The most common Visa Reason codes include 10. Updated August 23, 2023. 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. #9. Under Additional Settings > Risk select the edit icon . 4859 Addendum, No-show, or ATM Dispute. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Category. 8 functions as a reverse chargeback—it returns money to the merchant’s account that the merchant had intended to go to a cardholder. 1 to RC 13. Try Shopify free for 3 days, no credit card required. 2: Cancelled Recurring: 13. 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. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. When you receive notification of a payment dispute or chargeback you may see a code listed with it. 11. 3. This specific code applies when a cardholder claims that the terms of the sale were in some way misrepresented. 5 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. That’s 50% more time than what the major card networks allow. 4 – Counterfeit Merchandise 13. Acquirer Representment (Second Presentment) The table shown below details the requirements of the second presentment for this message reason code. For example, the cardholder may have been billed. What is American Express chargeback reason code R13? American Express chargeback reason code R13 falls under the “Inquiry/Miscellaneous” category. 13. 6 – Credit Not Processed;Previously, Visa expected the disputing member to start the dispute by filing a pre-compliance chargeback under reason code 98 (now obsolete). Then it chooses the most applicable code for a. The shorthand description is “Cancelled Merchandise/Services. Merchant must provide proof of authorization. Visa. Response Code: 37 - Contact Acquirer Security Department, Retain Card The customer’s card issuer has declined the transaction and requested that your customer’s card be retained. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. The shorthand description is “No Authorization. 4846. ” 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. You cannot refer the cardholder to the manufacturer. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. 2: Cancelled Recurring: 13. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 — Updated Special Notes. Either the dispute must be processed within 120 calendar days of: the transaction processing date, or. Code. Support; Login. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. 8 – Original Credit Transaction Not Accepted. Next to Standard webhook select the edit webhook icon . This may be done by either the merchant or the issuing bank. Going back to our Reason Code C08 response, there are two modifiers that affect the evidence presented. The reason code helps categorize the chargeback for the card network and issuing bank, and it also tells the merchant how they can fight the chargeback based on the corresponding reason for the transaction. The following tables show the Stripe categories for each card network’s dispute reason codes. Include the chargeback reason code, the customer’s name, the transaction amount, and a short description of the item that was purchased. Support; Login. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. This can happen due to a variety of reasons, such. 4:. 1 falls under the “Consumer Disputes” category. As you dive into a reason. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. – Non-Receipt of Cash or Load Transaction Value. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Table of Contents. Providing evidence of one of the following has a high likelihood of proving a dispute invalid and overturning the chargeback: Evidence Dashboard. Documentation must be a direct result of cardholder communication. 8. Consider Deadlines. ↩ Back to Directory. Reason Code 13. Step #2 | Report the Scam to PayPal. 1 — merchandise/services not received — asserts that the customer didn’t receive goods or the merchant failed to provide services. ”. This list was generated 5/4/2022. #9. The shorthand description is “EMV Liability Shift Counterfeit Fraud. This means that Visa reason code 13. What is Visa Reason Code 12. If the cardholder bases the claim on false or misleading statements, it is considered friendly fraud. Chargeback penalty fees can range anywhere between $15-100 per chargeback. 81. A chargeback with the Visa reason code 13. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. All card brands have their own number of codes). Chargeback reason code 13. 13. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. This code was phased out under the Visa Claims Resolution initiative. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Chargeback reason code 11. 5, B. 3. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. 3 – Not as Described or Defective Merchandise / Services. Check the chargeback reason code. Visa also overhauled its system of chargeback reason codes. If the customer has claimed a chargeback on the grounds that the item they ordered did not arrive (chargeback reason code is 13. 3? Visa chargeback reason code 13. Use fallback options—like manually entering transaction data—as a last resort. All of Visa’s existing reason codes were. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. 8 = Original Credit Transaction not Acceptedfor chargeback reason code 4863 (Cardholder Does Not Recognize). A new 4 byte reason code will be used moving forward. Steps to Prevention. High Level Visa Chargeback Dispute Flow. Take the time to note the following dispute reason codes for Visa. 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. . 4. Then, the issuers categorize the provided causes under the card network’s respective chargeback reason codes and communicate the same with the merchant’s acquirer bank. Then it chooses the most applicable code for a. 1? Visa chargeback reason code 12. 1 13. This code was phased out under the Visa Claims Resolution initiative. Visa’s chargeback reason code 13. 11. A08 Authorization Approval Expired. Send a notification after you’ve cancelled the recurring payment. **NOTE: As of April 13, 2018, Visa has officially retired chargeback reason code 75. You’ll put that reason code, the transaction amount and authorization number, and state that the chargeback is. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Visa now has 25 reason codes that fall within the four categories. Consumers have the right to file disputes for Visa reason code 13. Chapter 2: Average chargeback rates; Chapter 3: Chargeback Reason Codes Guide; Chapter 4: American Express Chargeback Reason Codes; Chapter 5: Mastercard Chargeback Reason Codes; Chapter 6: Visa Chargeback Reason Codes; Chapter 7: Chargeback responses; Chapter 8: Chargeback response templates; Chapter 9:. Chargeback Reason Codes Reason code are the first key to understanding the root causes . 4 Other Fraud Card Absent. Learn the details, the cause, how to respond and how to prevent Visa Reason Code 13. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. for chargeback reason code 4863 (Cardholder Does Not Recognize). Learning More about Visa Chargeback Reason Code 13. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. Visa Chargeback reason code 13. 6 deals with chargebacks stemming from a credit not being processed. Invalid account number (no such number). Chargeback Guide • 13 December 2018 4. Send a notification after you’ve cancelled the recurring payment. the date the customer was told the merchandise was counterfeit (but not to exceed 540 days of the original transaction processing date)About American Express chargeback reason codes. It’s even more frustrating if you don’t understand what the. reason code information. Chargeback /Dispute; Merchant Response. 04/09/14 Discover: DC, U02. What is Visa chargeback reason code 13. 1 - Merchandise/Services Not Received), you can refute this with evidence that the package was delivered. Previous Chargeback Reason Code. VCR Dispute Reason Code 10. Having a Lax Attitude Toward Industry Rules & Regulations. 4 Counterfeit Merchandise; 13. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 2. 2 Declined Authorization. 13. Visa chargeback reason code 13. 1: Merchandise / Services Not Received: Consumer Disputes: 13. The new codes, which can be found in our reason code guide, start with a two-digit number indicating which of Visa's four dispute categories it falls into: 10 — Fraud; 11 — Authorization; 12 — Processing Errors; 13 — Consumer Disputes; The Visa Claims. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. 4812 Account Number Not On File. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. Explore more ACH Return Codes. Be careful not to process canceled or voided transactions. The first is a catch-all for claims of fraud, while the others typically involve customer disputes. The sales receipt and/or date and amount of the authorization if other than the transaction date. 8. Accepting recurring transactions is enough cause for acquiring banks and processors to label you as a “high-risk” merchant. Chargeback reason code 4853 can be used to indicate cases in whic the merchant failed to cancel a recurring payment (when requested by the cardholder). ”. Visa anticipates that changes to the required up-front information will help eliminate the back-and-forth between merchant, acquirer, and issuer, intending to result in a quicker chargeback resolution time for our merchants. REASON ODE ENCYCLOPEDIA sift. Chargeback Representment. The shorthand description is “Credit Not Processed. com 14. 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. 5. 5 = Misrepresentation 13. 8 is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. The shorthand description is “Cancelled Merchandise/Services. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 3: Not as Described or Defective Merchandise/Services: 13. 6 | Mastercard Reason Code 4853. It comes. The chargeback reason code is 13. 3: Added maximum length information for the following: Claimant Email Address Claimant Name Credit Card Chargeback Reason Code Dispute Amount Seller Protection Payout Amount: October. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Either the dispute must be processed within 120 calendar days of: the transaction processing date, or. 3: Goods or services were not received: C08: RG: 4855: 13. Let’s say you got a Visa chargeback with reason code 13. 3 = Not as described or Defective Merchandise/Service 13. Chargeback Reason Codes Reason code are the first key to understanding the root causes . 4: Counterfeit Merchandise: 13. From COVID-19 to Hurricane Season: Disaster Preparedness for. . Visa Merchant Official Documentation. 1: The chargeback time limits may be. Visa has grouped its chargeback reason codes into four dispute categories: Category 10: Fraud. At their core, false declines. “It’s a lot tougher with Mastercard because they only use four main codes. September 28, 2023 | 12 min read Chargeback Fees. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. 8 — Original Credit Transaction Not Accepted. 4 Counterfeit Merchandise, we are providing the attached compelling evidence. com 13. The chargeback transfers funds from the acquirer to the issuer. 1A 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. Kount’s chargeback experts expect. ’When the chargeback procedure is used legitimately, chargeback reason codes correspond most of the time to the underlying reality, based on the evidence provided by the cardholder and the cardholder’s bank’s analysis. Documentation must be a direct result of cardholder communication. 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. Chapter 2 1. 13. . Having a Lax Attitude Toward Industry Rules & Regulations. “Visa has 28 different reason codes. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. Cancelled Recurring. Visa Reason Code 13. ACH return codes and explanations for R01 – R33 returns. Reason codes are longer, up to 6 characters, and include decimal points. The code replaces Visa’s legacy reason code 41. Lashonda Winston. Web reports and delimited file reports now reflect theHow long can the issuer wait to file a dispute? The dispute timeline can be based on one of two start dates. 5 Miscellaneous editorial changes ThroughoutMerchants 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. In this scam, a scammer sends a message to their victim. High Level Visa Chargeback Dispute Flow. The shorthand description is “Original Credit Transaction Not Accepted. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. CHARGEBACK REASON CODES“Reason Code”. A “No Authorization” code chargeback can also be the. 1004 - For fraud /dispute investigation or legal/ regulatory issues. These codes are typically provided to the merchant through their payment processor, and understanding them is crucial for minimizing returns and improving payment processing. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 6 – Credit not processed; This reason code. Any of those things could easily result in a recurring billing chargeback ( Reason Code 13. 1? Visa chargeback reason code 13. Reason Code 12. EMV Liability Shift Counterfeit Fraud. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR What is Visa Reason Code 13. 3 – Not as Described or Defective Merchandise/ Services; 13. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. 6 = Credit not processed 13. Sunday, November 23, 2014 If your business accepts credit or debit cards, you already know the unfortunate truth – chargebacks happen. 4 – Counterfeit Merchandise; 13. 9905. The following are some examples: Visa Reason Code 13. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Illegal Transactions: The merchant handled unlawful transactions. Excessive Fraud: The merchant’s sales volume thresholds for the ratio of fraud to sales were exceeded. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. 13. Chargeback Reason Codes /. Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 13. Time Frames by Chargeback Type and Reason Code The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. 1002 - Cardholder disputes billed amount. What is Visa chargeback reason code 11. 4812 Account Number Not On File. Chargeback reason code 10. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. 13. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Goods / Services Damaged or Defective. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. PCI DSS v3. 2 for Visa and Reason Code 4850 for Mastercard). Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. Modern manufacturing technology has made it easier than ever to make convincing, high-quality. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). All ACH return reason codes consist of the letter “R” followed by two. 4841 Canceled Recurring or Digital Goods Transactions. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. Visa Chargeback Reason Codes Mastercard Chareback Reason Code; 30: Services Not Provided or Merchandise Not Received 57: Fraudulent Multiple Transactions 62: Counterfeit Transactions 81: Fraud- Card-present environment 83: Fraud- Card-absent environment 13. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. message. Reason Code 03. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. 3: Not as Described. up under any number of different chargeback . This code indicates the cardholder is claiming that the descriptions of the products or services they purchased were vague, inaccurate, or insufficient, and they feel. Updated Visa Reason Codes. The company has insufficient funds to issue a refund. For example, 10. 3 – Incorrect Currency 12 . 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. 9 – Non-Receipt of Cash or Load Transaction Value. We are writing to dispute the $1980 chargeback with the chargeback reason code 30 Services Not Provided or Merchandise Not Received. Reason Code 13. 7 Cancelled Services/Merchandise – is the merchant cancellation policy difficult to locate? Or did the cardholder forget to cancel? Get proactive. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 5: Misrepresentation:13. Febuary 2013: 7. Administrative returns (R02, R03, R04): 3%. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Expedited Dispute Resolution forms will not be. Card networks send these codes to merchants to indicate why a. 2 – Cancelled Recurring 13. 1, 13. ”. 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 CardholderThe chargeback reason code. 1 falls under the “Fraud” category. The following chargeback reason codes are related to EMV: Visa: 10. 2. About American Express chargeback reason codes. 7 falls under the “Consumer Disputes” category. However, Visa is the largest card brand in both the United States and the world. 3 – Defective or Not as Described Service or Merchandize. 5 Misrepresentation; 13. Reason Code 07. Chargeback 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 Transaction Amount Differs 4834 Duplicate. Discover. By entering your email, you agree to receive marketing emails from Shopify. 8 – Original Credit Transaction Not Accepted. According the chargebacks911. Incorrect Transaction Amount or Account Number - 13. Cardholder Disputes. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. All received credit card disputes include a reason code. Simplify reason codes; Let’s look at each of these objectives a little more closely. If the order was genuinely not as described, then the cardholder has a case. This return reason code may only be used to return XCK entries. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. 04/09/14 Discover: DC, U02. 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. Description of Change Where to Look Appendix F—Transaction Identification60. Every dollar lost to fraud costs companies $3. 3 applies when a cardholder claims a charge—made in a card-present environment—was. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. It doesn’t help matters that travel is a high risk industry for credit card payments and with 100+ reason codes across all issuers, making sense of them all is a challenge. 13. Chargeback Rebuttal Letter Samples. 4: Counterfeit Merchandise: 13. 1 chargeback: 1. 2: Canceled Recurring Transaction 13. 3 falls under the “Authorization” category. However, for simplification, they are divided into eight categories:. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback reason code 13, "Incorrect Transaction Amount or Account Number," occurs when the transaction amount or account number presented by the merchant does not match the actual amount or account number authorized by the cardholder. 7 — Cancelled Merchandise/Services. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. Learn in detail about the dispute reason codes and documents required for representation. 13. The shorthand description is “Cancelled Recurring Transaction. In those. Whatever the case, the merchant has either made a mistake or forgotten to include. 6: Duplicate processing/Paid by other means. Fraud. Reason Code 13. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). 1: Merchandise/Services Not Received: 13. 3: Not as Described or Defective Merchandise/ Services: 13. 975. Clearly and concisely communicate your cancellation policy and make it. In this post, you will find the most common chargeback reason codes for card-absent (card-not-present) Visa transactions. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Each card network—Visa. Either the dispute must be processed within 120 calendar days of: the transaction processing date, or. ” This code indicates the merchant made a swiped or keyed transaction with a counterfeit card rather than scanning the EMV chip. R03 Insufficient Reply.