Every card brand has a unique set of chargeback reason codes banks must choose from. Documentation must be a direct result of cardholder communication. message. 7. F01. None. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. , Visa uses a two-digit code; Mastercard uses a four-digit code. 1. 1 chargeback: The merchant failed to ship the merchandise or provide the service as agreed. 3. Each chargeback received a numeric code which is known as the “reason code”. 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. Reason Code. Through 2021, we. 4807 – Warning Bulletin File. Visa. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F29, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. For example, Mastercard has a code which indicates a ‘consumer dispute. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. Visa Chargeback Codes: 30: Services not provided or Merchandise not received : 41: Cancelled recurring transaction : 53:. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Look below the surface. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 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. The implication is that the merchant is at fault. Discover: Reason Code 4755 Non-receipts of goods or services. Other reason codes address entirely understandable reasons for cutting a. MASTERCARD Dispute Reason Codes. S. A Mastercard chargeback reason code is a code number that’s assigned to one or more specific chargeback issues when a Mastercard is declined. Mastercard Chargeback Reason Code 71: Disputed Amount. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. Date Option. 1 chargeback: 1. Get to complete guide to Mastercard reason codes, including all the detailed news, chargeback time limits, and diverse significant information you needs. Chargeback reason code. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. These codes fit into four categories: (10) Fraud: For transactions where no EMV chip was used, stolen payment card credentials were used or transactions were flagged by the Visa Fraud Program. There is a USD 25 limit for the First Chargeback (Reason Code 22). MASTERCARD. 3 Fraud – Card-Present Environment. Fraud Alert: Shield Your Business from Costly Chargebacks. This chargeback will include a description that provides additional information: Digital Goods $25 or Less. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. Credit card chargebacks occur when a customer has a chargeback dispute and decides to question a charge on their credit card statement with their Credit Card Company or issuing bank. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. We say the given reason because it may or may not reflect the true reason. 4855. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. for chargeback reason code 4863 (Cardholder Does Not Recognize). These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. . MASTERCARD 4857 Card-Activated Telephone Fraud NO YES Transaction MASTERCARD 4859 Services Not Rendered Non-Receipt of Goods NO YES or Services . FR4 Immediate Chargeback Program. If you leave this processing. Mastercard chargeback reason code 4834 is one of the numeric labels assigned by banks to Mastercard disputes, indicating the given reason for the claim. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. Discover is a credit card network and an issuing bank—just like American Express. While chargebacks happen for a variety of reasons , the most common reason is that a customer no longer wants the service or product sold to them. A dispute often has a reason code associated with it. 4859: Non-Receipt of Goods or Services: Services Not Rendered: 4862: Fraud: Counterfeit Transaction Magnetic Stripe POS Fraud: 4863:Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. . If the customer’s story matches. Every chargeback comes with a reason code. The reason code used to describe the dispute will determine the chargeback time limit. The assigned chargeback reason code outlines why a customer submitted the dispute. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. For more information about chargebacks filed with this reasoning, please see one of the following: Reason code 4853, subcategory: Addendum Dispute “No-Show” Hotel Charge “No-show” chargebacks, for example, were formerly filed under legacy reason code 4859, a code no longer approved for active use. From there, a merchant can accept the chargeback or take action through the representment process to attempt to have the chargeback reversed. -. 4859: Services Not Rendered: 4860: Credit Not Processed: 4862: Counterfeit Transaction Magnetic Stripe POS Fraud: 4863: Cardholder Does Not Recognize - Potential Fraud (US Only). It’s crucial that you recognize the common merchant errors that might trigger a reason code 13. 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. For more information about chargebacks filed with this reasoning, please see reason code 4853, subcategory Goods or Services Not. Acquirer Reference Data (ARD) Does Not Match or is Invalid. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. 10. Card Type Reason Reason Text Chargeback Category Preventable Reversible Code MASTERCARD 4802. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Assemble Your Evidence. 4 applies to eCommerce, whereas code 10. A chargeback is a transaction that is disputed by a cardholder or issuer. In short: yes. 0: Changed report name from Downloadable Dispute Report to Case Report. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the end of. Reason codes are very crucial to assist. Supporting Documents. Your chargeback response must include at least one of the following items: Explanation and documentation to refute the cardholder’s claim. The chargeback reason codes below explain why this happened. Page 1 of 5 Chargeback Reason Codes. Subsection5. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 4859 Service not rendered. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. This chargeback occurs when merchants do not adequately provide currency information. What is a chargeback? A chargeback is a transaction which is formally disputed by the cardholder or the cardholder’s issuing bank. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andChargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableWhat is Visa chargeback reason code 12. Here’s how your store can prevent and deal with chargebacks. . If your issuing bank agrees with your claim, they will contact the merchant’s bank to notify them of the disputed charge. Product/service not received. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. This is typically for a card. S. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Required Authorization Not Obtained. 4859: This code can refer to: No Show; ATM Dispute; Addendum; 4860: Credit Not. The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. 3. compliance process depending on whether a chargeback right exists. To generate a chargeback, the issuer must submit the First Chargeback / 1442 message with the applicable message reason. [1] Sift. Documentation must be a direct result of cardholder communication. Valid Values/Format: 22 - First Chargeback Handling Fee. com In order to fight a chargeback effectively, however, you'll need to know the reason code. MasterCard time limits vary depending on the applicable reason code. Chargebacks can be a costly part of accepting card payments and entail administrative. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 00: The amount of the transaction. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. Arbitration Chargeback Condition. What is a chargeback. There is a USD 25 limit for the First Chargeback (Reason Code 22). Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. pdf), Text File (. The aim of CE 3. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. It can range from 60 to 120 days from the billing date. 3? Visa chargeback reason code 13. If you're contesting a chargeback, you'll need solid evidence. Chargeback Reason Codes Page 2 of 5. Chargebacks were introduced as a form of consumer protection against. What is Mastercard chargeback reason code 4855? Mastercard chargeback reason code 4855 falls under the “Cardholder Disputes” category. 4859. Carefully analyze the reason provided by the cardholder for the chargeback. Accepting recurring transactions is enough cause for acquiring banks and processors to label you as a “high-risk” merchant. While there are many chargeback reason codes, all chargebacks fall into one of three categories:WEX began issuing chip cards in Q4, 2020. Each bank card network has its owner list of reason codes banks must prefer from. Most commonly the payer is a consumer. Read the Chargeback Advice letter carefully. the Airline cancelled the original ticket; That credit for duplicate charges was completed or multiple<br />. 2: Fraud (10). American Express chargeback reason code C02 falls under the “Card Member Disputes” category. #9. It will be incorporated into code 4853. Mastercard is in the process of updating chargeback management regulations. R03 Insufficient Reply. This will be referenced in the chargeback notice you received. 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). ”. PCI DSS v3. The customer regrets their purchase. Replace 48XX with the valid chargeback message reason code. Information on proper voice authorization procedures may be needed for ‘referral’ responses. Reason Code Number. Reason Code. and the last 4 digits of the card number. Reason Code 4859 Category Cardholder Dispute Claim The cardholder claims that they didn't get cash from the ATM or it only dispensed part of the requested amount. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Mastercard chargeback reason code 4859 falls under the “Cardholder Disputes” category. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. One of the following: • 4808 Authorization-related Chargeback • 48XX. Linda was in urgent need of cash at a subway station so she decides to go to a nearby ATM and withdraw cash. Each code has a different timeline. 4859. The use of this reason code indicates that the merchant did not obtain authorization approval for a transaction, or that the authorization request was sent after the transaction date. Our Address US Head OfficeACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. The following chargeback reason codes are related to EMV: Visa: 10. Click the Update Chargeback link to edit the chargeback details. Check with the issuing banks to determine what time limits may apply to you. The reason codes are grouped into several broad. Card RType eason Code. Card Type. This can provide important information to fight the dispute. MasterCard Reason Code 4859, Services Not Rendered; The reason code descriptions. 4837 — No Cardholder Authorization. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. DESCRIPTION Why did I receive this chargeback? Mastercard is in the process of updating chargeback management regulations. In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Compensation Resolution. Section5. 4859: Addendum, No-show, or ATM Dispute 4860: Credit Not Processed 4863: Cardholder Does Not Recognize—Potential FraudThese are only a handful of common Visa chargeback reason codes. 3: Goods or services were not as described: C31: RM: 13. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. © The time limit for issuers to instigate a first chargeback are calculated based off the Central Site Business Date (the processing date of the first presentment) and are usually 60, 90, or 120 days in duration. France saw a drop of roughly 50% during the same period. He claims he authorized one and not the other. Issuers are currently allowed to use reason code 4859, however, this code will soon be eliminated. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. Chargeback Reason Codes. There are multiple situations in which this can occur. Chargeback Reason Codes / Mastercard / 4859 – Addendum, No-Show, or ATM Dispute – Europe Dispute Code 4859 Category Cardholder Dispute Message System Dual. Try Shopify free for 3 days, no credit card required. M10 Vehicle Rental – Capital Damages. 08. Now, compliance cases must be submitted through Visa Resolve Online (VROL). Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 10. The use of this reason code indicates that the merchant did not obtain authorization approval for a transaction, or that the authorization request was sent after the transaction date. About American Express chargeback reason codes. . Chargebacks may happen for a variety of reasons: the most common are returns of goods, cancelled services, quality disputes or processing errors, and fraud. 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. 4859 — No Show/Addendum/ATM Dispute The cardholder disputes a charge that they are not responsible for the transaction in question. 31. Let us now get information about the basic explanation about MasterCard Chargeback Reason Codes. Understanding these codes is essential because they'll guide your response strategy. “Visa has 28 different reason codes. . 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. 1Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. 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. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Assemble Your Evidence. Fraud-related Chargeback Counter Exceeds Threshold. Notes. Multiple Authorization Requests. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 4853 – Cardholder Dispute – Credit Posted as a Purchase. M01 Chargeback Authorization. ©Mastercard: Reason Code 4859 Service not rendered. Duplicate Processing - 81The 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. You can learn more about each one by visiting the Mastercard Chargeback Guide. F01. The merchant failed to ship the merchandise by the promised delivery date/time. What is a chargeback. Level 2/Phase 2: Chargeback. Each chargeback reason code has specific rules and documentation requirements. Dispute reason code triggered Dispute code category Card expiry date; Visa. 5%. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 4859: Addendum, No-show, or ATM. By entering your email, you agree to receive marketing emails from Shopify. So don’t spend another second worrying about chargebacks. Always remind clients of upcoming charges with adequate time during the subscription billing cycle. Visa Chargeback Life Cycle. This code indicates that the cardholder attempted to resolve an issue with the merchant, but the merchant refused to address the problem. “It’s a lot tougher with Mastercard because they only use four main codes. Your chargeback response must include at least one of the following items: Explanation and documentation to refute the cardholder’s claim. 0. Use this guide as a quick resource for Visa chargeback reasons at a. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP) 4863 – Cardholder Does Not. Values are: Blank: Use the receipt G/L date. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Every chargeback comes with a reason code. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. Now we are very familiar with the word ‘Chargebacks’ from the expert at Chargeback Expertz. Any time. September 26, 2023. 3. Consider Deadlines. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Complete Guide to Visa Compelling Evidence Update CE 3. It is subject to change and may not include every currently known dispute reason code. API status is evidence_required and chargeback code is ADJM. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. Your issuing bank will often give you. Cause. Proof you have already refunded the transaction and credited the cardholder’s account. Only an issuer can initiate the chargeback process. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. “American Express Chargeback Reason Codes | Sift”. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. 4859 – Addendum, No-Show, or ATM Dispute – Transactions Not Involving a European Issuer or Acquirer. In fact, 91. A chargeback happens when a customer requests for a transaction to be. The shorthand description is “Late Presentment. Steps to Prevention. The reason_description field lists the chargeback reason. Step 2: Customer initiates the chargeback. UA05 Fraud – Chip Counterfeit Transaction. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. Instead, ask for a different form of payment. MasterCard: Reason Code 4859 Services not rendered. The shorthand description is “Goods or Services Not Provided. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Chargeback message reason code 4853 is used to generate a cardholder dispute chargeback. Chargeback Reason Codes / Mastercard / 4859 – Addendum, No-Show, or ATM Dispute – Europe / Dispute Code. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. The terminal action codes are in Table 122 of the 4. EMV has been a mostly global standard since 2004. Maestro. . MasterCard: Reason Code 4859 Services not rendered. Let us now get information about the basic explanation about MasterCard Chargeback Reason Codes. 4859 – Addendum, No-Show, or ATM Dispute – Europe. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. 3. Top chargeback reason codes. For MasterCard, Code 4859 - Services Not Rendered would seem similar, as would Visa Code 30 - Services Not Provided or Merchandise Not Delivered looks appropriate. Unauthorized returns (R05, R07, R10, R29, R51): 0. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. 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. Payment Capture. Replace 48XX with the valid chargeback message reason code. Reason code 4853 refers to the broad category “Cardholder Dispute. Mastercard Chargeback Reason Code 4846: Correct Transaction Currency Code Not Provided. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. It balances out the process and gives merchants the much-needed opportunity to influence the progression of a dispute before it becomes a fully-fledged chargeback. We say the given reason because it may or may not reflect the true reason. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Discover: Reason Code 4755 Non-receipt of goods or services. Reason Codes: 22 / 23 / 32 / 35. A “No Authorization” code chargeback can also be the. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. These codes are broken down into five different category. 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. American Express: Reason Code C08 Goods or services. 10. Discover Chargeback Reason Codes Explained. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 Dispute reason code triggered. Also, remember that the time frame for your response includes any processing required by the acquirer. If you're contesting a chargeback, you'll need solid evidence. . 2 for Visa and Reason Code 4850 for Mastercard). Encrypt transmission of cardholder data. 4859. None. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. This is commonly caused by either true fraud or friendly fraud. Service not rendered. Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. 543 Message Reason Codes for Intra-European and Inter. In this example, we have four distinct reason codes for the same scenario: the customer didn’t receive the purchased items or services. Updated the following columns - card type, response due date. However, they’re more and more often used as a loophole to commit fraud. However, they don’t address the reason why that chargeback was issued in the first place. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. Of course, some of these inquiries will still inevitably progress to the chargeback phase. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. Authorization. Discover: Reason Code 4755 Non-receipts of goods or services. Mastercard Reason codes fall under four categories. The cardholder initiates contact with their bank or credit union to file a dispute. Updated August 23, 2023. Authorization. In that way, winning one dispute may help prevent the next chargeback to come after it. resolved via the chargeback management process and within timeframes. Visa chargebacks can be a major inconvenience for merchants. MasterCard: Reason Code 4859 Services not rendered. Visa assesses the following fines, as specified in the table below, to a U. Level 3/Phase 3: Second presentment, second chargeback, or pre-arbitration. The shorthand description is “Credit Not Processed. Specify the invoice date and net due date to assign to chargebacks. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. For best results, your chargeback win rate should be as close to 100% as possible. MASTERCARD 4859 Services Not Rendered Non-Receipt of Goods or Services NO YES . Mastercard chargeback reason code 4859 falls under the “Cardholder Disputes” category. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. 16, 2021. The shorthand description is “Cardholder Dispute—Not Elsewhere Classified (US Region Only). Leave a reply Cancel reply. ”. On that note, below are some vendor missteps that could result in Visa reason code 13. Unlike other. The number of in. However, between Visa and MasterCard, merchants notice three very common chargeback reason codes. Reason code 4859 - Services Not Rendered. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. 4859. 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. The newer system is designed to. Below is a list of Mastercard chargeback codes used in eCommerce. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Issuers are currently allowed to use reason code 4855, however, this code will soon be eliminate. None. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. 3 falls under the “Consumer Disputes” category. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. There are several reasons why many merchants turn a blind eye to suspected return fraud. Category. MasterCard uses the four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors (which MasterCard refers to as Point-of-Interaction Errors). Note that a chargeback is a forced bank reversal that always results in additional fees and penalties for sellers, regardless of the validity of the buyer’s claim. Mastercard Collaboration will be a step in the right direction. Reason Code. Updated: Valid values updated. 7. 1, "Compelling Evidence for goods/services notThere are some precise chargeback reason codes, particularly for MasterCard holder : To apply for the Chargeback, the issuer must submit the First Chargeback or 1442 Message with the application Reason Code. 3. The new reason codes follow a format of two digits, a period, then a third digit. 4859. The merchandise was as described or was not defective. Ensure you act on subscription cancellation requests immediately and confirm the cancellation by text or email.