If you're contesting a chargeback, you'll need solid evidence. Values are: Blank: Use the draft G/L date. Everyone has had the experience of buying. Message. However, the 30 day waiting period can be waived if you’ve. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. reason code information. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. AT: Authorization Non-compliance: AW: Altered amount. 4853 – Cardholder Dispute – Goods or. A chargeback can happen when a customer initiates a transaction dispute. It is important to identify and understand the root cause and take the necessary steps to dispute the chargeback. The merchandise was as described or was not defective. Here are some chargeback reason codes by card type. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. [1] Sift. 29 Reason Code 30: Services Not Provided or Merchandise Not. 3 –. The chargeback transfers funds from the acquirer to the issuer. Must be set up in Oracle Receivables. An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. All chargebacks start with a customer making a purchase in person, in an app, or online. Updated the following columns - card type, response due date. Code 22: Merchandise Billed not Shipped. Chargeback time frames - A specific period during which a chargeback can be raised. 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). While the updates have been published, they do not go into effect until Oct. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. You should place a Code 10 call when. Only an issuer can initiate the chargeback process. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Visa Chargeback Reason Codes. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. Technical. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 10. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. The reason code indicates the justification the cardholder gave for the chargeback. 3: Goods or services were not received: C08: RG: 4855: 13. The implication is that the merchant is at fault. SECTION 4: Chargeback Reason Codes . “American Express Chargeback Reason Codes | Sift”. Chapter 2 1. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. 3. 4 applies to eCommerce, whereas code 10. "And if the merchandise was returned for late delivery, the issuer should wait 15 days after the return of the merchandise before filing a chargeback. Reference these when rebutting cardholder disputes at your small business. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. 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. As its name suggests, Code 22 is issued when Walmart does not receive all the items it is billed for on the invoice. With the right compelling evidence,. These codes are established by the payment brands to categorize the incoming dispute requests by reason. If you believe you have received an ACH return in error, you can contact your bank. 11/03/15 Updated these MasterCard. AP Canceled Recurring Transaction; AW Altered Amount; CD Credit Posted as Card Sale; DP Duplicate Processing; IC Illegible Sales Data;It’s vital that you know the chargeback’s reason code so you can properly craft your response. Always ask for authorization regardless of the transaction amount. Usually, the reason codes will fall. Fraud UA01 Fraud – Card Present Transaction UA02 Fraud – Card Not Present Transaction UA05 Fraud – Chip Counterfeit Transaction UA06 Fraud – Chip and PIN Transaction UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Authorization NA No Authorization DA Declined Authorization Date Updated: Oct 17 2022 TABLE OF CONTENTS What Are Chargeback Reason Codes? Importance of Chargeback Reason Codes Chargeback Reason Code Categories The Complete Chargeback Reason Codes List Visa Discover Mastercard American Express How to Use Chargeback Reason Codes 5 Things Merchants Should Understand About Chargeback Codes The new reason codes follow a format of two digits, a period, then a third digit. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Next Page. 6 General update and rebranding. 4 – Counterfeit MerchandiseChargeback Reason Codes Page 2 of 5. 3. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. 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. If you leave this processing. This will be referenced in the chargeback notice you received. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Customer Dispute. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. See the list of reason codes below: Card Network. 4853 – Cardholder Dispute – Credit Not Processed. United States. You’ll put that reason code, the transaction amount and authorization number, and state that the. Chargeback . Visa Code # MasterCard Code # Reason. 4, 37, F29, U02: Cancelled Recurring:. About American Express chargeback reason codes. A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments. These are outlined below: 1. Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. The first step to fighting a chargeback, is to research the reason code which explains the reason for the chargeback and the required compelling evidence to. 16, 2021. This Chargeback Reason Code has to do with all. 4: Other Fraud–Card-Absent Environment. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. If the order was genuinely not as described, then the cardholder has a case. Typical chargeback reason codes are:Reason Code Reason Code Description Timeframe; 4808: Authorization-related Chargeback: 90 calendar days: 4853: Cardholder dispute: 120 calendar days: 4837/4849/4870/4871: Fraud - No cardholder authorization - Questionable merchant activity - Chip liability shift - Chip liability shift - Lost/Stolen/ Never Received Issue (NRI) fraud :. So the company has more incentive to side with customer during cardholder disputes. Chargeback fees typically cost $15-$25 per incident. With that said, you still need to understand the reason codes with any chargebacks from Amex. Click the Update Chargeback link to edit the chargeback details. 8. Here’s how your store can prevent and deal with chargebacks. Now chargeback responses need to contain evidence that proves the cardholder’s identity was verified. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. Chargeback prevention strategies vary based on the reason for the dispute. 1 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. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show. Then it chooses the most applicable code for a. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. Overview. See moreWhat causes code AP chargebacks? Code AP chargebacks are often caused by a merchant failing to process a cancellation request from a customer or by a. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. For perspective, the next highest. 2. . These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Accessed October 31, 2022. The issuer investigates. Note that these limits apply only to the issuer and/or cardholder; acquiring banks and merchants have a set time limit of 45 days to respond to each phase. There are several different methods for obtaining a credit card payment reversal. ; Resources. This step aims at identifying the chargebacks that are really due to criminal fraud, those associated with merchant errors, and those that are most likely due to friendly fraud. 8 Processing Products 126 1. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. Unfortunately, the final decision in such cases comes down to the issuing bank, and not all. Required Authorization Not Obtained. Even though these codes are not detailed enough, they are crucial when it comes to successfully preventing and fighting chargebacks. Last updated: October 15, 2019 . FR2 Fraud Full Recourse Program. The sales receipt and/or date and amount of the authorization if other than the transaction date. The actual underlying cause of this chargeback is. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. 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. That definitive guide included the chargeback reason codes from each of the quad larger card connectivity. 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. . According to our research, friendly fraud will represent six out of every ten chargebacks filed in North America by 2023. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. 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. Visa chargeback reason code 75 falls under the “Consumer Disputes” category. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableIf you respond in good time, in certain circumstances, we may be able to defend the chargeback for you – even if your chargeback notification says that you’ve already been debited. 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 single month. Issuer Acquirer Dispute Pre-arbitration Valid Pre-arbitration response Final ruling Arbitration 20 days* 20 days* 10 days*Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Specify the invoice date and net due date to assign to chargebacks. Visa Merchant Official Documentation. 1 – EMV Liability Shift 10. United States. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases. Code 67: Display Allowance. 3? Visa chargeback reason code 13. Valid chargeback reason codes are defined in UDC 03B/CB. 10. Q. The format of the Code 10 call is designed to be discreet, so that it can be made in front of the customer, but they can be lengthy. Once you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. Also, remember that the time frame for your response includes any processing required by the acquirer. . Recurring billing transactions are a frequent source of conflict, disputes, and. The issuer reviews the case, assigns a reason code, and initiates the chargeback. Each of the major card brands, including Visa,. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. The credit will then appear on the cardholder’s statement as its own distinct. As we touched on earlier, chargebacks can happen due to technical errors. It’s indeed fortunate that there are many rules and laws that. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. 1 falls under the “Processing Errors” category. The charge is reversed and goes back to your credit card. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. Each code has a different timeline. These processing options activate the automatic write-off feature and enable you to establish write-off limits for both under- and overpayments. Reason code 83 represents a chargeback categorized as. 4, MasterCard 4837, AMEX F29, Discover UA02, and so on). SP: Short payment. 0 is to make the chargeback process more efficient, transparent, and fair. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. The shorthand description is “Warning Bulletin File. Fight; Prevent; Get; Assets. Chargebacks occur when a credit cardholder disputes a charge on their statement with their issuing bank, in order to ask for a refund. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Some payment service providers like PayPal and Stripe have their own reason codes as well. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Updated Visa Reason Codes. . Not only do you need to know how long the timeline is, but you also need to know when the clock. The aim of CE 3. Some disputes are filed because an unauthorized third party used the card, but many consumers dispute their own transactions for one reason or another. 43 EST. In most cases, you will have 20-45 days in which to respond to a chargeback. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. Friendly fraud is challenging for merchants because it’s tough to diagnose. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. What should a chargeback response letter contain? There are several elements you will need to include when writing your chargeback response. Administrative returns (R02, R03, R04): 3%. This statement item can later be reversed, or made permanent, depending on the reason for the credit issuance. Investigate suspicious orders. 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 An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. 1 Quick Reference Lead. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. 104. 1 Original Credits 126 1. Information on proper voice authorization procedures may be needed for ‘referral’ responses. Download this sample Chargeback Rebuttal Letter. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. 4853 – Cardholder Dispute – Credit Not Processed. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Friendly fraud in the hospitality industry isn’t slowing down. 4 – Incorrect Account Number 12 . However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. For each reason code, a definition is. What is Mastercard chargeback reason code 4807? Mastercard chargeback reason code 4807 falls under the “Authorization” category. Chargeback Reason 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. . Date Option. Second chargeback. But with the alerts system, you can proactively take. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. 2023 Consumer Attitudes Towards Chargebacks. Chargeback Reason Codes. It's essential to respond within the. Code 69: Grocery Billback Allowance. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Chargeback reason codes. 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. Step 1: The cardholder disputes a charge. Fight; Prevent; Recover; Technical. The format of the Code 10 call is designed to be discreet, so that it can be made in front of the customer, but they can be lengthy. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. UA02 – Fraud: Card Not Present Transaction. For example, if a customer disputes a credit or debit card transaction with code 4837 (Mastercard’s code for “Fraudulent Multiple Transactions”), then the merchant should review their fraud. The chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. 3: Goods or services were not as described: C31: RM: 13. chargeback: The buyer filed a chargeback with the credit card issuer. 7. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. Step 2: Customer initiates the chargeback. A chargeback happens when a customer requests for a transaction to be reversed. The most comprehensive guide to chargeback reason codes. Knowing these codes can help you dispute chargebacks more effectively. This authoritative guide includes the chargeback reason key from each from the four major card netz. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Equally, U. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, AP automation is an approach to the AP process that involves using software solutions to create an efficient, digitized workflow for receiving, reviewing, and paying invoices. The terminal action codes are in Table 122 of the 4. 105. . . 502 DM-REFUSED DEBIT VENDOR-DOCK REFUSAL AP Forms, Invoice Shortage Dispute 503 DM-PAY/CAN BOOK INV IN & OUT PO CANCEL AP Forms, Invoice Shortage Dispute 504 DM-DUP INV DM-DUPLICATE INVOICE AP Forms, Invoice Shortage Dispute 505 DM-T. 18167 US Highway 19 N Clearwater, FL 33764 877. M01 Chargeback Authorization. ) Contracts. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Responding to Mastercard Reason Code 4853 Chargebacks. For a brief overview of chargeback reason codes, refer to the table below. 101. 2 Added chapter providing information about the DiscoverFraud and chargebacks always result in revenue loss, but they also include fixed-rate fees and other negative consequences. Merchants who believe they have received an invalid chargeback under reason code 13. RMA:. . Solutions. Collect Compelling Evidence. However, they don’t address the reason why that chargeback was issued in the first place. 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. What causes code AP chargebacks? Code AP chargebacks are often caused by a merchant failing to process a cancellation request from a customer or by a customer forgetting to cancel a subscription before the payment date and filing a false dispute with their bank. Reason Codes Category 4: Processing Errors. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment 4586 AW Altered Amount 4751 CA Cash Advance Dispute 4550 CD Credit Posted as Card SaleAn issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Step 4: Card Network Collects Dispute Information. Be transparent about your products. 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 and order status are determined through enumerated values, while the card scheme provides the reason code and description for the chargeback. Select Need Help & Cash App Support. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. 1. A chargeback is a cancellation of a transaction. A chargeback happens when a customer requests for a transaction to be reversed. 4846 — Incorrect Currency Code. 9808 info@chargebacks911. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. Here’s how your store can prevent and deal with chargebacks. Multiple Authorization Requests. It can range from 60 to 120 days from the billing date. Merchants. Vantage HouseREQUEST A DEMO. AP:. This is now an obsolete reason code, and issuers have been instructed to use code 4808 instead. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. But cardholders and merchants have different time limits. September 2011: 5. Check the chargeback reason code. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder authorized each of the. Added the following fields - Store ID, Credit Card Chargeback Reason Code. The codes for each card brand are listed below along with the recommended documentation to provide. Try Shopify free for 3 days, no credit card required. R13 No Reply. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. . Other card networks are expected to follow suit, and if so. This code helps you identify the exact cause of the dispute. 1 = EMV-Liability Shift counterfeit. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. 0 etc. You can email us at: disputeresponses@barclays. Reason Code 53 Re-presentment Conditions. For QSRs, which deal in a large volume of relatively small transactions, the financial impact of a high chargeback rate can be severe. The Code 10 call gives merchants a chance to bring possible fraud to the card issuer’s attention and receive instructions from them about how to proceed with the transaction. Category. In simple terms, a payment reversal is just what it sounds like: a reversal of a previous payment, most often referring to a credit card transaction. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Chargebacks occur when a credit cardholder disputes a charge on their statement with their issuing bank, in order to ask for a refund. They usually have up to 120 days after purchase to dispute a charge, though some card schemes allow up to 365 days. Category. SU: Spread unapplied amount. 7 – Invalid Data 13 . Transaction unauthorized make up 30% of all chargeback reason codes. Code 4807: Fraudulent Card-Present Transaction. However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization issues;. While obtaining authorization approval is usually. Code Reason (for Visa) 10. 4 spec (Section 8. '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 What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. The list of chargeback reason codes in this article is organized by card brand and type of dispute. The card scheme receives the chargeback and forwards it to the acquirer. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was. A merchant error chargeback is a chargeback caused by an error on the part of the merchant, such as non-delivery, damaged goods, etc. com Europe. Other Ineligible Transactions Under Reason Code 62, Condition 2 . Specify the default reason code that you want the system to assign when you enter a chargeback amount. ”. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. Eligible Chargeback Reason Codes . 4: . 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 2 – Cancelled Recurring 13 . Below is a list of Mastercard chargeback codes used in eCommerce. Database of chargeback reason codes; Report with annual stats and trends; Guides with templates, samples, and examples; If you have specific questions about chargebacks, chargeback tools, or how Midigator helps manage risk without the accompanying headaches, feel free to reach out to our team of experts. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. Cardholder-Activated Terminal (CAT) 3 Device. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. S. Click on the Chargeback Reason Code drop-down menu, the user can change the. Reason code 4541 - Recurring Payment. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Offer shipment and delivery tracking. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. For example, a retailer--Bigmart maintains more than 3,500 reason codes for deduction against its manufacturers.