Understand the reason for the chargeback. Both EFM and ECM measure compliance at the MID level. . For most cardholders, the easiest way to dispute a charge is to contact their issuing bank through their preferred customer service channel. If the order was genuinely not as described, then the cardholder has a case. . g. Betty's issuing bank assigned chargeback reason code 10. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. 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. United States. Chargebacks from all three categories can show . 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 andThe chargeback reason code. Visa Chargeback Reason Codes Reason Code: Category: Description: 30: Non-Receipt of Goods or Services: Services Not Provided or Merchandise Not Received: 41: Cancelled/Returned by Cardholder: Canceled Recurring Transaction: 53:. g. It can range from 60 to 120 days from the billing date. ” 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. 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. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST:Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 1 Quick Reference Lead. Code 10. All of Visa’s existing reason codes were. Issuing banks follow standard rules to validate a chargeback and then associate it with a specific reason code according to the evidence that was provided. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involving2. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. Multiple Authorization Requests. The chargeback process can last from one month to six months. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. Visa chargeback reason code 11. This may include: Transaction receipts; Merchant credentials; Customer authorizationReason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. 2, below. F01. Once you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. A few days later, the same order, but with a different chargeback code of 98-Compliance Chargeback CB_RTM. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. Learn about the different chargeback reason codes and what they mean. These codes are broken down into five different category. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. Following is the list of Chargeback Reason Codes used by MasterCard: MasterCard Chargeback Reason Codes Reason Code: Category: Description: 4802: Request for Information: Requested/Required Item Illegible or Missing:. 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. [1] Sift. Either the acquiring or issuing bank could initiate the chargeback. A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. Chargeback /Dispute; Merchant Response. 1UA01 Fraud – Card Present Transaction. The reason code. 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. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. Automated Clearing House return codes, reasons, and details. Consider Deadlines. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Discover: Reason Code 4755 Non-receipt of goods or services. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. MasterCard does not have an equivalent reason code. 3? Visa chargeback reason code 13. 3. 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. The customer regrets their purchase. “American Express Chargeback Reason Codes | Sift”. 98%) Vix. There are 151 chargeback reason codes across the four. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. Fraud and chargebacks always result in revenue loss, but they also include fixed-rate fees and other negative consequences. M01 Chargeback Authorization. 4853 – Cardholder Dispute – Credit Not Processed. Step 2: Find your case. Chargeback Reason Codes Reason code are the first key to understanding the root causes . The good news is that most of these invalid claims are disputable by the merchant. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. For more. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Chargeback Reason Codes. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. 5, and all aspects of chargeback reason codes, with proprietary. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. There are two parts to this. 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. Chargeback Reason Codes for MasterCard. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. The case was ‘represented result of recourse’ by Chase Merchant Services. 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. Thanks for following the Chargeback Gurus blog. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. It can range from 60 to 120 days from the billing date. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Clerical There are over 80 unique return codes, and each one represents a different type of return. Cardholder Disputes. 6). Each card network has their own set of chargeback policies and reason codes, and they frequently change them. Let’s say you got a Visa chargeback with reason code 13. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. 11, 16 November 2015, Elimination. 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. American Express is incentivized to keep their customers happy. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. 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. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. Additional data from Mastercard shows that global chargeback volume reached 615 million in 2021. France saw a drop of roughly 50% during the same period. Clearing. On that note, below are some vendor missteps that could result in Visa reason code 13. Here’s how. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 78. 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 authorized face-to-face. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). 99. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. R03 Insufficient Reply. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Solutions. Using the same link provided above, contact PayPal to report the scam. 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. 6. 11. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. 1. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. While the updates have been published, they do not go into effect until Oct. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. 98%. 11. Time Frames by Chargeback Type and Reason Code. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 18167 US Highway 19 N Clearwater, FL 33764 877. 4854 Cardholder Dispute—Not Elsewhere Classified (U. 1 The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. 5%. That suggests that in the times when merchants. Updated Disputes/Chargeback Policy Coming April 2024Section5. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. 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. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. A dispute often has a reason code associated with it. 8% with at least 1,000 total disputes. 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 . For example, a thief takes someone’s card data and makes a purchase at a store. When this occurs, the merchant receives a notification with a chargeback reason code. 4. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. FR2 Fraud Full Recourse Program. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. FR4 Immediate Chargeback Program. Reason. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. For best results, your chargeback win rate should be as close to 100% as possible. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 4860 Credit Not Processed. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. AT Authorization Noncompliance. CHARGEBACK REASON CODESChargebacks. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. 4- Fraud Trans was received for an order and challenged by the merchant. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. 2=1020 etc. This provided a number of insights into the typical. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. Pay close attention to the reason for the chargeback. As we touched on earlier, chargebacks can happen due to technical errors. 1, "Compelling Evidence for goods/services not4846 — Incorrect Currency Code. 1. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Type. Also, just like American Express, Discover functions as both a card network and an. Values are: Blank: Use the receipt G/L date. 1 falls under the “Processing Errors” category. Depending 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. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Friendly fraud. Accessed October 31, 2022. But friendly fraud is much more ambiguous. While there are many chargeback reason codes, all chargebacks fall into one of three categories:The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. 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). Reason Codes Category 4: Processing Errors. These codes are established by the payment brands to categorize the incoming dispute requests by reason. The shorthand description is “Credit Not Processed. most common reason codes for recurring merchants include: 7. Reasons for a second filing might include the discovery of new information or a change of the reason code. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. PCI DSS v3. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. That said, looking up purchases using this number can make it easier to provide info following an. The issuing bank will then pass on the chargeback to the merchant. There is a USD 25 limit for the First Chargeback (Reason Code 22). However, a business’s success rate may vary depending on its dispute approach. At this stage,. On xx/xx/xxxx, we received a chargeback under the reason code 11. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. non_receipt: The buyer claims they didn't get the goods or services. The codes also appear on financial reporting associated with disputes. Here’s how your store can prevent and deal with chargebacks. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. For that matter, fraud prevention tactics such as AVS and CVV can be bolstered by adding advanced safeguards like 3D secure, automated transaction scoring, fingerprinting, and device ID tools. 4 disputes through Verifi’s Order Insight®, which ChargebackHelp clients are integrated with already under CBH+Deflect . The most popular type of disputes of the chargeback category. A dispute often has a reason code associated with it. Below are some examples of more common reason codes. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. A reason code will be provided. There are multiple situations in which this can occur. Adventures In AI. There are dozens of reasons why cardholders and issuers dispute transactions. . 11. 80. Card networks send these codes to merchants to indicate. This is a fairly common chargeback reason that can. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. At Visa they used to receive reason code 98. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Not remembering the original purchase. Also, they’ll often issue a provisional credit to the customer until there is an investigation on the claim. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. The cardholder initiates contact with their bank or credit union to file a dispute. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. ” This code indicates that the cardholder claims the merchant processed a recurring billing transaction after they had submitted a cancellation request or. 4853 – Cardholder Dispute – Goods or Services Not Provided. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. Technical. We’ll send you a notification, request for relevant information, and temporarily hold the transaction funds. The following is an inside and out diagram of reason codes for Visa, MasterCard, Discover & Amex alongside their depiction. Specify the invoice date and net due date to assign to chargebacks. 4841 Canceled Recurring or Digital Goods Transactions. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. In order to fight a chargeback effectively, however, you'll need to know the reason code. Each card company has its. Faxing and Mailing Agencies: There is a violation of a Visa or MasterCard rule, for which there is no chargeback reason code. Please refer NPCI OC- 93 for details. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Include any terms relevant to the transaction, including return, cancellation and. Discover uses unique codes to explain those reasons to merchants. All chargebacks start with a customer making a purchase in person, in an app, or online. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. -0. removing certain restrictions from chargeback reason code 4849 that will allow issuers to exercise their chargeback rights resulting directly. This code collects all the exceptions under its wing. You’ll put that reason code, the transaction amount and authorization number, and state that the. The following chargeback reason codes are related to EMV: Visa: 10. It’s even more frustrating if you don’t understand what the chargeback code means. 0900 (-1. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. 4853 – Cardholder Dispute – Credit Posted as a Purchase. The first thing you should do when you receive a chargeback notification is to check the reason code that the card issuer assigns to the dispute. When filing a chargeback, the issuing bank chooses a reason code from the list for the applicable card network. GraphQL Docs & Tools. 14. reason code information. It's essential to respond within the. Technical. Reason Code 98). 4512:Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. In that way, winning one dispute may help prevent the next chargeback to come after it. Each chargeback comes with a code that designates the reason it was filed. 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. ) has its own reason code system, so sellers should carefully check the card used for the transaction. Kristen Walters. In simple terms, VCR introduced five definitive changes to the dispute resolution process: The timeframe for merchant response was shortened from 45 days to 30 days. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 5 billion lost in 2020. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. . 98: Good Faith Collection: Other: NO: YES: VISA: 99: Pre-Compliance: Other: NO: YES: Card Type Reason Code Reason Text Chargeback Category. If the order was genuinely not as described, then the cardholder has a case. Step 2: Customer initiates the chargeback. Different card networks have different reason code systems. 4 – Other Fraud, Card-Absent Environment. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include. \. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. Step 2: Customer initiates the chargeback. [2] JUSTT. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. 1 Card Recovery Bulletin or Exception File. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. And chargeback guarantees aren't without. The most comprehensive guide to chargeback reason codes. M49 Vehicle Rental – Theft or Loss of Use. 4. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. Chargeback. If you believe you have received an ACH return in error, you can contact your bank. Each card issuer follows their own standards for defining reason type, code and its format. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. 5 Ways I’m Using AI to Make Money in 2023. Review your credit card processor’s policies to understand its chargeback dispute process. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. A chargeback happens when a customer requests for a transaction to be. Be sure to communicate with the customer and their bank professionally and courteously. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. The main chargeback reasons look like this: Malicious fraud. 60 due to merchandise, fees, overhead, and other sources of loss. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity 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. Approval Rating. From there, the merchant can look up the code to figure out what the dispute is about. 1=1010, 10. Then, apply calculations and chart your results. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. This will be referenced in the chargeback notice you received. In most cases, disputes need to be filed within 60 days. And. 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. That's why we've created this guide, which goes over what reason codes. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Please refer to chapter 5 for more information. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. The major card networks have unique reason code systems, and banks use separate tools. com Europe. If you're contesting a chargeback, you'll need solid evidence. Learn more about Mastercard chargeback reason. About American Express chargeback reason codes. 3: Goods or services were not received: C08: RG: 4855: 13. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Reason Code. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. It is subject to change and may not include every currently known dispute reason code. Here are some chargeback reason codes by card type. 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. We also included the reason code descriptions and an indication of when the allowable time frame begins. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. The shorthand description is “Late Presentment. 70 USD) 100001: 400: INVALID_REQUEST:. It’s of utmost importance to understand why the customer requested a chargeback. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. The chargeback can be for the total transaction amount or a lesser amount. 3 – Other Fraud, Card-Present Environment 10. 1? Visa chargeback reason code 12. Post Views: 841. A Merchant Category Code is a four-digit number that identifies the type of products or services the merchant provides. 2 Declined Authorization. (98) Credit Card. These codes are established by the payment brands to categorize the incoming dispute requests by reason. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. These chargeback reason codes are broken down into four categories: fraud, authorization, processing errors, and service disputes. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. At the same time, the average chargeback costs $191, with merchants bearing more than two-thirds of the financial impact. 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. First, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system.