Description. For more information on how we communicate with you through the Chargeback process, please visit. 1: Late Presentment: 12. Never swipe a card back and forth or at an angle, as it may cause the reader to misread the stripe. Be careful with the chargeback reason code assigned by the card issuer and focus on contesting that code. Visa chargeback reason code 12. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. In this case, all the information goes to the card scheme (either Visa or. 2. 1: Duplicate Processing 12. Last updated: October 15, 2019 . When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. 3: Incorrect Currency 12. Goods / Services Damaged or Defective. . 12. Dispute. There will always be people who attempt to take advantage of the system, no matter how faithfully merchants follow the rules. 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: Duplicate Processing: 35: Card. How to Manage ‘Late Presentment’ Chargebacks. 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. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Description. When a cardholder files a chargeback, the issuer attaches a reason code to the transaction. The codes also appear on financial reporting associated with disputes. 6. Fees (Debit Mastercard and Europe Dual Acquirer). Transaction fraud score. The chargeback reason codes below explain why this happened. 12. 7 Invalid data - 75 days for ISSUER/CARDHOLDER and 11 days for ACQUIRER/MERCHANT. Visa Chargeback Reason Codes; MasterCard Chargeback. July 2011 Chargeback and Exception Processing Guide 3 The Chargeback Cycle The chargeback cycle generally takes place in four basic phases:. 6: Duplicate processing/Paid by other means. The PCI-DSS compliance requirements are extremely detailed, but here’s. Harlan Hutson has spent the past 12 years focused on solving real world problems in payments and security; first as an eCommerce. 1 Duplicate Processing. 3: Incorrect Currency: Processing Errors: 12. This code is unique—at least currently—in that Visa has taken what was a single reason code and split it into two separate categories: 12. You should place a Code 10 call when. This code applies when a cardholder disputes a charge, and the merchant is informed by the processor that there is a problem with the transaction currency code. However, some of these transactions may lead to chargebacks. 6. For U. 5 – Incorrect Amount; 12. Visa announced changes to the following reason codes: Reason code 1350 Misrepresentation –an Issuer may initiate a Dispute under this reason code if the dispute applies to a transaction in a card-absent environment where merchandise or. These disputes can be triggered by multiple events: You enter the same transaction into the terminal more than once. This might mean that the merchant submitted a batch of identical transactions more than once, that more. 4: Processing Errors (12) Incorrect Transaction Account Number:. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 6. 3 = Incorrect currency 12. UA02 Fraud – Card Not Present Transaction. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. chargeback reason codes REASON ODE ENCYCLOPEDIA sift. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. 3. The codes also appear on financial reporting associated with disputes. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. the transaction adjustment date for an ATM cash disbursement or PIN-authenticated debit transaction. Accepting recurring transactions is enough cause for acquiring banks and processors to label you as a “high-risk” merchant. 12. ; Help Center Find answers to common questions about Midigator’s technology,. Some are the result of faulty products,. 1 = Duplicate processing 12. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI),. 2 is an updated version of legacy Visa reason code. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. 4: Incorrect Account Number 12. com. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). 4:. May 18,. Code: Category: Description: 10. Prevent Chargeback Scams: Tips to Stop Dispute Abuse. The most comprehensive guide to chargeback reason codes. 10. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. A reason code is how banks categorize the reason for a chargeback. 60 due to merchandise, fees, overhead, and other sources of loss. 5 Visa Fraud Monitoring Program Authorization Reason Codes Current Reason. Reason Code Reason Description; 12. Prevent Chargebacks & Reduce Revenue Loss. 12. 6 falls under the “Processing Errors” category. Use clear and consistent billing descriptors. F02. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). This period is known as the black hole or dark period. ” This code indicates the transaction specified a different currency type than what was actually processed by Visa, or that Dynamic Currency Conversion was used without. Accessed October 31, 2022. 7. Below are some examples of more common reason codes. 1 applies when a single transaction is accidentally processed more than once. The chargeback transfers funds from the acquirer to the issuer. 12. The old-fashioned way of determining the root causes of your chargebacks involves comparing. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. Chargeback Reason Codes / Visa / 12. American Express Chargeback Reason Codes 32 Appendix F Discover Chargeback Reason Codes 41 . If you do perform a key-entered transaction, make a manual imprint of the card. We can show you how to. . Visa has grouped its chargeback reason codes into four dispute categories: Category 10: Fraud. 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. 10. 2: Incorrect Transaction: 12. 2 Other Fraud – Card Present Environment 81(1) 10. Code 10. 4 = Incorrect account number 12. If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account. Specify a code from UDC 00/PS that indicates the. Consider calling the customer for. 6. 10. As we touched on earlier, chargebacks can happen due to technical errors. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. The card scheme receives the chargeback and forwards it to the acquirer. 65 - Withdrawal limit exceeded: The transaction would exceed the. Incorrect Transaction Code: 12. 2 applies when a cardholder claims that a transaction was actually. M01 — Chargeback Authorization. Learn about the different chargeback reason codes and what they mean. reason codes. American Express Chargeback Reason Codes 32 Appendix F Discover Chargeback Reason Codes 41 . Chargeback reason code 12. 4 applies to eCommerce, whereas code 10. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. 4: Incorrect Account Number: 12. Chargeback reason code 12. 6. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. “Credit Not Processed,” the reason code for unreceived refunds, accounted for 12% of consumer disputes at the height of the pandemic. If a no-authorization claim is based on merchant activity, there are steps the merchant should take to avoid a recurrence. Specify the default reason code to. This can provide important information to fight the dispute. In the case of friendly fraud, that reason could be completely invalid and. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. “Late Presentment Chargeback” is a good example; this reason code (Visa 12. If the dispute is successful, funds are taken from your merchant account and a strike is made. the reason code doesn’t reflect the real reason for the dispute. Accessed October 31, 2022. Reason code 12. 3? Chargeback reason code 12. 6. 1: Late Presentment: The transaction was not sent to Visa within the timeframe required. 5 Visa Fraud Monitoring Program. 7: Defective goods and services: C32: RM: 13. Your chargeback response must include at least one of the following items: Explanation and documentation to refute the cardholder’s claim. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. The problem continues to grow out of control with each year. 101. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. 12. 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. Reason Code 12. 12. Code. 12. 6. VisaChargeback Reason Codes. Reason Code 53 Re-presentment Conditions. For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. 5 billion lost in 2020. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. 2. Responding to Copy Requests. Chargeback Reason Codes The Ultimate Guide; BIN Lookup Find a Card's Issuing Bank; ROI Tool The Cost of Chargebacks; Resource Hubs. Each card issuer follows their own standards for defining reason type, code and its format. 12. 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. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. DESCRIPTION. 7. Discover uses unique codes to explain those reasons to merchants. For perspective, the next highest. Chargeback Management. If a merchant accepts the reason for the chargeback, the customer refund is processed. 1 Late Presentment . Top chargeback reason codes:. Most disputes through Visa Claims Resolution will be. Although merchants responded to 43% of chargebacks, the average net recovery rate was just 12%. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. 6. Processing Errors. 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. 2 – EMV Liability Shift Non-Counterfeit Fraud. All 1. 2. “It’s a lot tougher with Mastercard because they only use four main codes. 12. This happens if the merchant does not. 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. com 12. compliance process depending on whether a chargeback right exists. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. If the chargeback stems from the use of non-EMV readers, for example, the merchant should implement compliant terminals. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. Nov 22, 2023, 12:58pm EST. The chargeback can be for the total transaction amount or a lesser amount. 12 min read. 2 = Incorrect transaction code 12. Include your merchant account ID, transaction ID, a short case summary, and the chargeback amount in your response. The shorthand description is “Incorrect Currency. Chargeback Reasons Here's Why Your Customer Just Filed That Chargeback. 2. May 18, 2023 | 13 min readChargeback 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—Questionable“Reason Code”. 4 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Visa USA 12 months Visa International 12 months MasterCard 18 months Most draft. FR4 Immediate Chargeback Program. . The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. Reason Codes Category 4: Processing Errors. If your chargeback Win Rate is under 25%, it makes no sense to represent. [1] Sift. You’ll put that reason code, the transaction amount and authorization number, and state that the. Specifically, these updates only pertain to transactions that are charged back after Oct. Deferred Chargeback Raise: 128: Chargeback on Fraudulent Transaction: Fraud Chargeback Raise:Chargeback reason codes are what tell a merchant why a customer is disputing a charge. As we touched on earlier, chargebacks can happen due to technical errors. 2: Incorrect Transaction Code: Processing Errors: 12. For this reason, you must document all debit and credit card transactions and. Providing evidence of one of the following has a high likelihood of proving a dispute invalid and overturning the chargeback: Evidence. 4? Visa chargeback reason code 12. 6. . 12. 6. ” This code indicates the transaction specified a different currency type than what was actually processed by Visa, or that Dynamic Currency Conversion was used without cardholder consent. How are the EFM and Excessive Chargeback Merchant Program (ECM) programs the same or. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. ” This reason code indicates that the merchant processed a transaction using the wrong transaction code. Chargebacks. 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. 2: Paid by Other Means: 12. 3: Not as described or defective. Processing Errors. Betty's issuing bank assigned chargeback reason code 10. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Fraud Reason Codes Current Reason Code New VCR Reason Code 62(2) 10. Built with a single, intuitive console, Sift’s end-to-end solution eliminates the need for disconnected tools, single-purpose software, and incomplete insights that drain operational resources. F01. 6. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. for chargeback reason code 4863 (Cardholder Does Not Recognize). There are also third-party tools available to conduct advanced analysis. 1 means, how to fight and prevent it, and how to respond to it within 30 days. 12 minutes; Stripe is a powerful payment facilitator that enables merchants to accept card payments. Top chargeback reason codes: Visa Allocation reason code. 2: Paid by Other MeansThe chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. documents before the deadline. P03 — Credit Processed as ChargeSome chargeback reason codes are used exclusively with bank chargebacks. TIME LIMIT. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. What Are The Most Common Chargeback Reason Code Categories? Before we answer that question, it’s vital to underscore the importance of chargeback reason codes. If the cardholder no longer wishes to dispute the transaction, provide. Learn what Visa chargeback reason code 12. 16, 2021. The Top 12 Customer Service Best Practices to Adopt in 2023;. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. Chargebacks Explained;. Check with the issuing banks to determine what time limits may apply to you. My Adult GPA 101: Credit Repair Guide. 1 chargeback: 1. The. Incorrect Transaction Code: 12. UTC+12:00: New Zealand Standard Time: NZST. What is Visa Reason Code 12. 3 – Incorrect Currency: 120 days. Code 12. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The merchandise was as described or was not defective. 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. 7 – Invalid Data. 3 Chargebacks Are Completely Preventable. 12 to 18 50,000 19+ 100,000 Number of e-commerce first presentment fraud chargebacks in the current monthChargeback 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. For U. The date on the credit receipt. 1 Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. 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. Once you know why a chargeback happened, you can start building a case to address. 4: Incorrect Account Number: 12. 15%: 0. 4859 Addendum, No-show, or ATM Dispute. Current Reason Code New VCR Reason Code 74(1) 12. WEX began issuing chip cards in Q4, 2020. 12. xls Author: LUUJHT1 Created Date: 4/3/2023 12:18:36 PM. 1: Duplicate Processing 12. Paid from Other Means. more than 12 hours after the submission of the first Authorization Request. Reason codes. However, it is important to note that this reason code is based on the reason given by the customer to their bank. As we touched on earlier, chargebacks can happen due to technical errors. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. What are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. Visa chargeback reason code 12. Unauthorized returns (R05, R07, R10, R29, R51): 0. Learn in detail about the dispute reason codes and documents required for representation. ”. It can be caused by data entry errors or misunderstandings. Once a chargeback is filed, a merchant has: 5 days to accept or challenge the chargeback. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. In-Depth Analytics. Each bank card network has its owner list of reason codes banks must prefer from. 10. 6. A reason code is how banks categorize the reason for a chargeback. 12. Click on “report a problem” and select the transaction in question. The cardholder files a chargeback via their bank. 2. This code indicates that the merchant waited too long to process a transaction and the cardholder disputed it. Show. Also, remember that only disputes with a “fraud” reason code qualify. 2 Incorrect Transaction Code: P04 Charge Processed as Credit: 4842 Late Presentment: 12. Processing recurring payments increases your susceptibility to chargebacks. 3 falls under the “Processing Errors” category. 2 falls under the “Processing Errors” category. However, the 30 day waiting period can be waived if you’ve. No Cardholder Authorization. 12. However, the main takeaway here is that there are tons of reasons why a consumer would issue a chargeback – and it’s probably impossible to list them all. 5: Incorrect Amount:AMERICAN EXPRESS CHARGEBACK CODES 12 REASON CODE 4527 Missing Imprint. AUSTRALIAN MERCHANT CHARGEBACK REASON CODES 4507 Incorrect Transaction Amount Or Primary Account 04 Number (PAN) Presented. Date Option. S. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Category. Visa USA 12 months Visa International 12 months MasterCard 18 months Most draft. 2 — Incorrect Transaction Code. Reason Code 05. The Chargeback Reason Codes are alphanumeric key codes provided to the merchant and that comes along with the chargeback request. 3 Fraud – Card-Present Environment. 4 Chargebacks: Prevention & Response. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. Check this complete list of chargeback and dispute reason codes. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. Incorrect Transaction Code: 12. 13. American Express Chargeback Reason Codes 32 Appendix F Discover Chargeback Reason Codes 41 . 1: Merchandise/services not received Visa uses this reason code when a customer claims they didn’t receive the goods or services they ordered from your business. This list was generated 5/4/2022. 6). Workflow. Discover chargeback reason code 7030. 7. 35%: 0. Things are a lot less rosy if we look at the other figure, though, as. The aforementioned chargeback occurred on January 19, 20. The platform enables sellers to respond to buyer concerns, negotiate solutions, provide evidence in case of disputes. 6. This involved completely revamping the company’s categories of chargeback reason codes (the codes used to explain the supposed reason for a dispute). Merchants who believe they have received an invalid chargeback under reason code 12. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. They must respond within 30 days at each phase, or 10 days for arbitration. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Use fallback options—like manually entering transaction data—as a last resort.