Collect Compelling Evidence. 6. Log in to access your account, view transactions, download reports, and more. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. e. The issuing bank will then pass on the chargeback to the merchant. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. The sales receipt and/or date and amount of the authorization if other than the transaction date. Chargeback Reason Codes. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. The claim often, but not always, involves automated teller machines (ATMs). If the chargeback is upheld, the merchant must return the money to the customer, as well as pay an additional fee to the acquiring bank. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. 4. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. About Visa chargeback reason codes. Many subscription payment disputes are made under code 13. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. But, merchants should be aware that, eventually, everyone will be required to use the new designations. Chargebacks. If a dispute is filed with Discover and a ticket retrieval request is sent, the merchant has just five calendar days to respond with. American Express chargeback reason code R03 falls under the “Inquiry/Miscellaneous” category. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. 5 percent of all transactions. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 6. “Visa has 28 different reason codes. ”About American Express chargeback reason codes. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. By entering your email, you agree to receive marketing emails from Shopify. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. 2. What to Include in Your eCommerce Return PolicyRead chargeback reason code descriptions carefully, especially if they include any transaction modifiers. 1 The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. 11, 16. The first thing to understand is that not all chargebacks are the same. This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. " If you can look up the order and confirm via the shipping tracking number that it was indeed delivered to the customer (and signed for), you have a slam-dunk case to fight that chargeback. 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. Chargeback prevention strategies vary based on the reason for the. Managing Reason Code 41 chargebacks. 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. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. Visa chargeback reason codes. 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. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Late Presentment. The customer regrets their purchase. Visa announced changes to the following reason codes: Reason code 1350 Misrepresentation –an Issuer may initiate a Dispute under this reason code if the dispute applies to a transaction in a card-absent environment where merchandise or digital goods have. Visa, for example, has reason codes: 11. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. To determine the problem, you need to examine customer interactions, transaction details, and business practices. Yes, it’s possible to win a reversal on a. 2. The way you manage chargebacks depends on your account setup. With the overhaul of their reason code system, Visa divided reason. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. 634. Type Reason Code Explanation Card Recovery Bulletin Authorization Visa Code: 11. Valid Values/Format: 22 - First Chargeback Handling Fee. 3: Goods or services were not as described: C31: RM: 13. Check the chargeback reason code. In simple terms, VCR introduced five definitive. M10 Vehicle Rental – Capital Damages. The network hasn't wholly disallowed some old codes. Understand the reason for the chargeback. The idea was to allow the merchants to dispute the chargeback process and help prevent certain chargeback frauds. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. See full list on chargebacks911. up under any number of different chargeback . 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. 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. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. May 2011: 5. Chargeback Reason Codes / Visa / 11. Step 4: Card Network Collects Dispute Information. 3 No AuthorizationHere is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. 00 EUR as a Withdrawal fee. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. Additionally, one clearing transaction. 3? Visa chargeback reason code 11. 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. Visa chargebacks can be a major inconvenience for merchants. 4: Other Fraud–Card-Absent Environment. Modified on: Wed, 15 Apr, 2020 at 9:11 AM. However, Shopify has whittled down these 100+ reason. Spot these types of chargebacks using the below reason codes. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. It is subject to change and may not include every currently known dispute reason code. Now, 10. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Discover uses unique codes to explain those reasons to merchants. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. 1130. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. reason code information. There is a USD 25 limit for the First Chargeback (Reason Code 22). 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. A credit card authorization code is a two- to six-digit alphanumeric code that indicates whether a transaction has been approved or declined. All chargebacks start with a customer making a purchase in person, in an app, or online. According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. Discover: Reason Code 4755 Non-receipts of goods or services. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. We assign the dispute to you for review in your Customer Area > Risk > Disputes, or send you a webhook. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. 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. ”. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. Receiving a damaged product. 4846. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. August 2021 Marks the 10 th Anniversary of Chargebacks911®. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 08. Spot these types of chargebacks using the below reason codes. Protect stored cardholder data. Choose the representment amount. Each chargeback reason code is two, three, or four digits and includes a short description detailing the chargeback. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. When a transaction is declined, the specific code provides information about the reason for the decline. Paymentology will submit the chargeback using the appropriate chargeback reason code. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. Learn about the different chargeback reason codes and what they mean. Today, Visa expects members to communicate through VROL and try to. With the chargeback code in hand, the merchant can now review the transaction. It can range from 60 to 120 days from the billing date. Mastercard Collaboration will be a step in the right direction. The most comprehensive guide to chargeback reason codes. All ACH return reason codes consist of the letter “R” followed by two. Mastercard: n/a This chargeback is caused by Authorization. UA05 Fraud – Chip Counterfeit Transaction. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include. Now, compliance cases must be submitted through Visa Resolve Online (VROL). 1 Mastercard: n/a This chargeback is caused by Authorization. 2. But for illegitimate claims, the reason code doesn’t give the real reason for the dispute. Dispute Best. Explanation. Chargebacks911 is the original chargeback management company with solutions to prevent chargebacks before they happen and fight. Visa chargeback reason code 12. Administrative returns (R02, R03, R04): 3%. . Our family of fintech professionals includes more than 400 members across North America, Europe, and Asia. ”. MasterCard and. The third digit indicates the specific reason within that category. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. 5%. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. Chargeback time limits vary depending on the reason for the dispute. Visa - 13. Using the same link provided above, contact PayPal to report the scam. Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. The terms may be different, but the process remains fairly unchanged. 3? Visa chargeback reason code 11. 7: Defective goods and services: C32: RM: 13. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Any chargeback that is received without a reason code will be assigned a default code of 53. Everyone has had the experience of buying. 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. 0 initiative to update compelling evidence requirements for dispute reason code 10. If the. Also, remember that the time frame for your response includes any processing required by the acquirer. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. Chargebacks from all three categories can show . This ranges anywhere from roughly 60 to 90 days after purchase. In that way, winning one dispute may help prevent the next chargeback to come after it. The assigned chargeback reason code outlines why a customer submitted the dispute. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Try Shopify free for 3 days, no credit card required. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Level 2/Phase 2: Chargeback. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. Chargeback reason codes are codes used to categorize the reason for the dispute. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Any chargeback that is received without a reason code will be assigned a default code of 53. 1. Overall returns (all codes): 15%. Unauthorized returns (R05, R07, R10, R29, R51): 0. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. You must keep in mind, though: the reason code seldom gives the full story behind the chargeback. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. 4 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. There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches. 6: Duplicate processing/Paid by other means. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include the reason code. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. This process is called. 3. Reason Code 12. Here’s a look at the reason codes for the same scenario from. MasterCard chargeback reason code 4540. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Updated Disputes/Chargeback Policy Coming April 2024Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 3 Category Authorization Workflow Allocation DESCRIPTION Why did I receive this dispute? You. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. Each code corresponds to an issue or problem. Chargeback fees make up a big chunk of the total costs, so we’re going to take a. Below is a list of Mastercard chargeback codes used in eCommerce. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. 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. 4853 – Cardholder Dispute – Credit Not Processed. Common reason codes Mastercard. 0. As a merchant, your focus should be on finding and retaining customers--not chargebacks. American Express often sends inquiries to merchants, through their acquiring banks, to gather more information about a. Knowing these codes can help you dispute chargebacks more effectively. You should place a Code 10 call when. American Express: Reason Code C08 Goods or services. Discover chargeback reason code 7030. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Step 1: Identify the Source. You’ll put that reason code, the transaction amount and authorization number, and state that the. Specify the default reason code that you want the system to assign when you enter a chargeback amount. 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. Expedited Dispute Resolution forms will not be allowed. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. This can provide important information to fight the dispute. ”. ) has its own reason code system, so sellers should carefully check the card used for the. 0 to 5. To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. the chargeback reason code. If the transaction has special authorization procedures, provide documentation that proves the first authorization request included an estimated amount; the subsequent authorization requests. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. A chargeback is the potential outcome of a disputed credit or debit card transaction. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Card Recovery Bulletin Authorization Visa Code: 11. Learn the details, the cause, how to respond and how to prevent Visa Reason Code 11. 0: Updated report version from 1. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. This list was generated 5/4/2022. 3 No Authorization. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Those reasons are explained through the corresponding reason codes. Chargebacks are a problem that is growing worse across the board, and gas station. Each card. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. American Express . You could also end up submitting the wrong evidence, which will cost you time, money, and standing with the bank. Chargeback reason codes are one piece of evidence you can use to make your case. Also, just like American Express, Discover functions as both a card network and an. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. An acquirer can create a second presentment when the acquirer either (a) believes the issuer’s chargeback did not fulfill the requirements of the chargeback reason code or (b) can provide information that addresses the original reason for the dispute. [1] Sift. Visa. 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. There are two parts to this. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. [noun]/* kə • stə • mər • di • spyo͞ot/. We’ll Handle the Chargebacks. 3 – No Authorization Dispute Code 11. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. FR2 Fraud Full Recourse Program. 11/03/15 Updated these MasterCard. Protect cardholder data. Code 4807: Fraudulent Card-Present Transaction. Then, prepare compelling evidence which may. It’s generally more efficient to take a proactive stance when it comes to chargeback management. Here’s how your store can prevent and deal with chargebacks. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. It can range from 60 to 120 days from the billing date. This reason code is assigned to consumers wishing to file a chargeback for defective product. Reason Code 53 re-presentments must be processed within 45 calendar days from the. In the case of friendly fraud, that reason could be completely invalid and. 3 falls under the “Authorization” category. FR4 Immediate Chargeback Program. 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-case basis. The most comprehensive guide to chargeback reason codes. The reason code. While there are many chargeback reason codes, all chargebacks fall into one of three categories: On that note, below are some vendor missteps that could result in Visa reason code 13. Try Shopify free for 3 days, no credit card required. Depending on. Merchant processed transaction below floor limit without authorization. Some common Visa reason codes include: 10. Also, just like American Express, Discover functions as both a card network and an. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. The network plans to reduce response times even further to just 20 days in the near future. 1 - Card Recovery Bulletin; 11. A chargeback happens when a customer requests for a transaction to be. Improve the customer experience by resolving issues quickly. In other words: if you want to prevent forking over more revenue in the end due to chargeback fees, a simple, easy refund policy is the right way to go. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. In fact, the same thing could be said of other chargeback reason codes, too. If the order was genuinely not as described, then the cardholder has a case. Technical. So don’t spend another second worrying about chargebacks. UA06 Fraud – Chip and PIN Transaction. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 2 Compliance CasesReason codes. Your actions in response to such a chargeback will be determined by the particular circumstances, the most typical of which are described in the table below: If: Then: The transaction was cancelled and credit issued. Late Presentment Rules: Mastercard. 1 Merchandise/ Services Not Received. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. MASTERCARD. 2 Declined Authorization; 11. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Technical. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. What is Visa chargeback reason code 11. 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. A dispute often has a reason code associated with it. Being familiar with these codes will help. Encrypt transmission of cardholder data. 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 second presentment transfers funds from an issuer to an acquirer. Chargebacks are a major threat to businesses big and small. The codes for each card brand are listed below along with the recommended documentation to provide. A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. 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. Chargeback Reason Codes Reason code are the first key to understanding the root causes . 2. 00 in chargebacks. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. MasterCard - 4855 Goods or Services Not Provided. F01. However, these chargeback reason codes cannot. 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. If you did not receive the email, open Mave, Wave’s automated chatbot, and. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. This extra step can be frustrating for Card Members and lead to lost sales. 4853 Cardholder Dispute. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Here are some chargeback reason codes by card type. Chargebacks. EMV Liability Shift Counterfeit Fraud. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. In most cases, you will have 20-45 days in which to respond to a chargeback. Reason Codes Category 4: Processing Errors. 99. Braintree Support Articles. Complete Guide to Visa Compelling Evidence Update CE 3. UniBul August 16, 2010 Credit Card Processing Blog 0 Comments. WEX began issuing chip cards in Q4, 2020. 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. 1. But when they do occur, decisive steps are key. Step 2: Customer initiates the chargeback. Processing Errors 12. These guarantees typically involve reimbursement for chargeback-related losses or the assumption of liability for chargeback disputes. Chargeback Reason Codes by Industry. A chargeback can happen when a customer initiates a transaction dispute. The shorthand description is “Credit Not Processed. Duplicate Processing - 81Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Every chargeback comes with a reason code. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). Each card company has its. Chargeback reason codes were created to standardize the list of acceptable reasons why a bank may file a credit card chargeback or debit chargeback on their customer’s behalf. One catch is that CE3. ; Resources. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Chargeback. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. 3. ”. Reason. Each chargeback is assigned a reason code that explains the justification for the chargeback. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. It depends on the chargeback reason code associated with the dispute. Chargebacks with the following reason codes are requested due to fraudulent activity. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Visa Reason Code Updates. Visa, for example, has reason codes: 11. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. 2. Merchant. For example, Mastercard has a code which indicates a ‘consumer dispute. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. Only an issuer can initiate the chargeback process.