The chargeback reason code; The transaction amount and the chargeback amount; The action(s) already completed by the acquirer; The deadline for submitting representment documents;. 4. How can merchants fight code 13. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. Code. This list was generated 5/4/2022. Customer Service Department PO Box 981532. Chargeback reason codes are a list of common reasons why customers dispute charges on their credit card statements. Chargeback fees are assessed by acquirers and processors, so they can vary. This is further complicated because the rights for each incident are based on the reason code. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 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. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Mastercard chargeback reason code 4807 – Warning Bulletin File is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. they provided their credit or debit card details to a supplier of goods and services (usually over the phone or online), which the supplier used in a way the customer didn’t expect or authorise they asked their card issuer to refund them (through the ‘chargeback’ process) for an incorrect card transaction, but the card issuer hasn’t. MasterCard Chargeback Reason Codes: Authorization Issues (Codes 3000 - 3011)Definition, How to Dispute. Mastercard chargeback reason codes. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. MasterCard: Reason Code 4859 Services not rendered. This is the name of the business responsible for the charge; often a shortened, yet still recognizable version of the “doing business as” (or “DBA”) name. Visa has its own set of chargeback reason codes. Credit Card Dispute. P01 – Unassigned Card Number. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. A chargeback isn’t just a single event. These codes are established by the payment brands to categorize the incoming dispute requests by reason. 4808 Authorization-Related Chargeback. El Paso, TX 79998 FAX. Calculating chargeback fees, lost merchandise, and other drains on revenue, the average chargeback will cost merchants $3. In the distribution. Chargeback penalty fees can. For each reason code, a definition is The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. All received credit card disputes include a reason code. Updated these MasterCard Chargeback Codes: 08, 12, 55. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Get your complete guide to Discover reason codes, including all the detailed information, chargeback time limits, and other important information you need. Reason Code 02: Common Point of Purchase: Account data is stolen from the card-present merchant and used with other merchants: Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback. C28. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). 3-D Secure is a customer authentication protocol created for eCommerce. Chargebacks were introduced as a form of consumer protection against fraud. Step 3 – The acquiring bank receives the. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. A chargeback occurs when customers report or dispute a charge with their debit or credit card issuer, causing them to issue a refund. A02 No Valid Authorization. 2. This factsheet provides information about COVID-19 and chargebacks, including:The most comprehensive guide to chargeback reason codes. About 127 million people in the U. This includes the ability to accept credit card payments with a phone and a mobile card reader. When you look up a chargeback reason code, it should tell you exactly what type of evidence is needed to get the chargeback. Updated Oct 23, 2023. American Express Credit Card Account . paper processing and mailing costs. If the numbers don't match, call your Automated Voice Authorization Center and tell the operator that you have a "Code 10" authorization and that. 3-D Secure 2. Consumers who use a credit card or debit card to make purchases are protected by both local regulations and Visa and/or Mastercard international dispute resolution guidelines. Notification of Fraud. which are applied to disputes by the banks that issue credit and debit cards under their brands. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. Address Verification Service response codes are returned by the credit card issuer in response to each AVS verification request. MCCs are assigned to merchants by credit card issuers. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. The request comes from the credit card issuer or cardholder and goes to the acquirer or merchant. How can merchants fight code 4837 chargebacks? Merchants can fight code 4837 chargebacks by providing evidence that the charge was authorized, such as signed delivery confirmation or records showing the cardholder downloaded or used a digital purchase. This can happen if the merchant's name or description is not easily recognizable, or if the transaction amount is significantly different than the expected amount. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. While chargebacks can sometimes be legitimate, they can also be costly and damaging to your business. Discover Chargeback Reason Codes Explained. The bank files a second chargeback based on new information from the cardholder or because of a change to the chargeback code. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. It’s a process, one that can be lengthy and convoluted for all parties involved. Discover provides a dashboard called the Discover Network Dispute System. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. 6. The chargeback scheme is a process that permits cardholders to challenge credit and debit card transactions. A chargeback filed due to buyer’s remorse is a prime case. It’s been a problem as long as credit cards themselves have existed. Specifically, the FBCA grants consumers the right to dispute such charges and caps their liability at $50. 54 - Expired Card. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. compliance process depending on whether a chargeback right exists. But there are certain merchant services that specialize in high-risk credit card processing. A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. 11. Visa, Mastercard, Discover and American Express all have unique chargeback reason codes. 5 (previously under reason code 53) applies when a cardholder claims the merchant misrepresented the terms of a sale. 4 - Fraudulent Transaction – Card Absent Environment: The cardholder claims that a fraudulent transaction was made without the physical card involved. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback stemming from a canceled recurring transaction. If a merchant runs into chargebacks throughout their business, everyone knows that it happens. Some MCC codes don’t offer the same chargeback protections to customers. Chargeback Codes (continued) C04 Goods/services returned. Discover: Reason Code 4755 Non-receipt of goods or services. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. 1, which covers duplicate processing errors, and 12. FR4 Immediate Chargeback Program. Added these Discover. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous. A credit card receipt is a printout or email record summarizing the details of a credit card transaction, provided by a merchant. ’ Well, what is it exactly? With Visa CE 3. Common reasons for disputes include:Visa Reason Code 13. card networks like Visa have created a breakdown of the. The situation described by Visa chargeback reason code 13. Chargeback prevention strategies vary based on the reason for the. However, card networks sometimes tailor these codes to better fit their specific needs. 113Credit card fraud is rampant, surging after the massive shift to e-commerce that took place during the COVID-19 pandemic. 65 - Withdrawal limit exceeded: The transaction would exceed the. For example, Mastercard has a code which indicates a ‘consumer dispute. 6. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Additionally, Amex uses a fifth "Miscellaneous" category. Please deal directly with the cardholder for reimbursement. Discover 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. Relevant customer communication, such as order confirmation email or Social Media message confirming satisfaction with the order. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Thanks for following the Chargeback Gurus blog. Debit Card vs. 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. Merchant time limits have only one exception: if either party wants to escalate a dispute to arbitration, they must do so within 10 days. . You can often start the process within your credit card’s online transaction history. Chargeback Reason Codes In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Claims Resolution. Chargeback reason code 10. Take the time to note the following dispute reason codes for Visa. Refund. It can range from 60 to 120 days from the billing date. This can happen if the merchant processed a credit card as a debit card, or processed a similar mix up. They can go much higher, though, especially if your business is considered “high risk. A retrieval request—sometimes called a “soft chargeback”—is a method of obtaining a copy of the paperwork to validate a transaction. 4. 6. “It’s a lot tougher with Mastercard because they only use four main codes. Once filed, the merchant generally has 20. Code. The only thing return item chargebacks have in common with credit card chargebacks is the name. Unfortunately, the chargeback process was not some financial version of Athena, springing fully formed from the head of the U. Card Member Dispute. Sift’s MasterCard chargeback reason code guide features every single MasterCard reason code,. When they do, you’ll be given an. (3) By 2023, each chargeback case will cost. 1 chargebacks? The acquirer or merchant has 30 days to respond to a chargeback filed under reason code 12. 1 chargebacks by providing evidence that the charges were separate purchases or that the duplicate charge was already refunded. [1]• Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. A chargeback is a debit or credit card payment that is reversed by the cardholder’s bank when the cardholder disputes the charge. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. Once filed, the merchant generally has 20. 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. ; Help Center Find answers to common questions about Midigator’s technology,. Visa chargeback reason code 13. Unauthorised: Card-Not-Present (CNP) transactions. The chargeback scheme is a body of practices built up. • If the card is present at the time of sale, be sure to compare the credit or debit card account number on an electronically printed draft to the credit or debit card number embossed on the card. 4 chargebacks. If your company falls into a high-risk industry, it will be harder to find a credit card processor. Sometimes, eBay may determine on their own that a chargeback is invalid and dispute it regardless of the seller’s instructions, but when they do this the dispute fee is waived. Top chargeback reasons, and documentation to submit. The most comprehensive guide to chargeback reason codes. Card Member cancelled, refused or returned goods and/or services A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. Versatile QR code payments. Decoding the PayPal Dispute vs. 0 is to make the chargeback process more efficient, transparent, and fair. Mastercard Chargeback Reason Code 4808 – Required Authorization not Obtained. A credit card authorization code is an alphanumeric code, typically between 2-6 figures long, meant to indicate whether or not a credit card transaction has been approved. The customer can raise a dispute against any transaction. With a chargeback, funds are held from businesses until payment card issuers decide what to do. It is the credit card company that determines the terms and conditions relating to credit card transactions that are carried out by the issuing bank. The Fair Credit Billing Act, which became federal law in the United States in 1974, was created to address consumer concerns about a new financial product: The credit card. To do so, they must provide evidence to the issuing bank that the. Codes 51 (insufficient funds) and 05 (do not honor) are especially common. If they rule against the retailer, funds are returned to the. Here are some common chargeback scenarios often reported: 1. Chargeback reason code: A standardized code that indicates the reason a charge was disputed and a chargeback occurred. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. How can merchants fight code 13. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. The issuing bank assigns each dispute a code according to the consumer’s claim. This chargeback may be reversed if you can supply an imprinted or swiped sales draft signed. Provide relevant documentation as requested (e. 2. Visa chargeback codes explained. The chargeback is ordered by the bank that issued the consumer's payment card. EMV has been a mostly global standard since 2004. eCommerce grew too fast for the payments industry to respond. Both apply only to ATM transactions, but reason code 13. The credit card networks interpreted the conditions spelled out in the law and created the many reason codes that apply to all the various chargeback scenarios. Chargeback. 11. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 10. By Randa Kriss. The cardholder claimed they didn’t receive the goods or services or only partially received the order. If you get a chargeback,. 1. The chargeback filing period for cardholders is usually 120 days. When the cardholder’s card is swiped or their chip is inserted into your EMV. Typically, customers can file a chargeback within 60 to 120 days from the. As we can demonstrate, this transaction was for the legitimate purchase of [description of item] from our store [or online store] on [transaction date]. 20 days to present evidence proving chargeback is illegitimate. A standard billing descriptor may include the merchant’s name. Pros: $0 monthly fee. However, you have to remember that any merchant accepting credit cards also runs the risk of Shopify chargebacks. This 15-day window offers merchants more time to file a refund and avoid the chargeback issue. Chargeback Accounting. If not, check out our latest blog where we briefly discuss credit card chargeback laws. Exact amounts depend on the acquirer, which bases its calculations on a range of factors. Additionally, there are instances when the AVS code does not apply to one credit card brand but does apply to another. If they lose, the funds are taken away and the seller is charged a $20 dispute fee. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Genuine mistakes happen. P03 — Credit Processed as Charge. Most banks make submitting a chargeback extremely simple. Credit card chargebacks occur for several reasons, including: The cardholder doesn’t recognize or didn’t authorize the charge. A08 Authorization Approval Expired. Chargeback reason code. Each of the major card brands, including Visa,. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. Approval messages are usually straightforward, but there are some which contain additional important information. A chargeback occurs when a customer disputes a charge from your business on their credit or debit card. FR2 Fraud Full Recourse Program. Tips to help minimize Chargebacks: Here are some reminders that may minimize your risk of Chargebacks. 6. 9 is slightly narrower in scope. Simply click or hover the mouse above the payment. The AVS response code provides you with information about the outcome of the AVS check. Requests for debit and credit card chargebacks may arise from fraud, identity theft, or the illicit use of the card or card number. Additionally, Discover uses a fifth "No Classified" category. This field communicates information about credit card declines post-transaction attempt. 8 chargebacks? If the Original Credit Transaction was reversed and should not have. 50 Insider Tips for Preventing. [noun]/* fren • dlē • frôd • /. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is. The “Cardholder Number” is the series of digits used to identify the cardholder, issuer and card brand. US federal law stipulates that credit card issuers provide at least 60 days for customers to file chargeback requests, and you may get up to 120 days, depending on the reason for the chargeback. When you discover an unauthorized or incorrect charge on your credit card. Chargebacks differ from standard return requests in several ways. Visa chargeback reason code 71 falls under the “Authorization” category. Chargeback representment is a powerful tool you can use to contest illegitimate chargebacks and potentially win a reversal. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. If a person does it too much and the CC company expects chargeback fraud at the minimum they will cancel the CC for excessive or suspect chargebacks. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. And of course, the individual payment in question might be made with a debit card, instead of a credit card. However, it’s important to have this documentation on hand so you can. Each of these situations was given an alphanumeric identification code called a chargeback reason. Card Member cancelled, refused or returned goods and/or. 4 chargebacks? There are two common causes of code 10. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. Mastercard chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. There are several scenarios where a customer may reasonably expect a payment reversal. ) has its own reason code system, so sellers should carefully check the card used for the. This transaction arises when an unauthorised person uses your card without permission to make an online, telephone or mail order purchase. C01:. Mastercard chargeback reason code 4870: Chip Liability Shift involves fraudulent transactions where the merchant did not use an EMV-compliant terminal. What causes code 10. 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. What are Amex Reason Codes? Every card network features its own list of chargeback reason codes. If the charge has not yet been settled, it’s better to use a void. The credit card number used for a sale is not assigned to a valid account or cardholder. 1001 - Cardholder does not recognize the transaction. Some credit card companies also include a short phrase describing the code and chargeback. [noun]/cē • vē • vē • tö • kōd/. As more merchants accept credit cards in today’s digital society, the occurrence of Visa chargebacks continues to increase. That’s 50%. The primary difference between credit card chargebacks and those involving ACH payments is that the customer has only 90 days from the date of the transaction (or 60 days from receipt of the. In addition to losing the amount that. Fortunately, all major credit card networks. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. The cardholder claimed they didn’t receive the goods or services or only partially received the. This law did not. Chargeback representment is a powerful tool you can use to contest illegitimate chargebacks and potentially win a reversal. If a quick scan of your letter. The customer regrets their purchase. Chargeback. Discover: Reason Code 4755 Non-receipt of goods or services. Chargeback fraud is a serious concern for businesses, and the impacts should not be. About 127 million people in the U. Immediately issue a credit for any duplicate transaction identified. Then, gather any relevant evidence. Fraud. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. For educational purposes, here is an overview of the general chargeback process with most major processors: Step 1: A purchase occurs – All chargebacks start with a customer making a purchase, either in-person, in-app or online. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. Each card company has its own chargeback reason codes. Time limits, reason codes, fines and fees… are all established types of chargeback rules. But sometimes, a chargeback can be fraudulent. Credit Card Dispute. 2023-09-07. A chargeback is a process where a customer contacts their credit card company to dispute a charge on their account. 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. They also assign a numeric reason code for the chargeback, then electronically transmits all the chargeback information to the acquirer. Chargeback Reason Codes. The problem continues to grow out of control with each year. In the style of Salvador Dali, Pops of red and teal. It can have serious consequences for the perpetrator. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. A chargeback is like a refund, where a transaction made on a debit or credit card is reversed. 0, the data will be more accurate. P04 — Charge. On eBay, the chargeback process is not the only recourse buyers have. 3 No Authorization. Please note that each card network (MasterCard, VISA, American Express, etc. Canceled Recurring Billing. How can merchants fight code 12. Credit cards were in use by the late 1960s, but they still hadn't gained the widespread acceptance banks were hoping for. [noun]/THrē • dē • sə • kur/. The sales receipt and/or date and amount of the authorization if other than the transaction date. Visa has four dispute categories, and a reason code from one of these four categories must be attached to each claim:. The issuer returns the disputed transaction to the acquirer explaining the reason for the dispute, potentially with supporting documentation. Merchants need to understand the unique chargeback processes for each. Although they. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. So if you've paid for something on your debit card or for something on your credit. Generally speaking, a chargeback cost will range from $15 to $50 depending on the payment processor. 2: EMV Liability Shift Non-Counterfeit Fraud Visa Chargeback Code. In the context of payments for legal services, chargebacks lead to the money being returned to the. 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. 10. The merchant ends up losing merchandise, shipping costs, processing fees and eats a $35 chargeback fee. In the US alone, the top four major card networks generated $8. accept responsibility for a charge on their credit card, or the issuing bank doesn’t receive an authorization approval code, for example. You double and triple check your customer service records to see if the customer wrote in about the shipment (they haven’t), you check the tracking. To dispute a credit card chargeback, you should first review the reason code and details provided by the card issuer to understand the basis for the chargeback. 2. Chargeback Reason. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. Step 2 – The issuing bank reviews the chargeback dispute charge and electronically sends the transaction to the acquiring bank. Chargebacks were first established for credit cards by the Fair Credit Billing Act of 1974, with chargebacks for debit cards coming with the Electronic Funds Transfer Act of 1978. A Visa chargeback reason code is a number that identifies the reason why a cardholder disputed a transaction that led to a chargeback. A chargeback is a return of money to a payer of a transaction, especially a credit card 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. Each card scheme has its own regulations. This is the name of the business responsible for the charge; often a shortened, yet still recognizable version of the “doing business as” (or “DBA”) name. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. a) Code 75 (Cardholder Does Not. Transaction unauthorized make up 30% of all. [noun]/* chahrj • bak • frôd/. 4812 Account Number Not On File. Chargeback Reason Codes. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time. What is the chargeback reason code? The reason code is an alphanumeric 2 to 4-digit code provided by the issuing bank that identifies the reason for the dispute. have experienced credit card fraud, and more than a third of all cardholders have been victimized by card fraud more than once. Each code corresponds to a specific issue or problem the customer has experienced with the purchase. Discover is a credit card network and an issuing bank—just like American Express. The request is usually made when the cardholder is disputing a charge on their credit card statement. 2 Other Fraud – Card Present Environment 81(1) 10. 4866: Fraud Chip Card Counterfeit Transaction:A standard billing descriptor may include the merchant’s name. S. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Visa - 10. 3 Other Fraud – Card Present Environment 83(1) 10. 4: Counterfeit Merchandise. eCommerce grew too fast for the payments industry to respond. Chargeback reason code 4850: Installment Billing Dispute refers to customer complaints involving either acquirer- or merchant-financed installment billing. To put it simply, the credit card chargeback is simply the reversal of a transaction previously made by a customer to a vendor. 800. Reason codes vary by bank networks (card association), but fall into four general categories: 1. A credit card chargeback is a bank-initiated payment reversal for a credit card purchase. 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. They can protect you from erroneous charges and credit card fraud, but also. MasterCard: Reason Code 4859 Services not rendered. Post Views: 841. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. 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. Chargebacks are also known as payment disputes. If you’ve received a credit card chargeback, Wave will contact you by email to notify you and provide details of your case, including the reason for the chargeback. Credit card fraud happens when a payment goes through without the card holder’s consent, usually because the card has been stolen. The interviewer may ask this question to assess your knowledge of chargeback reasons. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. According to Discover, cardholders officially have 120 days from the date of the transaction to initiate. Every cardholder’s favorite transaction type—a refund transaction—is when a credit is processed to return funds to the cardholder’s account. The credit card issuer—which could be their bank, Visa, Discover, Mastercard, or American Express—will then assign a reason code to the chargeback claim. Merchants must respond within 30 days of day one for each phase. 2 Declined Authorization. The code is used to help verify buyers during a card-not-present transaction. M10 Vehicle Rental – Capital Damages. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Check this complete list of chargeback and dispute reason codes. 5% of all monthly transactions), then it signals one. Visa has collapsed the 22 available “reason codes” (codes that represent the cardholder’s reason for filing the chargeback) into four distinct categories: Fraud, Authorization, Processing Errors, and Consumer Disputes. Updated these Discover Chargeback Codes: RG, RM, U01, U02. It is subject to change and may not include every currently known dispute reason code.