Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. What is the chargeback reason code? The reason code is an alphanumeric 2 to 4-digit code provided by the issuing bank that identifies the reason for the dispute. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. The card issuer assigns it a chargeback reason code, a simple alphanumeric code to describe the reason for the chargeback. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Today, we at Chargebacks911 are proud to call ourselves the industry’s leading name in end-to-end chargeback management. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingA chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. This means providing evidence that will undermine the cardholder’s claim. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. But cardholders and merchants have different time limits. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. For example, a thief takes someone’s card data and makes a purchase at a store. You can learn more about each one by visiting the Mastercard Chargeback Guide. Automated Clearing House return codes, reasons, and details. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. S. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. United States. All ACH return reason codes consist of the letter “R” followed by two. ACH return codes and explanations for R01 – R33 returns. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. The issuing bank reviews the information. The chargeback process can last from one month to six months. ). 9808 info@chargebacks911. 2 EMV Liability Shift. 14. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. You win, but a second dispute is filed: The issuer has the right to file a second chargeback for the same transaction. 1002 - Cardholder disputes billed amount. Thus, the easiest way to prevent chargeback reason code 75 from being. 4808 Authorization-Related Chargeback. 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. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Step 2: Customer initiates the chargeback. Chargeback reason code. 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. Process Flow for P2M:- Issuer Banks: Can raise chargeback with reason code 1065 (If customer is expecting compensation for non-fulfilment of goods/services. reason codes. most common reason codes for recurring merchants include: 7. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 1 falls under the “Processing Errors” category. As we touched on earlier, chargebacks can happen due to technical errors. 6. 3 No Authorization. What Are the Time Limits for Mastercard Chargeback. 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. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. Be sure you understand 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. If a merchant accepts the reason for the chargeback, the customer refund is processed. '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. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Codes 51 (insufficient funds) and 05 (do not honor) are especially common. Required Authorization Not Obtained. Support; Login. Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. The same is true of all chargeback reason codes. These are only a handful of common Visa chargeback reason codes. Accessed November 22, 2022. In this scam, a scammer sends a message to their victim. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. The following chargeback reason codes are related to EMV: Visa: 10. 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. Here’s how your store can prevent and deal with chargebacks. The list of chargeback reason codes in this article. Vantage House1. While the updates have been published, they do not go into effect until Oct. While there are many chargeback reason codes, all chargebacks fall into one of three categories:The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, and. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. ” This code indicates that the cardholder claims the merchant processed a recurring billing transaction after they had submitted a cancellation request or. UA01 Fraud – Card Present Transaction. This extra step can be frustrating for Card Members and lead to lost sales. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). Reference these when rebutting cardholder disputes at your small business. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. High-Risk (Excessive): Reaching a chargeback ratio of 1. In that way, winning one dispute may help prevent the next chargeback to come after it. The sort of proof required differs depending on the chargeback reason code. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. The deadline for a Chase Bank customer to dispute a transaction is 60 days. Chargebacks are something every business wants to avoid, as they can. The cardholder wins: The bank upholds the chargeback, and the funds are not returned to your account. Check the chargeback reason code. Unauthorized returns (R05, R07, R10, R29, R51): 0. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. The most comprehensive guide to chargeback reason codes. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. During this process, the representative of the institution examines the reasons’ list. If you leave this processing. Mastercard: Reason Code 4859 Service not rendered. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. By entering your email, you agree to receive marketing emails from Shopify. REQUEST A DEMO. At Visa they used to receive reason code 98. Reason codes. A chargeback happens when a customer requests for a transaction to be reversed. So don’t spend another second worrying about chargebacks. 9808 info@chargebacks911. underlying your chargeback. When this occurs, the merchant receives a notification with a chargeback reason code. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. The most common reason for chargebacks (30%) is that the purchase was made with a stolen card. Check the chargeback reason code. That's why we've created this guide, which goes over what reason codes are and how they help fight chargebacks and includes up-to-date lists of the reason codes for all the major US card networks. 65% with at least 75 total disputes. 4. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. About American Express chargeback reason codes. The reason for the dispute was false or inaccurate. 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. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. The exact time frame will vary based on factors such as the reason code or the card network. The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. Chargeback reason codes can change with new information. Chargeback /Dispute; Merchant Response. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. ) A no-nonsense summary of evidence that proves transaction is legit. Chargeback Reason Codes for MasterCard. There are multiple situations in which this can occur. The new reason codes follow a format of two digits, a period, then a third digit. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. Requested Transaction Information Not Received. 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. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Visa chargebacks can be a major inconvenience for merchants. Suppose the majority of reason codes that your business gets are non-fraud-related, and you lost. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. However, a business’s success rate may vary depending on its dispute approach. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Cardholder Disputes. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. All parties are subject to the rules of the card networks, including response time limits. Visa chargeback reason codes. 11. A new 4 byte reason code will be used moving forward. This ranges anywhere from roughly 60 to 90 days after purchase. 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 chargeback happens when a customer requests for a transaction to be reversed. Reason Code 12. 98%. 4 applies to eCommerce, whereas code 10. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. The transaction amount and authorization number (ARN. Please refer to chapter 5 for more information. “Visa has 28 different reason codes. VCIPayments; NMI;. 5 Ways I’m Using AI to Make Money in 2023. All of Visa’s existing reason codes were. But friendly fraud is much more ambiguous. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 78. CHARGEBACK REASON CODES Chargebacks. Chapter 2 1. chargeback: The buyer filed a chargeback with the credit card issuer. FR6 Partial Immediate Chargeback Program. 11, 16 November 2015, Elimination. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. 00 in chargebacks. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. 4: Other Fraud–Card-Absent Environment. Protect cardholder data. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andThe chargeback reason code. 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. 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 TRRThe chargeback reason codes below explain why this happened. Regardless, merchants must respond to the given reason code. Discover: Reason Code 4755 Non-receipts of goods or services. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. Chargeback. For best results, your chargeback win rate should be as close to 100% as possible. 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. The transaction amount and authorization number (ARN. Visa Chargeback Reason Codes Reason Code: Category: Description: 30: Non-Receipt of Goods or Services: Services Not Provided or Merchandise Not Received: 41: Cancelled/Returned by Cardholder: Canceled Recurring Transaction: 53:. 1. Chargeback reason code 98 was used to collectively describe any exception that fell into that category, but newer mandates have rendered the code o. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. This is a code taken from the card scheme’s published list, which identifies why the issuer filed the dispute: Visa Chargeback Reason Codes. non_receipt: The buyer claims they didn't get the goods or services. 98: Other: Good Faith Collection: 99: Other: Pre-Compliance:Dec 6, 2021 — Betty's bank issued the chargeback for $9. 1003 - Transaction Supporting Document (TSD) needed. Discover uses unique codes to explain those reasons to merchants. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. The issuing bank assigns each case a code according to the consumer’s claim, and the merchant must adhere to the time limits for that specific code. The aim of CE 3. . A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. 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. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Below stated are some, Chargeback Response but not every, examples of particular documents that could be used as proof: Verification codes (authorization, AVS, card security code, 3D Secure 2. 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. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. A reason code is how banks categorize the reason for a chargeback. Managing Reason Code 41 chargebacks. High Level Visa Chargeback Dispute Flow. Once you receive this notification, you have 11 days to submit a response. When you receive a chargeback request, respond promptly with any relevant information or evidence that supports your case. 1 – EMV Liability Shift 10. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. Some payment service providers like PayPal and Stripe have their own reason codes as well. 6). For each reason code, a definition is When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. This may include: Transaction receipts; Merchant credentials; Customer authorizationReason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Dispute Category. Encrypt transmission of cardholder data. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. Accessed October 17, 2022. The third digit indicates the specific reason within that category. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. The terminal action codes are in Table 122 of the 4. Learn more about Mastercard chargeback reason codes. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. The customer regrets their purchase. 4512:Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. With that said, you still need to understand the reason codes with any chargebacks from Amex. Across open networks and include account numbers sent over email, instant messaging, text, or chat. These numeric codes vary via card brands, yet all hypothetically fill the same need: to provide explanation behind the chargeback dispute. Each bank card network has its owner list of reason codes banks must prefer from. 4. Specify the invoice date and net due date that you want the system to assign to chargebacks. The Chargeback Reason is fraud-related and the Chargeback Notice identifies that one of the below chargeback codes (each, an "Acceptable Reason Code") applies: Acceptable Reason Codes. Also, remember that the time frame for your response includes any processing required by the acquirer. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Chargeback amount is equal to or less than the exceeded limited /authorised amount. 4854 Cardholder Dispute—Not Elsewhere Classified (U. Chargeback reason codes. 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). Visa chargeback reason code 11. up under any number of different chargeback . A TC40 data claim occurs when a customer makes a fraud claim against a merchant. 4853 – Cardholder Dispute – Credit Not Processed. 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. However, it's advisable to respond to whatever reason code you received from the bank. 14 (+0. At Visa they used to receive reason code 98. Reason codes. Reason Code 98). Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. . In these situations, a merchant’s billing descriptor is simply not recognized by the customer. “American Express Chargeback Reason Codes | Sift”. 18167 US Highway 19 N Clearwater, FL 33764 877. Let’s say you got a Visa chargeback with. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Reason Code 53 re-presentments must be processed within 45 calendar days from the. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. 99. “American Express Chargeback Reason Codes | Sift”. How you respond is determined by the chargeback reason code: Embed This Graphic. UA06 Fraud – Chip and PIN Transaction. 11. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. Not recognizing your billing descriptor on a statement. 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. This is commonly caused by either true fraud or friendly fraud. The owner of the credit card realizes it was stolen and reports the fraudulent. ). The first thing to understand is that not all chargebacks are the same. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Values are: Blank: Use the draft G/L date. WEX began issuing chip cards in Q4, 2020. Chargeback time frames - A specific period during which a chargeback can be raised. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. 7: Defective goods and services: C32: RM: 13. 1. 7. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. Code 10. e above 0. . This is commonly caused by either true fraud or friendly fraud. What is Visa chargeback reason code 13. Choose the representment amount. AT Authorization Noncompliance. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Responding to Mastercard Reason Code 4853 Chargebacks. The network hasn't wholly disallowed some old codes. Chargeback Reason Codes by Industry. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. So the company has more incentive to side with customer during cardholder. This code tells you why the customer or bank initiated the dispute. In this article, you’ll learn the key takeaways for merchants: Visa standard chargeback regulations; 3 most common Visa dispute reason codes; New Visa mandate Compelling Evidence 3. For defective or “Not as Described” reason codes. Availability Date: October 24th, 2021. Either the acquiring or issuing bank could initiate the chargeback. Vantage HouseCard issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Description: Reason code for applying handling fee. 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. For example, if a fraud code 10. Category. 26% - the number of chargebacks that result from undelivered orders. The codes for each card brand are listed below along with the recommended documentation to provide. The reason code may not reflect the true reason for the chargeback. M01 Chargeback Authorization. Chargeback. ) A no-nonsense summary of evidence that proves transaction is legit. This code collects all the exceptions under its wing. The cardholder wins: The bank upholds the chargeback, and the funds are not returned to your account. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. 12 GBP -> 127. A chargeback is the potential outcome of a disputed credit or debit card transaction. Make sure your entire team is on the same page. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. 0900 (-1. The following chargeback reason codes are related to EMV: Visa: 10. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. WEX began issuing chip cards in Q4, 2020. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Clearing. 634. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. It can range from 60 to 120 days from the billing date. 3 applies when a cardholder claims a charge—made in a card-present environment—was. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Friendly fraud. Now, compliance cases go through Visa Resolve Online (VROL). 1. If the order was genuinely not as described, then the cardholder has a case. 4 applies to eCommerce, whereas code 10. A few days later, the same order, but with a different chargeback code of 98-Compliance Chargeback CB_RTM. 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. 3: Goods or services were not received: C08: RG: 4855: 13. Standard Threshold: Reaching a chargeback ratio of 0. Retrieval request regulations vary significantly from one card brand to another. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involving2. Our research suggests that friendly fraud will represent 61% of all chargebacks by 2023. 11, 16. Please note that each card network (MasterCard, VISA, American Express, etc. These are only a handful of common Visa chargeback reason codes. 3: Goods or services were not received: C08: RG: 4855: 13. Incorrect transaction amount or account number. There is a violation of a Visa or MasterCard rule, for which there is no chargeback reason code. Check Processing (98) Credit Card. many chargeback reason codes that exist today. 1. The shorthand description is “Credit Not Processed. Time Frames by Chargeback Type and Reason Code. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. The cardholder claims they were charged multiple times for a single transaction. Fight; Prevent;. Unfortunately, it is pretty challenging to prevent friendly fraud. 70 USD) 100001: 400: INVALID_REQUEST:. Others require banks to wait for a certain period before they can issue a chargeback. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 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. 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. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. 3 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. 5 billion lost in 2020. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days.