November 14, 2022 | 12 min read Articles. Your comprehensive guide to chargeback reason codes, transaction modifiers, time. 12. The codes also appear on financial reporting associated with disputes. Last updated: October 15, 2019 . 4 = Incorrect account number 12. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Once you know why a chargeback happened, you can start building a case to address. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. 42 - Late Presentment. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. View the entire list or search for any chargeback reason code. There are some exceptions on the cardholder’s side, though. Chargebacks. Visa groups its various reason codes into several broad dispute categories. The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds: Reason Code 06: Currently unused--. How to organize and format documents for representment;. 1 applies when a single transaction is accidentally processed more than once. Chargeback Prevention. 5 – Incorrect Amount; 12. Chargeback Reasons. © A dispute often has a reason code associated with it. 3: Processing Errors (12) Incorrect Currency: 12. Visa. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. 6. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). CHARGEBACKGURUS. 6. These codes tell you why the transaction is disputed. 99. What is Visa chargeback reason code 12. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. In this case, all the information goes to the card scheme (either Visa or. Prevent Chargeback Scams: Tips to Stop Dispute Abuse. 12. Be sure to send your supporting . Chargeback Prevention. 12. The merchant authorizes Amex to process a chargeback for the transaction in question. MasterCard chargeback reason code 4540. The most popular type of disputes of the chargeback category. 2: Incorrect Transaction Code:The Late Presentment chargeback rights and language were moved from chargeback reason code 4834 (Point of Interaction Errors) to reason code 4808 (Authorization-Related Chargebacks). have 20 days to respond. 12. Accepting recurring transactions is enough cause for acquiring banks and processors to label you as a “high-risk” merchant. A chargeback occurs when a customer disputes a charge from your business on their credit or debit card. The platform ultimately streamlines the resolution process for both. Chargeback Reason Codes / Visa / 12. Category. Card scheme. 2. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. For this reason, you must document all debit and credit card transactions and. 3: Goods or services were not received: C08: RG: 4855: 13. Transaction fraud score. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. ” 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. Learn in detail about the dispute reason codes and documents required for representation. SecureCode also includes another important benefit just for merchants: if fraud is reported on a transaction that was authenticated with SecureCode. Understanding these codes is essential because they'll guide your response strategy. Incorrect Transaction Code: 12. 2: Incorrect Transaction Code: 12. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. 4. Most disputes through Visa Claims Resolution will be. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. 3 Fraud – Card-Present Environment. What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. because friendly fraud is predicated on hiding behind a false chargeback reason code. Visa chargeback reason codes are used to categorize the reasons for a chargeback. American Express chargeback reason code R03 falls under the “Inquiry/Miscellaneous” category. 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 indicates the transaction specified a different currency type than what was actually processed by Visa, or that Dynamic Currency Conversion was used without. Review your credit card processor’s policies to understand its chargeback dispute process. But cardholders and merchants have different time limits. 5 = Incorrect Amount 12. 5, and all aspects of chargeback reason codes, with proprietary. 6 falls under the “Processing Errors” category. Prevent Chargebacks & Reduce Revenue Loss. November 2, 2023 | 13 min read Managing Merchant. PCI-DSS Non-compliance: The merchant did not meet the Payment Card Industry Data Security. 12. Compare account numbers. Reason Code 05. 3: Incorrect Currency: 12. 13. 6. The shorthand description is “Duplicate Processing/Paid by Other Means. 1 Late Presentment . The platform enables sellers to respond to buyer concerns, negotiate solutions, provide evidence in case of disputes. 3? Chargeback reason code 11. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Reason Code – 13. 7. 2 Compliance CasesChargeback Reason Codes The Ultimate Guide; BIN Lookup Find a Card's Issuing Bank; ROI Tool The Cost of Chargebacks; Resource Hubs. 3 — Incorrect Currency. These codes are broken down into five different category types: Fraud codes Learn about the different chargeback reason codes and what they mean. 12. Responding to Copy Requests. 12. 2. Overview. The. 6: Duplicate processing/Paid by other means. Why did I receive this dispute? You supplied invalid or incorrect data during the authorization process. more than 12 hours after the submission of the first Authorization Request. Chargeback Reason Codes / Visa / 12. 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. 1: Late Presentment: The transaction was not sent to Visa within the timeframe required. Automate Tasks & Streamline Processes. 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 – Incorrect Account Number. There are multiple situations in which this can occur. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. ”. Once you hear from us, you’ll . 2 – Incorrect Transaction Code. They can also escalate matters to eBay if needed. Terms and conditionsAbout American Express chargeback reason codes. If you do perform a key-entered transaction, make a manual imprint of the card. There will always be people who attempt to take advantage of the system, no matter how faithfully merchants follow the rules. M10 Vehicle Rental – Capital Damages. 6: Duplicate Processing/Paid by Other Means: 12. 1. Use fallback options—like manually entering transaction data—as a last resort. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Reason code 4842 (Late Presentment) was retired. 6. Network reason code is available on the dispute object. 1: The chargeback time limits may be. For more information on these and other updates, check out our complete chargeback reason. The cardholder files a chargeback via their bank. October 12, 2023 | 12 min read Prevent Chargeback Scams. 1: Late Presentment: 12. 6:. Processing Errors (12) Incorrect Currency. Most reason codes apply to any merchant, regardless of what’s being sold. S. Although merchants responded to 43% of chargebacks, the average net recovery rate was just 12%. Corresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Reason codes vary by card brand. American Express Chargeback Reason Codes 32 Appendix F Discover Chargeback Reason Codes 41 . The date the merchandise was returned. For U. At Visa they used to receive reason code 98. 3. 12. 12. Top chargeback reason codes:. 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. 1 – Duplicate Processing Visa Reason Code 12. Updated Visa Reason Codes. Region Only) 4855 Goods or Services Not Provided. 3: Incorrect Currency: Merchant must process transactions in the correct currency. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account. For the first 12 hours after a decline, merchants should not attempt to. Fraudulent TransactionsHere’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. 1 chargeback: 1. Also, just like American Express, Discover functions as both a card network and an. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. What is Visa Reason Code 12. 12. American Express Chargeback Reason Codes 32 Appendix F Discover Chargeback Reason Codes 41 . Fees (Debit Mastercard and Europe Dual Acquirer). Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. The shorthand description is “Duplicate Processing. Chargeback Message Reason Code 4901. Chargeback reason codes tell merchants the reason the customer is disputing a charge, according to the information they provided to their bank. Chargeback reason codes tell merchants the reason the customer is disputing a charge, according to the information they provided to their bank. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 4 Incorrect Account Number; 12. 47%: 96. 2 is an updated version of legacy Visa reason code 76, which was phased out under the Visa Claims Resolution initiative. What is Visa Reason Code 11. “Visa has 28 different reason codes. 1: Fraud (10) EMV Liability Shift Counterfeit Fraud: 10. reason code information. You would not be protected against Shopify chargebacks filed using any of the following reasons: Duplicate charges;. Also, remember that the time frame for your response includes any processing required by the acquirer. July 2011 Chargeback and Exception Processing Guide. 3: Incorrect Currency 12. When a cardholder files a chargeback, the issuer attaches a reason code to the transaction. 12. 5?. 12 Example 12—Message Reason Code 4853—Cardholder Dispute. Only an issuer can initiate the chargeback process. Verification codes (AVS, 3D Secure 2. 6. Reason Code 02. MENU MENU. 12. This indicates that the merchant didn't respond to an inquiry properly. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. 02/10/16 Added Debit Chargeback Reason Codes. 10. Chargeback Reason Codes / Visa / 12. Visa chargeback reason code 75 is filed as an honest mistake. If a merchant accepts the reason for the chargeback, the customer refund is processed. 5. 3: Not as described or defective. Prevent Chargeback Scams: Tips to Stop Dispute Abuse. Visa Reason Code Updates. Reason Code 12. Visa USA 12 months Visa International 12 months MasterCard 18 months Most draft. Learn the details, the cause, how to respond and how to prevent Visa Reason Code 12. 1 or Mastercard reason code 4834) will only ever be used by banks when a transaction is processed late. [noun]/* kə • stə • mər • di • spyo͞ot/. Excessive Fraud: The merchant’s sales volume thresholds for the ratio of fraud to sales were exceeded. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. Late Presentment Rules: Mastercard. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. The shorthand description is “Incorrect Currency. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. 5. 246 5. 2 falls under the “Processing Errors” category. Accessed October 31, 2022. 12. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Each card issuer follows their own standards for defining reason type, code and its format. 2: Incorrect Transaction Code: 12. 37. 2 – EMV Liability Shift Non-Counterfeit Fraud. 4. 1: Duplicate Processing: 12. Now, compliance cases go through Visa Resolve Online (VROL). Category. This category includes transactions disputed due to fraud:. It can range from 60 to 120 days from the billing date. COM. Reason code or also chargeback reason code systemizes the archive of reasons why a financial institution may file a credit card chargeback from their client’s name. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. 103. The following are some examples: Visa Reason Code 13. 14 SECTION 3: Chargebacks . Reason Code. In-Depth Analytics. This can happen due to a variety of reasons, such. 12. In theory, the reason code explains why the bank reversed the transaction. Visa chargeback reason code 12. Finally, the issuer notifies the acquirer of the chargeback by producing a chargeback reason code and submitting the relevant data. Incorrect Transaction Code The transaction processing code used has caused the cardholder to suffer a financial loss. What is Visa Reason Code 11. Chargebacks. 2: Incorrect Transaction Code: Merchant must use the correct transaction code for each type of transaction. 101. 4846 — Incorrect Currency Code. Visa chargeback reason code 12. Reason code 12. Specify the default reason code to. 3: Incorrect Currency: 12. Category. 12. Chapter 2 1. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. 13. Reason Code – 10. 0 is to make the chargeback process more efficient, transparent, and fair. 2. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. ; Help Center Find answers to common questions about Midigator’s technology,. Reason code Description; 12. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. Chargeback Reason Codes / Visa / 12. Responding to Mastercard Reason Code 4853 Chargebacks. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. 6. 1: Use the corresponding dates from the invoice. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. 6 is an updated version of legacy reason code 82, which was phased out under the Visa Claims Resolution initiative. Chargeback Management. Updated Disputes/Chargeback Policy Coming April 2024 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. These reason codes explain the reason for the dispute. 2 is an updated version of legacy reason code 86, which was phased out under the Visa Claims Resolution initiative. 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. 5 – Incorrect Amount. 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. Workflow. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. ”. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. Why did I receive this dispute? The cardholder claims the transaction amount is incorrect. Processing Errors (12) Incorrect Transaction Account Number. 9), the acquirer has 24 days to respond to the dispute • For MasterCard,. UTC+12:00: New Zealand Standard Time: NZST. That said, valid reason code 12. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Visa Processing Errors Chargeback Reason Codes 12. Chargeback Reason Codes Reason code are the first key to understanding the root causes . 2. Chargeback Time Limits . 6. For example, if a full credit processed does not fully offset the debit on a cardholder’s card account (due to fluctuation in exchange rate), the latter may use this chargeback reason code to recover the financial loss. 7 falls under the “Processing Errors” category. 2022 Visa Chargeback. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. 12. 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. Dispute. 3: Incorrect Currency 12. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI),. 3 – Incorrect Currency. Charge Back. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. Cardholder activity. 3. For all other transactions, the maximum amount of. 2: Paid by Other Means: 12. 3% decrease: Colombia: 6. AMERICAN EXPRESS CHARGEBACK CODES 12 REASON CODE 4527 Missing Imprint. Embed This Graphic. 2 - Incorrect Transaction Code. MASTERCARD. 12 How to Minimize Copy Requests. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Mike Conway 2021-03-04T19:12:59+00:00. Depending on your managing card network and the chargeback reason code cited, you would use your transaction ID to craft the best chargeback rebuttal letter possible, as it. The new reason codes follow a format of two digits, a period, then a third digit. 6 – Duplicate Processing. Harlan Hutson has spent the past 12 years focused on solving real world problems in payments and security; first as an eCommerce. If the transaction was processed correctly, provide documentation that proves the reason why you acted the way you did. Learn what Visa chargeback reason code 12. A reason code is an alphanumeric code that explains the reason behind the dispute. Each chargeback comes with a reason code that’s meant to explain the reason for the dispute. What is Visa Reason Code 12. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Why did I receive this dispute? You posted the transaction to an incorrect or nonexistent account number. 2. About American Express chargeback reason codes. For example, Mastercard has a code which indicates a ‘consumer dispute. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. 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 transaction adjustment date for an ATM cash disbursement or PIN-authenticated debit transaction. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. 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. 35%: 0. The Visa chargeback reason codes regelung undergoes a major overhaul in Month 2018 as part of their fresh Visa Claims Resolution (VCR) initiative. Prevent Chargeback Scams: Tips to Stop Dispute Abuse. Chargeback prevention strategies vary based on the reason for the. All received credit card disputes include a reason code. Reason Code 81: Fraud. The problem continues to grow out of control with each year. Both Visa and MasterCard use special Reason Codes to designate chargebacks. 4: Other Fraud–Card-Absent Environment. 3 Incorrect Currency:The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. Created two or. The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds: Reason Code. 7 is an updated version of legacy reason code 72 (condition 2), which was phased out under the Visa Claims Resolution initiative. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 4 – Incorrect Account Number / Dispute Code. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. From Everand. Why did I get a chargeback with Visa reason code 12. 2: Canceled Recurring Transaction 13. 15, 2021. Require expiration date and security code for online transactions. ”. 4841 Canceled Recurring or Digital Goods Transactions. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. 4 Other Fraud – Card Absent Environment 93(1) 10. 13 Example 13—Message Reason Code. Chargeback Reason Codes. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. This track is used for disputes assigned to a “Fraud” or “Authorization” reason code, as explained in Question #12. They must respond within 30 days at each phase, or 10 days for arbitration. 12. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13.