Chargeback Reason Codes

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The Chargeback Reason Codes are alphanumeric key codes provided to the merchant and that comes along with the chargeback request. These reason codes explain the reason for the dispute. The major card networks like American Express, Discover, Visa, and MasterCard have created these reason codes to explain the reasons behind the chargeback requests. A merchant is required to pay attention to these reason codes so that they can avoid disputes in the future.

The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. While creating the reason codes, the bank asks the customer about the reason for dispute and then assigns a code. In some cases, the reason code may not match the real reason. It might be possible that the customer is trying to make a fraud by not paying for the product or services rendered.

Importance of Chargeback Reason Codes:

These reason codes provide the exact information about the required documents in the occurrence of the dispute. The merchant has to show these documents to proving the genuine sale and winning the chargeback. Every card network has its unique chargeback reason codes. So, it is important to have the understanding of all the Chargeback Reason codes, in order to face or resolve the chargeback dispute.

Categories of the Chargeback Reason Codes:
There are four categories of the chargeback reason codes, which include Consumer Disputes, Authorization, Fraud, and Processing Errors.

Consumer Disputes:

When a customer or cardholder initiates the chargeback to represent the issues with the Merchant, Product or Services, then it is known as Consumer Disputes. There are several terms that can be used for the consumer disputes such as Cardholder Dispute, Card Member Dispute as well as Service Chargeback. The reasons for the consumer disputes can differ from situation to situation.

American Express – Consumer Disputes:

C02 – Credit Not Processed
C04 – Goods or Services Returned/Refund
C05 – Goods or Services Canceled
C08 – Goods or Services not Received/Partially Received
C14 – Paid by Other Means
C18 – No Show or CARDeposit Canceled
C28 – Cancelled Recurring Billing
C31 – Goods or Services Not as described
C32 – Goods/Services Damaged or Defective
M10 – Vehicle Rental – Capital Damages
M49 – Vehicle Rental – Theft or Loss of Use

MasterCard – Consumer Disputes:

4853 – Cardholder Dispute
4841 – Canceled Recurring or Digital Goods Transactions
4854 – Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)
4855 – Goods or Services Not Provided
4859 – Addendum, No-show, or ATM Dispute
4860 – Credit Not Processed

Discover – Consumer Disputes:

05 – Good Faith Investigation
AA – Does Not Recognize
AP – Recurring Payments
AW – Altered Amount
CD – Credit/Debit Posted Incorrectly
DP – Duplicate Processing
NF – Non-Receipt of Cash from ATM
PM – Paid by Other Means
RG – Non-Receipt of Goods, Services, or Cash
RM – Cardholder Disputes Quality of Goods or Services
RN2 – Credit Not Processed

VISA – Consumer Disputes:

13.1 – Merchandise/ Services Not Received
13.2 – Cancelled Recurring
13.3 – Not as Described or Defective Merchandise/ Services
13.4 – Counterfeit Merchandise
13.5 – Misrepresentation
13.6 – Credit Not Processed
13.7 – Cancelled Merchandise/ Services
13.8 – Original Credit Transaction Not Accepted
13.9 – Non-Receipt of Cash or Load Transaction Value

Authorization:

The disputes related to the Authorization come under the Authorization Chargebacks. In case the authorization was not obtained in a transaction where it was required then Authorization Chargeback is applied.
American Express – Authorization:

A01 – Charge Amount Exceeds Authorization Amount
A02 – No Valid Authorization
A08 – Authorization Approval Expired

MasterCard – Authorization:

4807 – Warning Bulletin File
4808 – Authorization-Related Chargeback
4812 – Account Number Not On File

Discover – Authorization:

AT – Authorization Noncompliance

VISA – Authorization:

11.1 – Card Recovery Bulletin or Exception File
11.2 – Declined Authorization
11.3 – No Authorization

Processing Errors:

When there is a point of interaction error then it is known as Processing Error. The Processing Errors include the disputes like duplicate processing, credit processed as charge, No Show, Incorrect Charge amount etc.

American Express – Processing Errors:

P01 – Unassigned Card Number
P03 – Credit Processed as Charge
P04 – Charge Processed as Credit
P05 – Incorrect Charge Amount
P07 – Late Submission
P08 – Duplicate Charge
P22 – Non-Matching Card Number
P23 – Currency Discrepancy

MasterCard – Processing Errors:

4834 – Point-of-Interaction Error
4831 – Transaction Amount Differs
4842 – Late Presentment
4846 – Correct Transaction Currency Code Not Provided
4850 – Installment Billing Dispute
4999 – Domestic Chargeback Dispute (Europe Region Only)

Discover – Processing Errors:

IN – Invalid Card Number
LP – Late Presentation

VISA – Processing Errors:

12.1 – Late Presentment
12.2 – Incorrect Transaction Code
12.3 – Incorrect Currency
12.4 – Incorrect Account Number
12.5 – Incorrect Amount
12.6 – Duplicate Processing/ Paid By Other Means
12.7 – Invalid Data

Fraud:

This category includes the disputes related to fraudulent transactions. The reason codes in this category would look like- No cardholder authorization, EMV Liability, and card not present etc.

American Express – Fraud:

F10 – Missing Imprint
F14 – Missing Signature
F24 – No Card Member Authorization
F29 – Card Not Present
F30 – EMV Counterfeit
F31 – EMV Lost/Stolen/Non-Received

MasterCard – Fraud:

4837 – No Cardholder Authorization
4840 – Fraudulent Processing of Transactions
4849 – Questionable Merchant Activity
4863 – Cardholder Does Not Recognize—Potential Fraud
4870 – Chip Liability Shift
4871 – Chip/PIN Liability Shift

Discover – Fraud:

UA01 Fraud – Card Present Transaction
UA02 Fraud – Card Not Present Transaction
UA05 Fraud – Chip Counterfeit Transaction
UA06 Fraud – Chip and PIN Transaction

VISA – Fraud:

10.1 – EMV Liability Shift Counterfeit Fraud
10.2 – EMV Liability Shift Non-Counterfeit Fraud
10.3 Fraud – Card-Present Environment
10.4 Fraud – Card-Absent Environment
10.5 Visa Fraud Monitoring Program

We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. You can also visit us at Chargebackexpertz.com to know more about chargeback reason codes and how you can win them or Contact Us and one of our chargeback experts will get back to you with the solution.