2 Declined Authorization; 11. This chargeback<br />. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. A reason code is how banks categorize the reason for a chargeback. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. Blog. 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. 6 Credit Not Processed . Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. Condition 13. Transaction unauthorized make up 30% is all. Some of these reason codes are specifically designated to apply to authorization-related issues. Commonly selected actions include Dispute/Reverse Chargeback or Accept Chargeback. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds. All ACH return reason codes consist of the letter “R” followed by two. C18 – “No Show” or CARDeposit Cancelled. Step 1 – The customer initiates a chargeback dispute request over a transaction. 1st Chargeback. You’re right. Recurring billing transactions are a frequent source of conflict, disputes, and. About Careers Contact. 4849 – Questionable Merchant Activity – Mastercard Rule 3. ”. F02. ” Reply By: • Notice Due Date, if applicableChargeback - Unauthorized/Fraud, Item not received (chargeback), Significantly not as described, Credit not processed. One of these changes was an overhaul of Visa’s list of chargeback reason codes. Chargeback reason codes are a list of common reasons why customers dispute charges on their credit card statements. 2=1020 etc. UA06 Fraud – Chip and PIN Transaction. Research and familiarize yourself with the specific chargeback reason codes used by your industry or payment processor. FR2 Fraud Full Recourse Program. 3 – Not as Described or Defective Merchandise / Services. The terminal action codes are in Table 122 of the 4. 13. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. Chargeback Gurus takes the pain out of chargeback management, helping businesses recover their lost revenue. Each code begins with 'R' followed by a two digit number. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute. Additionally, there are several other reasons you could be on this list related to security, illegal activity, bankruptcy, fraud, or non-compliance. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Unauthorized returns (R05, R07, R10, R29, R51): 0. This may be done by either the merchant or the issuing bank. But in general, the most common reasons for chargebacks include the following: Fraud:. 8 – Original Credit Transaction Not Accepted. Credit Posted as a Purchase chargebacks, for example, at. This category for scamming chargeback claims is represented with the following reason codes: AMEX - F29 Card Don Presentational. Our Most Important Advice for Scam Victims is that to Get Your Money Back You Must File a Chargeback Request Correctly! Here’s more advice for scam victims: If you paid by credit or debit card, it is imperative to understand your rights and the power that’s in your hands. 4. As expected, chargeback reason codes exemplified consumer sentiment. For example, a debit may have been processed instead of a credit, or a credit processed instead. The most comprehensive guide to chargeback reason codes. The purpose of reason codes is to help merchants realize the intent of a consumer’s dispute; however, if they are attempting to obtain goods/services for free, they do not provide any meaning. Code. Even learning all the terms and rules won’t keep you. It is a valuable resource for anyone involved in the payments industry. Reason Code 04. View the entire list of Mastercard. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. eCommerce grew too fast for the payments industry to respond. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. Take the time to note the following dispute reason codes for Visa. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. P03 – Credit Processed as Charge. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. . Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Then, click individual codes for tips on how to prevent and fight each one. Services industry for image exchange and the creation of IRDs. Goods and services not as described or cardholder received defective goods or services 3. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. With VCR regulations, the risk of breaching fraud-to-sales thresholds increases. These codes are broken down into five different category. 1: EMV Liability Shift Counterfeit Fraud: 10. reason code information. Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. Evidence Required. With that said, you still need to understand the reason codes with any chargebacks from Amex. Except for Reason Code 75, the time limit is calculated from one of the following: Fraud chargeback reasons. Use this guide as a quick resource for Visa chargeback reasons at a. How to Prevent. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Previously, Visa expected the disputing member to start the dispute by filing a pre-compliance chargeback under reason code 98 (now obsolete). 9 – Non-Receipt of Cash or Load Transaction Value. Published: June 1, 2022. Chargebacks with the following reason codes are requested due to fraudulent activity. 5, and all aspects of chargeback reason codes, with proprietary. These reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Midigator has created a database of Visa reason codes. The shorthand description is “Incorrect Transaction Code. 2. If they accept, this is the final status. There are over 80 unique return codes, and each one represents a different type of return. Oftentimes, the reason code assignment is based on limited knowledge and insight. 1 Quick Reference Lead. This indicates a transaction was processed using a card that Visa listed as stolen or counterfeit. 1: EMV Liability Shift Counterfeit Fraud: 10. Retry after 10 days. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. 1 falls under the “Consumer Disputes” category. With the overhaul of their reason code system, Visa divided reason. The format depends on the credit card company. 13. message. Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment) 2. Chargebacks are initiated when a cardholder disputes a transaction, resulting in a reversal of their original payment. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Any time. Step 3 – The acquiring bank receives the chargeback. To determine the problem, you need to examine customer interactions, transaction details, and business practices. The chargeback reason codes were created to standardize the list of acceptable reasons for which a bank may submit a credit card chargeback or a direct debit chargeback on behalf of its customer. 4 – Counterfeit Merchandise. 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. 5 percent of all transactions. F01. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. 08. Reason Card Type Reason Code Description Merchant Action Code This Chargeback occurs due to a dispute relating to swiped transactions in which the Cardholder Discover UA11 Swiped Card Transaction – No Signature claims fraud and a signature was not obtained. 1. The Complete Chargeback Reason Codes List Visa Discover Mastercard American Express How to Use Chargeback Reason Codes 5 Things Merchants Should Understand About Chargeback. Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. The client can define the chargeback reason code. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargebacks have both short and long-term ramifications for merchants. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. This reason code is accompanied by a fraudulent reason code (UA). 0 to 5. 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:. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. They were mandated by the Internal Revenue Service in 2004 to facilitate tax reporting. As we touched on earlier, chargebacks can happen due to technical errors. 2. You can also view your latest chargebacks. Overall returns (all codes): 15%. ; If the acquirer bank. This chargeback may be reversed if merchant can. Prior to this, Mastercard’s list of reason codes was long, convoluted, and confusing; now there are fewer than ten different reason codes relevant to most merchants. Notification of Fraud. Please see the below “cheat sheet” for the new 4 byte reason codes. The other member could accept the chargeback or contest it, escalating the dispute to compliance where Visa adjudicates. Mastercard chargeback reason codes are four numerals without decimals. Check Card A bank card that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. 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 a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. 2 Added chapter providing information about the DiscoverA transaction event code is a five-digit code that classifies the transaction type based on money movement and debit or credit. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Each bank card network has its owner list of reason codes banks must prefer from. 13. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. What is Visa chargeback reason code 71? Visa chargeback reason code 71 falls under the “Authorization” category. Note: If there are no Motives applicable to the Reason Code, this field contains “0. 0: Changed report name from Downloadable Dispute Report to Case Report. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. The chargeback can be for the total transaction amount or a lesser amount. As a merchant, your focus should be on finding and retaining customers--not chargebacks. May be received up to 8 weeks after settlement. Prior to to, Mastercard’s list of reason colored was long, convoluted, and confusing; currently there been fewer than ten different reason codes relevancy to majority merchants. 46 4. American Express, Discover (and Diners Club International, which it owns) use a combination of numerals and letters. The merchant processed a random account number and didn't obtain the owner's authorization. 1 Merchandise/Services Not Received. Some reason codes have modifiers that can change what evidence is required, or that require additional evidence in the chargeback response. NACHA Return Codes. So don’t spend another second worrying about chargebacks. The merchant failed to ship the merchandise by the promised delivery date/time. C02 – Credit Not Processed. Chargeback Refund: return by the payer’s bank (e. American Express, Discover (and Diners Club International, which it owns) use a combination of numerals and letters. R34: LIMITED PARTICIPATION DFI: The RDFI’s participation has been limited by a federal or state. Reason Code: • List of all Reason Codes and description . A Shopify chargeback occurs when a cardholder contacts the bank about. Partners. Use this resource to prevent and fight chargebacks with greater accuracy. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. Chargeback reason code 4853 is used to designate “Cardholder Disputes,” or disputes involving transactions that a customer claims are incorrect in some way. Below is a list of Mastercard chargeback codes used in eCommerce. UA02 Fraud – Card Not Present Transaction. Reference these when rebutting cardholder disputes at your small business. Card Brand Reason Code Description. Steps to Prevention. Non Matching Account Number. The most comprehensive guide to chargeback reason codes. 13. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. Resources. Reason codes give merchants information about the cause of a chargeback and what evidence. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. A ratio of 3% or more with at least 300 chargebacks will result in being categorized as a High Excessive Chargeback Merchant (HECM). The merchant can choose whether or not the reason makes sense and. C05 – Goods / Services Cancelled. The Return Reason Code could be any of the valid codes listed in the X9. for chargeback reason code 4863 (Cardholder Does Not Recognize). If a no-authorization claim is based on merchant activity, there are steps the merchant should take to avoid a recurrence. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. Example: “I am familiar with all of the major chargeback reason codes, including non-receipt of goods,. About Visa chargeback reason codes. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Code 13. A reason code or a chargeback reason code is a string of symbols (numbers and letters). It could be a PIN or signature. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is validCardholder can dispute transaction up until Day 90 for reason code 4808 on MasterCard (see Appendix for details), Day 60 for reason codes 4801 and 4802 (see Appendix for details). Discover Card Chargeback and Dispute Rules. Chargeback Code Chargeback Reason; 10. 1 – CBK: EMV Liability Shift Counterfeit Fraud 10. These codes help businesses understand the cause of chargebacks and how they can prevent them in the future. Discover can be contacted for payment disputes by logging onto your online account or by calling 1-800-DISCOVER (1-800-347-2683). 100187 and ANSI X9. Discover is a credit card network and an issuing bank—just like American Express. Each card company has its. Discover has just one additional category to classify one reason code: Dispute Compliance. Mastercard currently conducts special Merchant audits for excessive fraud-to-sales ratios, excessive chargebacks, counterfeit activity, or collusive or otherwise fraudulent Merchant activity. Midigator has created a database of reason codes. Reason. The chargeback process allows for cardholders to recover funds in the event of fraud or abuse. Message. An example failure message:. We have been leading the charge against chargebacks since 2005, creating a world where merchants can flourish by focusing more on what they do best. Chargeback Reason Codes. 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. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. Mastercard: n/a This chargeback is caused by Authorization. Reason codes. Chargeback reason codes. With that said, you still need to understand the reason codes with any chargebacks from Amex. 7: Defective goods and services: C32: RM: 13. Cause. Currently, the MCC guidelines are maintained by the International Organization for Standardization. 1 – CBK: Late Presentment 12. This chargeback occurs when it cannot be checked that a valid code was obtained for a transaction at the time of the actual sale. For a more detailed explanation, as well as a list of Visa’s individual codes, please refer to our guide on chargeback reason codes. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. 2. There are several types of Mastercard chargeback reason codes, each with its own unique set of circumstances. 5 Chargeback Reason Code List - U. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. The cardholder couldn't recognize the purchase description on the billing statement. Looking for Discover chargeback and dispute reason codes? Check this database—Midigator has tips to prevent & fight chargebacks. Chargeback Reason Code. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. These codes can. Having a Lax Attitude Toward Industry Rules & Regulations. Nor is the situation static. Chapter 2 1. This chargeback<br />. Expired Card: Some people hang on to cards longer than they should. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. The aim here was to streamline the list of reason codes, and make it. Get of Visa’s current reason codes were condensed into four key groupings: fraud, authorization errors, processing fault, and my disputes. It was originally one of several possible scenarios covered by legacy Visa reason code 83. The deadline for a Chase Bank customer to dispute a transaction is 60 days. This is a code taken from the card scheme’s published list, which identifies why the issuer filed the dispute: Visa Chargeback Reason Codes. When you receive notification of a payment dispute or chargeback you may see a code listed with it. 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. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. All received credit card disputes include a reason code. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Solution. 1 - Card Recovery Bulletin; 11. All chargebacks start with a customer making a purchase, either in-person, in-app or online. Explanation. 13. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 4853 Cardholder Dispute. Explanation of the occurrence of a chargeback, with a detailed breakdown by type and prevention options. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. The problem continues to grow out of control with each year. 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 TRRReason Code 02. Chargeback Reason Codes Page 3 of 5. Description: Reason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. Chargeback Reason Codes. Some of the reasons why the order did not reach the cardholder can be as follows: The merchant did not provide the services;ECM monitors first presentment chargebacks regardless of reason code or transaction type. Category. Partners. Even if the chargeback is later canceled, the merchant will still have to pay fees and administrative costs. Visa, for example, has reason codes: 11. 13. 3: Goods or services were not received: C08: RG: 4855: 13. Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s. If the order was genuinely not as described, then the cardholder has a case. Chargeback Reason Code List - U. Use this resource to prevent and fight chargebacks with greater accuracy . Reason Card Type Reason Code Description Merchant Action Code This chargeback occurs because of a dispute on an Airline sale involving allegedly fraudulent card transactions. There are dozens of different chargeback reason codes spread across the different card networks, which correspond to hundreds of different chargeback triggers. 2023 Consumer Attitudes Towards Chargebacks 7 Best Practices in Chargeback MitigationDiscover uses the four main categories to organize its reason codes: Authorization, Service (Discover’s name for Card Member Disputes), Fraud, and Processing Errors. To contest the chargeback, you must show strong evidence that the transaction was valid. Excessive Fraud: The merchant’s sales volume thresholds for the ratio of fraud to sales were exceeded. Pre-ArbitrationSteps to Prevention. This may affect dispute time limits. These disputes are commonly referred to as friendly fraud. For a list of available reason codes, refer to Dispute reason codes. news & updates. Company. This can provide important information to fight the dispute. 6. The ultimate purpose of a chargeback reason code is to explain to the merchant why a chargeback was filed. Requested Transaction Information Not Received. Transaction can be sent again. 196 A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. When claims are rejected, a Medicare reason code provides a brief explanation or reason for the rejection. Multiple Authorization Requests. 6: Duplicate processing/Paid by other means. 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 first thing to understand is that not all chargebacks are the same. A T-code has the following format: T<event-group><event-type-code> Where: <event-group> is a two-digit general. 4 spec (Section 8. Incorrect transaction amount or account number. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Discover Chargeback Reason Codes Explained. A service chargeback is filed by a customer, which means that you need to note the card type and dispute reason code so that you can determine which types of information to submit if you dispute the claim. The following table shows response codes and their meanings for ISO 8583-1987, later versions uses 3 and 4 digit response codes. Be careful not to process canceled or voided transactions. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Compensation Resolution. Use this report to check the status of all chargebacks disputes and retrieval notifications within the report range. See more04/04/16 Added American Express Chargeback and Retrieval Reason Codes. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Chargeback Reason Code Categories The 151 chargeback reason codes across the four major credit card companies can generally be grouped into five different categories. The issuer reviews the case, assigns a reason code, and initiates the chargeback. That said, looking up purchases using this number can make it easier to provide info following an. 4 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. Visa Chargeback Reason Code 13. The shorthand description is “Declined Authorization. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. For instance,. It gets worse. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Message. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing. “American Express Chargeback Reason Codes | Sift”. The key below describes the applicable classification and code structure of. If the dispute involves a non-Visa card, the dispute can be paused for up to 72 hours for the merchant to respond. Thanks for following the Chargeback Gurus blog. Type. The shorthand description is “Card Recovery Bulletin. This process is called a chargeback. Visa Chargeback Reason Codes. So the company has more incentive to side with customer during cardholder. 00: The amount of the transaction. Feel free to submit topic suggestions, questions or requests for advice to:. If like most Discover cardholders, your card was issued by Discover Bank, they are the ones you must contact for a Discover chargeback or to dispute a transaction. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. The card scheme receives the chargeback and forwards it to the acquirer. Actions: This is where you respond to a case. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. 4808 – Authorization-Related Chargeback – Multiple Authorization Requests. Chargeback:{reason_code}: A chargeback with a specific reason code. The client can send Paymentology a list of disputes, using a predefined batch chargeback submission template that has been requested to chargeback. 15, 2021. Below is a comprehensive list of the most common Mastercard chargeback reason codes and their explanations, along with prevention strategies you can implement to reduce the likelihood of chargebacks. The customer regrets their purchase. e. screen . 3:This alphanumeric code corresponds with the specific reason behind the chargeback, such as card-not-present fraud, incorrect currency, misrepresentation, or any other chargeback-eligible issue. 77. Reason Code 03. While deductions may be. This is commonly caused by either true fraud or friendly fraud. R13 No Reply. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1 applies when the issuing bank receives the same transaction more than one time. Goods / Services Damaged or Defective. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Motive: • Numeric value that represents an explanation of the Dispute than can be viewed on the . 2 chargebacks are frequently caused by customers forgetting to cancel a subscription before the next billing and then going to their bank to try to get their money back. Code Reason (for Visa) 10. ” This reason code is assigned.