Visa chargeback reason code 11. 60. QR Codes: One common way to accept Alipay is via QR code payments. A08 Authorization Approval Expired. com. 4807 Warning Bulletin File. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Documentation must be a direct result of cardholder communication. Truth is, only 30% of chargebacks involve criminal fraud. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. Once filed, the merchant generally has 20. Step 2: Customer initiates the chargeback. 4: Other Fraud–Card-Absent Environment. Specifically, these updates only pertain to transactions that are charged back after Oct. Which is meant to know the reason for the dispute. 0 to 5. 1 Allocation Fraud and Authorization related chargebacks will be processed through an automated workflow. One catch is that CE3. The cardholder does not recognize the Merchant. 1. Click on the Chargeback Reason Code drop-down menu, the user can change the. FR4: Immediate Chargeback Program-Miscellaneous: Amex: FR5: Immediate Chargeback Program-Miscellaneous: Amex: FR6: Immediate. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Below is a list of Mastercard chargeback codes used in eCommerce. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. 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. Take the time to note the following dispute reason codes for Visa. Most losses come from friendly fraud, or chargeback, first party, or return fraud. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 4. The chargeback reason codes below explain why this happened. It makes sense that merchants would use any tool they can to prevent payment reversals, especially when it comes to true fraud. the requested documentation, your account will be debited. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. Reason Code 53 Re-presentment Conditions. We also included the reason code descriptions and an indication of when the allowable time frame begins. 2 EMV Liability Shift Non-Counterfeit Fraud 10. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). 2. France saw a drop of roughly 50% during the same period. Description: Reason code for applying handling fee. Another downside is that chargebacks on annual subscriptions. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. UA01 Fraud – Card Present Transaction. 1. 1 Merchandise/ Services Not Received. The existing 22 chargeback reason codes will be replaced by new reason codes and grouped into 4 categories: 1. Understanding these codes is essential because they'll guide your response strategy. Spot these types of chargebacks using. for chargeback reason code 4863 (Cardholder Does Not Recognize). A chargeback happens when a customer requests for a transaction to be reversed. Using the same link provided above, contact PayPal to report the scam. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. 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. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. 1. Chargeback Reason Code. that the transaction was either approved online by the issuer or offline by the chip. It is associated with a chargeback reason code, and it is specific per Card Scheme. Thus, a reason code of one network does not necessarily match with a reason code of another network. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 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. So the company has more incentive to side with customer during cardholder. Lack of proper chargeback reason codes. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. reason_description: string. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. This code collects all the. 4846. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. Check with the issuing banks to determine what time limits may apply to you. the requested documentation, your account will be debited. Authorization. Contact us here or call us at 1. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Assemble Your Evidence. April 2018_Chargeback Reason Code Encyclopedia. 102. To obtain additional information, the issuing bank sends a retrieval request to the merchant’s bank. ECM monitors first presentment chargebacks regardless of reason code or transaction type. FR4 — Immediate Chargeback Program. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Scenario 2. FR4 Full Recourse FR5 Full Recourse M01 Acct Notice - processed Chargeback authorization M02 Acct Notice - processed your credit M03 Acct Notice - processed your credit M04 Acct Notice - debit stands M05 Acct Notice - ch does not agree M06 Fraud - full data stream not provided M07 Rental Room Charges Only M08 Rental Room Charges Only the Chargeback. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. 101. FR4: Immediate Chargeback Program FR6: Partial Immediate Chargeback Program The Ultimate Dispute Management Resource. #9. On that note, below are some vendor missteps that could result in Visa reason code 13. As a merchant, your focus should be on finding and retaining customers--not chargebacks. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Chargeback stands If you don’t reply in time or with the right documentation, the Chargeback will stand. If you don’t reply in time or with . Scenario 2. 1 Chargeback reason codes There are no common chargeback reason codes in the industry; instead, each card network defines its own reason codes. All chargebacks start with a customer making a purchase in person, in an app, or online. Category. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. chargeback management with an easy to use online system. 2 EMV Liability Shift. In friendly fraud, the cardholder. The cardholder initiates contact with their bank or credit union to file a dispute. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. Fraud. During this process, the representative of the institution examines the reasons’ list. non_receipt: The buyer claims they didn't get the goods or services. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. 2. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. For example, your trading name on the receipt differs to that on their statement. ECM monitors first presentment chargebacks regardless of reason code or transaction type. Notification of Fraud. Visa Chargeback Reason Codes. It was originally just one facet of legacy reason code 81. Field name: reasonCode. Once you know why a chargeback happened, you can start building a case to address the claims that were. 1? Visa chargeback reason code 12. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Write customer-friendly policies. most common reason codes for recurring merchants include: 7. A service chargeback is filed by a customer, which means that you need to note the card type and dispute reason code so that you can determine which types of information to submit if you dispute the claim. ” 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. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. 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. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Chargeback reason codes. Receiving a damaged product. 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. Visa ® has launched the CE 3. High-Risk (Excessive): Reaching a chargeback ratio of. While there are many chargeback reason codes, all chargebacks fall into one of three categories:WEX began issuing chip cards in Q4, 2020. Having a Lax Attitude Toward Industry Rules & Regulations. Also, just like American Express, Discover functions as both a card network and an. Here are some chargeback reason codes by card type. Now, compliance cases must be submitted through Visa Resolve Online (VROL). This can be transaction receipts, proof of. 2 for Visa and Reason Code 4850 for Mastercard). If more information is needed, you’ll either receive an Inquiry or a Chargeback. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes American Express Chargebacks / Disputes. 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. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. 2. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. UA05 Fraud – Chip Counterfeit Transaction. Other Fraud—Card Absent Environment. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. Chargeback Reason Codes and Descriptions. The cardholder does not recognize your name on their statement. 5%. pdf), Text File (. The shorthand description is “Goods/Services Not as Described. Different card networks have different reason code systems. 3 falls under the “Authorization” category. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. FR4: Fraud: Immediate Chargeback Program: This is a program that allows American Express to process any dispute immediately as cardholder. S. 3. Solutions. Consider Deadlines. In most cases, the bank chooses a course of action based on information the cardholder provides. Only the first four to five digits of the address and the postal code. If you're contesting a chargeback, you'll need solid evidence. From there, the merchant can look up the code to figure out what the dispute is about. Receive the Chargeback. The list of chargeback reason codes in this article is organized by card brand and type of dispute. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. 1 for Visa transactions, or reason code 4834 for Mastercard. 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. Discover Chargeback Reason Codes Explained. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 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. Updated August 23, 2023. Blog and Featured; Success Stories; Chargeback Reasoning Codes; BIN Look-up; eGuides and Reports;. 7: Defective goods and services: C32: RM: 13. MasterCard - 4855 Goods or Services Not Provided. ”. The terminal action codes are in Table 122 of the 4. Each time a consumer files a chargeback, the merchant is hit with a fee ranging from $20 to $100 per transaction. Chargeback Reason Codes by Industry. We assign the dispute to you for review in your Customer Area > Risk > Disputes, or send you a webhook. STEP #7: Bank Review & Decisioning. 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. At Visa they used to receive reason code 98. The cardholder does not recognize the Merchant. Administrative returns (R02, R03, R04): 3%. Technical. Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. If more information is needed, you’ll either receive an Inquiry or a Chargeback. ”. Download our comprehensive guide to reason codes, modifiers, time limits, and compelling evidence. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. Apparel retailers and suppliers must proactively address chargeback issues. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. The assigned chargeback reason code outlines why a customer submitted the dispute. Chargeback time limits vary depending on the reason for the dispute. 36. Retrieval: A request initiated by a customer for more information about a charge. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. A reason code is how banks categorize the reason for a chargeback. Documentation must be a direct result of cardholder communication. By entering your email, you agree to receive marketing emails from Shopify. Reason Code 81: Fraud. Scenario 1 — upfront chargeback. 1. 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. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. 104. Every chargeback comes with a reason code. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. It gets worse. The sale is revoked, and the merchant loses the sale amount plus fees. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. There are four primary phases to a Visa dispute: After Visa. 1. Chargeback . F01. Updated August 23, 2023. Every chargeback comes with a reason code. 4812 Account Number Not On File. These fees are nonrefundable, even if the merchant ultimately beats the chargeback. It is important to identify and understand the root cause and take the necessary steps to dispute the chargeback. Chargebacks. You’ll earn Membership Rewards points, which you can redeem for any transactions. 4807 Warning Bulletin File. Visa Chargeback Reason Codes. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Please see the below “cheat sheet” for the new 4 byte reason codes. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Chargeback Code: Type: Processing Error: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect. Please refer to chapter 5 for more information. The chargeback filing period for cardholders is usually 120 days. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. How To Win. If you believe you have received an ACH return in error, you can contact your bank. 102. Chargeback prevention strategies vary based on the reason for the. The customer regrets their purchase. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. 4? Visa chargeback reason code 12. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. These are all the known American Express chargeback codes. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. 2022 Visa Chargeback. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. Try Shopify free for 3 days, no credit card required. 4812 Account Number Not On File. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. The cardholder contacts their bank to explain the situation and ask that the bank reverse the transaction. Accessed October 17, 2022. 2. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargeback. 1 Different workflows Disputes will be routed in two different workflows, called Allocation and Collaboration. Every dollar disputed represents a loss to the merchant of $3. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. 3. 2. Paymentology will submit the chargeback using the appropriate chargeback reason code. 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:Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. These are only a handful of common Visa chargeback reason codes. Once filed, the merchant generally has 20 days to respond to the chargeback. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Description. About American Express chargeback reason codes. 45. What is Visa chargeback reason code 12. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. MasterCard: Reason Code 4859 Services not rendered. Summary of Changes, 13 December 2018The 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. Everyone from processors and card brands to local and federal governments has rules about how payments should be handled. 2=1020 etc. Additionally, Amex uses a fifth "Miscellaneous" category. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. American Express . Try Shopify free for 3 days, no credit card required. The following chargeback reason codes are related to EMV: Visa: 10. Look below the surface. txt) or read online for free. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. These are all the known American Express chargeback codes. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. EMV has been a mostly global standard since 2004. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. Once filed, the merchant generally has 20 days to respond. The goal is to reduce. Amex Fraud Chargeback Reason Codes FR2 — Fraud Full Recourse Program. for chargeback reason code 4863 (Cardholder Does Not Recognize). EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. According to the 2022 Chargeback Field Report, global costs associated with chargebacks will have skyrocketed in recent years. UA02 Fraud – Card Not Present Transaction. 3 No Authorization. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. 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 recurringChargeback or chargeback dispute: A claim against a transaction initiated by a customer with their bank, resulting in a forced payment reversal. American Express chargeback reason codes REASON ODE ENCYCLOPEDIA sift. 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. The new reason codes follow a format of two digits, a period, then a third digit. About American Express chargeback reason codes. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. These are only a handful of common Visa chargeback reason codes. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. See the definitions of the various chargeback codes you maybe receive during the chargeback process. Dubbed "Compelling Evidence 3. 1 Card Recovery Bulletin or Exception File. The chargeback is ordered by the bank that issued the consumer's payment card. The better prepared you are, the more likely you are to. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Click on “report a problem” and select the transaction in question. pdf), Text File (. 103. A02 No Valid Authorization. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Find your dispute ticket by choosing between the “Open” and “Closed” tabs. 1 Goods and Services Related Issues 1. Here’s how your store can prevent and deal with chargebacks. 1. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Not remembering the original purchase. The Fintech Times. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Learn more about Mastercard chargeback reason codes. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Write Off Reason Code . FAQ: What remains Chargeback Representment? TIPS. 4, 12. Your establishment is on an Immediate Chargeback agreement with American Express. chargeback: The buyer filed a chargeback with the credit card issuer. Try Shopify free for 3 days, no credit card required. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. Note: Fraud is generally the most common chargeback dispute reason. Click “filter orders”. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. Here’s how. Dispute Condition Description Dispute Condition Code Category Code Category Code Description; EMV Liability Shift: 10. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Chargeback Base Codes by Network - 2023 Guide. ”. Batch chargeback process. That’s 50% more time than what the major card networks allow. 4. Supporting Documents You could potentially reverse a Chargeback by providing the. Though the credit card networks have a vast choice of codes, loopholes still happen. A reason code helps explain why a transaction was disputed. 0: Updated report version from 1. Pre-arbitration (pre-arb): When the customer challenges a chargeback won by the business for a second time. It can range from 60 to 120 days from the billing date. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. There are two types of invalid chargebacks. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. 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. 1: EMV Liability Shift Counterfeit Fraud: 10. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U. FR4: Fraud: Immediate Chargeback Program: This is a program that allows American Express to process any dispute immediately as cardholder. 0 represents the first rules change of its kind that specifically provides merchants with the opportunity to reverse the fraud status applied to a transaction associated by reason code 10. Charge Amount Exceeds Authorization Amount. This code tells you why the customer or bank initiated the dispute. 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. About American Express chargeback reason codes. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Goods / Services Damaged or Defective. “American Express Chargeback Reason Codes | Sift”. Use order validation and prevention alerts. 0, these guidelines guarantee merchant protections from certain categories of disputes. 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:Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. 3 No Authorization. Either the acquiring or issuing bank could initiate the. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. Updated: Valid values updated. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). FR4: Immediate Chargeback Program. Chargeback. Based on the information provided, Paymentology will investigate the transaction being disputed. The network plans to reduce response times even further to just 20 days in the near future. Number two: Product Not Received chargebacks.