Unauthorized returns (R05, R07, R10, R29, R51): 0. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Recurring billing transactions are a frequent source of conflict, disputes, and. The merchant's evidence must demonstrate that this claim is false. If you did not receive the email, open Mave, Wave’s automated chatbot, and. ”. 2023 Consumer Attitudes Towards Chargebacks 7 Best Practices in Chargeback Mitigation Purchase Experience Checklist Hidden Costs of Chargebacks Chargeback Solution Buying Guide How to Win Chargebacks at Scale Buy Now Pay Later's Chargeback Problem Taking a "Bite" out of Friendly Fraud The Link Between Supply Chain Disruption and Fraud Reason. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. Receiving a damaged product. 5 Visa Fraud Monitoring Program. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. A chargeback happens when a customer requests for a transaction to be reversed. 7: Defective goods and services: C32: RM: 13. Visa Merchant Official Documentation. 00 EUR as a Withdrawal fee. The notification will also specify the terms of the agreement under which Amazon Pay will assist you in handling the chargeback. Both cardholders and issuing banks will be able to see if a. There are several types of chargeback reason codes that can be used, including the following: 1. Select Need Help & Cash App Support. . It can range from 60 to 120 days from the billing date. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Updated Disputes/Chargeback Policy Coming April 2024Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. About American Express chargeback reason codes. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. 0 to 5. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Below is a list of Mastercard chargeback codes used in eCommerce. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Only an issuer can initiate the chargeback process. The analysis should start with the chargeback reason codes, followed by a deeper analysis to identify the real root causes in case they differ. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder authorized each of the. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. 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. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. These codes are established by the payment brands to categorize the incoming dispute requests by reason. R13 No Reply. . 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. Code 4807: Fraudulent Card-Present Transaction. . EMV Liability Shift Non-Counterfeit Fraud. Some payment service providers like PayPal and Stripe have their own reason codes as well. 10. 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. Visa Code # MasterCard Code # Reason. There are several reasons why many merchants turn a blind eye to suspected return fraud. These codes are established by the payment brands to categorize the incoming dispute requests by reason. By entering your email, you agree to receive marketing emails from Shopify. 29 Reason Code 30: Services Not Provided or Merchandise Not. Code 67: Display Allowance. Now, compliance cases go through Visa Resolve Online (VROL). This statement item can later be reversed, or made permanent, depending on the reason for the credit issuance. It’s just what it sounds like—the reason they’re fighting the charges, which can range from fraud and non-delivery of services to processing errors—and the codes for each problem differ between card networks. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. Resolution After you represent a chargeback, the next step is for the issuing bank to review any evidence that you have submitted and deliver a verdict. 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. Blog and Articles; Success Stories; Chargeback Reason Codings; DUMPSTER Look-up;. F01. Visa Chargeback Reason Codes. Visa chargeback reason code 75 is filed as an honest mistake. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. . Learn about the different chargeback reason codes and what they mean. The shorthand description is “Warning Bulletin File. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. These companies can also handle the entire representment process. 60 due to merchandise, fees, overhead, and other sources of loss. So the company has more incentive to side with customer during cardholder disputes. Specify the default reason code to. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. This would be filed using reason code 12. This is now an obsolete reason code, and issuers have been instructed to use code 4808 instead. You should place a Code 10 call when. To file a dispute for a Cash App transaction, you will need to select the transaction in Cash App. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. About Careers Contact. It's essential to respond within the. 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. It is associated with a chargeback reason code, and it is specific per Card Scheme. 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. EMV Liability Shift Non-Counterfeit Fraud. ”. 4 Fraud – Card-Absent Environment. Customer Reason Code Mapping. Below is a list of Mastercard chargeback codes used in eCommerce. FR4 Immediate Chargeback Program. Dispute Best Practices Guide Overview This guide includes:In some cases, chargeback management companies go a step further by offering a 100% chargeback prevention guarantee for handled prevention alerts. The new regulations simplify certain aspects of the dispute process and help stop some fraudulent claims before they become chargebacks. UA01 – Fraud: Card Present Transaction. A “No Authorization” code chargeback can also be the. But cardholders and merchants have different time limits. The list of chargeback reason codes in this article. reasonable and that the transaction did not exceed this amount range. 3: Goods or services were not as described: C31: RM: 13. Chargeback Reason Codes by Network - 2023 Orientation. For perspective, the next highest. Card brand definitions for “excessive” vary, but as an example, Mastercard requires acquirers to submit your business to MATCH if: Your number of Mastercard chargebacks exceed 1% of Mastercard sales transactions in a. Try Shopify free for 3 days, no credit card required. Knowing the reason code can help you dispute the chargeback, as you and your acquirer (the bank processing the charges) are more apt to gather the necessary. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. 1 for Visa transactions, or reason code 4834 for Mastercard. S. 75 for every $1. Second, chargeback reason code 75, for “Transaction Not Recognized,” is going away. 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. . 8 Processing Products 126 1. Prevent chargebacks. This list was generated 5/4/2022. 0: Changed report name from Downloadable Dispute Report to Case Report. Merchants can analyze the root causes of their chargebacks by examining the reason code of the chargeback and their own records regarding the purchase in question. . 3: Goods or services were not received: C08: RG: 4855: 13. issuers must not initiate chargebacks for any AFD or ATM transactions outside the U. This can be transaction receipts, proof of. These codes are broken down into five different category. Chargeback: Used when a deduction must be settled with a chargeback. Verification codes (AVS, 3D Secure 2. You may have to pay the chargeback fees if the dispute is successful, ranging from $15 to $100. R03 Insufficient Reply. Eliminate false positives. Case Studies. Step 2: Customer initiates the chargeback. If a no-authorization claim is based on merchant activity, there are steps the merchant should take to avoid a recurrence. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. This can provide important information to fight the dispute. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Once you know the reason code, you can investigate the transaction to determine whether. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. 1 chargeback: 1. Category. Your business may not have to. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, AP automation is an approach to the AP process that involves using software solutions to create an efficient, digitized workflow for receiving, reviewing, and paying invoices. Merchants. Code 22: Merchandise Billed not Shipped. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. 4853:About American Express chargeback reason codes. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. FR6 Partial Immediate Chargeback Program. Chapter 2 1. The chargeback transfers funds from the acquirer to the issuer. The issuer reviews the case, assigns a reason code, and initiates the chargeback. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Reason Codes Category 4: Processing Errors. Fight; Prevent;. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. 1Chargeback agency rollup code CASE NUMBER 12 20 NUM/9 CASE-NO Unique numeric identifier for each case RECORD TYPE 21 21 NUM/1 REC TYPE Appropriate record type 1 – SUMMARY. Under Set Order Status, select None, Refund, or Chargeback. 1 – EMV Liability Shift 10. There’s no such thing as a good chargeback, but in-app purchase chargebacks can be especially pernicious because they can stack up so quickly. 5 – Incorrect Amount 12 . When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Chargeback Reason Codes and Descriptions. M10 Vehicle Rental – Capital Damages. They can also be caused by a merchant failing to process a cancellation promptly. You double and triple check your customer service records to see if the customer wrote in about the shipment (they haven’t), you check the tracking. You can see the reason code for the dispute in the Dispute page. 4, MasterCard 4837, AMEX F29, Discover UA02, and so on). 7 Updated format All 1. This extra step can be frustrating for Card Members and lead to lost sales. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 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. Please note that the most common Chargeback reason code for Allocation disputes is 10. Retail chargebacks occur when consumers dispute credit card transactions that were used to pay for retail goods. 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. 2? Visa chargeback reason code 12. The most comprehensive guide to chargeback reason codes. 4853 – Cardholder Dispute – Goods or. . Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. Code 64: Early Shipment. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. Be transparent about your products. If the bulk of reason codes your business sees are fraud-related and you lose these chargebacks after submitting compelling evidence, true fraud problems are present. For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Mastercard Chargeback Reason Code 70: Chip Liability Shift. In simple terms, a payment reversal is just what it sounds like: a reversal of a previous payment, most often referring to a credit card transaction. What is Mastercard chargeback reason code 4807? Mastercard chargeback reason code 4807 falls under the “Authorization” category. These reason codes allow merchants to better understand the underlying cause of a dispute and develop strategies for preventing future chargebacks. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. Claim. In simple terms, VCR introduced five definitive. . You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. Not remembering the original purchase. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. . Since we are connecting through AP, your data is handled securely, all the data we access is strictly kept confidential, and we do not share your data with any third-party agents. 3: Goods or services were not received: C08: RG: 4855: 13. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. R13 No Reply. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. Overview. . non_receipt: The buyer claims they didn't get the goods or services. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. This chargeback<br />. These processing options activate the automatic write-off feature and enable you to establish write-off limits for both under- and overpayments. Can it be disputed?In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. . ©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 TRRThese chargebacks occur to resolve chargeback-related disputes between network members. Technical. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. 02/10/16 Added Debit Chargeback Reason Codes. Code 60: Handling Charge as Documented. There are multiple situations in which this can occur. For example, a retailer--Bigmart maintains more than 3,500 reason codes for deduction against its manufacturers. Code 4807 was used to cover various authorization-related. processed the transaction correctly. Banks may issue a credit to an account holder at their discretion. 4: Other Fraud–Card-Absent Environment. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. Vantage HouseOn that note, below are some vendor missteps that could result in Visa reason code 13. Each bank card network has its owner list of reason codes banks must prefer from. 4853 Cardholder Dispute. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. . Feel free to submit topic suggestions, questions or requests for advice to:. 2 Added chapter providing information about the DiscoverFraud and chargebacks always result in revenue loss, but they also include fixed-rate fees and other negative consequences. 4 Other Fraud Card Absent. • create an A/P credit for the charge back. 03B/RC for write-off reason codes. Retrieval Request/ Copy request Reason Codes. AP: Canceled Recurring Transaction: AW: Altered Amount: CD:. 4 Create an Unearned Discount. Once you receive this notification, you have 11 days to submit a response. This process is called a chargeback. Visa Fraud Chargeback Reason. 0 initiative will enhance the taxonomy of fraud chargebacks, characterizing consumer disputes more exactly with a code for “I didn’t receive this” or “I canceled this three months ago, and they’re still billing me. 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. 03B/CB for chargeback reason codes. Reason codes vary by card brand. Goods / Services Damaged or Defective. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. 2. Receivable’s lets you enter a chargeback against a credit memo or an on-account credit memo only if they have a. To assemble the right evidence to fight and win chargebacks, you may need documents. Disputes with this reason code are still limited to a 120-day filing window. 9. ” “Visa has 28 different reason codes. Clerical 101. Chargeback Report. The chargeback can be for the total transaction amount or a lesser amount. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Following the Mastercard dispute guidelines, consumer dispute chargebacks are filed under reason code 4853 - Cardholder Dispute. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. The chargeback process can last from one month to six months. Chargeback Reason Codes. You can learn more about each one by visiting the Mastercard Chargeback Guide. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. 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. 9808 [email protected] using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Reference these when rebutting cardholder disputes at your small business. 104. 4. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. Preventing Mastercard Reason Code 4837 Chargebacks. 502 DM-REFUSED DEBIT VENDOR-DOCK REFUSAL AP Forms, Invoice Shortage Dispute 503 DM-PAY/CAN BOOK INV IN & OUT PO CANCEL AP Forms, Invoice Shortage Dispute 504 DM-DUP INV DM-DUPLICATE INVOICE AP Forms, Invoice Shortage Dispute 505 DM-T. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective; American Express Reason Code C05 – Goods/Services Canceled; However, some reason codes are highly specific and apply only to a certain type of product, such as: Visa Reason Code 13. 3. 1. . Typical chargeback reason codes are:Reason Code Reason Code Description Timeframe; 4808: Authorization-related Chargeback: 90 calendar days: 4853: Cardholder dispute: 120 calendar days: 4837/4849/4870/4871: Fraud - No cardholder authorization - Questionable merchant activity - Chip liability shift - Chip liability shift - Lost/Stolen/ Never Received Issue (NRI) fraud :. You’ll put that reason code, the transaction amount and authorization number, and state that the. Reason code 04 pertains to your chargeback-to-transaction ratio and is the most common reason for being MATCHed. The bank can then reverse the transaction, deducting the funds from your account and returning them to the cardholder's account. With the right compelling evidence,. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. If your business falls into the "normal" risk profile, meaning you have a chargeback ratio of less than 1%, the chargeback fee levied by banks or payment. Code 68: Signing Allowance. non_receipt: The buyer claims they didn't get the goods or services. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. The chargeback can be for the total transaction amount or a lesser amount. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. And according. . 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. . Reason Codes: 08 / 20 / 71 / 72 A card was used either before or after its valid date Never process a transaction on a card prior to, or after, the valid date. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Be sure you understand the cardholder’s claim. That definitive guide included the chargeback reason codes from each of the quad larger card connectivity. The credit will then appear on the cardholder’s statement as its own distinct. 3? Visa chargeback reason code 13. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. But with the alerts system, you can proactively take. In all, there are four major categories of Chargeback Reason Codes. The good news is that most of these invalid claims are disputable by the merchant. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. One of the most common chargebacks that are being filled by cardholders across the globe, is the “fraud related chargeback. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,AP automation is an approach to the AP process that involves using software solutions to create an efficient, digitized workflow for receiving, reviewing, and paying invoices. The implication is that the merchant is at fault. The claim often, but not always, involves automated teller machines (ATMs). 0 is to make the chargeback process more efficient, transparent, and fair. 3. Otherwise, the Discover card chargeback time limit starts at the transaction processing date. Check the chargeback reason code. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 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. . Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions onOverview. The most comprehensive guide to chargeback reason codes. 2. 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—QuestionableChargeback guarantees usually carry some fine print—they may only cover certain chargeback reason codes, or only cover costs up to a certain dollar amount. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. The shorthand description is “Authorization Noncompliance. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Each of the major card brands, including Visa,. until 1 October 2017. Solutions. . Specifically, these updates only pertain to transactions that are charged back after Oct. Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Write a chargeback rebuttal letter (with sample template) 8 Ways to Prevent Chargebacks. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. Partners. Knowing these codes can help you dispute chargebacks more effectively. 105. 4 spec (Section 8. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. The cardholder files a chargeback via their bank. 6 Setting Up Payment Terms for Accounts Receivable. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Read on for the complete guide to dealing with chargebacks. You need to understand that there are three fundamental reasons why customers file chargebacks: Criminal Fraud Dispute resulting from the actions of a criminal actor. Note that these limits apply only to the issuer and/or cardholder; acquiring banks and merchants have a set time limit of 45 days to respond to each phase. 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. 0. F02. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. Chargeback reason code. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. 18167 US Highway 19 N Clearwater, FL 33764 877. 18167 US Highway 19 N Clearwater, FL 33764 877. 5 Visa Fraud Monitoring Program. Reason Codes: 22 / 23 / 32 / 35. Offer shipment and delivery tracking. 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. There are several different methods for obtaining a credit card payment reversal. 1. chargeback: The buyer filed a chargeback with the credit card issuer. Reason Code 53: Not as Described or Defective Merchandise. AP. Every card brand has a unique set of chargeback reason codes banks must choose from. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Use this guide as a quick resource for Visa chargeback reasons at a glance. Reason Code 81: Fraud. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. The terminal action codes are in Table 122 of the 4. 3 is the less common version for card-present transactions. The actual underlying cause of this chargeback is. .