Chargeback reasons come in all shapes and sizes. Some are the result of faulty products, some because of misunderstandings between a brand and a customer, others surround triggers that lead to banks questioning transactions without the customer or merchant knowing, and the list goes on and on.
To streamline the process and make things easier, credit card companies have developed chargeback reason codes. These reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks.
When a chargeback is filed, a bank selects the code that best fits the reason a chargeback was filed. This reason is made visible to all parties involved. The merchant can choose whether or not the reason makes sense and lets it go or he/she can fight it.
As you navigate through the topic of chargeback reason codes, it’s important for you to understand that each credit card provider has their own set of codes.
In a perfect world there would be a universal set of codes; however, the landscape is still quite disjointed. For example, VISA uses the following reason codes:
10.1 — EMV Liability Shift Counterfeit Fraud
10.2 — EMV Liability Shift Non-Counterfeit Fraud
10.3 — Other Fraud: Card-Present Environment/Condition
10.4 — Other Fraud: Card-absent Environment/Condition
10.5 — Visa Fraud Monitoring Program
11.1 — Card Recovery Bulletin
11.2 — Decline Authorization
11.3 — No Authorization
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
13.1 — Merchandise/ Services Not Received
13.2 — Cancelled Recurring Transaction
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
As you can see above, VISA breaks things down in a manner that helps banks and merchants alike know exactly why a chargeback was initiated. As you dive into a reason code via VISA’s chargeback guide, you’ll notice that it provides specific time limits for all parties involved. The same is true for Mastercard, Discover, and other leading card companies.
Reason codes can change often, so it’s important that you keep links to each credit card provider guideline pages online. If you have any questions surrounding a chargeback, it’s vital that you contact the credit card company and ask for guidance. Failure to respond in a timely manner can lead to wrongly initiated chargebacks sneaking by without notice.
This is also where Chargeback360 can come into the mix. The numerous chargeback code reasons can get overwhelming and fighting them can be frustrating. The Chargeback360 technology platform analyzes chargebacks, risk and campaign performance by collecting metrics form service providers and uses them to take proactive measures
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