Technical. Stage 1: First Chargeback. All ACH return reason codes consist of the letter “R” followed by two. ONT: Ontario tax rate area. Card brand definitions for “excessive” vary, but as an example, Mastercard requires acquirers to submit your business to MATCH if: Your number of Mastercard chargebacks exceed 1% of Mastercard sales transactions in a. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Proof that the cardholder rejected your attempt to correct the quality. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. About American Express chargeback reason codes. Vantage HouseMar 29, 2018 - What is Chargeback Reason Code 30? • For Visa: Reason Code 30 • For MasterCard: Reason Code 4855 • For Discover: Reason Code RG • For American Express: Reason Code 155 Overview: The Cardholder or. 6. 4. A T-code has the following format: T< event - group >< event -type-code>. 0: Changed report name from Downloadable Dispute Report to Case Report. The separation of the Return ReasonCredit 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. reason_description: string. REQUEST A DEMO. Retrieve thine complete guide to the new Visa reason codes, including all the elaborate information, chargeback time limitation, and other important information to need. Issuer Review; Allocation. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. High Level Visa Chargeback Dispute Flow. Spot these types of chargebacks using. If your chargeback ratio is high [i. Mastercard: Reason Code 4859 Service not rendered. Chargeback response template for Real Wares Not Received chargeback. may be reversed if merchant can provide proof that the correct fare was quoted to Cardholder; That<br />. 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 TRRThese chargebacks occur to resolve chargeback-related disputes between network members. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. There are dozens of reasons why cardholders and issuers dispute transactions. A reason code is how banks categorize the reason for a chargeback. Chargeback response template for Digital Goods Not Received chargeback. Either the acquiring or issuing bank could initiate the chargeback. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Analyze chargeback and wake data by dozens of. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. Betty's issuing bank assigned chargeback reason code 10. Breakdown your chargeback data by some of the variables you collected in step #2: marketing source, product type, issuer BIN, customer’s country, reason. 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. While creating the reason codes, the. A “No Authorization” code chargeback can also be the. When a cardholder files a chargeback, the issuer attaches a reason code to the transaction. This code collects all the. Chargeback Prevention Warnings Resolve customer disputes quickly before they become chargebacks. Ethoca alerts can prevent chargebacks before they hit your bank account. In the distribution industry,. Here are some chargeback reason codes by card type. Chargeback Reason Code. ’A transaction event code, or T-code, is a five-character alphanumeric string, such as T0001. For Visa: Reason Code 30; For MasterCard: Reason Code 4855; For Discover: Reason Code; For American Express: Reason Code 155. Step 1: The cardholder disputes a charge. There are over 80 unique return codes, each representing a different return type. These codes are given by the card issuer at the point of time that the customer disputes a given transaction. Managing Reason Code 41 chargebacks. When used at the point of sale, the transaction is. . Technical. Chargeback /Dispute; Merchant Response. 1. The shorthand description is “Goods/Services Not as Described. The reason for the dispute was false or inaccurate. The chargeback can be for the total transaction amount or a lesser amount. M49 Vehicle Rental – Theft or Loss of Use. See full list on chargebackgurus. A reason code is how banks categorize the reason for a chargeback. 2. A transaction event code, or T-code, is a five-character alphanumeric string, such as T0001. There are over 80 unique return codes, and each one represents a different type of return. 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—QuestionableChargeback reason codes are what tell a merchant why a customer is disputing a charge. Chargeback reason codes are codes used to categorize the reason for the dispute. The third digit indicates the specific reason within that category. There are many reasons why a chargeback occurs, with over 100 reason codes listed across the major credit card brands. It gets worse. 0 to 5. Chargeback reason codes. While it would be difficult to place a transaction. Based in Los Angeles and founded in. Take the time to note the following dispute reason codes for Visa. Check Card A bank card that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. Some credit card companies also include a short phrase describing the code and chargeback. Written by Chargeback Gurus. Reason Code: A code used to provide additional information to the receiving clearing member regarding the nature of a chargeback, subsequent presentment, [. 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. ] fee collection, funds disbursement, or request for a source document. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. But, it could be up to 540 days, in some situations. If you’re seeing reason codes associated with the “Consumer Disputes” category, it tells you there’s something wrong: either your terms and conditions need updating or you’re not following them like you should. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. EMV Liability Shift Non-Counterfeit Fraud. 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. 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. 10. Either the acquiring or issuing bank could initiate the. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. Though the credit card networks have a vast choice of codes, loopholes still happen. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Chargeback Reason Codes by Industry. Code 4807: Fraudulent Card-Present Transaction. 3. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. American Express chargeback reason code C42. Mastercard Chargeback Reason Code 73: Duplicate Transaction. 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. The chargeback transfers funds from the acquirer to the issuer. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. com. 100-187-2013 Standard for image exchange. Category. We know the reason codes and chargeback guidelines. The card, not present chargeback come in as codes 10. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. This reason code applies when a merchant somehow manages to process a transaction against an invalid, unassigned, or otherwise incorrect card number. 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. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. 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. However, the issuer must wait at least 15 days. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Preventing Mastercard Reason Code 4837 Chargebacks. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing 4853 – Cardholder Dispute – Credit Not Processed. A chargeback cannot be filed for at least 10 days after the date of a reservation, cancellation, or return. While there are many chargeback reason codes, all chargebacks fall into one of three categories: Updated August 23, 2023. Visa Chargeback Life Cycle. ), confirming that the cardholder has enough funds or available credit to cover a transaction they're making with their card. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was requested. Read on for the complete guide to dealing with chargebacks. Chargeback Reason Codes Page 1 of 5 Card Type Reason Code Reason Text Chargeback Category Preventable Reversible MASTERCARD 4802 Requested/Required Item Illegible or Missing Request for Information YES YES MASTERCARD 4803 Documentation received was invalid/incomplete Request for Information YES YES Chargebacks. Pending chargebacks. This code tells you why the customer or bank initiated the dispute. Now, 10. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. However, the issuer must wait at least 15 days after the transaction processing date to initiate the chargeback. FR4 Immediate Chargeback Program. 4. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. 3. Forensic Cryptocurrency Investigation Services. In some cases, Discover notifies merchants of pending chargebacks. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. A reason code or a chargeback reason code is a string of symbols (numbers and letters). So the company has more incentive to side with customer during cardholder disputes. Each card issuer follows their own standards for defining reason type, code and its format. Updated Disputes/Chargeback Policy Coming April 2024What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. 4 United Pay Retrieval Reason Code. 1002 - Cardholder disputes billed amount. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 0. So don’t spend another second worrying about chargebacks. 1 The issuing bank received a claim from the cardholder that merchandise or services ordered were not received or that the order was cancelled due to the delay in the delivery of merchandise or services. Chargeback Reason codes Friday, 6 September 2019. 3. Please note that the most common Chargeback reason code for Allocation disputes is 10. . Code Reason (for Visa) 10. The way you manage chargebacks depends on your account setup. When the chargeback procedure is used legitimately, chargeback reason codes correspond most of the time to the underlying reality, based on the evidence provided by the cardholder and the. Below are some examples of more common reason codes. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. F02. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. MasterCard Reason Code 4837 comes close to it but is regarded as fraud-related, which puts it in a different category. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Cardholder-Activated Terminal (CAT) 3 Device. Credit card authorization is a notification given by a credit or debit card issuer (i. There are plenty of reasons as to why this would happen, hence the many. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Discover uses unique codes to explain those reasons to merchants. All categories. Reason codes vary by card brand. Which is meant to know the reason for the dispute. Spot these types of chargebacks using the below reason codes. Technical. American Express: Reason Code C08 Goods or services not received or partially received. Dispute Category. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. MasterCard - 4863 Cardholder Will Not Recognize - Potential Fraud. 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 card not present chargeback come in as codes 10. Reason Code. “Visa has 28 different reason codes. Specify the invoice date and net due date that you want the system to assign to chargebacks. underlying your chargeback. 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. Request Transaction Documentation for Keyed Card Transaction. What are Chargeback Reason Codes? Chargeback reason codes are issued by the bank when a customer files for a chargeback. The American Express chargeback process begins with Amex issuing a chargeback, along with a reason code to explain the dispute to the merchant. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. ” Those code indicates that the cardholder claims the merchant performed not deliver the goods or services they paid with. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. The merchandise was as described or was not defective. Accessed October 31, 2022. 800. Issuing banks follow standard rules to validate a chargeback and then associate it with a specific reason code according to the evidence that was provided. Updated these Discover Chargeback Codes: RG, RM, U01, U02. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. Then, apply calculations and chart your results. Fraudulent Activity. EXPERT WITNESSES | CERTIFIED CYBER INVESTIGATORS | BEST OF BREED FORENSIC TOOLS & SOFTWARE. Overview: The Cardholder or authorized person did not receive the merchandise or services at the location agreed with the merchant by the agreed date. Updated the following columns - card type, response due date. If the order was genuinely not as described, then the cardholder has a case. 1 EMV Liability Shift 10. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. MasterCard chargeback reason code 4540. The only viable strategy for preventing chargebacks having to do with processing errors is training staff on proper card acceptance procedures. 1 chargeback: 1. 1 falls under the “Processing Errors” category. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. However, the only real way to know how these things are impacting your chargeback ratio is to analyze the data. Chargebacks. 3 falls under the “Consumer Disputes” category. Receiving a damaged product. many chargeback reason codes that exist today. If you leave this processing. 4 Fraud – Card-Absent Environ. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. The bank will supply a reason code to explain the claim made by the cardholder. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. This alphanumeric code corresponds with the specific reason behind the chargeback, such as card-not-present fraud, incorrect currency, misrepresentation, or any other chargeback. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. [noun]/* kə • stə • mər • di • spyo͞ot/. The only viable strategy for preventing chargebacks having to do with processing errors is training staff on proper card acceptance procedures. MasterCard - 4863 Cardholder Will Not Recognize - Potential Fraud. If you're contesting a chargeback, you'll need solid evidence. Reason codes are created by the major. 4 –. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. com Europe. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 1 – EMV Liability Shift 10. MasterCard - 4855 Goods conversely. Pinterest. Unfortunately, a variety of factors—including the rapid growth of eCommerce and online fraud—rendered the reason code system unreliable. Chargeback Reason Codes All received credit card disputes include a reason code. Protect stored cardholder data. 4. The chargeback transfers funds from the acquirer to the issuer. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardThe assigned chargeback reason code outlines why a customer submitted the dispute. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. com. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card. Find - RG Non-Receipt of Goods, Company, or Coin h. ECM monitors first presentment chargebacks regardless of reason code or transaction type. domestic transactions, the dispute timeline can be based on one of two start dates. These codes are established by the payment brands to categorize the incoming dispute requests by reason. As we touched on earlier, chargebacks can happen due to technical errors. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Please see the below “cheat sheet” for the new 4 byte reason codes. Overview. 5. Copy and paste these chargeback response templates when responding to the toughest chargeback reason codes and increase your chargeback win rate 10x. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Other Fraud—Card Absent Environment. 800. This provided a number of insights into the typical. Fraudulent Activity. 2 EMV Liability Shift. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. 3: Goods or services were not received: C08: RG: 4855: 13. Visa Chargeback Reason Codes. Also, to fight against the card not present frauds, the merchant needs to have proper security applications. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. 100- 140 standards- , and will be removed in future releases. 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 is validChargeback Reason Codes Page 2 of 5. 1, which covers duplicate processing errors, and 12. The cardholder initiates contact with their bank or credit union to file a dispute. Added these Discover Chargeback Codes: 05, PM. That's because the cited reason code may only sometimes reflect the genuine motivation behind it. Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. Investigate suspicious orders. Chargeback Reason Codes: Alphanumeric codes issued by banks to categorize the reasons for chargebacks. 1? Visa chargeback reason code 12. Customer Dispute. The Return Reason Code could be any of the valid codes listed in the X9. The chargeback is ordered by the bank that issued the consumer's payment card. Chargeback reason code 13. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. The reason code. Chargeback reason codes have changed. This network is used to provide chargeback alerts that notify participating merchants before a chargeback occurs, giving them 72 hours to resolve the issue. Chargeback Reason Codes Visa. 1. Reason Codes Category 4: Processing Errors. However, the 30 day waiting period can be waived if you’ve. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. 1. 10. Consider Deadlines. Code. Duplicate Processing - 81Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. For instance,. up under any number of different chargeback . Chargeback Reason Codes Reason code are the first key to understanding the root causes . Technical. 3 MasterCard Retrieval Reason Codes. There are several types of chargeback reason codes that can be used, including the following: 1. The most comprehensive guide to chargeback reason codes. , American Express, Discover, MasterCard, and Visa), there are 151 chargeback reason codes. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Check with the issuing banks to determine what time limits may apply to you. Dubbed "Compelling Evidence 3. '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. 100187 and ANSI X9. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Chargeback Reason Code A numerical code that identifies the specific reason for a chargeback. Generally, chargebacks can be traced to three main causes:Merchants who believe they have received an invalid chargeback under reason code 13. The cardholder may be the customer or the someone who lent their card to a friend or relative. 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 These chargebacks occur to resolve chargeback-related disputes between network members. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Please refer to chapter 5 for more information. 4808: This code can refer to: Account Number Not on File. False declines lead to missed legitimate purchases, while false. 5 Visa Fraud Monitoring Program. Consider Deadlines. Reason code 04 pertains to your chargeback-to-transaction ratio and is the most common reason for being MATCHed. Card networks send these codes to merchants to indicate. The event group portion of the T-code is sufficient for reconciliation and report parsing. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. This scenario applies when the arbitration was raised by either the. Card networks allow cardholders to file disputes for various reasons identified by chargeback reason codes that don't paint the full picture. Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. As a merchant, you face the brunt of chargeback losses. MasterCard - 4855 Goods or Services Not Provided. Products. 3: Defective/Not as Described MerchandiseThe 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. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was. 0: Updated report version from 1. Reason Codes for raising adjustments: Please use appropriate reason codes while raising disputes either through front end option or bulk upload option. 4846 — Incorrect Currency Code. manual processing by uploading chargeback documents instantly. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The card not present chargeback come in as codes 10. Examples of discount reason codes are: ADJ: Adjusted discount. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. What is Chargeback Reason Code 30? For Visa: Reason Code 30; For MasterCard: Reason Code 4855; For Discover: Reason Code RG; For American Express: Reason Code 155; Overview: The Cardholder or authorized person did not receive the merchandise or services at the location agreed with the merchant by the agreed date. But, merchants should be aware that, eventually, everyone will be required to use the new designations. Only an issuer can initiate the chargeback process. Card networks send these codes to merchants to indicate why a chargeback has been filed. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. 1. Code 81. A signed work order the proves you completed a correction of the quality of goods or services. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Although, this fraud detection tool works after the transaction has come completed. However, the typically cause of this chargeback would have been non-receipt of goods either services is the. While a lot goes into this process, here’s a basic rundown of debit card dispute regulations for merchants: #1 | Examine the Claim. 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. In the case of friendly fraud, that reason could be completely invalid and. Discover uses the four main categories to organize its reason codes: Authorization, Service (Discover’s name for Card Member Disputes), Fraud, and. Chargeback reason code 11. Chargeback Reason Codes The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest. ” This code indicates that the cardholder claims the merchant did not deliver the goods or services they paid for. Fraud (10)& Authorization (11)The chargeback reason code. Lack of proper chargeback reason codes. Visa Chargeback Reason Codes. Specify the default reason code that you want the system to assign when you enter a chargeback amount. 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. 6.