Spot these types of chargebacks using. Invalid Reasons for a DisputeSurvey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Existing merchant customers: Call us at 1-800-451-5817, 24 hours a day, 7 days a week. 3 is the less common version for card-present transactions. C04 = Goods/Services returned or refused. ”. This reason code means that the customer claims to have received goods or services that were damaged, defective, or otherwise unacceptably faulty. About American Express chargeback reason codes. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. The assigned chargeback reason code outlines why a customer submitted the dispute. Chargeback. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. Blog and Articles; Success Stories; Chargeback Reason Codings; DUMPSTER Look-up;. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. R04 – Invalid account number. AMEX CODE A08 (Chargeback) CATEGORY Authorization AMEX CODE C02 (Chargeback) CATEGORY Authorization DESCRIPTION Authorization Approval. All chargebacks start with a customer making a purchase in person, in an app, or online. R07 – Authorization revoked by customer. 3? Visa chargeback reason code 11. Not remembering the original purchase. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. UA05 Fraud – Chip Counterfeit Transaction. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. 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. 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. The shorthand description is “Goods/Services Damaged or Defective. Each code has a different timeline. C02 = Credit not processed. 4. Solution Case Studies Partners Company Blog Resources Data & Compliance FAQ See It In Action. Also, remember that the time frame for your response includes any processing required by the acquirer. Chargeback reason code. American Express chargeback reason codes are divided into five categories: authorization, cardmember disputes, fraud, processing errors, and miscellaneous. The chargeback transfers funds from the acquirer to the issuer. 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. F01. • Removed reason code 4840 (Fraudulent Processing of Transactions) Chapter 1—General Information. 4 Ways to Fight Chargebacks: Gather compelling evidence. 998:In short: yes. Updated Disputes/Chargeback Policy Coming April 2024Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Download this sample Chargeback Rebuttal Letter. Visa chargeback reason codes. Visa also overhauled its system of chargeback reason codes. 0. • Proof that merchandise was shipped to a positive AVS-confirmed address (response ofThe customer regrets their purchase. C31 – Goods / Services Not As Described. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. 5 Visa Fraud Monitoring Program. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Below is a list of Mastercard chargeback codes used in eCommerce. You’ll put that reason code, the transaction amount and authorization number, and state that the. Responding to Mastercard Reason Code 4853 Chargebacks. 3 falls under the “Authorization” category. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. 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. C14 = Paid by other means. The cardholder was expecting a full or partial credit from the merchant that was never received. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37American Express Chargebacks / Disputes. Click on the Chargeback Reason Code drop-down menu, the user can change the. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. 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. Discover. Thus, a reason code of one network does not necessarily match with a reason code of another network. Typical chargeback reason codes are: DA: Disputed amounts. If more information is needed, you’ll either receive an Inquiry or a Chargeback. )A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. Message. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. 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 codes also appear on financial reporting associated with disputes. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. School Yeshiva University; Course Title BUS MISC; Uploaded By KidGorilla7385. R02 – Account closed. R06 – Returned due to ODFI’s request. Reason Codes. Reason Code 03. Amex Dispute Codes Learn about the different chargeback reason codes and what they mean. What are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. 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. Amex Cardmember Dispute Chargeback Reason Codes C02 — Credit Not Processed. 4 (Other Fraud - Card Absent Environment), which is under the fraud category. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Question: Where can I find a complete listing of Check 21 return codes? Answer: You can find the current official listing on page 38 of FRB Services' "Image Cash Letter Customer Documentation" at. Maestro. FAQ: What is Chargeback Representment? TIPS. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. It’s even more frustrating if you don’t understand what the chargeback code means. It depends on the chargeback reason code associated with the dispute. Not recognizing your billing descriptor on a statement. CODE DESCRIPTION A01 CHARGE EXCEEDS AUTHORIZATION AMOUNT A02 NO VALID. Customer Dispute. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Amex: A02: No Authorization/Invalid Approval Code: 120: Authorization: Amex: A08: Authorization Approval Code Expired: 120: Authorization: Amex: C02: Credit Not Processed: 120: Cardholder. Typical chargeback reason codes are: DA: Disputed amounts. ”. About American Express chargeback reason codes. That said, looking up purchases using this number can make it easier to provide info following an. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. PCI DSS v3. Step 4: Card Network Collects Dispute Information. Fighting chargebacks takes time, expertise and manpower. 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. Complete Guide to Visa Compelling Evidence Update CE 3. C08 – Goods / Services Not Received or Only Partially Received. UA06 Fraud – Chip and PIN Transaction. C02 – Credit Not Processed. C08 = Goods/Services not received or only partially received. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. Dispute Condition Description Dispute Condition Code Category Code Category Code Description; EMV Liability Shift: 10. The most comprehensive guide to chargeback reason codes. • Updated support documentation for Paid Through Other Means (ISO 4515 / C14). There is a USD 25 limit for the First Chargeback (Reason Code 22). The good news is that most of these invalid claims are disputable by the merchant. A reason code is how banks categorize the reason for a chargeback. Use this resource to prevent and fight chargebacks with greater accuracy. Complete Listing of Check 21 Return Codes. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Compelling evidence for fraud chargeback reason codes: • Proof that Verified by Visa was utilized by the merchant and 3DS authentication was obtained (ECI 5/6, UCF 1/2) for the disputed electronic commerce transaction. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. The chargeback system was designed as a last resort; only to be used in specific situations. Unlike other. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. The system does not accept blank as a value, even if it is defined in the user defined code table. Their chargeback process differs because it is typically more straightforward. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. Here are a few high-level examples. Goods and services not as described or cardholder received defective goods or services 3. The transaction stands incomplete and funds are not secured. chargeback: The buyer filed a chargeback with the credit card issuer. 41 4841 Cancelled Recurring Transaction 53 4853 Not as Described or Defective Merchandise 57 4840 Fraudulent Multiple Transactions 62 4870/4871 Counterfeit Transaction Being familiar with the potential chargeback reason codes gives recurring6. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. C02 – Credit (or partial credit) Not Processed; C04- Goods/Services Returned or Refused; C05 – Goods. Learn about the different chargeback reason codes and what they mean. Card Brand Code. About American Express chargeback reason codes. R13 No Reply. This return reason code may only be used to return XCK entries. 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. CE 3. Question: How soon after I submit a pr enotification can I submit a live entry (debit or credit)? These chargebacks occur to resolve chargeback-related disputes between network members. Dispute Best Practices Guide Overview This guide includes:Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Explore more ACH Return Codes. And final case was closed with this specs: Chargeback Reason Code: M38. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Knowing these codes is vital for merchants to understand the reason for chargebacks and how to manage them. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. How you respond is determined by the chargeback reason code: Embed This Graphic. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. Once filed, the merchant generally has 20 days to respond to the chargeback. 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. 15, 2021. Friendly fraud. Goods / Services Damaged or Defective. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. C14 – Paid by Other Means. We also included the reason code descriptions and an indication of when the allowable time frame begins. Your first step is to identify the chargeback reason code, which is a kind of shorthand that indicates why the transaction is being disputed. This reason code is used when a cardholder claims that they canceled a recurring billing transaction but were still charged. If you get a chargeback,. Chargeback Reason Codes by Network - 2023 Guide. Midigator has created a database of reason codes. With that said, you still need to understand the reason codes with any chargebacks from Amex. Once you receive this notification, you have 11 days to submit a response. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. These are only a handful of common Visa chargeback reason codes. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. This Return Reason Code is generally used on CIE transactions. Either the acquiring or issuing bank could initiate the chargeback. You can learn more about each one by visiting the Mastercard Chargeback Guide. non_receipt: The buyer claims they didn't get the goods or services. 2. 265. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. Here 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. 0 initiative to update compelling evidence requirements for dispute reason code 10. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. • Rule changes for chargeback reason codes involving unjust enrichment associated with credits issued before or after a chargeback and/or after a second presentment. 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. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. That definitive guide included the chargeback reason codes from each of the quad larger card connectivity. Chargeback Reason Code . The chargeback initially results in the debit or credit card charge being reversed and the funds that you received for the payment being returned to the customer. Request for Information. 1. About American Express chargeback reason codes. Unauthorized returns (R05, R07, R10, R29, R51): 0. S. About American Express chargeback reason codes. To subscribe and learn more about the free online chargeback management system, or contact Chase Paymentech Client Services at 1. C02: No Credit Received: A credit has not been applied to cardholders account for either: goods/services. 3: Goods or services were not as described: C31: RM: 13. ”. The reason for the dispute was false or inaccurate. 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. Solutions. Please note that the most common Chargeback reason code for Allocation disputes is 10. Paid by alternate means and card. Everyone has had the experience of buying. In short: capture is the point at which you get paid for a sale. You’re fighting Chargebacks with everything you have. When one cardholder initiates a dispute with their issuing bank, a. 3: Goods or services were not received: C08: RG: 4855: 13. Overall returns (all codes): 15%. Field name: reasonCode. 800. ”. For card-present transactions, clearly disclose the cancellation policy on the transaction receipt. M10 Vehicle Rental – Capital Damages. Updated: Valid values updated. 4. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. The shorthand description is “Canceled Recurring Billing. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. Understanding these codes is essential because they'll guide your response strategy. Example: 25. Each network’s reason codes, however, can beVisa Chargeback Reason Codes. Chargeback Reason Codes / American Express / C02 – Credit Not Processed Reason Code C02 Category Cardmember Disputes DESCRIPTION Why did I receive this chargeback? The cardholder claims you were supposed to provide a refund, but a credit hasn’t been applied to the card yet. CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount: A02: No Valid Authorization: A08: Authorization Approval Expired: C02: Credit not Processed: C04:. Additionally, Amex uses a fifth "Miscellaneous" category. Improve chargeback-resolution time. There are two types of invalid chargebacks. 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. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud. This chargeback occurs when merchants do not adequately provide currency information. There are four primary phases to a Visa dispute: After Visa. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Nevertheless, you must respond to the chargeback based on the given code. Mastercard Chargeback Reason Code 70: Chip Liability Shift. Or contact your account manager. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. A chargeback happens when a customer requests for a transaction to be reversed. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. There are over 80 unique return codes, each representing a different return type. These codes are broken down into five different category. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Each reason code has certain standards of proof and evidence associated with it that determine whether the chargeback is valid or not. During this process, the representative of the institution examines the reasons’ list. Visa organizes their chargeback codes by categories. Category. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableOlder time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. A reason code is a response from Cybersource servers for production transactions submitted using the following methods:. A chargeback can happen when a customer initiates a transaction dispute. Amex chargeback reason code C02 is applied when issuing bank gets a notice from the cardholder that merchandise was returned, but merchant hasn’t refunded, or credit hasn’t. If the policy is on the front of the receipt, it should be near the customer signature line. This extra step can be frustrating for Card Members and lead to lost sales. Question: How soon after I submit a pr enotification can I submit a live entry (debit or credit)?These chargebacks occur to resolve chargeback-related disputes between network members. Either the acquiring or issuing bank could initiate the. manual processing by uploading chargeback documents instantly. #9. Time Frames by Chargeback Type and Reason Code. documents before the deadline. The shorthand description is “Goods/Services Not as Described. We’ll make a decision about reversing the Chargeback. These are only a handful of common Visa chargeback reason codes. This definitive guide includes the chargeback reason codes from each of the four major card networks. C05 – Goods / Services Cancelled. These codes are established by the payment brands to categorize the incoming dispute requests by reason. Scenario 2. 1 Quick Reference Lead. And, each code has unique compelling evidence requirements if you choose to fight. . Required Authorization Not Obtained. However, they don’t address the reason why that chargeback was issued in the first place. ©Visa chargebacks can be a major inconvenience for merchants. Chargeback: Chargeback has been received. On that note, below are some vendor missteps that could result in Visa reason code 13. UA01 Fraud – Card Present Transaction. This can be transaction receipts, proof of. For example, suppose a cardholder filed a case about an order processing issue, and you disputed the chargeback. The existing 22 chargeback reason codes will be replaced by new reason codes and grouped into 4 categories: 1. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 2. Code 4807: Fraudulent Card-Present Transaction. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. for chargeback reason code 4863 (Cardholder Does Not Recognize). UA02 Fraud – Card Not Present Transaction. many chargeback reason codes that exist today. ACH return code R13 indicates the transaction includes an invalid ACH routing number. The reason code may not reflect the true reason for the chargeback. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. Those reasons are explained through the corresponding reason codes. Administrative returns (R02, R03, R04): 3%. Non-Consumer *2 Banking Days R22 Invalid Individual ID Number which the Originator was identified is not correct. Click the Update Chargeback link to edit the chargeback details. Visa Chargeback Life Cycle. Read on for the complete guide to dealing with chargebacks. The goal is to reduce. American Express Chargeback Reason Codes. Chargeback reason codes are one piece of evidence you can use to make your case. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. All reason codes. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing. Learn about chargeback dispute behavior among UK and US consumers in our latest research report. With the right compelling evidence,. This is a relatively common. This means that the cardholder is claiming that they canceled their order for the merchant’s goods or services, but the merchant did not provide a refund. [1] Sift. Reason Code North-America: Canada and United States of America; Reason Code: All other countries;. Most reason codes apply to any merchant, regardless of what’s being sold. Visa Code # MasterCard Code # Reason. Once you hear from us, you’ll . Paymentology will submit the chargeback using the appropriate chargeback reason code. 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. 0, these guidelines guarantee merchant protections from certain categories of disputes. 2. processed the transaction correctly. At the start of a transaction. reason_description: string. Photos, signatures, emails and other evidence that will help build your case. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Technical. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Date Option. Because you have not met Seller Protection performance requirements , the transaction will be reversed. Having a Lax Attitude Toward Industry Rules & Regulations. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. The shorthand description is “Credit Not Processed. Categories For Reason Codes. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. A08 = Authorization approval expired. Chargeback Reason Coded by Network - 2023 Guide. Mastercard also considers some chargeback reason codes to be indisputable. * Introducing Compelling Evidence: An updated policy to help ease Disputes and reduce Chargebacks. Once filed, the merchant generally has 20. The EMV SRC system can use device information to pull customer and card information through the system and automatically verify the customer. 2 EMV Liability Shift. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. ” Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. Payment capture comes after authorization; at this point, the payment is effectively "settled," and the transaction is over. R06 – Returned due to ODFI’s request. FR4 Immediate Chargeback Program. 1. Reference these when rebutting cardholder disputes at your small business. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. 7. Visa assesses the following fines, as specified in the table below, to a U. 4. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. ”. The good news is that most of these invalid claims are disputable by the merchant. Chargeback fees. 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. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. A01 = Charge amount exceeds authorisation amount. This definitive guide comes that chargeback reason codes from jeder of of four majority card networks. R07 – Authorization revoked by customer. An XCK entry may be returned up to sixty days after its Settlement Date. Answered by: John Burnett. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Any time. Managing Reason Code 62 chargebacks. Both EFM and ECM measure compliance at the MID level. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Chargeback Reason Code Quick Reference Guide. The shorthand description is “Canceled Recurring Billing. Knowing these codes is vital for merchants to understand the reason for chargebacks and how to manage them. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. There are many reasons why a chargeback occurs, with over 100 reason codes listed across the major credit card brands. Banks, however, categorize chargebacks or disputes depending on the card used when a chargeback occurs. Reason codes are very crucial to assist. The shorthand description is “Goods/Services Canceled. 3. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Here’s how your store can prevent and deal with chargebacks. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. Specifically, these updates only pertain to transactions that are charged back after Oct. The reason_description field lists the chargeback reason. 1 Allocation Fraud and Authorization related chargebacks will be processed through an automated workflow. C02. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. A “No Authorization” code chargeback can also be the.