Each of these causes has a designated “reason code,” and banks assign the appropriate code. The Visa Fraud Monitoring Program, or VFMP, is a merchant compliance platform aimed at identifying and tracking merchants that receive too many chargebacks with “fraud”-related reason codes. Get of Visa’s current reason codes were condensed into four key groupings: fraud, authorization errors, processing fault, and my disputes. Build & Submit a Representment Case in 4 StepsMastercard chargeback reason code 4853: Goods/Services Not Provided covers disputes where a customer claims a merchant didn't deliver as promised. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. The first two digits indicate which category the reason code falls under:. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. Card Recovery Bulletin Authorization Visa Code: 11. There are two reasons main for this:  . 2? Chargeback reason code 11. Paid by Other Means Consumer disputes category: 13. Their chargeback process differs because it is typically more straightforward. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was. The shorthand description is “Declined Authorization. This specific code applies when a cardholder claims that the terms of the sale were in some way misrepresented. With that process, the payment service provider directly credits a payment to the cardholder's account. However, a truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Prevent chargebacks. Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands. Specifically, the ones with the reason code 10. Credit card authorization is a notification given by a credit or debit card issuer (i. A new representment right to provide compelling evidence for specific chargeback reason codes. Certain reason codes require specific pieces of evidence to be provided in order to remedy a dispute. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. 5 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. Visa Chargeback Reason Codes. e. Explanation. 4: Other Fraud–Card-Absent Environment. Declined Authorization Authorization Visa Code: 11. 3 - Incorrect CurrencyPlease note that the most common Chargeback reason code for Allocation disputes is 10. ” This reason code is assigned. Now George has contacted his bank to start a dispute with the Reason Code 30: Services Not provided or Merchandise Not Received. There are several reasons why an issuer might decline a transaction. This can be the result of intentional merchant fraud, but it is more likely to be an honest mistake. That’s 50% more time than what the major card networks allow. While the updates have been published, they do not go into effect until Oct. Visa chargeback. In fact, the same thing could be said of other chargeback reason codes, too. Many subscription payment disputes are made under code 13. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. the date the customer received the merchandise or services (but not to exceed 540 days of the original transaction processing date)Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. The rules which will take effect in April 2023 are meant to reduce the volume of friendly fraud occurring over the card network. 3 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. Chargebacks911® can help businesses manage all aspects of chargeback reason codes, with proprietary. 6. Your customer has to be enrolled in the 3DS platform that corresponds with the card brand in question ( Verify by Visa, Mastercard SecureCode, etc. Visa chargeback reason codes. Visa Fraud Chargeback Reason Codes 10. The tool is designed to flag potential fraud based on the rate at which a buyer submits multiple transactions. Defense documents should only be supplied if all requirements have been met. The issuing bank reviews the information. 3:A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 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 valid. 12. Message. What is a reason code? 3. 1 Merchandise/Services Not Received; 13. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer. 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. About Visa chargeback reason codes. 3 is an updated version of legacy reason code 76, which was phased out under the Visa Claims Resolution initiative. Velocity checks (sometimes referred to as “velocity limits”) are a fraud prevention mechanism widely used by eCommerce merchants. 1 falls under the “Processing Errors” category. Visa Code. Each card network — Visa, Mastercard, American Express, and Discover — defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands. e. What is a reason code? 3. A cardholder claims that they did not receive the service or merchandise they ordered. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. Chapter 1: All about chargebacks; 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:. What is Visa chargeback reason code 12. ; Resources. In this article, you’ll learn the key takeaways for merchants: Visa standard chargeback regulations; 3 most common Visa dispute reason codes; New Visa mandate Compelling Evidence 3. 1 Merchandise/Services Not Received. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 6. However, since most are the result of easily preventable merchant errors, it’s much more efficient to take a proactive stance. Mastercard Chargeback Reason Code 71: Disputed Amount. 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 valid. 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. As we mentioned, Visa dispute time limits for merchants are straightforward. Learn more about Mastercard chargeback reason. ; Resources. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. About Visa chargeback reason codes. 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 valid. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. This process is called representment. 0 standard that has specific defense requirements for chargebacks with this reason code. They lose the revenue from the sale, plus the chargeback fee, but do not have to engage in the process any further. 5 under Visa Claims Resolution). Need more help? Chargeback Reason Codes Visa 12. What is Visa Reason Code 11. STEP #7: Bank Review & Decisioning. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. Issuer Review; Allocation. Use this guide as a quick resource for Visa chargeback. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. 2 – Incorrect Transaction Code. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback. 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. 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 valid. With the overhaul of their reason code system, Visa divided reason. 6. 5 – Misrepresentation. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. New Visa CE 3. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. The dispute timeline can be based on one of two start dates. 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 valid. Even learning all the terms and rules won’t keep you. Despite this being considered sufficient proof to reverse the chargeback, issuers occasionally rejected the claims, leaving the merchant liable for the. Visa payment system. 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). Chargeback reason codes don’t always tell the full story. This code was phased out under the Visa Claims Resolution initiative. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. If you’re entered into the VFMP, that means Visa will keep tabs on your activity. A payment capture is the legally binding point at which transactional funds move from a cardholder's account into a merchant’s account. Payment Capture. 3 Not. online) purchase. 2 Other Fraud – Card Present Environment 81(1) 10. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 6 – Credit Not Processed. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. It was originally one of several possible scenarios covered by legacy Visa reason code 83. Search reason codes 2. 2. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. 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 valid. It applies when a cardholder participated in an ATM cash withdrawal, but. Download our comprehensive guide to reason codes, modifiers, time limits,. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. 2 is an updated version of legacy Visa reason code 71, which was phased out under the Visa Claims Resolution initiative. It can also be caused when the merchant doesn’t refund. What is Visa chargeback reason code 71? Visa chargeback reason code 71 falls under the “Authorization” category. 1? Visa chargeback reason code 11. , Visa uses a two-digit code; Mastercard uses a four-digit code. ; Resources. In some cases, chargebacks from Visa Reason Code 12. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. In short: capture is the point at which you get paid for a sale. 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 valid. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. 1) Retrieval Request Reasons and Reason Codes. 4, 13. Visa. Learn about the Visa chargeback reason codes and how they apply to Visa transactions. 2: Declined Authorization: 11. This means they are 100% preventable. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. 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 valid. For all other transactions, the maximum amount of. Visa no longer allows the use of retrieval requests, announcing they would be phased out effective October 2020. 5 – Visa Fraud Monitoring Program. 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 valid. There are some exceptions on the cardholder’s side, though. 0 rule changes take effect. Step #2 | Report the Scam to PayPal. Fraud and chargebacks can hit even the most scrupulous, honest merchants, but there are ways to fight and prevent them. It comes into play when customers assert non-receipt of goods or services. MDR removed. Some reason codes have modifiers that can change what evidence is required, or that require additional evidence in the chargeback response. Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands. What is Visa Reason Code 11. Condition 13. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Loss, Theft, or Damages chargebacks, for example, formerly fell under legacy. Merchant must provide proof of authorization. 4 | Mastercard Reason Code 4837. When a chargeback request is filed a chargeback reason code is assigned to the claim. 12. Now, compliance cases must be submitted through Visa Resolve Online (VROL). 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 valid. Specifically, these updates only pertain to transactions that are charged back after Oct. 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. 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 valid. Fortunately, all major credit card networks provide clear information regarding chargeback reason codes. Information included in these reports can include: Merchant information, including name, location, MCC. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 7 – Cancelled Merchandise / Services. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. All card brands have their own number of codes). Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 16, 2021. Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment) 2. Chargeback Reason Codes Visa 12. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable. The Visa Claims Resolution (VCR) initiative, launched in 2018, changed many aspects of the chargeback process. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Reason Code 81: Fraud. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. 00 EUR as a Withdrawal fee. Similar disputes on Visa cards would use Visa Reason Code 12. 1. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. If you do perform a key-entered transaction, make a manual imprint of the card. 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. They must respond within 30 days at each phase, or 10 days for arbitration. Now, 10. Chargeback Reason Code Users LeaderFewer chargeback reason codes. Code Reason (for Visa) 10. However, they must generally wait 15 days after the processing date before they can file a dispute on behalf of the customer. The situation described by Visa chargeback reason code 13. It is subject to change and may not include every currently known dispute reason code. Below is a list of Mastercard chargeback codes used in eCommerce. Visa Fraud Monitoring Program: Authorization. Visa chargeback reason code 85 is applied when issuing bank gets a notice from the cardholder that merchandise was returned, but merchant hasn’t refunded, or credit hasn’t appeared on the bank statement. Chargebacks911® offers the industry’s only data-driven, fully managed solution for chargebacks. This code applies when customers claim they never received the merchandise or services they purchased. 9 was previously covered by legacy Visa reason code 90. Reason code: Explanation: 12. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For U. 5: The chargeback under normal situations should be executed in under 120 days in all religions other than US Domestic. Chargeback reason code - A numeric, custom way to explain the reason of raising a chargeback specific per Card Scheme, e. 12. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. According to Visa, issuers will continue to be liable for transactions up to these limits, and can therefore initiate disputes under chargeback reason code 11. Fraud (10)& Authorization (11)Chargeback Reason Codes List for Visa. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. A chargeback with reason code 4853 may refer to disputes where the customer claims that a charge on their account is invalid. 1. VisaChargeback Reason Codes. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Visa recently shortened chargeback time limits from 45 days to 30. Visa and Mastercard each use their own set of chargeback reason codes. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity. ; Resources. Reference these when rebutting cardholder disputes at your small business. The start date for that window can vary, though. Whether your chargeback is based on fraud or a consumer dispute, you need to file your claim under the appropriate reason code. Visa Chargeback Reason Code 12. 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 valid. 6. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. About Mastercard chargeback reason codes. Without 3D Secure Liability shift, it is difficult to challenge the dispute. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Going back to our Reason Code C08 response, there are two modifiers that affect the evidence presented. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Visa chargeback reason code 12. Again, banks should not really be using 4807. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. F02. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. It was originally just one facet of legacy reason code 81. ; Help Center Find answers to common questions about Midigator’s technology,. About Visa chargeback reason codes. 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 valid. ; Help Center Find answers to common questions about Midigator’s technology,. Yes. Chargeback reason code 4853 can be used to indicate cases involving hotels or other temporary lodging establishments where a customer claims that the hotel charged an undeserved fee to the cardholder’s bill. 9 was previously covered by legacy Visa reason code 90. This reason code is. Find out the timeframes for Visa chargeback resolution, the merchant required. Card Network Reason Code Detail; VCR Dispute Reason Code 10. Mastercard Chargeback Reason Code 70: Chip Liability Shift. The issuer’s main limitation here is the timeframe: for Visa chargeback reason code 10. This type of chargeback reason could be named differently across the different card schemes (some examples: Visa 10. 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 valid. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2022 Visa Chargeback Reason Rules. The Visa chargeback grounds user system underwent a major overhaul in April 2018 in part of their new Visa Insurance Resolve (VCR) initiative. 13. the date on the credit transaction receipt. 1? Chargeback reason code 11. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1, which covers duplicate processing errors, and 12. The code replaces Visa’s legacy reason code 41. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Chargeback reason code 12. 3? Chargeback reason code 11. Visa uses the four main categories to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Visa Chargeback Reason Codes are divided into six general groups, with 22 subcategories (codes): 1. A new 4 byte reason code will be used moving forward. Visa Chargeback. What is the difference between Visa reason codes 30 and 41?About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Originally filed under legacy reason code 85 (condition 3), this code applies when a credit transaction was not accepted, usually for one of two reasons: The cardholder did not accept the credit. 6. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. 4 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. ; Help Center Find answers to common questions about Midigator’s technology,. The Complete Chargeback Reason Codes List. That’s 50% more time than what the major card networks allow. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. These rules are changing over time, though. What is Visa Reason Code 11. What is Visa Reason Code 11. Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. Visa chargeback reason code 12. 2 Compliance CasesIf a merchant does not submit the required pieces of compelling evidence, it is unlikely that the card brands will rule in the merchant’s favor. The issuing bank assigns each dispute a code according to the consumer’s claim. The implication is that the merchant failed to deliver the goods or services, but this reason. 9 is slightly narrower in scope. The short answer is “no. Visa Chargeback Reason Code 13. 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. If the merchant believes the chargeback was invalid for some reason, though, it proceeds to the next step. You can be inducted into both programs at the same time. ” This reason code indicates that the cardholder is disputing the credit card transaction because they provided payment via some other method, such as cash, check. 3. According to the customer, the product or service purchased was never received or used. It willEither the dispute must be processed within 120 calendar days of: the date the customer received the merchandise or services (but not to exceed 540 days of the original transaction processing date), or. . All received credit card disputes include a reason code. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes are important to help merchants address recurring. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 0. The time limits for filing a chargeback under different Visa reason codes can vary. Criminals obtain personal card data using a variety of methods, but the end results are predictable: the cardholder learns of the fraudulent transactions and files a chargeback. Both AFTs and OCTs are often used in concert with one another. 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 valid. domestic transactions, the dispute timeline can be based on one of two start dates. 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 valid. Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. About Visa chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. 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 valid. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. About Visa chargeback reason codes. ACH return codes are a type of shorthand for specific information concerning the return, much like the. Reason Code 11. This is Visa’s incentive for merchants to update to recommended terminal technology. For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. Visa Chargeback Reason Codes; Prevent Chargebacks; Chargebacks Explained; High-Risk Merchant Account; CONTACT. 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 valid. a) Code 75 (Cardholder Does Not Recognize): In this code, the. Each card network — Visa, Mastercard, American Express, and Discover — defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands. Merchant processed transaction below floor limit without authorization. However, since most are the result of easily preventable merchant errors, it’s much more efficient to take a proactive stance. About Visa chargeback reason codes. 0 standard that has specific defense requirements for chargebacks with this reason code. Merchants can deflect first-party disputes or reverse ensuing chargebacks by tying cardholders to their purchases by capturing transaction data, aka “compelling evidence. 4? Chargeback reason code 12. Among some of the most common Visa chargeback reason codes are Fraudulent Processing of Transactions (Reason Code 4837), Invalid Data (Reason Code 4775), Credit Not Processed (Reason Code 4834), and. If the cardholder bases the claim on false or misleading statements, it is considered friendly fraud. Accept the chargeback; Reject the chargeback; If the merchant accepts the dispute, the process ends here. 0 is simply a better protocol than 1. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Chargeback reason code 10. This chargeback occurs when it cannot be checked that a valid code was obtained for a transaction at the time of the actual sale. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). It will Chargeback reason code 13. Other Programs to Know About. Chargeback Reason Codes. Compelling Evidence 3. 4. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 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. Each of these causes has a designated “reason code,” and banks assign the. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10.