Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. 4: Fraud—Card-Absent Environment. . . Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Multiple Authorization Requests. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Identifying the. Visa Chargeback Reason Codes. 4846. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. In fact, the same thing could be said of other chargeback reason codes, too. Any chargeback that is received without a reason code will be assigned a default code of 53. Find a detailed explanation of the Visa reason codes, the new format of the reason codes, and the categories they fall under. facebook. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. Chargeback Reason Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. instagram. 3: Goods or services were not as described: C31: RM: 13. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. One catch is that CE3. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP) 4863 – Cardholder Does Not Recognize – Potential Fraud. Visa Fraud Chargeback Reason. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. Originally filed under legacy reason code 85 (condition 3), this code applies when a credit transaction was not accepted, usually for one of two reasons: The cardholder did not accept the credit. Chargeback alerts allow. In order to compile the right kind of evidence, you need to know what justification the cardholder gave to the bank for requesting a chargeback. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes vary by card brand. 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 valid. Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. Find this type of chargeback with the below reason codes. For example, transactions. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Chargeback reason code 4853/Credit Not Processed applies to situations where customers claim they are owed a refund or other credit that has not appeared, but do not feel the issue being resolved by the merchant. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Reason Codes Category 4: Processing Errors. . Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s claim is valid. 2, which specifically deals with. . To easily accomplish accepting cases that you are not going to provide a response to, you may select chargeback(s), (up to 50 cases at a time), by dollar amount or reason code and select “Accept Chargeback”. Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. 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. Learn what each reason code means, how to fight chargebacks, and how to prevent disputes from Visa and other card networks. You can see a reason code 11. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). 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. These companies can also handle the entire representment process. F01. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. But, it could be up to 540 days, in some situations. 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 valid. CHARGEBACK REASON CODESMastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. . PCI DSS v3. . Though the credit card networks have a vast choice of codes, loopholes still happen. ”For Visa disputes, the reason code also dictates which workflow the case will take. . Chargebacks with the following reason codes are requested due to fraudulent activity. 1 Quick Reference Lead. . 7 Violation for Coercion Claim. You must contact your Relationship Manager for information about the. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Each reason code is composed of a two-, three-, or four-digit number. Chargeback Reason Codes All received credit card disputes include a reason code. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. many chargeback reason codes that exist today. ; Know the scenarios when Adyen automatically handles disputes on your behalf. Learn more about Mastercard chargeback reason codes. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For the sake of simplicity and standardization, card networks like Visa created a breakdown of the acceptable causes for a customer to dispute a charge by filing a chargeback. Johnson officially made TILA a law in 1968. S. Exploring Visa Chargeback Reason Code 12. Issuers must wait 15 calendar days from the credit transaction receipt date before initiating a dispute, unless doing so would cause the dispute to exceed the time limit. The chargeback system was designed as a last resort; only to be used in specific situations. Each reason code has its own regulations set by the relevant card scheme. compliance process depending on whether a chargeback right exists. 1 is an updated version of legacy reason code 30, which was phased out under the Visa Claims Resolution initiative. The short answer is “no. IC Illegible Sales Data. Without understanding the true. The same is true of all chargeback reason codes. Chargeback fees can start at US$25 and go up from there. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. For a Point-of-Interaction Currency Conversion dispute to be valid, one of the following conditions must apply: The cardholder claims they were not given the option of choosing the currency in which they wanted. Customer Dispute. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Over a decade later, our exclusive data-driven platform provides true end-to-end chargeback prevention and remediation technology. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). . 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. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. These codes tell you why the transaction is disputed. Reason codes categories Authorization. You're not legally required to have a written policy in place to accept returns. 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. Each chargeback is assigned a reason code that explains the justification for the chargeback. United States. How Can I Fight Shopify Chargebacks? Inside or outside of Shopify, the basic approach for fighting chargebacks is fairly straightforward: Find out the reason for the chargeback, as identified by the chargeback reason code; Determine the appropriate evidence necessary to prove the transaction should be upheld; Represent the charge. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. Attentive, accommodating, 24/7 customer service can work wonders to help you avoid chargebacks from disgruntled customers. 2 Compliance CasesSome Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Please refer to chapter 5 for more information. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. Thanks for following the Chargeback Gurus blog. 1. FR4 Immediate Chargeback Program. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. At Visa they used to receive reason code 98. There are dozens of reasons why cardholders and issuers dispute transactions. 2 falls under the “Processing Errors” category. Merchant must provide proof of authorization. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. It was originally just one facet of legacy reason code 81. These may impact the dispute time limits. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. There are also specific return time frames, which can differ. A recurring transaction is a payment card charge that automatically reoccurs on a. . . Find out the difference between the new and. Duplicate Processing - 81How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. It depends on the chargeback reason code associated with the dispute. While there are many chargeback reason codes, all chargebacks fall into one of three categories:American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. 4 billion online transactions every year, representing clients in 87 different countries. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. We say the given reason because it may or may not reflect the true reason. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. 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. 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). A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. Any time. 1 chargeback: 1. Now, 10. The implication is that the merchant is at fault. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. This value reflects why the request or dispute was initiated. 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. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 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. Dispute Best Practices Guide Overview This guide includes: An overview of authorization and transaction processing An overview of retrievals and chargebacks Reason code guidelines for all. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. This scenario applies when the arbitration was raised by either the. Chargeback reason code 4853 can be used to indicate disputes in which the cardholder feels that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at. If you do choose to dispute these chargebacks, you are putting yourself at risk of incurring additional fees: Reason code 4808 – Authorization-Related Disputes; Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift ; How can I actively prevent fraudulent. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. FR6 Partial Immediate Chargeback Program. This broad umbrella category includes an array of chargeback causes. Visa Chargeback Reason Codes. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The chargeback reason codes below explain why this happened. Visa uses a numeric scheme for its chargeback reason codes. 3. Chargebacks911® can help businesses manage all aspects of chargeback reason codes, with proprietary. However, banks assign reason codes based on cardholders’ claims. Cardholder Disputes. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCardVisa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. 5 Categories of Visa Chargeback Reason Codes. 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. This is commonly caused by either true fraud or friendly fraud. Card networks send these codes to merchants to indicate why a chargeback has been filed. Each bank card network has its owner list of reason codes banks must prefer from. Code 10. 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. 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. 6. Chargeback reason code 12. 4 spec (Section 8. If the merchant is not EMV-compliant, the liability for a fraudulent transaction shifts from the card issuer to the actual merchant. Either the acquiring or issuing bank could initiate the. . The codes also appear on financial reporting associated with disputes. These codes tell you why the transaction is disputed. 00 EUR as a Withdrawal fee. The cardholder may be the customer or the someone who lent their card to a friend or relative. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. Visa reason code 13. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. Visa uses a numeric scheme for its chargeback reason codes. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. Mastercard chargeback reason code 4808 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Chargeback codes Last updated: August 16, 2023 Below you'll find a list of chargeback codes along with an explanation of what each one means, covering both. These codes are established by the payment brands to categorize the incoming dispute requests by reason. They may have returned an item, for example, or perhaps were billed for a service. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. Chargeback reason code 11. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Thanks for following the Chargeback Gurus blog. 4854 Cardholder Dispute—Not Elsewhere Classified (U. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback. Reason codes are created by the major card networks: American Express, Discover, MasterCard, and Visa. R02 – Account Closed: The account holder has closed their account since the transaction was initiated. 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. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. 5, and all aspects of chargeback reason codes, with proprietary. 11, 16. Mastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is. Some payment service providers like PayPal and Stripe have their own reason codes as well. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Each reason code is composed of a two-, three-, or four-digit number. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. If the dispute involves a non-Visa card, the dispute can be paused for up to 72 hours for the merchant to respond. In theory, reason codes help merchants understand why customers dispute purchases. The implication is that the merchant failed to put adequate purchase controls on the account when it was set up. Visa chargeback reason code 13. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. About American Express chargeback reason codes. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1 Quick Reference Lead. Chargeback reason code 11. In some cases, the reason code may not match the real reason. Chargeback reason code 12. All ACH return reason codes consist of the letter “R” followed by two. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. About Discover chargeback reason codes. These are only a handful of common Visa chargeback reason codes. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase. Which is meant to know the reason for the. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity There are over 80 unique return codes, and each one represents a different type of return. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. That said, valid reason code. This code collects all the. . We say the given reason because it may or may not reflect the true reason. 1 falls under the “Processing Errors” category. When one cardholder initiates a dispute with their issuing bank, a. Chargeback. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. What Are the Time Limits for Mastercard Chargeback. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. About American Express chargeback reason codes. ”. Visa, Mastercard and Maestro each have their own set of reason codes for chargeback cases. . The system does not accept blank as a value, even if it is defined in the user defined code table. Each bank card network has its owner list of reason codes banks must prefer from. 4 spec (Section 8. Reason Code 04. Some credit card companies also include a short phrase describing the code and chargeback. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. . Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. [noun]/* rə • trē • vəl • rə • kwest/. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. All 1. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. Quality. 29. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. Understanding chargeback time limits is a critical part of recovering revenue, though. Card Recovery Bulletin Authorization Visa Code: 11. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. These codes are currently defined within the ANSI X9. The Merchant failed to obtain a valid Authorisation for the full amount of the Transaction. Chargebacks with the following reason codes are requested due to fraudulent activity. About Mastercard chargeback reason codes. Also, remember that the time frame for your response includes any processing required by the acquirer. To represent a chargeback, you need to resubmit the transaction and include a rebuttal of the cardholder’s claims and documented evidence that proves your case. 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. Step #1 | Cancel the Transaction. Knowing these codes can help you dispute chargebacks more effectively. What is Visa chargeback reason code 12. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. The reason code may not reflect the true reason for the chargeback. Nevertheless, you must respond to the chargeback based on the given code. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. 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. We also included the reason code descriptions and an indication of when the allowable time frame begins. Often, this is the result of one of the. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. This reason is made visible to all parties involved. 1. American Express, Discover (and Diners Club International, which it owns) use a combination of numerals and letters. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). Chargeback reason code 4853 is used to designate “Cardholder Disputes,” or disputes involving transactions that a customer claims are incorrect in some way. Products. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Chargeback representment is won or lost based on the quality and relevance of the evidence you provide. 6. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. Every chargeback has a reason code associated with it. The following chargeback reason codes are related to EMV: Visa: 10. The chargeback reason codes below explain why this happened. 6 General update and rebranding. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Build & Submit a Representment Case in 4 StepsChargeback reason code 12. F02. About Visa chargeback reason codes. However, since that time, the cardholder’s account has been closed. Card networks send these codes to merchants to indicate why a chargeback. This umbrella category can be applied to multiple specific situations, many of which had their own specific codes at one time. Overall returns (all codes): 15%. Chargeback reason code 11. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. Chargeback Reason Codes by Industry. So the company has more incentive to side with customer during cardholder. . American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. What is Visa chargeback reason code 12. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. Visa uses a numeric scheme for its chargeback reason codes. Message. Mastercard Reason Code 4807 – Warning Bulletin File chargebacks should be filed under code 4808. Chargeback Code: Type: Processing Error: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect. Find out the differences between the reason codes, how. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Different card networks have different reason code systems. Chargeback alerts are a dispute prevention product provided by a chargeback management specialist. Chargeback reason code 10. 100187 and ANSI X9. 4 Chargebacks: Prevention & Response. When a chargeback is filed, a bank selects the code that best fits the reason a chargeback was filed. In all, there are four major categories of Chargeback Reason Codes. The Merchant requested Authorisation for the Transaction, but it was declined or reversed, and the Merchant. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 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 valid. 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. 1 EMV Liability Shift 10. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. Some payment service providers like PayPal and Stripe have their own reason codes as well. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. 2. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Each code begins with 'R' followed by a two digit number. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. 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 valid. Use standard authorization criteria with Issuer - not eligible for chargebacks: 1: CAVV failed verification (authentication) - Issuer approves authorization:. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. 2. First presentment fraud chargebacks include those with chargeback reason codes 4837 (No cardholder Authorization) and 4863 (Cardholder does not recognize — potential fraud).