Unfortunately, the final decision in such cases comes down to the issuing bank, and not. Most commonly the payer is a consumer. 1 Card Recovery Bulletin or Exception File. 2. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. 1. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. 2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Other Fraud—Card Absent Environment. Chargeback Reason Codes All received credit card disputes include a reason code. It is associated with a chargeback reason code, and it is specific per Card Scheme. message. The most comprehensive guide to chargeback reason codes. reason code information. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Many subscription payment disputes are made under code 13. With the right compelling evidence,. Merchants who believe they have received an invalid chargeback under reason code 12. Chargeback Reason Coded by Network - 2023 Guide. UA06: Fraud / Chip-and-Pin Transaction: UA10: Request. Technical. Articles;The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. 6: Credit not. Blog additionally Articles; Success Stories; Chargeback Reason Keys; BIN Look-up; eGuides and Reports;. It gets worse. Values are: Blank: Use the draft G/L date. 60. This authoritative guide includes the chargeback reason key from each from the four major card netz. Additionally, Discover uses a fifth "No Classified" category. 4807 Warning Bulletin File. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. Otherwise, the acquiring bank sends a chargeback notification. Both EFM and ECM measure compliance at the MID level. Learn which strategies to application as you fight and prevent customer disputes over basis code. Other Fraud—Card Absent Environment. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. So the company has more incentive to side with customer during cardholder disputes. Solution. Specify the invoice date and net due date that you want the system to assign to chargebacks. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. About Discover chargeback reason codes. 3. Reason. 103. If the claim is invalid, the dispute will go no further and no chargeback will occur. 103. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. You can learn more about each one by visiting the Mastercard Chargeback Guide. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Category. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. Each card network maintains reason codes to cover all the disputes that qualify for. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. 800. List and additional information about all reason codes by card brand. Each bank card network has its owner list of reason codes banks must prefer from. 1=1010, 10. Every chargeback has a reason code associated with it. Chargeback Reason Code 30 - Services Not Provided or Merchandise Not Received The chargeback time limit is calculated based on one of the following: 120 calendar days after the transaction processing date 120 calendar days after the last date the cardholder expected to receive the goods or services (not to exceed 540 days of the transaction. Chargebacks with the following reason codes cannot be fought if you didn’t acknowledge the preceding retrieval request. 3 Fraud – Card-Present Environment. Below you can find out what the reason of the chargeback in question is by the card brand. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. Learn which strategies to use because she fight and prevent consumes disputes with reason code. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. 800. A08 Authorization Approval Expired. Category. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. The cardholder possesses a PIN-preferring credit card, but your POS is either not PIN-enabled or allows the shopper to bypass the PIN entry. The chargeback transfers funds from the acquirer to the issuer. There are tricks you might use to circumvent an. The most comprehensive direct toward chargeback reason encryption. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. Investigate suspicious orders. Solutions. The major card networks have unique reason code systems, and banks use separate tools. 104. Once you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. In the case of friendly fraud, that reason could be completely invalid and. EMV has been a mostly global standard since 2004. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37When the customer disputes a charge, the issuing bank then begins the chargeback process. 4846 — Incorrect Currency Code. 2. Step 2: Customer initiates the chargeback. Code 10. 5 percent of all transactions. Now, compliance cases must be submitted through Visa Resolve Online (VROL). The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. Be transparent about your products. Paymentology will submit the chargeback using the appropriate chargeback reason code. Other Ineligible Transactions Under Reason Code 62, Condition 2 . Encrypt transmission of cardholder data. This definitive guide includes the chargeback reason codes from each of the four major card networks. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. Once filed, the merchant generally has 20. 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. Reason Code 02. Ethoca alerts can prevent chargebacks before they hit your bank account. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. The charge submitted represents an amount in excess of the approval code received. One catch is that CE3. To subscribe and learn more about the free online chargeback management system, or contact Chase Paymentech Client Services at 1. For example, Visa Chargeback reason code 83 is now VCR reason code 10. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. processed the transaction correctly. Midigator has created a database of reason codes. 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. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. In fact, 91. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. 1. 2=1020 etc. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. 04/09/14 Discover: DC, U02. Click on the Chargeback Reason Code drop-down menu, the user can change the. 9905. While there are many chargeback reason codes, all chargebacks fall into one of three categories:Oftentimes, the reason code assignment is based on limited knowledge and insight. Chargeback reason codes. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Use order validation and prevention alerts. 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). 0) Digital usage logs; ContractsThe CB Reason represents the default reason for marking the transaction as a chargeback, but this default value can be changed. 12/19/16 Corrected document formatting for MasterCard Reason Code 37. American Express – Consumer Disputes: C02 – Credit Not Processed C04 – Goods or. Check the chargeback reason code. See the list of reason codes below: Card Network. com. The card provider then processes this information and determines the. The business has the chance to refute the chargeback. Visa, MasterCard, and American Express all list compelling evidence by reason code. Chargeback time frames - A specific period during which a chargeback can be raised. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 RequestedRequired information illegible or missing 07 Warning Bulletin File 08 RequestedRequired authorization not obtained 12 Account number not on file 31. Good Faith Investigation. Reason Code UA06 Category Fraud Claim The cardholder possesses a PIN-preferring credit card, but your POS is either not PIN-enabled or allows the shopper to bypass the. Eligible Chargeback Reason Codes . Let's Talk (833) 643-6387. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. 4812 Account Number Not On File. many chargeback reason codes that exist today. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 1: Use the corresponding dates from the invoice. Fraud – Chip and PIN Transaction. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. As a merchant, you face the brunt of chargeback losses. 1. 1: goods not received. Here’s how your store can prevent and deal with chargebacks. Learn which strategies to application the you battle and prevent consumer litigation by cause code. 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. Chargeback. Solutions. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. Analyze chargeback and alert data until dozens of metrics. 2 Compliance CasesAbout American Express chargeback reason codes. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. This definitive guide include the chargeback base codes from each away and four more card networks. It's essential to respond within the. Partial Immediate Chargeback Program; NOTE: If you receive one of the above chargeback reason codes and aren’t aware of being in a fraud monitoring program, contact your payment processor. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. 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. Reason Code 12. The newer system is designed to. Reason codes differ by card brand (Visa, Mastercard); a complete list can be found here. Visa chargeback reason codes are used to categorize the reasons for a chargeback. for chargeback reason code 4863 (Cardholder Does Not Recognize). UA06. AT. 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. Chargeback Reason Codes by Industry. Learn which strategies to use as you fight and prevent consumer disputes by reason encipher. A02: No Valid Authorization. Learn about the different chargeback reason codes and what they mean. 265. 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. Chargebacks. By entering your email, you agree to receive marketing emails from Shopify. Then you can research the transaction to see if the chargeback appears to be valid or not. According to Discover, cardholders officially have 120 days from the date of the transaction to initiate a chargeback, although the network may accept claims filed outside of that window on a case-by. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. The aim of CE 3. As chargeback time limits get shorter and shorter, automated technology will become more and more valuable. Each card issuer follows their own standards for defining reason type, code and its format. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. It doesn’t help matters that travel is a high risk industry for credit card payments and with 100+ reason codes across all issuers, making sense of them all is a challenge. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. A number of factors contribute to a high chargeback ratio. R13 No Reply. 10. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. 00 EUR as a Withdrawal fee. 10. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. 102. Chargeback Reason Codes by Lan - 2023 Guide. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Chargeback Reason Coded by Network - 2023 Guide. 4 (Other Fraud - Card Absent Environment), which is under the fraud category. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. Updated Disputes/Chargeback Policy Coming April 2024An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. Feel free to submit topic suggestions, questions or requests for advice to:. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. What is Visa chargeback reason code 13. Reason Code. 4: . To make things easier, Chargebacks911® has created these convenient “cheat sheet” references. MasterCard - 4855 Goods or Services Not Provided. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. up under any number of different chargeback . Although, this fraud detection tool works after the transaction has come completed. 1. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. 5 Visa will also place new rules to effectively target Rules. Reasons codes are composed of alphanumeric text attached by a bank when there is a chargeback to explain the reason for the chargeback. For perspective, the next highest. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. Early Warning: Reaching a chargeback ratio of 0. There are a variety of issues that can serve as the root causes of a chargeback, ranging from fraud to improper card processing to dissatisfaction with the quality of the goods or services provided. But why do they happen? 4 common types of hotel chargebacks. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. AT Authorization Noncompliance. 3. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. See the list of reason codes below: Card Network. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. 5 Diners Collection Reason Codes. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. Below is a list of Mastercard chargeback codes used in eCommerce. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. to obtain an Authorization Response for the Card Transaction ii the receipt of a from BUS MISC at Yeshiva UniversityThese chargebacks occur to resolve chargeback-related disputes between network members. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. As a merchant, your focus should be on finding and retaining customers--not chargebacks. Some crucial examples of specific documents used as compelling evidence are as follows: Delivery confirmation of the order; Conversations with the customer; Verification codes (AVS, Authorization, Card Security Code, 3D Secure 2. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. The issuing bank reviews the information. Additionally, one clearing transaction. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. The list of chargeback reason codes in this article. Categories for reason codes have changed over the years, especially because of the increasing number of. Chargebacks were introduced as a form of consumer protection against. Discover Chargebacks / Disputes. High-Risk (Excessive): Reaching a chargeback ratio of. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. MasterCard: Reason Code 4859 Services not rendered. 4 Other Fraud Card Absent. Chargeback reason codes identify the general reason behind a chargeback. 102. Click the Update Chargeback link to edit the chargeback details. Accessed October 31, 2022. UA06: Fraud - Chip and PIN Transaction: UA11: Cardholder Claims Fraud: American Express Chargeback Reason. Card networks send these codes to merchants to indicate why a chargeback has been filed. Administrative returns (R02, R03, R04): 3%. Fight;. 8/7/18 Updates to Debit Chargeback Reason Codes. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Complete Guide to Visa Compelling Evidence Update CE 3. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. 4846. As we touched on earlier, chargebacks can happen due to technical errors. EMV chip cards can be used in combination with PIN entry to validate the cardholder’s identity and prevent fraudulent transactions. pdf), Text File (. Such definitive guide includes the chargeback reasoning codes from each of and four major card networks. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. At Visa they used to receive reason code 98. This process is called. Fraud (10)& Authorization (11)prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. In most cases, the bank chooses a course of action based on information the cardholder provides. 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. Chargeback Reason Codes by Network - 2023 Guide. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Batch chargeback process. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. The cardholder claims they were charged multiple times for a single transaction. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. 4 Fraud – Card-Absent Environment. A reason code is how banks categorize the reason for a chargeback. The incorrect amount being charged. Fight; Prevent;. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 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. The chargeback is ordered by the bank that issued the consumer's payment card. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Make sense of chargeback reason codes using our directory. Fraud. The reasons for the consumer disputes can differ from situation to situation. A chargeback happens when a customer requests for a transaction to be reversed. Merchants who believe they have received an invalid chargeback under reason code 13. 4: 4863 Goods / Services Damaged or Defective. Clerical The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. 11. Chargebacks: Your Guide to Reducing Hassle and Cost. The following chargeback reason codes are related to EMV: Visa: 10. MasterCard does not have an equivalent reason code. The sales receipt and/or date and amount of the authorization if other than the transaction date. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof you submitted the card security code with the authorization request and the issuer authorized the transaction, even if the code was a mismatch or the code wasn’t verified. Chargeback Reason Codes and Descriptions. The cardholder alleges fraud relating to a Card Present chip card transaction, including a cash advance. 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. 4 spec (Section 8. Under Set Order Status, select None, Refund, or Chargeback. reason codes. At the same time, your account is debited for the chargeback amount, and the. Specify the invoice date and net due date to assign to chargebacks. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 2. Once you know why a chargeback happened, you can start building a case to address the claims that were made. IN Invalid Card Number . . Chapter 2 1. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. April 2018_Chargeback Reason Code Encyclopedia. Chargeback reason codes can be confusing, especially since each. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Try Shopify free for 3 days, no credit card required. 2 Declined Authorization. That’s 50% more time than what the major card networks allow. Invalid Card Number. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. FAQ: What is Chargeback Representment? TIPS. 11, 16. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. Please see the below “cheat sheet” for the new 4 byte reason codes. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is validWe’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. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. 0" or CE3. Fight; Prevent; Recover; Technical. Chargebacks911® can help your business manage all aspects of chargeback reason codes, using proprietary technologies and experience. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. These are only a handful of common Visa chargeback reason codes. That sounds like trouble, no matter where you’re standing. Dubbed "Compelling Evidence 3. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. EMV chip cards can be used in combination with PIN. Thus, the easiest way to prevent chargeback reason code 75 from being. 4: Fraud—Card-Absent Environment. This chargeback occurs when merchants do not adequately provide currency information. Proof the transaction was. 9/20/2021 Multiple updates made to bring this guide up to date 06/01/19 Updates to timeframe for MasterCard Reason Code 34 (from 120 days to 90). Get which strategies to use as you struggling the impede consumer disputes to reason code. 4. Proof the transaction was card-not-present. Reason Code 04. These reason codes are divided into three categories depending on the supposed cause of a chargeback: consumer disputes, processing error, or fraud. Visa recently shortened chargeback time limits from 45 days to 30. 4. September 2011: 5. Discover Chargebacks / Disputes. UA05 Fraud: Chip Card Counterfeit Transaction. Discover Chargeback Reason Codes. . EMV Liability Shift Counterfeit Fraud. The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. Read the Chargeback Advice letter carefully. A dispute often has a reason code associated with it. Thanks for following the Chargeback Gurus blog. Reason codes are important to help merchants address recurring. Reason Code. They are provided to the merchant by the issuing bank, and they help all involved parties categorize disputes and determine next steps. Overall returns (all codes): 15%. These reason codes are divided into three categories depending on the supposed cause of a chargeback: consumer disputes, processing error, or fraud. Values are: Blank: Use the receipt G/L date. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. Chargebacks, also called payment disputes, occur when a cardholder contacts their bank (card issuer) about a transaction and tries to get them to issue a reversal of funds. A chargeback is the potential outcome of a disputed credit or debit card transaction. A new 4 byte reason code will be used moving forward. Cause The merchant didn’t use a chip-and-PIN compatible terminal or was convinced to bypass the PIN requirement. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes.