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Chargeback Reason Codes

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The Chargeback Reason Codes are alphanumeric key codes provided to the merchant and that comes along with the chargeback request. These reason codes explain the reason for the dispute. The major card networks like American Express, Discover, Visa, and MasterCard have created these reason codes to explain the reasons behind the chargeback requests. A merchant is required to pay attention to these reason codes so that they can avoid disputes in the future.

The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. While creating the reason codes, the bank asks the customer about the reason for dispute and then assigns a code. In some cases, the reason code may not match the real reason. It might be possible that the customer is trying to make a fraud by not paying for the product or services rendered.

Importance of Chargeback Reason Codes:

These reason codes provide the exact information about the required documents in the occurrence of the dispute. The merchant has to show these documents to proving the genuine sale and winning the chargeback. Every card network has its unique chargeback reason codes. So, it is important to have the understanding of all the Chargeback Reason codes, in order to face or resolve the chargeback dispute.

Categories of the Chargeback Reason Codes:
There are four categories of the chargeback reason codes, which include Consumer Disputes, Authorization, Fraud, and Processing Errors.

Consumer Disputes:

When a customer or cardholder initiates the chargeback to represent the issues with the Merchant, Product or Services, then it is known as Consumer Disputes. There are several terms that can be used for the consumer disputes such as Cardholder Dispute, Card Member Dispute as well as Service Chargeback. The reasons for the consumer disputes can differ from situation to situation.

American Express – Consumer Disputes:

  • C02 – Credit Not Processed
  • C04  – Goods or Services Returned/Refund
  • C05 – Goods or Services Canceled
  • C08 – Goods or Services not Received/Partially Received
  • C14 – Paid by Other Means
  • C18 – No Show or CARDeposit Canceled
  • C28 – Cancelled Recurring Billing
  • C31 – Goods or Services Not as described
  • C32 – Goods/Services Damaged or Defective
  • M10 – Vehicle Rental – Capital Damages
  • M49 – Vehicle Rental – Theft or Loss of Use

MasterCard – Consumer Disputes:

  • 4853 – Cardholder Dispute
  • 4841 – Canceled Recurring or Digital Goods Transactions
  • 4854 – Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)
  • 4855 – Goods or Services Not Provided
  • 4859 – Addendum, No-show, or ATM Dispute
  • 4860 – Credit Not Processed

Discover – Consumer Disputes:

  • 05 – Good Faith Investigation
  • AA – Does Not Recognize
  • AP – Recurring Payments
  • AW – Altered Amount
  • CD – Credit/Debit Posted Incorrectly
  • DP – Duplicate Processing
  • NF – Non-Receipt of Cash from ATM
  • PM – Paid by Other Means
  • RG – Non-Receipt of Goods, Services, or Cash
  • RM – Cardholder Disputes Quality of Goods or Services
  • RN2 – Credit Not Processed

VISA – Consumer Disputes:

  • 13.1 – Merchandise/ Services Not Received
  • 13.2 – Cancelled Recurring
  • 13.3 – Not as Described or Defective Merchandise/ Services
  • 13.4 – Counterfeit Merchandise
  • 13.5  – Misrepresentation
  • 13.6 – Credit Not Processed
  • 13.7 – Cancelled Merchandise/ Services
  • 13.8 – Original Credit Transaction Not Accepted
  • 13.9 – Non-Receipt of Cash or Load Transaction Value

Authorization:

The disputes related to the Authorization come under the Authorization Chargebacks. In case the authorization was not obtained in a transaction where it was required then Authorization Chargeback is applied.
American ExpressAuthorization:

  • A01 – Charge Amount Exceeds Authorization Amount
  • A02 – No Valid Authorization
  • A08 – Authorization Approval Expired

MasterCardAuthorization:

  • 4807 – Warning Bulletin File
  • 4808 – Authorization-Related Chargeback
  • 4812 – Account Number Not On File

Discover – Authorization:

  • AT – Authorization Noncompliance

VISA – Authorization:

  • 11.1 – Card Recovery Bulletin or Exception File
  • 11.2 – Declined Authorization
  • 11.3 – No Authorization

Processing Errors:

When there is a point of interaction error then it is known as Processing Error. The Processing Errors include the disputes like duplicate processing, credit processed as charge, No Show, Incorrect Charge amount etc.

American Express – Processing Errors:

  • P01 – Unassigned Card Number
  • P03 – Credit Processed as Charge
  • P04 – Charge Processed as Credit
  • P05 – Incorrect Charge Amount
  • P07 – Late Submission
  • P08 – Duplicate Charge
  • P22 – Non-Matching Card Number
  • P23 – Currency Discrepancy

MasterCard – Processing Errors:

  • 4834 – Point-of-Interaction Error
  • 4831 – Transaction Amount Differs
  • 4842 – Late Presentment
  • 4846 – Correct Transaction Currency Code Not Provided
  • 4850 – Installment Billing Dispute
  • 4999 – Domestic Chargeback Dispute (Europe Region Only)

Discover – Processing Errors:

  • IN – Invalid Card Number
  • LP – Late Presentation

VISA – Processing Errors:

  • 12.1 – Late Presentment
  • 12.2 – Incorrect Transaction Code
  • 12.3 – Incorrect Currency
  • 12.4 – Incorrect Account Number
  • 12.5 – Incorrect Amount
  • 12.6 – Duplicate Processing/ Paid By Other Means
  • 12.7 – Invalid Data

Fraud:

This category includes the disputes related to fraudulent transactions. The reason codes in this category would look like- No cardholder authorization, EMV Liability, and card not present etc.

American ExpressFraud:

  • F10 – Missing Imprint
  • F14 – Missing Signature
  • F24 – No Card Member Authorization
  • F29 – Card Not Present
  • F30 – EMV Counterfeit
  • F31 – EMV Lost/Stolen/Non-Received

MasterCardFraud:

  • 4837 – No Cardholder Authorization
  • 4840 – Fraudulent Processing of Transactions
  • 4849 – Questionable Merchant Activity
  • 4863 – Cardholder Does Not Recognize—Potential Fraud
  • 4870 – Chip Liability Shift
  • 4871 – Chip/PIN Liability Shift

Discover – Fraud:

  • UA01 FraudCard Present Transaction
  • UA02 FraudCard Not Present Transaction
  • UA05 Fraud – Chip Counterfeit Transaction
  • UA06 Fraud – Chip and PIN Transaction

VISA – Fraud:

  • 10.1 – EMV Liability Shift Counterfeit Fraud
  • 10.2 – EMV Liability Shift Non-Counterfeit Fraud
  • 10.3 Fraud – Card-Present Environment
  • 10.4 Fraud – Card-Absent Environment
  • 10.5 Visa Fraud Monitoring Program

We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. You can also visit us at Chargebackexpertz.com to know more about chargeback reason codes and how you can win them or Contact Us and one of our chargeback experts will get back to you with the solution.

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