reason is made visible to all parties involved. 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. The chargeback transfers funds from the acquirer to the issuer. 1. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. many chargeback reason codes that exist today. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:WEX began issuing chip cards in Q4, 2020. Then there are the reason codes that apply to merchants who are unable to keep up with the unrelenting barrage of chargebacks and fraud attempts that e-commerce companies of today are constantly dealing with. We say the given reason because it may or may not reflect the true reason. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable Transaction is not eligible for Reason Code 75 or 83: 9Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. 0 is to make the chargeback process more efficient, transparent, and fair. These codes can help a merchant with an inquiry or chargeback reversal. . 0 is to make the chargeback process more efficient, transparent, and fair. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 6). Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Below is a comprehensive list of the most common Mastercard chargeback reason codes and their explanations, along with prevention strategies you can. . Identifying the. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. It is a federal law that has been put into action by the Federal Reserve Board via a sequence of rules and regulations. Attentive, accommodating, 24/7 customer service can work wonders to help you avoid chargebacks from disgruntled customers. 5 can be disputed. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable Transaction is not eligible for Reason Code 75 or 83: 9The client can define the chargeback reason code. The issuing bank assigns each case a code according to the consumer’s claim, and the merchant must adhere to the time limits for that specific code. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. The main chargeback reasons look like this: Malicious fraud. About American Express chargeback reason codes. Mastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. Chargeback representment is won or lost based on the quality and relevance of the evidence you provide. United States. There are also specific return time frames, which can differ. Overall returns (all codes): 15%. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). 180 S econd. It’s important to note that time starts when the. 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. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. . Find out the differences between the reason codes, how. About Discover chargeback reason codes. PCI DSS v3. 3 applies when a cardholder claims a charge—made in a card-present environment—was. 4860 Credit Not Processed. message. 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 CardholderIn the case of reason code 11. . The most comprehensive guide to chargeback reason codes. Each code begins with 'R' followed by a two digit number. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. This list was generated 5/4/2022. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. Reason codes. Chargeback Reason Codes All received credit card disputes include a reason code. This makes them nearly impossible to dispute. Find this type of chargeback with the below reason codes. 1 EMV Liability Shift 10. The chargeback process is mandated by law in the United States. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. R03 Insufficient Reply. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. . Visa chargeback reason code 13. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. Again, banks should not really be using 4807. Chargeback reason code 13. 11, 16. Specifically, these updates only pertain to transactions that are charged back after Oct. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. You should code appropriately to handle all codes applicable to the transactions you use. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. The chargeback system was designed as a last resort; only to be used in specific situations. 1 is an updated version of legacy reason code 30, which was phased out under the Visa Claims Resolution initiative. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. . The initial release of this standard does not add, remove or change any Return Reason Codes. Visa, Mastercard and Maestro each have their own set of reason codes for chargeback cases. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. Find out the difference between the new and. NF Non-Receipt of Cash from ATM. RN2 Credit Not Processed. Overall returns (all codes): 15%. The first global company fully dedicated to helping merchants combat post-transactional fraud, Cb911 safeguards over 2. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. Chargeback time frames - A specific period during which a chargeback can be raised. 6 General update and rebranding. Chargeback reason code 12. 2022 Visa Chargeback. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. . It’s easy for the bank to be tricked into allowing a friendly fraud chargeback. The chargeback transfers funds from the acquirer to the issuer. Not every transaction can be charged back to the merchant; however, most card issuers will err on the customer’s side and generate a chargeback. Providing evidence of one of the following has a high likelihood of proving a dispute invalid and overturning the chargeback: Evidence Dashboard. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. You're not legally required to have a written policy in place to accept returns. The Chargeback Reason Code Format. 5, and all aspects of chargeback reason codes, with proprietary technologies and. R13 No Reply. Chargebacks with a “paid by other means” reason code are the result of a simple mistake on the part of the merchant. The implication is that the merchant is at fault. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Use fallback options—like manually entering transaction data—as a last resort. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Learn more about Mastercard chargeback reason codes. 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. 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. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10.