Reason Code 04. The keys to this are improved communication, enhanced customer satisfaction measures, and effective dispute resolution when necessary. - Reason Code 83, "Fraud-Card-Absent Environment" - Reason Code 85, "Credit Not Processed" First. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. Chargeback response template for Digital Goods Not Received chargeback. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. American Express is incentivized to keep their customers happy. Cancelled Recurring Transaction. Reason codes are important to help merchants address recurring. Retry after 8 days. It occurs when the merchant intentionally tries to process fraudulent transactions or if they failed to void multiple transactions. 3. High-Risk (Excessive): Reaching a chargeback ratio of 1. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. Visa Chargeback Reason Codes Mastercard Chareback Reason Code; 30: Services Not Provided or Merchandise Not Received 57: Fraudulent Multiple Transactions 62: Counterfeit Transactions 81: Fraud- Card-present environment 83: Fraud- Card-absent environment 13. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. Analyze your chargeback data. Thus, the easiest way to prevent chargeback reason code 75 from being filed is. Reason Code 83: Fraud-Card Absent Environment: The card issuer received: A complaint from a cardholder in regard to a card-absent transaction, claiming. 83: Fraudulent Transaction - Card Absent Environment: 85: Credit Not Processed: 86: Paid. It was originally one of several possible scenarios covered by legacy Visa reason code 83. 1. 1. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. Chargeback reason code 11. See full list on chargeflow. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. Managing Reason Code 83 chargebacks. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. A reason code is an alphanumeric code that explains the reason behind the dispute. 4853 Cardholder Dispute. The main reasons of this chargeback are: Merchant charged an account which was used fraudulently Cardholder wasn’t able to recognized name of merchant on. CE 3. 04/09/14 Discover: DC, U02. Going back to our Reason Code C08 response, there are two modifiers that affect the evidence presented. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. Each of these causes has a designated “reason code,” and banks assign the. M10 Vehicle Rental – Capital Damages. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. Reason Code 03. 3. The ultimate purpose of a chargeback reason code is to explain to the merchant why a chargeback was filed. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. Chargeback reason code 12. 3: Not as Described. What is Visa chargeback reason code 13. TOP REASON CODE. This list was generated 5/4/2022. VISA 83 Fraud-Card Absent Environment Fraud NO YES VISA 85 Credit Not Processed Cancelled/Returned by CardholderDec 6, 2021 — Betty's bank issued the chargeback for $9. 4841. Discover Chargeback Reason Codes Explained. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 4840 — Fraudulent Processing of Transactions. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. The transaction was refunded prior to the initiation of the chargeback: provide proof of refund. ”. Now, 10. . Consult the applicable network’s guidelines for examples of acceptable compelling evidence. 99. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. 4854 Cardholder Dispute—Not Elsewhere Classified (U. The terminal action codes are in Table 122 of the 4. UA06 Fraud – Chip and PIN Transaction. Visa chargebacks can be a major inconvenience for merchants. 4846. 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. This liability shift essentially provides merchants. 1001 - Cardholder does not recognize the transaction. 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. Card no present transaction can be applied to internet healthcare transactions, mail orders, advance payments, telephone orders, and. For a full list of the new Visa chargeback reason codes and their corresponding dispute categories, please visit the Moneris chargebacks page. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 86: Paid by other means. There are over 80 unique return codes, each representing a different return type. Reason codes are meant to tell merchants why a cardholder requested a Mastercard chargeback. Removed: Field removed. 0: Updated report version from 1. UA05 Fraud – Chip Counterfeit Transaction. Specify the invoice date and net due date to assign to chargebacks. Reason Codes Category 4: Processing Errors. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 3 falls under the “Authorization” category. Visa chargeback reason code 85 falls under the “Consumer Disputes” category. 0: Changed report name from Downloadable Dispute Report to Case Report. Here’s how to respond. You can learn more about each one by visiting the Mastercard Chargeback Guide. View the entire list or search for any chargeback reason code. 4853. Chargeback Reason Codes. 60 for every $1 in sales. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. F01. 83 Fraud- Card Not Present Environment 85 Credit Not Processed 86 Paid by Other Means 90 Non-Receipt of Cash at ATM 96 Transaction Exceed Limited Amount DISCOVER Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment 4586 AW Altered Amount 4751 CA Cash Advance Dispute 4550 CD Credit Posted as Card Sale 4 Section . A reason code is how banks categorize the reason for a chargeback. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Valid Values/Format: 22 - First Chargeback Handling Fee. Late Presentment (Chargeback Reason Code 83) is a type of chargeback issued by American Express when a merchant fails to submit a transaction for processing within a specific timeframe. The shorthand description is “No Authorization. This will be referenced in the chargeback notice you received. It can range from 60 to 120 days from the billing date. ”. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. ”. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). 10/23/14 Discover Retrieval Reason Codes — Removed Code 02. Calculating chargeback fees, lost merchandise, and other drains on revenue, the average chargeback will cost merchants $3. UA05 Fraud – Chip Counterfeit Transaction. Protected Chargeback Reason Codes: Visa USA: Credit & Debit Cards – Authentication & Attempts. All ACH return reason codes consist of the letter “R” followed by two. Versions Affected: v5, v6. 1004 - For fraud /dispute investigation or legal/ regulatory issues. To provide a successful chargeback representment case, Visa and other credit card companies allow (indeed, they urge) merchants to provide compelling evidence to. Upload to Study. Every time a merchant processes a transaction, they are supposed to send an. ”. Reason code 4853 refers to the broad category “Cardholder Dispute. ”. These codes are currently defined within the ANSI X9. For example, for Visa reason code 83, Fraud – Card Not Present, this is defined as “Proof the cardholder participated in the transaction,. 4: Other Fraud–Card-Absent Environment. Later, when Linda checks her account she sees a larger amount on her statement than what she expected to see from the transaction. Try Shopify free for 3 days, no credit card required. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. 2. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized face-to-face. 4860 Credit Not Processed. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Batch chargeback process. The sales receipt and/or date and amount of the authorization if other than the transaction date. 8. A reason code is how banks categorize the reason for a chargeback. Include any terms relevant to the transaction, including return, cancellation and. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. but most banks allow cardholders up to 120 days to file a chargeback depending on the reason code. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardChargeback Representment. Visa reason code 83, and similar designations from other card brands, encompass most of the fraud e-retailers face. What is the “Zelle Chargeback” Process? So, there’s technically no such thing as a “Zelle chargeback. All online retailers have to deal with at least some false positives. Reason codes vary by card brand. Most common causes for Reason Code 83. Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program,” are excluded from program monitoring. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. ” Currently, merchants can already prevent many 10. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 4. UA02 Fraud – Card Not Present Transaction. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Managing Reason. 2 falls under the “Processing Errors” category. September 2011: 5. A chargeback reason code is a numerical code which identifies the specific reasons for the chargeback. Retrieval Request/ Copy request Reason Codes. A chargeback happens when a customer requests for a transaction to be reversed. Unfortunately, fraudsters. Also, just like American Express, Discover functions as both a card network and an. 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 and535 Other Coverage Code Value Not Supported 0643 INVALID OTHER COVERAGE CODE 535 Other Coverage Code Value not supported 2802 CLIENT PLAN REQUIRED CO-PAY ONLY BILLING FOR MDD 536 Other Payer-Patient Responsibility Amount Qualifier Value Not Supported 0883 PATIENT RESPONSIBILITY AMOUNT QUALIFIER NOT. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Chargeback Reason Codes. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Depending on the code, that could mean gathering proof of authorization, signed receipts, proof of delivery, email correspondence and/or the cardholder’s IP address with transaction date and time for online purchases. Dec 6, 2021 — Betty's bank issued the chargeback for $9. Search the Chargeback Reason Code Database. The cardholder alleges they never received the products or services. Chargebacks were introduced as a form of consumer protection against. 31th and it's been 4 months. It’s even more frustrating if you don’t understand what the chargeback code means. 1. Step 1: The cardholder disputes a charge. compliance process depending on whether a chargeback right exists. This section contains a list of codes and messages that the system can return in the response message for a payment transaction. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, Oftentimes, the reason code assignment is based on limited knowledge and insight. Pay close attention to how you arrange your file. Either the acquiring or issuing bank could initiate the. 1: goods not received. These modifiers can range from where the transaction is processed to what kind of goods are purchased. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 83 Fraud-Card Absent Environment Chargeback reason code 10. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. While the updates have been published, they do not go into effect until Oct. Search reason codes 2. The good news is, the chargeback reason code should give you a great indication of where to start. The newer system is designed to. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. many chargeback reason codes that exist today. While the format of chargeback reason codes varies depending on the card network, all codes are. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. 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. M01 Chargeback Authorization. 4 Other Fraud Card Absent. These may impact the dispute time limits. Card networks send these codes to merchants to indicate why a. Of course, some of these inquiries will still inevitably progress to the chargeback phase. At Visa they used to receive reason code 98. For example, suppose a cardholder filed a case about an order processing issue, and you disputed the chargeback. Receiving a damaged product. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Chargeback reason code. Either the acquiring or issuing bank could initiate the chargeback. CHARGEBACK REASON CODES THE ENCYCLOPEDIA recover lost r e c o v eyour r yo u r l orevenue st revenue Table of. The shorthand description is “Fraud—Card-Absent Environment. Take the time to note the following dispute reason codes for Visa. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. The notification will also specify the terms of the agreement under which Amazon Pay will assist you in handling the chargeback. ”. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. 2. It also has a multiplier effect that extends damages well beyond the amount of the disputed charge in question. 3. io This is exactly the case with Reason Code 83, which is used to designate chargebacks resulting from processing fraudulent card-absent transactions. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. Specifically, these updates only pertain to transactions that are charged back after Oct. Find explanations for the major credit card issuers’ dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaFor Visa disputes, the reason code also dictates which workflow the case will take. The price of Order Insight alerts varies, but is often $8-$10 per deflected chargeback. Reason Code Directory. This can happen if a stolen credit card is used to make a purchase, or if the transaction is processed without proper authorization. 0 to 5. Having a Lax Attitude Toward Industry Rules & Regulations. The codes for each card brand are listed below along with the recommended documentation to provide. The cardholder claims they were charged multiple times for a single transaction. Date Option. If the merchant has a signature showing that the order was delivered, or evidence that the. Each card. As we touched on earlier, chargebacks can happen due to technical errors. FR4 Immediate Chargeback Program. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 3. Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of transaction. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. 83 - Fraud – Card-Absent Environment How to Respond Provide evidence showing that the cardholder name is included in the manifest for the departed flight and matches the. S. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. 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. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. For example, 10. Added the following fields - Store ID, Credit Card Chargeback Reason Code. 4512: Duplicate Processing:Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. The reason code. Region Only) 4855 Goods or Services Not Provided. Code 10. 30. So the company has more incentive to side with customer during cardholder. If a criminal manages to defeat the technology and complete an online purchase, Mastercard will shift liability away from the merchant and onto the issuer. Standard Threshold: Reaching a chargeback ratio of 0. There are multiple situations in which this can occur. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Terms and conditions. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. The nature of the threat makes it a moving target. Reason code 83 represents a chargeback categorized as. When the transaction is fraudulent and the cardholder did not authorize the transaction this code is validated. 4837: Cardholder non-authorization. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. In the event of alleged criminal fraud or merchant error, the code returned with the transaction identifies the reason behind the chargeback, potentially exposing faults in the merchant’s processes. This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. processed the transaction correctly. This indicates that the merchant didn't respond to an inquiry properly. Updated August 23, 2023. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12:. About Discover chargeback reason codes. Below is a simple set of instructions, based on different situations: If the transaction was verified using SCA ( 3D Secure ): provide this proof. ”. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. 4840 — Fraudulent Processing of Transactions. Subsection5. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. 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. Chargeback Reason Matrix below. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. 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. Febuary 2013: 7. May 2011: 5. Reason Code Revised Explanation of Charges Penalty Team ADLTRD Product found adulterated upon receipt $500/incident DC Ops HNDGLU DC Ops Handling to fix glued boxes on pallet $75 + $100/hr + supplies DC OpsVisa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of the transaction. 65 - Exceeds Withdrawal Frequency Limit. The chargeback transfers funds from the acquirer to the issuer. Availability Date: October 24th, 2021. 29. Learn more about Visa reason codes. 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. These chargebacks occur to resolve chargeback-related disputes between network members. The separation of the Return ReasonOne catch is that CE3. Reason codes vary by card brand. Administrative returns (R02, R03, R04): 3%. I don't know why he's firing chargeback. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. 6. You can learn more about each one by visiting the Mastercard Chargeback Guide. The most comprehensive guide to chargeback reason codes. MASTERCARD Reason Code Description. Visa reason code 83, MasterCard reason code 4863,. The fraud section covers all types of fraudulent transactions, including card-not-present transactions, missing signatures, etc. Encrypt transmission of cardholder data. The merchant did not receive any returned merchandise. Here are the NEW Chargebacks: Adulterated Product On-Time/In-Full (OTIF). Most dispute reason codes that. Number two: Product Not Received chargebacks. Below you can find all of the chargeback reason codes listed by each credit card company. With the overhaul of their reason code system, Visa divided reason. Chargeback prevention strategies vary based on the reason for the. 3. 4853 – Cardholder Dispute – Goods or Services Not Provided. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Below is a list of Mastercard chargeback codes used in eCommerce. 3 is an updated version of legacy reason code 76, which was phased out under the Visa Claims Resolution initiative. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. AMERICAN EXPRESS; CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. If the order was genuinely not as described, then the cardholder has a case. PCI DSS v3. Study Resources. 2: Canceled Recurring Transaction 13. These codes are established by the payment brands to categorize the incoming dispute requests by reason. Bank of America issues both Mastercard- and Visa-branded cards, so the exact requirements may vary depending on the Mastercard reason code or Visa reason code . 10. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. The cardholder did not recognize the transaction on her statement or had her account taken by fraud. 83: Fraudulent transaction (card not present). A card-not-present. MasterCard - 4855 Goods or Services Not Provided. 31. 51% anticipate spending between $50 and $100 on gift cards, while 24% say they will likely spend between $500 and $5,000. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. 1: Various content edits. Step 1: The cardholder disputes a charge. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. Does this mean I could never get my money back? The buyer paid me on Mar. . These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Cardholder Disputes. 4841 Canceled Recurring or Digital Goods Transactions. 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. . As MasterCard’s Codes can point to slightly different chargebacks reasons, we will review them in a separate article. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. The sales receipt and/or date and amount of the authorization if other than the transaction date. It is subject to change and may not include every currently known dispute reason code. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. We’ll Handle the Chargebacks. Chargeback reason codes can change with new information. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. It was originally just one facet of legacy reason code 81. 00. During this process, the representative of the institution examines the reasons’ list. Across open networks and include account numbers sent over email, instant messaging, text, or chat. com. Select a tab to see the possible. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Respond to invalid disputes. Clerical Early Warning: Reaching a chargeback ratio of 0. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . Table A-1 shows all possible values for the <response> and. Let’s say you got a Visa chargeback with reason code 13. About Discover chargeback reason codes. This will be referenced in the chargeback notice you received. Chargeback reason code. 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. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. The Electronic Fund Transfer Act is a piece of US legislation that requires banks to provide certain information to customers regarding electronic fund transfers (EFTs). We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). 3 applies when a cardholder claims a charge—made in a card-present environment—was. Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. See our Automated Clearing House (ACH) support article if you are looking for ACH Return 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. These chargebacks occur to resolve chargeback-related disputes between network members. Fraud Reason Codes Current Reason Code New VCR Reason Code 62(2) 10.