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. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. In simple terms, VCR introduced five definitive. [1] Sift. Updated these Visa Chargeback Codes: 30, 62, 85. Accessed October 17, 2022. 47 Reason Code 75: Transaction Not. If you do perform a key-entered transaction, make a manual imprint of the card. Having a Lax Attitude Toward Industry Rules & Regulations. The cardholder may be the customer or the someone who lent their card to a friend or relative. 2 - Incorrect Transaction Code. For instance, if the chargeback reason code alleges that merchandise was not delivered, you should provide tracking and delivery notifications, evidence that the customer lives or works at the product’s destination, or other proof that the customer received the product. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. 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. High Level Visa Chargeback Dispute Flow. 0 rule changes take effect April 15,. 42 - Late Presentment. The reason code will give you an idea why the payment is disputed. 1004 - For fraud /dispute investigation or legal/ regulatory issues. 2. Chargeback reason code 13. The functionality of the Activity Report presented in greater detail on pages 34-48 in the following guide:. As we touched on earlier, chargebacks can happen due to technical errors. The U. The specific decline code is meant to give a brief explanation as to why the issuer rejected the purchase. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. 1. Protect cardholder data. Discover Chargeback Reason Codes Explained. Reason codes vary by card brand. Chargeback Reason Codes by Industry. Chargeback Representment. But, it could be up to 540 days, in some situations. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. The cost of fraud relative to the transaction amount also increases by 12%. 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. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. Dispute Category. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. A chargeback happens when a customer requests for a transaction to be. A chargeback is essentially a forced refund initiated by the cardholder, facilitated by their issuing bank. 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. Provide exemplary customer service. Each card issuer follows their own. There are several reasons why an issuer might decline a transaction. The transaction was refunded prior to the initiation of the chargeback: provide proof of refund. visa chargeback guide 2021. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. These codes are currently defined within the ANSI X9. 196It means the issuer has placed a stop or hold on a transaction. A chargeback happens when a customer requests for a transaction to be reversed. Code 4807: Fraudulent Card-Present Transaction. There are over 80 unique return codes, each representing a different return type. Vantage HouseUse fallback options—like manually entering transaction data—as a last resort. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. Friendly fraud. 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. ”. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. 1? Chargeback reason code 11. 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. This code indicates that the cardholder claims not to have agreed to a currency conversion that took place. resolved via the chargeback management process and within timeframes. What is Visa chargeback reason code 12. You. The use of this reason code indicates that the cardholder is claiming they did not participate in the transaction, and American Express believes a counterfeit card was used. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. There are also a series of dates: Disputed date - This is the date the transaction in dispute took place. But, it could be up to 540 days, in some situations. France saw a drop of roughly 50% during the same period. 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. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. For example, the merchant bills the cardholder in installments. Identifying the chargeback reason code or the proofs required to fight it is the first step in chargeback representment, press analyzing your. message. Chargeback Reason Code. Initiated On or After 17 July 2020 > Chargeback Message Reason Codes > Second Presentment:. Reasons for Return: Not Sufficient Funds - Not Sufficient Funds, NSF, Insufficient Funds, ISF are the same message. In this scam, a scammer sends a message to their victim. The reason code. com. contact@midigator. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. So don’t spend another second worrying about chargebacks. Reason Codes: 24 / 25 / 30 / 34 / 59 / 82 Cardholder denies making CARD PRESENT transaction Make sure all transactions are magnetically swiped or imprinted. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Most reason codes apply to any merchant, regardless of what’s being sold. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. com. 2 Compliance Cases4846 — Incorrect Currency Code. Try Shopify free for 3 days, no credit card required. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. Chargebacks. The network hasn't wholly disallowed some old codes. UA02 Fraud – Card Not Present Transaction. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. AMERICAN EXPRESS CHARGEBACK CODES 34. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how. 6: Duplicate processing/Paid by other means. This code helps you identify the exact cause of the dispute. 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. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. Analyze your chargeback data. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 25%: 0. Mastercard chargeback reason code 4842 falls under the “Point-of-Interaction Error” category. . American Express chargeback reason code C04 falls under the “Card Member Disputes” category. Chargeback time frames - A specific period during which a chargeback can be raised. What is Visa chargeback reason code 13. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. All ACH return reason codes consist of the letter “R” followed by two. . The shorthand description is “Transaction Not Recognized. A chargeback with reason code 4834 may refer to disputes in which the cardholder participated in an ATM cash withdrawal, but claims to have not received part—or all—of. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. For some merchants, foreign currency transactions are rare. Code. Below are some examples of more common reason codes. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. Oftentimes, the reason code assignment is based on limited knowledge and insight. Always ask for authorization regardless of the transaction amount. A dispute often has a reason code associated with it. The deadline for a Chase Bank customer to dispute a transaction is 60 days. 4870 – Chip Liability Shift. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Chargeback reason code. 1 - Late Presentment. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. For example, the merchant bills the cardholder in installments. Here are some chargeback reason codes by card type. ” This reason code is. 2022 Visa Chargeback. Services industry for image exchange and the creation of IRDs. If the order was genuinely not as described, then the cardholder has a case. Technical. MASTERCARD Reason Code Description. The newer system is designed to. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. It was originally just one facet of legacy reason code 81. Step #2 | Report the Scam to PayPal. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Chargeback Reason Codes: Alphanumeric codes issued by banks to categorize the reasons for chargebacks. Receive the Chargeback. The customer regrets their purchase. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. 4853 – Cardholder Dispute – Goods or Services Not Provided. Only an issuer can initiate the chargeback process. . Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. Search the Chargeback Reason Code Database. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. 02/10/16 Added Debit Chargeback Reason Codes. Additionally, in some cases the merchant can use them to prevent a chargeback from occurring. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. This chargeback reason code was retired by Visa in April 2018. Transaction Amount: Decimal 0. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. 1 American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. 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. Everyone has had the experience of buying. Please see the below “cheat sheet” for the new 4 byte reason codes. 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. The separation of the Return Reason About American Express chargeback reason codes. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. Always ask for authorization regardless of the transaction amount. Traditionally, while the chargeback threshold was generally set at 1% of sales, individual card brands have since lowered. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. 9), the acquirer has 24 days to respond to the dispute • For MasterCard, the acquirer has 45 days to respond to the disputeThere are dozens of reasons why cardholders and issuers dispute transactions. You electronically sent the same transaction capture batch to your card processor more than once. Reference these when rebutting cardholder disputes at your small business. 3. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. Acquirer Use of Message Reason Code 7623. . In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. 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. American Express specifies 34 reason codes under the browse of Fraud, Authorization, Processing Errors, Card Member Disputes, and. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Acquirer Use of Message Reason Code 7623. 6). The shorthand description is “Domestic Chargeback Dispute (Europe Region Only). PCI DSS v3. Discover chargeback reason code 7030. You can learn more about each one by visiting the Mastercard Chargeback Guide. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Also, just like American Express, Discover functions as both a card network and an. There are 151 chargeback reason codes across the four major card networks. Jan 2020_Chargeback Reason Code. Discover: Reason Code 4755 Non-receipt of goods or services. 4853 Cardholder Dispute. 196 ‹” Chargeback Reason Codes… !ó Retrieval Reason Codes… Í Sheet3š š £ £ Œ ® ;H Á Á Õ8 ü ! À Mastercard Reason Code Description Time Frame Retrieval Required 01 Yes 02 07 No 08 12 31 Transaction amount differs 34 Duplicate Processing 35 37 No Cardholder Authorization 40%Fraudulent Processing of Transactions 41 Cancelled. 4859 Addendum, No-show, or ATM Dispute. Last updated: October 15, 2019 . Here’s how your store can prevent and deal with chargebacks. Duplicate Processing - 81Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. 100187 and ANSI X9. Chargeback reason code 13. However, Visa is the largest card brand in both the United States and the world. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. (Reason Code 4850) > Arbitration Case Filing-For Chargebacks Initiated On or Before 16 April 2020. Chargeback time frames - A specific period of time during which a chargeback can be raised. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34: Duplicate Processing: 35: Card Not Valid or Expired: 37: No Cardholder Authorization: 40: Fraudulent Processing. “Visa has 28 different reason codes. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. 6%. M01 Chargeback Authorization. This provided a number of insights into the typical. 3: Goods or services were not received: C08: RG: 4855: 13. Message. Step 1: Identify the Source. Different systems are used to reverse purchases based on these codes. 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. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. 8 Added American Express chargeback information Chapter 3 1. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. You may also provide other forms of evidence such as photographs, emails, etc. Reason codes give merchants information about the cause of a chargeback and what evidence. 33%: Moreover, region-specific laws can also impact chargeback rates. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. Batch chargeback process. Payment Transaction Response Codes. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. 1=1010, 10. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. many chargeback reason codes that exist today. Complete Guide to Visa Compelling Evidence Update CE 3. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. This can provide important information to fight the dispute. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. Chargebacks—Maestro POS Transactions—added information to the section, Proper Use of Intra-European Message Reason Code 4808, about theThe standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. 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. Any time. Whenever an incorrect account number is processed, or the. National Payments Corporation of India Confidential Page 6 of 164. 3. 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. Reason Code 12. At Visa they used to receive reason code 98. It is associated with a chargeback reason code and it is specific per Card Scheme. 3. ; Help Center Find answers to common questions about Midigator’s technology,. Reason codes. FR2 Fraud Full Recourse Program. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. Chargeback Code Authorization Errors; A01: Charge Amount Exceeds Authorization Amount: A02: No Valid Authorization: A08: Authorization Approval Expired:. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. • Removed reason code 4840 (Fraudulent Processing of Transactions) Chapter 1—General Information. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 Reason Codes Category 4: Processing Errors. 100- 140 standards- , and will be removed in future releases. Visa chargeback reason code 85 falls under the “Consumer Disputes” category. Step 1: The cardholder disputes a charge. 0 is to make the chargeback process more efficient, transparent, and fair. Code 4837 chargebacks are most often caused by either a fraudster making a purchase with stolen payment credentials or a cardholder failing to recognize a legitimate charge. 100187 and ANSI X9. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingOnce 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 codes also appear on financial reporting associated with disputes. message. 03%: AP: 21: 1. Thanks for following the Chargeback Gurus blog. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. While there are many chargeback reason codes, all chargebacks fall into one of three categories:M10 Vehicle Rental – Capital Damages. M49 Vehicle Rental – Theft or Loss of Use. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. ) A no-nonsense summary of evidence that proves transaction is legit. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. Card networks send these. and the last 4 digits of the card number. 4808: This code can refer to: Account Number Not on File. 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. Chargeback reason code 12. The Late Presentment chargeback rights and language will be moved from chargeback reason code 4834 (Point of Interaction Errors) to reason code 4808 (Authorization-related Chargebacks). 18167 US Highway 19 N Clearwater, FL 33764 877. . Step 4: Card Network Collects Dispute Information. The merchandise was as described or was not defective. The most comprehensive guide to chargeback reason codes. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. The scammer claims to be from the bank, and is seeking to confirm a specific transaction, which the victim denies. This ranges anywhere from roughly 60 to 90 days after purchase. 3? Visa chargeback reason code 11. 1 and Note on page 14 Chapters 1 and 2 Chapter 1Reason Codes Category 4: Processing Errors. 33%: Moreover, region-specific laws can also impact chargeback rates. 3 –. They can also be caused by a merchant failing to process a cancellation promptly. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. This chargeback occurs when merchants do not adequately provide currency information. Why did I get a chargeback with Mastercard Reason Code. This chargeback will include a description that provides additional information: Digital Goods $25 or Less;When the customer disputes a charge, the issuing bank then begins the chargeback process. 1 falls under the “Processing Errors” category. Date Option. M49 Vehicle Rental – Theft or Loss of Use. REQUEST A DEMO What Is a 4834 Chargeback? Chargeback reason code 4834: Point of Interaction (POI) Error refers to inaccuracies that happen at the time and place of the. Department of the Treasury publishes Check 21 Return Codes. Reason codes are created by the major. For perspective, the next highest. Dispute network reason codes categorization . Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment) 0: CAVV authentication results invalid - no verification performed: CAVV data not properly formatted Use standard authorization criteria with Issuer retaining chargeback rights: 8Visa Chargeback Reason Codes. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Thanks for following the Chargeback Gurus blog. 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. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. 2. Accidents happen, and it’s. A smarter, simpler way to stop fraud. 1. This reason code indicates the cardholder had reason to believe they were going to receive a refund, but no credit to their account has been processed. Initiated On or After 17 July 2020 > Chargeback Message Reason Codes > Second Presentment:. We are writing to dispute the $1980 chargeback with the chargeback reason code 30 Services Not Provided or Merchandise Not Received. mastercard chargeback reject codes. FR4 Immediate Chargeback Program. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. “It’s a lot tougher with Mastercard because they only use four main codes. It is very important to ensure you have the correct code associated with your chargeback otherwise the request will be denied. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. At Visa they used to receive reason code 98. Chargebacks are something every business wants to avoid, as they can. Visa chargeback reason code 75 is filed as an honest mistake. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. 46 Reason Code 74: Late Presentment. What is Visa. Code 81. . Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. Chargebacks are something every business wants to avoid, as they can. 34: 0. But, merchants should be aware that, eventually, everyone will. This extra step can be frustrating for Card Members and lead to lost sales. Reason codes are important to help merchants address recurring. . Code 10. Check with the issuing banks to determine what time limits may apply to you. Across open networks and include account numbers sent over email, instant messaging, text, or chat. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. 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. Invalid Reasons for a Dispute 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. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. 4 spec (Section 8. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. The merchant did not receive any returned merchandise. ’For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Chargeback reason codes. 7: Defective goods and services: C32: RM: 13. ; Resources. mastercard chargeback reason code 34. 10 Tips to Prevent Fashion Chargebacks. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. According to Nilson, 56% of global card transactions were done on Visa in 2015. The right to dispute a transaction is a federal law in. FR6 Partial Immediate Chargeback Program. Code Description; 30: Services Not Provided or Merchandise Not Received: 41: Cancelled Recurring Transaction: 53:. 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. Feel free to submit topic suggestions, questions or requests for advice to:. The following tables show the Stripe categories for each card network’s dispute reason codes. . 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. This chargeback reason code applies when a merchant processes a transaction without using the magnetic stripe or EMV card chip data, and the cardholder claims that they did not participate in the purchase. This code is now obsolete, and issuers have been instructed to use code 4834 instead. There are four common causes for this type of dispute: You entered the same transaction into your terminal more than once. ”. 3: Goods or services were not received: C08: RG: 4855: 13. Either the acquiring or issuing bank could initiate the chargeback. In Merchant News and Info, Credit Card Processing Chargebacks are a part of business life. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingPlease note that the most common Chargeback reason code for Allocation disputes is 10.