The case will be removed from the Chargeback Queue Worklist and your ‘accept’You'll learn about the major categories of chargeback reason codes: fraud, authorization errors, processing errors, customer disputes; You'll learn about the usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift); You. R13 No Reply. Visa Chargeback reason code 13. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. 4 Other Fraud Card Absent. The sales receipt and/or date and amount of the authorization if other than the transaction date. . 4846. For a Point-of-Interaction Currency Conversion dispute to be valid, one of the following conditions must apply: The cardholder claims they were not given the option of choosing the currency in which they wanted. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. DP Duplicate Processing. 1 EMV Liability Shift 10. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback Reason Codes. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Without understanding the true. 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. With the overhaul of their reason code system, Visa divided reason. In some cases, chargebacks from Visa Reason Code 12. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason Code 12. Chargeback reason codes are one piece of evidence you can use to make your case. Reason Code 12. without a reason code will be assigned a default code of 1. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. FR6 Partial Immediate Chargeback Program. FR2 Fraud Full Recourse Program. This list was generated 5/4/2022. CD Credit/Debit Posted Incorrectly. Learn about the different chargeback reason codes and what they mean. Retry after 10 days. In order to compile the right kind of evidence, you need to know what justification the cardholder gave to the bank for requesting a chargeback. Quality. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. Find a detailed explanation of the Visa reason codes, the new format of the reason codes, and the categories they fall under. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. The reason code indicates the nature and category. The short answer is “no. Time Frames by Chargeback Type and Reason Code. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. 1 Quick Reference Lead. 2. Updated Disputes/Chargeback Policy Coming April 2024A chargeback with reason code 4834 may refer to disputes in which the cardholder participated in an ATM cash withdrawal, but claims to have not received part—or all—of the cash amount requested. The first global company fully dedicated to helping merchants combat post-transactional fraud, Cb911 safeguards over 2. While there are many chargeback reason codes, all chargebacks fall into one of three categories:American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. The chargeback process can last from one month to six months. Find this type of chargeback with the below reason codes. The chargeback transfers funds from the acquirer to the issuer. 634. 1 — EMV. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. About Discover chargeback reason codes. 4 applies to eCommerce, whereas code 10. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. 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. This scenario applies when the arbitration was raised by either the. Learn how to identify and fight chargeback reason codes from Visa, Mastercard, American Express, and Discover, the four major US-based card schemes. 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. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. . 3. Chargeback reason code 4853 No-Show Dispute is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. The chargeback process is mandated by law in the United States. . Chargeback reason codes are meant to help you understand the cause for the chargeback and determine the best way to validate the original transaction. When alerted about a potential chargeback, businesses can reach out to the customer promptly to understand and address their concerns. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. compliance process depending on whether a chargeback right exists. 2, which specifically deals with. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Discover Chargeback Reason Codes Explained. In some cases it can be upwards of 540 days, though, depending on. Chargeback reason code 13. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 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. 2. The tickets were held at the box office, and no signature, swipe or imprint. 4 spec (Section 8. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Some reason codes are easy to verify. The list of chargeback reason codes in this article is organized by card brand and type of dispute. Additionally, one clearing transaction. Chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. This code tells you why the customer or bank initiated the dispute. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. IC Illegible Sales Data. Like other parts of the process, learning all the types and exceptions of chargeback time limits will take a lot of effort and money. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. We say the given reason because it may or may not reflect the true reason. If the chargeback is in the customer’s favor, the bank reverses the transaction and debits the business’s acquiring bank instead of crediting itAcquirer Use of Message Reason Code 7623. Discover is a credit card network and an issuing bank—just like American Express. Explanation. Chargeback Reason Codes: 5 Things For Merchants to Know 1. There are plenty of reasons as to why this would happen, hence the many. Visa Chargeback Reason Codes. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Reason Code 05. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. There are also specific return time frames, which can differ. 2022 Visa Chargeback. With this information, you can determine the root causes of your chargebacks and take. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. A chargeback is a transaction reversal resulting from a credit card payment dispute. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute. The reason code may not reflect the true reason for the chargeback. . 30. There are several scenarios where a customer may reasonably expect a payment reversal. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. The implication is that the merchant is at fault. . 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. Notification of Fraud. Chargeback reason code 11. The newer system is designed to. Retry after 8 days. The aim of CE 3. As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment. About Mastercard chargeback reason codes. “At the end. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. 1. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Thus, the merchant is at fault for. 1. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Chargebacks911® can help businesses manage all aspects of chargeback reason codes, with proprietary. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. Now, compliance cases go through Visa Resolve Online (VROL). Each of these causes has a designated “reason code,” and banks assign the appropriate code to. The Chargeback Reason is fraud-related and the Chargeback Notice identifies that one of the below chargeback codes (each, an "Acceptable Reason Code") applies: Acceptable Reason Codes. RM Cardholder Disputes Quality of Goods or Services. For a no-show reason code to apply. These codes are currently defined within the ANSI X9. Use standard authorization criteria with Issuer - not eligible for chargebacks: 1: CAVV failed verification (authentication) - Issuer approves authorization:. 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. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. This lets the merchant resolve the issue before a chargeback happens. Message. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. In the case of friendly fraud, that reason could be completely invalid and. When you get a chargeback, it means that the funds from a completed transaction are being taken out of your merchant account and returned to the cardholder. Fraud Category CodesThese reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. Card networks send these codes to merchants to indicate why a chargeback has been filed. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. 3: Goods or services were not as described: C31: RM: 13. M01 Chargeback Authorization. In theory, reason codes help merchants understand why customers dispute purchases. 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. . About American Express chargeback reason codes. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1 chargeback: 1. What is Visa Reason Code 13. Chargebacks with the following reason codes are requested due to fraudulent activity. . com Europe. 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. Quality. ; Set up your server to receive. 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. Network reason code is available on the dispute object. Step #1 | Cancel the Transaction. . WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Administrative returns (R02, R03, R04): 3%. Reason. Discover. 6: Duplicate processing/Paid by other means. Code. [noun]/* fren • dlē • frôd • /. In claims featuring a 4853 reason code, one of the possible causes is “Transaction Did Not Complete. Code 10. The same is true of all chargeback reason codes. . 51 Pleasant St # 1072, Malden, MA 02148 +1 (888) 901-8653. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Find this type of chargeback with the below reason codes. Most such requests are made to. Visa Fraud Chargeback Reason. Chargeback Reason Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. . The chargeback can be for the total transaction amount or a lesser amount. Mastercard. Customer Dispute. 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. VCR Dispute Reason Code 10. Alerts providers work closely with banks to ensure that merchants using the service receive advance notice of impending chargebacks. There will always be people who attempt to take advantage of the system, no matter how faithfully merchants follow the rules. 1: EMV Liability Shift Counterfeit Fraud: 10. The system does not accept blank as a value, even if it is defined in the user defined code table. Use this guide as a quick resource for Visa chargeback reasons at a glance. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. . 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardVisa Claims Resolution consolidated the company’s previous roster of chargeback reason codes into four fundamental dispute categories: Fraud; Authorization; Processing Errors; Consumer Disputes; The reason codes are broken up into general, related categories. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). 196 WEX began issuing chip cards in Q4, 2020. 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. Mastercard Chargeback Reason Code 70: Chip Liability Shift. This can be transaction receipts, proof of. 6: Credit not. Reason codes are very crucial to assist. 4 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. The separation of the Return ReasonChargeback reason code 13. Chargebacks with the following reason codes are requested due to fraudulent activity. Each reason code has its own regulations set by the relevant card scheme. . 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Chargeback reason code 10. . Reason codes give merchants information about the cause of a chargeback and what evidence. Card networks send these codes to merchants to indicate why a chargeback. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. You can see a reason code 11. Merchant must provide proof of authorization. 1. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. 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. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). . 2 Chargebacks: Prevention and Response. Each card company has its own set of codes that indicate the specific reason that a cardholder initiated a dispute. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. The most relevant Mastercard chargeback codes for the majority of merchants can be broken down into four main categories—authorization, cardholder dispute, fraud, and point of interaction. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Nor is the situation static. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. Thanks for following the Chargeback Gurus blog. To be labeled with reason code 10. In most cases, the bank chooses a course of action based on information the cardholder provides. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 1? Visa chargeback reason code 12. About 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. Chargeback fees can start at US$25 and go up from there. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. These guarantees typically involve reimbursement for chargeback-related losses or the assumption of liability for chargeback disputes. 3: Goods or services were not received: C08: RG: 4855: 13. R02 – Account Closed: The account holder has closed their account since the transaction was initiated. Chargeback Reason Codes. When one cardholder initiates a dispute with their issuing. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. Not every transaction can be charged back to the merchant; however, most card issuers will err on the customer’s side and generate a chargeback. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Merchants can find a. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. FR4 Immediate Chargeback Program. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. About Visa chargeback reason codes. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. Chargeback Reason Codes Page 2 of 5. Visa Chargeback Reason Codes. Reason codes. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. A dispute often has a reason code associated with it. About American Express chargeback reason codes. PM Paid by Other Means. Table A-1 shows all possible values for the <response> and <message> elements. R03 Insufficient Reply. Each card network has their own set of chargeback policies and reason codes, and they frequently change them. Chargebacks with a “paid by other means” reason code are the result of a simple mistake on the part of the merchant. This is commonly caused by either true fraud or friendly fraud. What are chargeback reason codes? It’s an alphanumeric string of text provided by an issuing bank following a chargeback that describes the reason for the. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. Chargeback prevention strategies vary based on the reason for the. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. For example, the merchant bills the cardholder in installments. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. Use standard authorization criteria with Issuer - not eligible for chargebacks: 1: CAVV failed verification (authentication) - Issuer approves authorization:. 4860 Credit Not Processed. Any chargeback that is received without a reason code will be assigned a default code of 53. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. It’s easy for the bank to be tricked into allowing a friendly fraud 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. 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. If a customer asks to use another form of payment after the Visa card transaction has been processed, credit from the original. Chargeback Reason Codes Page 2 of 5. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. This second chargeback is what was commonly referred to as a “pre-arbitration chargeback. There are multiple situations in which this can occur. VCR Dispute Reason Code 10. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. . We also included the reason code descriptions and an indication of when the allowable time frame begins. message. Read chargeback reason code descriptions carefully, especially if they include any transaction modifiers. On that note, below are some vendor missteps that could result in Visa reason code 13. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Below are some examples of more common. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Fraud. Duplicate Processing - 81How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Each bank card network has its owner list of reason codes banks must prefer from. . A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. If the dispute involves a non-Visa card, the dispute can be paused for up to 72 hours for the merchant to respond. The terminal action codes are in Table 122 of the 4. The list of chargeback reason codes in this article. It can also apply when the merchant processed a recurring billing charge after the issuer requested cancelation. Friendly fraud. Chargeback Reason Codes by Industry. In fact, the same thing could be said of other chargeback reason codes, too. Exploring Visa Chargeback Reason Code 12. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. 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. 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. Visa Fraud Chargeback Reason Codes 10. 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. An ACH dispute results in a chargeback for the business that processed the payment. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. This process is called a chargeback. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. By offering timely. Fraud. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12,. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Visa Chargeback Reason Codes; MasterCard. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. You can learn more about each one by visiting the Mastercard Chargeback Guide. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. . Below is a list of Mastercard chargeback codes used in eCommerce. Now, 10. 634. 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. 9808 info@chargebacks911. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. R03 Insufficient Reply. Paymentology will monitor and track the chargeback throughout the dispute lifecycle of submission, second presentments and arbitration. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Each reason code has its own regulations set by the relevant card scheme. 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: 9Depending 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. If the customer is still. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. © 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. Different card networks have different reason code systems. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. ”. Visa chargeback reason codes are used to categorize the reasons for a chargeback. . Reason Code 12. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). Here is what each one means: R01 – Insufficient Funds: The account holder did not have enough money in their account to cover the transaction. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. The chargeback can be for the total transaction amount or a lesser amount. . This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code.