Some of the most common ACH Reason Codes that merchants may encounter. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Use fallback options—like manually entering transaction data—as a last resort. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. Visa Claims Resolution (VCR) is Visa’s new dispute (chargeback) program that aims to address. This means that if a merchant issues a refund in response to an alert, and it still results in a chargeback, the management company will refund the alert fee. Code. Unauthorized returns (R05, R07, R10, R29, R51): 0. The transaction amount and authorization number (ARN. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. 4, 13. 3: Item Not as Described or Defective Merchandise/Services 13. Chargeback reason code 13. It comes into play when customers assert non-receipt of goods or services. Visa Chargeback reason code 13. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. 4 – Counterfeit Merchandise. Early Warning: Reaching a chargeback ratio of 0. . In this post, you will find the most common chargeback reason codes for card-absent (card-not-present) Visa transactions. 36, compared to $3. 5 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. Thanks for following the Chargeback Gurus blog. All received credit card disputes include a reason code. #9. 4846. All card brands have their own number of codes). Dispute Code. No Authorisation. With that said, you still need to understand the reason codes with any chargebacks from Amex. 10. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 3? Visa chargeback reason code 11. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. The other member could accept the chargeback or contest it, escalating the dispute to compliance where Visa adjudicates. These codes are established by the payment brands to categorize the incoming dispute requests by reason. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. 9 was previously covered by legacy Visa reason code 90. Visa chargeback reason codes. Visa Reason Code 13. 13. F01. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. 12. Chargeback Guide • 13 December 2018 4. “Visa has 28 different reason codes. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Using the same link provided above, contact PayPal to report the scam. Chargeback time limits vary depending on the reason for the dispute. Chargeback reason code 13. 2: Canceled Recurring Transaction 13. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. ACH return codes and explanations for R01 – R33 returns. 5. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. Multiple Authorization Requests. Dispute Code. FR4 Immediate Chargeback Program. 6 – Credit Not Processed. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. 1. Inform the cardholder when you issue the credit. Let’s say you got a Visa chargeback with reason code 13. Providing evidence of one of the following has a high likelihood of proving a dispute invalid and overturning the chargeback: Evidence Dashboard. Visa chargeback reason codes are used to categorize the reasons for a chargeback. Chargeback Guide • 13 December 2018 4. 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. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Once you know why a chargeback happened, you can start building a case to address the claims that were made. 4527 Missing Imprint 13 4530 Currency Discrepancy 14 4534 Multiple. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. 8. ”. However, my understanding is that Visa, who Chase uses, has a Chargeback Reason Code 13. Learn more about Visa reason codes. 4, 13. 13. 13. Under Additional Settings > Risk select the edit icon . Table 2: New VCR dispute reason codes Note: Chargeback reason code 75 ‘Transaction not Recognized’ is being retired. Message. Having a Lax Attitude Toward Industry Rules & Regulations. Stripe maps each network code into one of eight categories, based on the general claim and the evidence you need to submit to effectively challenge that type of claim. 1 to RC 13. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. for chargeback reason code 4863 (Cardholder Does Not Recognize). What is Visa chargeback reason code 13. 9% with at least 100 total disputes. EMV Liability Shift Counterfeit Fraud. The Visa chargeback reason codes systematischer underwent a major overhauls in April 2018 as part of their new Visa Claims Determination (VCR) initiative. Chargeback Reason Codes. Wait Time Limits for Cancelled Merchandise/Services (Dispute Condition 13. To maintain compliance with NACHA regulations, businesses that process ACH transactions must keep their rates of various return codes under certain thresholds, based on the previous 60 days of activity: Overall returns (all codes): 15%. Cancelled Recurring. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Rupay Cardholder Dispute Chargeback Reason Codes. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. What is Visa chargeback reason code 11. 13. Both EFM and ECM measure compliance at the MID level. 4:. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. Description of Change Where to Look Appendix F—Transaction Identification60. 3, 13. 8 – Original Credit Transaction Not Accepted. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. The situation described by Visa chargeback reason code 13. 13 in 2019 and $2. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. 7 Cancelled Services/Merchandise – is the merchant cancellation policy difficult to locate? Or did the cardholder forget to cancel? Get proactive. 2: Cancelled Recurring Transaction:. Chargeback Reason Codes Page 2 of 5. 7 — Cancelled Merchandise/Services. This scenario applies when the arbitration was raised by either the. Chargeback /Dispute; Merchant Response. R13 No Reply. Chargeback Reason Codes The Ultimate Guide; BIN Lookup Find a Card's Issuing Bank; ROI Tool The Cost of Chargebacks;. 04/09/14 Discover: DC, U02. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. For example, 10. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). Reason Code 53: Not as Described or Defective Merchandise. 4 Counterfeit Merchandise; 13. 2 for Visa and Reason Code 4850 for Mastercard). 3: Not as Described or Defective Merchandise/Services: 13. 4 Other Fraud Card Absent. Each code corresponds to a specific issue or problem the customer has experienced with the purchase. Our article covers the most common chargeback codes, including what they mean, how to prevent them, and how to dispute them if necessary. For Visa disputes, the reason code also dictates which workflow the case will take. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)In this post, you will find the most common chargeback reason codes for card-absent (card-not-present) Visa transactions. Products / Services 13. Category. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Response Code: 37 - Contact Acquirer Security Department, Retain Card The customer’s card issuer has declined the transaction and requested that your customer’s card be retained. ” This code indicates that the. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. Visa chargeback reason code 13. 13. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Acquirer Representment (Second Presentment) The table shown below details the requirements of the second presentment for this message reason code. This may be done by either the merchant or the issuing bank. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Condition 13. From COVID-19 to Hurricane Season: Disaster Preparedness for. 8 – Original Credit Transaction Not Accepted. 3. Description of Change Where to Look Appendix F—Transaction Identification13. 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. . 3: Not as Described or Defective Merchandise/Services: 13. Visa chargeback reason code 13. 81. 4 Counterfeit Merchandise, we are providing the attached compelling evidence. 6 is an updated version of legacy reason code 85, which was phased out under the Visa Claims Resolution initiative. 13. 13. When an ACH payment is returned, the reason for the return is indicated by an ACH Return Code. 13. The merchant didn’t: Issue a refund for canceled or returned merchandise. 2. 6 – Credit not processed; This reason code. Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. Chargeback time limits vary depending on the reason for the dispute. Invalid amount or currency conversion field overflow. Administrative returns (R02, R03, R04): 3%. The dispute timeline can be based on one of two start dates. 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. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,When a cardholder files a chargeback, the issuer attaches a reason code to the transaction. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. Issuers must wait 15 calendar days from the credit transaction receipt date before initiating a dispute, unless doing so would cause the dispute to exceed the time limit. If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled. Here's one example of a rebuttal letter you might write for a chargeback with a reason code indicating "merchandise not received. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The situation described by Visa chargeback reason code 13. REASON ODE ENCYCLOPEDIA sift. Region Only) 4855 Goods or Services Not Provided. 1? Visa’s chargeback reason code 13. 13. These modifiers can range from where the transaction is processed to what kind of goods are purchased. 3 No Authorization. The shorthand description is “Misrepresentation. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. If the customer has claimed a chargeback on the grounds that the item they ordered did not arrive (chargeback reason code is 13. 1: The chargeback time limits may be. 0, these guidelines guarantee merchant protections from certain categories of disputes. ” This reason code means that the cardholder is disputing a transaction by claiming that they never received the merchandise or services they purchased. This indicates that the merchant didn't respond to an inquiry properly. It can range from 60 to 120 days from the billing date. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 — Updated Special Notes. Transaction is not eligible for Reason Code 75 (cardholder does not recognize. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 3? Visa chargeback reason code 13. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. 1? Visa chargeback reason code 13. 10. ACH return codes and explanations for R01 – R33 returns. 3. Chargeback reason code 12. 4841 Canceled Recurring or Digital Goods Transactions. the date on the credit transaction receipt. There are several scenarios where this might happen. 6 – Credit Not Processed. Documentation must be a direct result of cardholder communication. Unfortunately, most merchants don’t pay attention to these codes—and it’s. This category of fraudulent chargebacks is represented with the following reason codes: AMEX - C31 Goods/Services Not As Described. 8 Original Credit Transaction Not Accepted. 6. 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. 13. 2: Cancelled Recurring Transaction: 13. Responding to Mastercard Reason Code 4853 Chargebacks. 7) Currently, when cardholders contact their issuing bank to file a. 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. Visa Chargeback Reason Codes. High Level Visa Chargeback Dispute Flow. Deferred Chargeback Raise: 128: Chargeback on Fraudulent Transaction: Fraud Chargeback Raise:VISA chargeback reason code 13. A Mastercard chargeback under reason code 4859: No Show/Addendum/ATM Dispute covers situations in which a cardholder attempted to withdraw money from an automated teller machine, but was charged for more than they actually withdrew. 10. 3. It's essential to respond within the. Reason Code – 13. 196For a list of all values for reason and chargebackReasonCode fields, refer to Dispute reason codes. 4853 – Cardholder Dispute – 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. 3. 9 – Non-Receipt of Cash or Load Transaction Value. If you fulfilled the cancellation request but the cardholder continued to use the services, provide documentation that proves the charge covers services used after the cancellation. In this scam, a scammer sends a message to their victim. A reason code is an alphanumeric code that explains the reason behind the dispute. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Cardholder Disputes. The shorthand description is “Original Credit Transaction Not Accepted. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. The merchant did not receive any returned merchandise. which was an increase of. And if the merchandise was returned for late delivery, the issuer should wait 15 days after the return of the merchandise before filing a chargeback. Both apply only to ATM transactions, but reason code 13. This code was phased out under the Visa Claims Resolution initiative. 13. Choose the representment amount. 13. 10. However, for simplification, they are divided into eight categories:. But there are certain circumstances in which a merchant can pursue representment on a chargeback with this reason code. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. 7 – Cancelled Merchandise / Services. Please note that the most common Chargeback reason code for Allocation disputes is 10. Dispute network reason codes categorization . 3 = Not as described or Defective Merchandise/Service 13. The shorthand description is “Cancelled Merchandise/Services. 1: Merchandise/Services Not Received: 13. Whatever the case, the merchant has either made a mistake or forgotten to include. 5 – Incorrect Amount 12 . The shorthand description is “Merchandise/Service Not Received. This code was phased out under the Visa Claims Resolution initiative. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. EMV Liability Shift Non-Counterfeit Fraud. Either the dispute must be processed within 120 calendar days of: the transaction processing date, or. 4. Proof you have already refunded the transaction and credited the cardholder’s account. 2. 4808: This code can refer to: Account Number Not on File. Visa, MasterCard, and American Express all list compelling evidence by reason code. Other Fraud – Card Present Environment. As we touched on earlier, chargebacks can happen due to technical errors. 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. Include your merchant account ID, transaction ID, a short case summary, and the chargeback amount in your response. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. 40 in 2016, according to LexisNexis. Visa chargeback reason code 13. Wait Time Limits for Cancelled Merchandise/Services (Dispute Condition 13. 3. up under any number of different chargeback . The sales receipt and/or date and amount of the authorization if other than the transaction date. Which chargeback reason codes are you familiar with? The interviewer may ask this question to assess your knowledge of chargeback reasons. 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 category includes transactions disputed due to fraud:. 8. November 13, 2023. Once you receive this notification, you have 11 days to submit a response. Each bank card network has its owner list of reason codes banks must prefer from. Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 13. Card networks send these codes to merchants to indicate why a. Issuer Review;A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. “American. Visa chargeback reason code 13. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. In these situations, a merchant’s billing descriptor is simply not recognized by the. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. The shorthand description is “Cancelled Merchandise/Services. 4812 Account Number Not On File. For more information on how we communicate with you through the Chargeback process, please visit. Support; Login. ECM monitors first presentment chargebacks regardless of reason code or transaction type. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. The date of the reservation or event. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 9. If the order was genuinely not as described, then the cardholder has a case. 13. 3 – Not as Described or Defective Merchandise/ Services 13 . The assigned chargeback reason code outlines why a customer submitted the dispute. 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. A08 Authorization Approval Expired. 3? Visa chargeback reason code 11. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. High Level Visa Chargeback Dispute Flow. Visa now has 25 reason codes that fall within the four categories. The shorthand description is “Credit Not Processed. Category. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. Also, remember that the time frame for your response includes any processing required by the acquirer. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. 1? Visa chargeback reason code 12. R03 Insufficient Reply. Expedited Dispute Resolution forms will not be. 3: Goods or services were not received: C08: RG: 4855: 13. An XCK entry may be returned up to sixty days after its Settlement Date. 1 - Merchandise/Services Not. Reason Code 13. underlying your chargeback. 3: Not as Described or Defective Merchandise/Services: 13. Automated Clearing House return codes, reasons, and details. Chargeback Reason Codes. We are writing to dispute the $1980 chargeback with the chargeback reason code 30 Services Not Provided or Merchandise Not Received. Credit Not Processed (6. 5:. ” This reason code means that the cardholder is disputing a. 10. Web reports and delimited file reports now reflect theHow long can the issuer wait to file a dispute? The dispute timeline can be based on one of two start dates. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. 9 — Non Receipt of Cash or Load Transaction Value. American Express chargeback reason code C42. Step #2 | Report the Scam to PayPal. Incorrect Transaction Amount or Account Number - 13. 1003 - Transaction Supporting Document (TSD) needed for cardholder’s personal records expense reporting. UA06 Fraud – Chip and PIN Transaction. Once you receive this notification, you have 11 days to submit a response. 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. 1 13. Computer Fraud and Abuse Act: 10 Must-Know Facts & Tips. EMV Liability Shift Non-Counterfeit Fraud. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. 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. As you can see above, VISA. compliance process depending on whether a chargeback right exists. 1 - Merchandise/Services Not Received. The chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. The most common Visa Reason codes include 10. Chapter 2 1. 2. 13. Each card network maintains reason codes to cover all the disputes that qualify for. Reason Code 13. 9. Documentation must be. 13. . It could also prevent cardholders from abusing this chargeback reason code directly after their purchase, especially in cases where services were rendered within the 30-day wait period. #9. 2 Declined Authorization. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. Reason Code 53 Re-presentment Conditions. Visa Merchant Official Documentation. A chargeback happens when a customer requests for a transaction to be reversed. According to Nilson, 56% of global card transactions were done on Visa in 2015. Merchant must provide proof of authorization. The third digit. A02 No Valid Authorization. The acquirer or payment service provider then provides the information to the merchant. 1 Merchandise/Services Not Received .