You can see the reason code for the dispute in the Dispute page. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Merchants can find a. Card Number: Alphanumeric: The first 6 digits, followed by. Specify the default reason code to. The sales slip must include both aUA01 Fraud – Card Present Transaction. 14 Chargeback Message Reason Codes. com. A reason code is how banks categorize the reason for a chargeback. The sales receipt and/or date and amount of the authorization if other than the transaction date. These codes are currently defined within the ANSI X9. In the case of reason code 11. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Batch chargeback process. Those reasons are explained through the corresponding reason codes. Feel free to submit topic suggestions, questions or requests for advice to:. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. The most comprehensive guide to chargeback reason codes. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Suspected fraud is a common reason, as is insufficient funds in the cardholder’s account. many chargeback reason codes that exist today. 7 Updated format All 1. This code tells you why the customer or bank initiated the dispute. . Each card network maintains reason codes to cover all the disputes that qualify for. The cost of fraud relative to the transaction amount also increases by 12%. This may include information about the. These are only a handful of common Visa chargeback reason codes. ” This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. Here’s how your store can prevent and deal with chargebacks. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. 26: Outcome: Type: String; Unique: No; Blanks: Yes; Max. 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. 2 - Incorrect Transaction Code. 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. Your chargeback response must include at least one of the following items: Explanation and documentation to refute the cardholder’s claim. 100- 140 standards- , and will be removed in future releases. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. But, merchants should be aware that, eventually, everyone will. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. The customer regrets their purchase. Visa Chargeback Codes — removed retired codes. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Reason code 4808 (Authorization-related Chargebacks) addresses disputes involving the timeliness of the presentment in relationship to the authorization. Accessed October 17, 2022. 3. This reason code means that the customer claims to have received goods or services that were damaged, defective, or otherwise unacceptably faulty. ” This reason code is. Reason codes. You can learn more about each one by visiting the Mastercard Chargeback Guide. . Values are: Blank: Use the draft G/L date. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. Card authorization refers to the actual notification received by a merchant. Thanks for following the Chargeback Gurus blog. Here are some chargeback reason codes by card type. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. But, it could be up to 540 days, in some situations. If the merchant has a signature showing that the order was delivered, or evidence that the. ”. (Reason Code 4850) > Arbitration Case Filing-For Chargebacks Initiated On or Before 16 April 2020. American Express chargeback reason code C04 falls under the “Card Member Disputes” category. Chargeback /Dispute; Merchant Response. In this scam, a scammer sends a message to their victim. 3? Visa chargeback reason code 11. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 1. 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). 2 Compliance Cases4846 — Incorrect Currency Code. False Declines and False Positives: Issues arising from improper transaction reviews. contact@midigator. 03%: AP: 21: 1. Receiving a damaged product. Date Option. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP) 4863 – Cardholder Does Not Recognize – Potential Fraud. M49 Vehicle Rental – Theft or Loss of Use. Analyze your chargeback data. Try Shopify free for 3 days, no credit card required. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 76 - Incorrect Currency or Transaction Code or * Domestic. Initiated On or After 17 July 2020 > Chargeback Message Reason Codes > Second Presentment:. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. In Merchant News and Info, Credit Card Processing Chargebacks are a part of business life. This chargeback occurs when merchants do not adequately provide currency information. R13 No Reply. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Cardholder-Activated Terminal (CAT) 3 Device. A chargeback is essentially a forced refund initiated by the cardholder, facilitated by their issuing bank. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Review your credit card processor’s policies to understand its chargeback dispute process. The notification will also specify the terms of the agreement under which Amazon Pay will assist you in handling the chargeback. More reason code information is available on the American Express and Visa chargeback reason codes pages. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. legitimate duplicate processing chargeback, do not issue a direct credit to the cardholder - the credit will automatically be applied. 34: 0. The claim often, but not always, involves automated teller machines (ATMs). 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. It indicated that the transaction amount wasn't what the cardholder agreed to. 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. The shorthand description is “Late Presentment. Reason codes vary by card brand. The right to dispute a transaction is a federal law in. R. Complicating things further, friendly fraud doesn’t provide you with any red flags. Here’s how. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. The most comprehensive guide to chargeback reason codes. ”. The most popular type of disputes of the chargeback category. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. Understanding these codes is essential because they'll guide your response strategy. 4841 Canceled Recurring or Digital Goods Transactions. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. It is associated with a chargeback reason code, and it is specific per Card Scheme. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. Transaction Amount: Decimal 0. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Region Only) 4855 Goods or Services Not Provided. Chargeback Code Authorization Errors; A01: Charge Amount Exceeds Authorization Amount: A02: No Valid Authorization: A08: Authorization Approval Expired:. 26: Outcome: Type: String; Unique: No; Blanks: Yes; Max Length: 3000 characters compliance process depending on whether a chargeback right exists. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. 11, 16. ”. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. For perspective, the next highest. Jan 2020_Chargeback Reason Code. It is very important to ensure you have the correct code associated with your chargeback otherwise the request will be denied. Whenever an incorrect account number is processed, or the. 6 General update and rebranding. The financial impact of fraud and chargebacks becomes greater during a recession. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Fight Chargebacks & Recover. That’s 50% more time than what the major card networks allow. Legacy code as currently displayed in the AWC. The list of chargeback reason codes in this article. a bank, credit union, etc. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. The shorthand description is “EMV Counterfeit. discover chargeback reason codes. ”. 46 Reason Code 74: Late Presentment. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). There are plenty of reasons as to why this would happen, hence the many. EXPERT WITNESSES | CERTIFIED CYBER INVESTIGATORS | BEST OF BREED FORENSIC TOOLS & SOFTWARE. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Type. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. Also, just like American Express, Discover functions as both a card network and an. 60 due to merchandise, fees, overhead, and other sources of loss. 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). This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Dispute Category. Using the same link provided above, contact PayPal to report the scam. Chargeback Reason Codes Page 2 of 5. 47 Reason Code 75: Transaction Not. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. This specific code applies when a cardholder reports that the actual merchandise received was counterfeit, and can back up that claim with documentation from a reliable, professional third party. American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 2. Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. 100- 140 standards- , and will be removed in future releases. New Visa CE 3. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. Reference these when rebutting cardholder disputes at your small business. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. 1: Use the corresponding dates from the invoice. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. Dispute Best Practices Guide Overview This guide includes:Some credit card companies also include a short phrase describing the code and 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. Acquirer Use of Message Reason Code 7623. In simple terms, VCR introduced five definitive. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. (Reason Code 4850) > Arbitration Case Filing-For Chargebacks Initiated On or Before 16 April 2020. Beaufort House, 11th Floor,15 St Botolph Street, EC3A 7BB, LondonChargeback Reason Codes; BIN Lookup; ROI Tool; Company. Accessed October 31, 2022. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. By entering your email, you agree to receive marketing emails from Shopify. The newer system is designed to. 4. 2 EMV Liability Shift. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. 4808: This code can refer to: Account Number Not on File. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. 2. This code is now obsolete, and issuers have been instructed to use code 4834 instead. While there are many chargeback reason codes, all chargebacks fall into one of three categories:M10 Vehicle Rental – Capital Damages. Chargebacks were originally introduced to protect consumers from fraudulent or unauthorized transactions. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. S. 33%: Moreover, region-specific laws can also impact chargeback rates. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. Dispute network reason codes categorization . 7. 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. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 34 3. 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. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. For example, Mastercard has a code which indicates a ‘consumer dispute. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. This section contains a list of codes and messages that the system can return in the response message for a payment transaction. Reason codes give merchants information about the cause of a chargeback and what evidence. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. For example, the merchant bills the cardholder in installments. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. It is subject to change and may not include every currently known dispute reason code. Otherwise, you'll. Code 4807: Fraudulent Card-Present Transaction. You’ll put that reason code, the transaction amount and authorization number, and state that the. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Acquirer Use of Message Reason Code 7623. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. and the last 4 digits of the card number. Code 81. We say the given reason because it may or may not reflect the true reason. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. The shorthand description is “Transaction Amount Differs. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. Always ask for authorization regardless of the transaction amount. Please refer to chapter 5 for more information. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. “American Express Chargeback Reason Codes | Sift”. “Our broad international experience with the banking industry, our familiarity with each and every credit card network’s unique chargeback guidelines, our proprietary. Chapter 2 1. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. 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. com. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Step 1: Identify the Source. mastercard dispute form. Encrypt transmission of cardholder data. 3. 4853 – Cardholder Dispute – Credit Not Processed. message. 6%. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. 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. So don’t spend another second worrying about chargebacks. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) You can see a reason code 11. The specific decline code is meant to give a brief explanation as to why the issuer rejected the purchase. chargebackcodeguide (1) chargebackcodeguide (1) Priya Das. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. FR4 Immediate Chargeback Program. 3. What is Visa chargeback reason code 12. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. What is Visa chargeback reason code 11. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. 1 falls under the “Processing Errors” category. 12. Mastercard chargeback reason code 4846 falls under the “Point-of-Interaction Error” category. The separation of the Return ReasonAs both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. This provided a number of insights into the typical. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. Use order validation and prevention alerts. This area shows you the type of dispute (chargeback in the example above) and the reason code. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. 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. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Built with a single, intuitive console, Sift’s end-to-end solution eliminates the need for disconnected tools, single-purpose software, and incomplete insights that drain operational. Duplicate Processing - 81Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. The actual underlying cause of this chargeback is. Chargeback Reason Codes List for American Express. resolved via the chargeback management process and within timeframes. Merchants who believe they have received an invalid chargeback under reason code C05 may are able to represent the transaction the reverse the chargeback with the right compelling evidence. Now, compliance cases go through Visa Resolve Online (VROL). 02/10/16 Added Debit Chargeback Reason Codes. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. Europe Region Operations Bulletin No. The following chargeback reason codes are related to EMV: Visa: 10. “Visa has 28 different reason codes. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. What is Visa chargeback reason code 12. 80. By entering your email, you agree to receive marketing emails from Shopify. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. Provide exemplary customer service. WEX began issuing chip cards in Q4, 2020. On that note, below are some vendor missteps that could result in Visa reason code 13. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 1: Use the corresponding dates from the invoice. 2. Fraud (10)& Authorization (11)“Our broad international experience with the banking industry, our familiarity with each and every credit card network’s unique chargeback guidelines, our proprietary databases, and our deployment of state-of-the-art technology for tracing cryptocurrency are the strategic advantages that allow MyChargeBack to build the strongest possible case. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. 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. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. FR6 Partial Immediate Chargeback Program. Now, 10. The terminal action codes are in Table 122 of the 4. 7: Defective goods and services: C32: RM: 13. Chargeback time frames - A specific period during which a chargeback can be raised. Multiple Authorization Requests. Chargebacks. 15, 2021. Thus, the easiest way to prevent chargeback reason code 75 from being. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Chargeback reason code 13. ; Help Center Find answers to common questions about Midigator’s technology,. The shorthand description is “No Authorization. 00 EUR as a Withdrawal fee. The Reason Code is a number that represents the reason for an action in the chargeback process. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. FR2 Fraud Full Recourse Program. 3: Goods or services were not as described: C31: RM: 13. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. Visa chargeback reason code 75 is filed as an honest mistake. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. Specifically, these updates only pertain to transactions that are charged back after Oct. 4 Funding Process. And most go about it indirectly. Administrative returns (R02, R03, R04): 3%. 12. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. It may also be used if the. Overall returns (all codes): 15%. See Reason Codes for more. Table A-1 shows all possible values for the <response> and <message> elements. Department of the Treasury publishes Check 21 Return Codes. Unlike other. he goes on to say he is missing 34 bottles which adds up to a. 4846 — Incorrect Currency Code. Card networks send these. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. The cardholder claims they were charged multiple times for a single transaction. ) A no-nonsense summary of evidence that proves transaction is legit. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. 00. 5, and all aspects of chargeback reason codes, with proprietary. Friendly fraud was actually the #1 fraud threat concerning merchants in 2021. Clerical Services industry for image exchange and the creation of IRDs. American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 4 spec (Section 8. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. These chargebacks occur to resolve chargeback-related disputes between network members. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. 2022 Visa Chargeback. Oftentimes, the reason code assignment is based on limited knowledge and insight. Chargeback reason code. . The keys to this are improved communication, enhanced customer satisfaction measures, and effective dispute resolution when necessary. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. ; Resources. The transaction amount and authorization number (ARN. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 5%. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. • Removed reason code 4840 (Fraudulent Processing of Transactions) Chapter 1—General Information. 12. Updated August 23, 2023. ”. Get access to thousands of. Eligible Chargeback Reason Codes . Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderAs both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. Step 4: Card Network Collects Dispute Information. Traditionally, while the chargeback threshold was generally set at 1% of sales, individual card brands have since lowered.