These codes are typically provided to the merchant through their payment processor, and understanding them is crucial for minimizing returns and improving payment processing. It was originally just one facet of legacy reason code 81. Below is a list of Mastercard chargeback codes used in eCommerce. RM Cardholder Disputes Quality of Goods or Services. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. These are only a handful of common Visa chargeback reason codes. 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. There are dozens of reasons why cardholders and issuers dispute transactions. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. 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. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:WEX began issuing chip cards in Q4, 2020. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. To take advantage of these new advice codes, merchants and their acquirers must learn to recognize the new data values and their meanings and use them. . 4: Fraud—Card-Absent Environment. 4 chargeback by showing at least one transaction from any time period in which the IP address, email address, physical address, and telephone number match the details of the disputed transaction. Some credit card companies also include a short phrase describing the code and chargeback. For example, 100 e-commerce first presentment fraud chargebacks in the current month divided by 10,000 e-commerce transactions in theAbout American Express chargeback reason codes. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. These may impact the dispute time limits. Learn more about Visa reason codes. Chargeback reason code 11. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Some payment service providers like PayPal and Stripe have their own reason codes as well. 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. The request is usually made when the cardholder is disputing a charge on their credit. Learn how to interpret Mastercard chargeback reason codes, the codes that tell merchants why cardholders requested a chargeback. 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. Under Visa’s previous chargeback rules, merchants could contest a reason code 10. The shorthand description is “Late Presentment. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. The terminal action codes are in Table 122 of the 4. 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. Mastercard: n/a This chargeback is caused by Authorization. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. 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. The following tables show the Stripe categories for each card network’s dispute reason codes. . By offering timely. Reason Code 12. FR4 Immediate Chargeback Program. It was originally just one facet of legacy reason code 81. 7: Defective goods and services: C32: RM: 13. In 2020, MasterCard revised their chargeback rules and eliminated the “second chargeback” step. . Time Frames by Chargeback Type and Reason Code. Find this type of chargeback with the below reason codes. 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”. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Each code begins with 'R' followed by a two digit number. The specific guarantee terms and reimbursement procedures will. 634. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. Reason Code 12. . The chargeback transfers funds from the acquirer to the issuer. Reason Code 04. . To be labeled with reason code 10. About Visa chargeback reason codes. Chargeback Reason Codes by Industry. 3 is the less common version for card-present transactions. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For American Express; For Visa; For Mastercards; Chargeback Reason Codes List for American Express Visa Chargeback Reason Codes. Visa Fraud Chargeback Reason. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. There are also specific return time frames, which can differ. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. Read chargeback reason code descriptions carefully, especially if they include any transaction modifiers. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. The aim of CE 3. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. About Visa chargeback reason codes. 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. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. About Visa chargeback reason codes. In some cases it can be upwards of 540 days, though, depending on. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Knowing these codes can help you dispute chargebacks more effectively. 2, below. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Chargeback Reason Codes: 5 Things For Merchants to Know 1. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCardKnow your chargeback reason codes. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). AMERICAN EPRESS CARGEBACK CODES 10 REASON CODE 4521 Invalid Authorisation Chargeback Reason Any of the following reasons: 1. Either the acquiring or issuing bank could initiate the. American Express has its own set of chargeback reason codes, and they refer to situations that correspond to Visa and Mastercard reason codes you may already be acquainted with. Reason Codes Category 4: Processing Errors. 3 can—and should—be disputed. We say the given reason because it may or may not reflect the true reason. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Each reason code is composed of a two-, three-, or four-digit number. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. For a no-show reason code to apply. FR6 Partial Immediate Chargeback Program. Code. “Visa has 28 different reason codes. About Mastercard chargeback reason codes. However, if you notice the overpayment before they contact you, there’s still time to stop it by canceling the transaction and reporting it to PayPal. . ”For Visa disputes, the reason code also dictates which workflow the case will take. Friendly fraud. Chargeback reason code 13. The first global company fully dedicated to helping merchants combat post-transactional fraud, Cb911 safeguards over 2. [noun]/* rə • trē • vəl • rə • kwest/. 5%. Chargeback reason code 12. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Chargeback reason code 10. So the company has more incentive to side with customer during cardholder. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Assemble Your Evidence. . Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. The customer regrets their purchase. The format depends on the credit card company. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. Reason codes identify why the chargeback was issued. That’s because customers often use the chargeback process incorrectly, either as an intentional attempt to get something for free or an innocent misunderstanding. 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. . . The following are reason codes. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. This means they are 100% preventable. If you believe you have received an ACH return in error, you can contact your bank. These guarantees typically involve reimbursement for chargeback-related losses or the assumption of liability for chargeback disputes. 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 applies to the claim. ACH Return Codes. You probably won’t know for certain that you’re being targeted until the fraudster contacts you for an overpayment refund. The implication is that the merchant is at fault. Code Reason (for Visa) 10. There are dozens of reasons why cardholders and issuers dispute transactions. A dispute often has a reason code associated with it. CHARGEBACK REASON CODES Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). These codes can help a merchant with an inquiry or chargeback reversal. ”. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. 634. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. 16, 2021. Now, 10. Fraud. Use standard authorization criteria with Issuer - not eligible for chargebacks: 1: CAVV failed verification (authentication) - Issuer approves authorization:. 3 is an updated version of legacy reason code 76, which was phased out under the Visa Claims Resolution initiative. Use this guide as a resource to quickly identify a chargeback reason code from Mastercard. 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. . It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Identifying the. 9808 info@chargebacks911. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2. 1. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. Chargeback reason code 10. 180 S econd. Some legacy codes encompass multiple reasons; new mapping recognizes the individual reasons as separate number and reason combinations. Reason. This code collects all the. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. 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. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 196 WEX began issuing chip cards in Q4, 2020. Chargebacks with the following reason codes are requested due to fraudulent activity. In all, there are four major categories of Chargeback Reason Codes. The shorthand description is “Paid by Other Means. . Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. Chargeback Reason Code 13. All ACH return reason codes consist of the letter “R” followed by two. Category. Lack of proper chargeback reason codes. 0 is to make the chargeback process more efficient, transparent, and fair. Card Recovery Bulletin Authorization Visa Code: 11. 9808; [email protected] is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. It can range from 60 to 120 days from the billing date. Consumer Disputes. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. . The cardholder claims they were charged multiple times for a single transaction. The chargeback can be for the total transaction amount or a lesser amount. . To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. This can be transaction receipts, proof of. Visa reason code 13. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. American Express. Invalid Reasons for a DisputeFraud reason codes are those indicating disputes regarding fraudulent activity, authorization discrepancies, and EMV liability shift issues. 6. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. . Chargeback reason code 4853 can be used to indicate disputes where the cardholder claims that unauthorized purchases were made from a digital account with a merchant (among other conditions). ”. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Thus, the merchant is at fault for. . Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 3. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 6: Duplicate processing/Paid by other means. PCI DSS v3. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. There are two parts to this. An ACH dispute results in a chargeback for the business that processed the payment. Chargeback reason codes don’t always tell the full story. 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. This broad umbrella category includes an array of chargeback causes. 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. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Exploring Visa Chargeback Reason Code 12. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. S. 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. In fact, the same thing could be said of other chargeback reason codes, too. Most such requests are made to. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. . However, a truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 1 is an updated version of legacy reason code 30, which was phased out under the Visa Claims Resolution initiative. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. For example, some reason codes offer cardholders over a year to file. Quality. . Visa chargeback reason code 75 is filed as an honest mistake. The newer system is designed to. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 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. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. Paymentology will monitor and track the chargeback throughout the dispute lifecycle of submission, second presentments and arbitration. Network reason code is available on the dispute object. 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. This specific code applies when a cardholder claims that the terms of the sale were in some way misrepresented. Visa chargeback reason codes are used to categorize the reasons for a chargeback. Chargeback reason code 11. But, it could be up to 540 days, in some situations. 15, 2021. Fraud and chargebacks can hit even the most scrupulous, honest merchants, but there are ways to fight and prevent them. The separation of the Return ReasonChargeback reason code 13. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. Overall returns (all codes): 15%. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Some payment service providers like PayPal and Stripe have their own reason codes as well. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargeback. ”. RG Non-Receipt of Goods, Services, or Cash. Non-fraud reason codes represent customer disputes with product or services, shipping problems, and recurring billing chargebacks. This may be done by either the merchant or the issuing bank. The sales receipt and/or date and amount of the authorization if other than the transaction date. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. Find this type of chargeback with the below reason codes. Build & Submit a Representment Case in 4 StepsChargeback reason code 12. 2. Notification of Fraud. DP Duplicate Processing. 2. The codes for each card brand are listed below along with the recommended documentation to provide. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. Mastercard Chargeback Reason Code 73: Duplicate Transaction. This makes them nearly impossible to dispute. R03 Insufficient Reply. Chargeback prevention strategies vary based on the reason for the. . The same is true of all chargeback reason codes. Chargebacks911® can help businesses manage all aspects of chargeback reason codes, with proprietary. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Authorization chargebacks represent disputes related to authorization issues. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. However, since most are the result of easily preventable merchant errors, it’s much more efficient to take a proactive stance. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. 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. Customer Dispute. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. For a late presentment chargeback to be valid, the following conditions must apply: The cardholder’s account must be permanently. 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. Some legacy codes are no longer supported by a chargeback reason. This value reflects why the request or dispute was initiated. Another downside is that chargebacks on annual subscriptions. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Visa Chargeback Reason Codes. 3. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. © 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. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. If a customer asks to use another form of payment after the Visa card transaction has been processed, credit from the original. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Whenever a card used in a transaction is declined, the sale should be terminated. com; Europe; Vantage House;chargebacks, even on cases where you accept liability. . . Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. Reason codes vary by card brand. 3: Goods or services were not as described: C31: RM: 13. What is Visa chargeback reason code 12. 4 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. . Code. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. It is associated with a chargeback reason code, and it is specific per Card Scheme. 2. . This is commonly caused by either true fraud or friendly fraud. About Visa chargeback reason codes. 2 Compliance CasesSome Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable Transaction is not eligible for Reason Code 75 or 83: 9The client can define the chargeback reason code. Message. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Cardholder Disputes. 4 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. . Also, remember that the time frame for your response includes any processing required by the acquirer. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. 2022 Visa Chargeback. It can also refer to situations where the cardholder’s account has been debited more than once for the same transaction. Administrative returns (R02, R03, R04): 3%. The letter indicates the category the reason code falls under: A for Authorization, C for Cardmember Dispute, F for Fraud, and P for Processing Errors. PM Paid by Other Means. 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. It is a federal law that has been put into action by the Federal Reserve Board via a sequence of rules and regulations. The Chargeback Reason Code Format. Chargeback. F02. . 1. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. Any chargeback that is received without a reason code will be assigned a default code of 53. 180 First Chargeback: MTI 1442. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Fraud. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. Chargeback time frames - A specific period during which a chargeback can be raised. eCommerce grew too fast for the payments industry to respond. R13 No Reply. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. However, it's a bad idea not to do so. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. In the case of friendly fraud, that reason could be completely invalid and. This second chargeback is what was commonly referred to as a “pre-arbitration chargeback. The most comprehensive guide to chargeback reason codes. 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 validWhile the updates have been published, they do not go into effect until Oct. 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. R02 – Account Closed: The account holder has closed their account since the transaction was initiated. Specifically, these updates only pertain to transactions that are charged back after Oct. 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. . 1, which covers duplicate processing errors, and 12. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderIn the case of reason code 11. Oftentimes, the reason code assignment is based on limited knowledge and insight. 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. The chargeback can be for the total transaction amount or a lesser amount. 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.