Chargeback reason codes are codes used to categorize the reason for the dispute. Visa Chargeback Reason Codes. 18167 US Highway 19 N Clearwater, FL 33764 877. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). 3: Goods or services were not received: C08: RG: 4855: 13. 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. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Reason Code 98). Chargeback Reason Codes by Industry. chargeback: The buyer filed a chargeback with the credit card issuer. Try Shopify free for 3 days, no credit card required. 4. Reference these when rebutting cardholder disputes at your small business. Any time. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 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. 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. These numeric codes vary via card brands, yet all hypothetically fill the same need: to provide explanation behind the chargeback dispute. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Now, compliance cases go through Visa Resolve Online (VROL). 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. Some credit card companies also include a short phrase describing the code and chargeback. Kristen Walters. In short, the bank didn’t have a clear, specific coding option to explain why it wanted to dispute a particular case. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. 6: Duplicate processing/Paid by other means. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. There are two parts to this. United States. 1: goods not received. 98%) Vix. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. . Pre-compliance chargebacks are an alternative way Visa helps to resolve situations where there has been a violation of the internal network regulations. [2] JUSTT. 3 – Other Fraud, Card-Present Environment 10. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. 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. reason code information. 75 for every $1. MASTERCARD. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. 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. 1 chargeback: 1. The most effective chargeback professionals can deliver customized solutions for chargeback management with every facet of your dispute process. 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. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Once you receive this notification, you have 11 days to submit a response. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. Pre- Compliance Chargebacks & Reason Code 98 Explained Chargeback Gurus 773 subscribers Subscribe Share 459 views 2 years ago Ready to see how. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Chargeback Reason Codes Page 2 of 5. Chargeback time frames - A specific period during which a chargeback can be raised. 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. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. 1 EMV Liability Shift 10. Try Shopify free for 3 days, no credit card required. The case was ‘represented result of recourse’ by Chase Merchant Services. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. F01. By entering your email, you agree to receive marketing emails from Shopify. Time Frames by Chargeback Type and Reason Code. As we touched on earlier, chargebacks can happen due to technical errors. You can learn more about each one by visiting the Mastercard Chargeback Guide. Using the same link provided above, contact PayPal to report the scam. in. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Mastercard Chargeback Reason Code 73: Duplicate Transaction. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. most common reason codes for recurring merchants include: 7. Reason Code 98). FR6 Partial Immediate Chargeback Program. For QSRs, which deal in a large volume of relatively small transactions, the financial impact of a high chargeback rate can be severe. Understanding these codes is essential because they'll guide your response strategy. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. They may also have requirements that must be met in order for a transaction to be eligible for coverage, such as delivery confirmation. 0 is to make the chargeback process more efficient, transparent, and fair. That said, looking up purchases using this number can make it easier to provide info following an. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. The shorthand description is “Credit Not Processed. Explore more ACH Return Codes. But first, here are the two most common types of consumer chargeback fraud. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. 4 spec (Section 8. Protect cardholder data. The reason code. ©Visa uses chargeback Reason Code 80 to designate chargebacks resulting from processing transactions where either the account number or the transaction amount posted with the card issuer. Process Flow for P2M:- Issuer Banks: Can raise chargeback with reason code 1065 (If customer is expecting compensation for non-fulfilment of goods/services. These codes are established by the payment brands to categorize the incoming dispute requests by reason. For that matter, fraud prevention tactics such as AVS and CVV can be bolstered by adding advanced safeguards like 3D secure, automated transaction scoring, fingerprinting, and device ID tools. This scenario applies when the arbitration was raised by either the. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. message. 4854 Cardholder Dispute—Not Elsewhere Classified (U. In most scenarios, professional chargeback assistance can substantially raise your ROI. 4841 Canceled Recurring or Digital Goods Transactions. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. 0900 (-1. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Some payment service providers like PayPal and Stripe have their own reason codes as well. GraphQL Docs & Tools. This chargeback occurs when merchants do not adequately provide currency information. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Check the chargeback reason code. 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. 6: Credit not. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. There are several types of chargeback reason codes that can be used, including the following: 1. 2 EMV Liability Shift. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. The good news is that most of these invalid claims are disputable by the merchant. 4 applies to eCommerce, whereas code 10. 1 falls under the “Processing Errors” category. 3: Goods or services were not received: C08: RG: 4855: 13. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. 9808 [email protected] immediately identifies a chargeback as being the result of first-party misuse. Chargeback prevention strategies vary based on the reason for the. Requested Transaction Information Not Received. This extra step can be frustrating for Card Members and lead to lost sales. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. This is a code taken from the card scheme’s published list, which identifies why the issuer filed the dispute: Visa Chargeback Reason Codes. [noun]/* kə • stə • mər • di • spyo͞ot/. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. There are 151 chargeback reason codes across the four. Values are: Blank: Use the receipt G/L date. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. 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. Receiving a damaged product. WEX began issuing chip cards in Q4, 2020. 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. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. 2. R03 Insufficient Reply. Make sure the evidence you include and the claims you make are relevant to the chargeback reason code, the product purchased, the cardholder’s claims, the type of transaction processed, etc. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Mastercard Chargeback Reason Codes. Discover: Reason Code 4755 Non-receipts of goods or services. Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. A chargeback happens when a customer requests for a transaction to be. American Express is incentivized to keep their customers happy. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. If using any other currency than this, it should be equivalent to the specified amount. 2 Added chapter providing information about the DiscoverMasterCard chargeback reason code 4540. . Visa chargeback reason code 75 is filed as an honest mistake. There are two parts to this. Losing Non Fraud-Related Customer Issues. Clearing. The latest chargeback rules set by Visa are the answer to the current fraud and chargeback landscape. A reason code or a chargeback reason code is a string of symbols (numbers and letters). At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. For more. Reason Code 04. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Reason codes are very crucial to assist. 4853 – Cardholder Dispute – Goods or Services Not Provided. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. 00. Chargeback /Dispute; Merchant Response. 80. Our research suggests that friendly fraud will represent 61% of all chargebacks by 2023. That suggests that in the times when merchants. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. the chargeback reason code. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. 1. 1. Reason. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Reasons for a second filing might include the discovery of new information or a change of the reason code. . The reason code may not reflect the true reason for the chargeback. For example, some reason codes offer cardholders over a year to file. What is Visa chargeback reason code 12. Each chargeback comes with a code that designates the reason it was filed. Across open networks and include account numbers sent over email, instant messaging, text, or chat. The cardholder wins: The bank upholds the chargeback, and the funds are not returned to your account. The card issuer assigns it a chargeback reason code, a simple alphanumeric code to describe the reason for the chargeback. WEX began issuing chip cards in Q4, 2020. Suppose the majority of reason codes that your business gets are non-fraud-related, and you lost. 60 due to merchandise, fees, overhead, and other sources of loss. Following is the list of Chargeback Reason Codes used by MasterCard: MasterCard Chargeback Reason Codes Reason Code: Category: Description: 4802: Request for Information: Requested/Required Item Illegible or Missing:. reason codes. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingChargeback Reason Codes All received credit card disputes include a reason code. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. 3: Goods or services were not as described: C31: RM: 13. Thus, the easiest way to prevent chargeback reason code 75 from being. Spot these types of chargebacks using. 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. However, the 30 day waiting period can be waived if you’ve. Processors handle exception items outside of the chargeback management system, however the merchant will see them designated as a chargeback, with an assigned reason code (e. This ranges anywhere from roughly 60 to 90 days after purchase. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involving2. And the best way to win a chargeback dispute is to stop a. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. The chargeback transfers funds from the acquirer to the issuer. This code helps you identify the exact cause of the dispute. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. "Acceptable Reason Codes" has the meaning set out in section 2. VCIPayments; NMI;. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Every chargeback comes with a reason code. Either the acquiring or issuing bank could initiate the chargeback. Processors handle exception items outside of the chargeback management system, however the merchant will see them designated as a chargeback, with an assigned reason code (e. M10 Vehicle Rental – Capital Damages. Encrypt transmission of cardholder data. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Chargeback reason code 11. 2 Declined Authorization. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Chargeback time limits vary depending on the reason for the dispute. 98: Good Faith Collection: Other: NO: YES: VISA: 99: Pre-Compliance: Other: NO: YES: Card Type Reason Code Reason Text Chargeback Category. For perspective, the next highest. 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. The sort of proof required differs depending on the chargeback reason code. 2? Visa chargeback reason code 13. PCI DSS v3. . Protect stored cardholder data. This information should be based on the Visa chargeback reason codes assigned to the case. 6). Check the chargeback reason code. Discover: Reason Code 4755 Non-receipt of goods or services. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. There are plenty of reasons as to why this would happen, hence the many. Then, apply calculations and chart your results. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. As a merchant, you face the brunt of chargeback losses. The merchandise was as described or was not defective. The merchant did not receive any returned merchandise. American Express: Reason Code C08 Goods or services. Inform your acquirer of the date that the credit was issued. 4 Other Fraud Card Absent. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Chargebacks are something every business wants to avoid, as they can. About American Express chargeback reason codes. (98) Credit Card. 8% with at least 1,000 total disputes. Chargeback reason codes can change with new information. Not recognizing your billing descriptor on a statement. In this scam, a scammer sends a message to their victim. Region Only) 4855 Goods or Services Not Provided. The most comprehensive guide to chargeback reason codes. 14. Chargeback reason code. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Reason codes are very crucial to assist. Instead, it needs to be presented as a generic decline. Chargeback reason code 10. Here’s how your store can prevent and deal with chargebacks. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. These codes are broken down into five different category types: Fraud codes 7 RBI Penalty (Reason Code - 1065/ AC & AT RBI Compensation is settled today on manual basis RBI Compensation is completely automated. For defective or “Not as Described” reason codes. This ranges anywhere from roughly 60 to 90 days after purchase. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Across open networks and include account numbers sent over email, instant messaging, text, or chat. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the cardholder's account. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. High-Risk (Excessive): Reaching a chargeback ratio of 1. Unfortunately, it is pretty challenging to prevent friendly fraud. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Each card network has their own set of chargeback policies and reason codes, and they frequently change them. merchant_blacklist. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Together, we serve some 45,000. up under any number of different chargeback . 3. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. August 2021 Marks the 10 th Anniversary of Chargebacks911®. There are over 80 unique return codes, each representing a different return type. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. By entering your email, you agree to receive marketing emails from Shopify. FR4 Immediate Chargeback Program. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. FAQs About Visa Chargebacks How does a Visa chargeback work? Chargebacks begin when a cardholder disputes a charge. 7. Chargeback. 4- Fraud Trans was received for an order and challenged by the merchant. For example, a thief takes someone’s card data and makes a purchase at a store. Chargeback amount is equal to or less than the exceeded limited /authorised amount. Choose the representment amount. 4. 16, 2021. Check the chargeback reason code. The issuing bank reviews the information. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. These may impact the dispute time limits. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. 78. Reason Code. 70 USD) 100001: 400: INVALID_REQUEST:. The way you manage chargebacks depends on your account setup. 0) Email conversations with the customer; Contracts; Digital usage logsChapter 6: Visa Chargeback Reason Codes; Chapter 7: Chargeback responses; Chapter 8: Chargeback response templates; Chapter 9: Chargeback accounting; Chapter 10: Arbitration; Chapter 11: Fraud filters; How to Create the Best Chargeback Responses. Which is meant to know the reason for the dispute. Each major credit card company has its own. You win, but a second dispute is filed: The issuer has the right to file a second chargeback for the same transaction. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. 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. . Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. Mastercard Chargeback Reason Code 70: Chip Liability Shift. These are only a handful of common Visa chargeback reason codes. A08 Authorization Approval Expired. This code tells you why the customer or bank initiated the dispute. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. A02 No Valid Authorization. 4846. 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. 2 falls under the “Consumer Disputes” category. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Reason Code 12. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. It’s even more frustrating if you don’t understand what the chargeback code means. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. A02 No Valid Authorization. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. 26% - the number of chargebacks that result from undelivered orders. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. 6. The codes also appear on financial reporting associated with disputes. In general, most retrieval requests are issued to merchants for one of the following reasons: The cardholder wants information for his or her records. It can range from 60 to 120 days from the billing date. If you're contesting a chargeback, you'll need solid evidence. processed the transaction correctly. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. As we touched on earlier, chargebacks can happen due to technical errors. The right to reason codes: When a card issuer files a chargeback, they must attach a reason code that identifies the grounds for the dispute. 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. They give consumers recourse against fraud and errors, which preserves public confidence in credit and debit card payments. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that includedAT Authorization Noncompliance. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Whenever an incorrect account number is processed, or the. Read the Chargeback Advice letter carefully. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Fraud 10. Merchants who believe they have received an invalid chargeback under reason code 13. Betty's issuing bank assigned chargeback reason code 10. This will be referenced in the chargeback notice you received. 3? Visa chargeback reason code 13. Ineligible Transaction (International only) 79. Please refer to chapter 5 for more information. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. 18167 US Highway 19 N Clearwater, FL 33764 877. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. 3 is the less common version for card-present transactions. This reason code is used when the cardholder claims that their card was used fraudulently without their permission.