Guidance about Chargeback Reason Codes

 A reason code is a numeric code that describes the cause behind a chargeback dispute. Knowledge of such codes can help businesses file a chargeback dispute successfully. In simple words, the chargeback reason code provides the reason why you are dealing with a chargeback.

Chargebacks can pile up your expenses and can be annoying. The most effective to deal with chargebacks is to have the right information. You can check the details of the chargeback reason code to know why the chargeback was filed, the time within which you can file a chargeback, and what evidence can be used to corroborate your claim.

Chargeback reason codes vary a lot with different credit card companies. This confuses because what code 30 in visa, Credit Card Company, means (Services not provided) doesn’t necessarily mean the same thing in a different credit card company. This underscores the importance of knowing the reason codes of different companies because the early you know about the reason for the chargeback, the sooner you can file a claim of a chargeback dispute.

Reasons for use

The network simply sends the reason code with a brief description explaining the reason for a chargeback. If the issue is from the merchant side, then the merchant would not have any option to file a chargeback dispute.

If there is no issue from the merchant’s end and it can be verified by the evidence provided by him then a merchant can file a chargeback dispute.

Some of the most common reason codes by Visa, MasterCard, and American Express

Visa

11.1 No Authorization

11.2 Declined Authorization

13.1 Merchandise/Services not received

13.2 Cancelled Recurring

13.3 Not as Described or Defective Merchandise/Services

13.5 Misrepresentations

13.6 Credit not processed

10.3 Other fraud: Card present environment

10.4 Other fraud: Card absent environment

10.5 Visa fraud monitoring program.

MasterCard

4837 No Cardholder Authorization

4840 Fraudulent Processing of Transactions

4849 Questionable Merchant Activity

4863 Cardholder Does Not Recognize — Potential Fraud

4871 Chip/PIN Liability Shift

4807 Warning Bulletin File

4808 Authorization-Related Chargeback

4812 Account Number Not On File

4834 Point-of-Interaction Error

4831 Transaction Amount Differs

American Express

F10 Missing Imprint

F14 Missing Signature

F24 No Card Member Authorization

F29 Card Not Present

F30 EMV Counterfeit

F31 EMV Lost/Stolen/Non-Received

A01 Charge Amount Exceeds Authorization Amount

A02 No Valid Authorization

A08 Authorization Approval Expired

P01 Unassigned Card Number

Broad reason code categories

All the chargeback reason codes across major credit card companies can be classified into the following categories.

Fraud or No Authorization — It is applicable when any real fraud has occurred when any other identity could have tried to use the card.
Cancel Recurring Billing — When a customer is charged for any subscription which has already been canceled by the customer before.
Products and Services — This is applicable when there is any inconsistency between the quality of goods and services ordered and that which is received by the customer.
Liability Shift — This is applicable in the case of any chargebacks related to non-chip credit cards.
Other — A broad category in which all the reason codes that don’t belong to the above categories fall under this category