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. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. All ACH return reason codes consist of the letter “R” followed by two. 6. 11. Everyone has had the experience of buying. For most cardholders, the easiest way to dispute a charge is to contact their issuing bank through their preferred customer service channel. These codes are broken down into five different category types: Fraud codes 7 RBI Penalty (Reason Code - 1065/ AC & AT RBI Compensation is settled today on manual basis RBI Compensation is completely automated. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. ) has its own reason code system, so sellers should carefully check the card used for the transaction. There are dozens of reasons why cardholders and issuers dispute transactions. Reason codes are very crucial to assist. 00 EUR as a Withdrawal fee. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Below stated are some, Chargeback Response but not every, examples of particular documents that could be used as proof: Verification codes (authorization, AVS, card security code, 3D Secure 2. The deadline for a Chase Bank customer to dispute a transaction is 60 days. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. Because there are many reasons for which customers may file a chargeback, Discover issues an accompanying chargeback reason code with each chargeback. . Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For example, American Express has more than a dozen retrieval request reason codes while Discover only has four. All parties are subject to the rules of the card networks, including response time limits. The payment was declined because the card is reported lost. The cardholder wins: The bank upholds the chargeback, and the funds are not returned to your account. 3? Visa chargeback reason code 13. 4846. most common reason codes for recurring merchants include: 7. (98) Credit Card. 4. Region Only) 4855 Goods or Services Not Provided. Valid Values/Format: 22 - First Chargeback Handling Fee. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. Each chargeback comes with a code that designates the reason it was filed. 2. Processors handle exception items outside of the chargeback management system, however the merchant will see them designated as a chargeback, with an assigned reason code (e. The sales receipt and/or date and amount of the authorization if other than the transaction date. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Chargeback Reason Codes. All chargebacks start with a customer making a purchase in person, in an app, or online. The tickets were held at the box office, and no signature, swipe or imprint. 3 No Authorization. Multiple Authorization Requests. Check the chargeback reason code. A reason code or a chargeback reason code is a string of symbols (numbers and letters). For QSRs, which deal in a large volume of relatively small transactions, the financial impact of a high chargeback rate can be severe. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present. A reason code is how banks categorize the reason for a chargeback. Try Shopify free for 3 days, no credit card required. It is associated with a chargeback reason code, and it is specific per Card Scheme. Specify the invoice date and net due date to assign to chargebacks. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. non_receipt: The buyer claims they didn't get the goods or services. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Chargeback rebuttal letter: This letter must accompany your representment evidence and is essentially a summary of your evidence proving that the transaction is valid. 1 – EMV Liability Shift 10. ”. The key is finding the right partner. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. 4859 Addendum, No-show, or ATM Dispute. Additional data from Mastercard shows that global chargeback volume reached 615 million in 2021. message. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. 6). Your actions in response to such a chargeback will be determined by the particular circumstances, the most typical of which are described in the table below: If: Then: The transaction was cancelled and credit issued. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. 1, "Compelling Evidence for goods/services not4846 — Incorrect Currency Code. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. Nevertheless, you must respond to the chargeback based on the given code. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 98%. Reason Code 03. The situation grows more tenuous when you realize most of those chargebacks were likely the result of friendly fraud. That said, looking up purchases using this number can make it easier to provide info following an. Visa categorizes these types of disputes as “first-party misuse” under their reason code 10. 6. ”. The great piece of news for the merchant is that the pre-compliance dispute doesn’t influence the chargeback ratio. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. In this scam, a scammer sends a message to their victim. That suggests that in the times when merchants. Automated Clearing House return codes, reasons, and details. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Chargeback time frames - A specific period during which a chargeback can be raised. 4. If you're contesting a chargeback, you'll need solid evidence. 4853 – Cardholder Dispute – Credit Not Processed. All of Visa’s existing reason codes were. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. This information should be based on the Visa chargeback reason codes assigned to the case. First, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. Betty's issuing bank assigned chargeback reason code 10. 4853 – Cardholder Dispute – Goods or Services Not Provided. It can range from 60 to 120 days from the billing date. 4812 Account Number Not On File. 4512:Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. 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. Technical. 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 andThe chargeback reason code. 4. But friendly fraud is much more ambiguous. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. The most common reason for chargebacks (30%) is that the purchase was made with a stolen card. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingChargeback Reason Codes All received credit card disputes include a reason code. Though the credit card networks have a vast choice of codes, loopholes still happen. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. If the order was genuinely not as described, then the cardholder has a case. 11. The transaction amount and authorization number (ARN. Attachment A: Copy of the customer's transaction on xx/xx/xxxx using a credit card ending in XXXX. REQUEST A DEMO. It’s even more frustrating if you don’t understand what the chargeback code means. Approval Rating. By entering your email, you agree to receive marketing emails from Shopify. A dispute often has a reason code associated with it. Code. Different card networks have different reason code systems. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. 4 spec (Section 8. in. Mastercard Chargeback Reason Code 71: Disputed Amount. 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. How long can the issuer wait to file a chargeback? A good faith investigation can be launched up to two years after the original transaction. Merchants can find a. 65% with at least 75 total disputes. The card issuer assigns it a chargeback reason code, a simple alphanumeric code to describe the reason for the chargeback. There are a variety of issues that can serve as the root causes of a chargeback, ranging from fraud to improper card processing to dissatisfaction with the quality of the goods or services provided. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Check Processing (98) Credit Card. 1. The specific reason for the decline shouldn’t be reported to the customer. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Below are some examples of more common reason codes. Reason Code. There are plenty of reasons as to why this would happen, hence the many. Chargeback reason codes have changed. Code 4807: Fraudulent Card-Present Transaction. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. 6: Duplicate processing/Paid by other means. 4853 – Cardholder Dispute – Goods or Services Not Provided. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. Reason Code 98). Step 2: Find your case. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. e above 0. Build & Submit a Representment Case in 4 Stepsprenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. If the merchant has a signature showing that the order was delivered, or evidence that the. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingA chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. On that note, below are some vendor missteps that could result in Visa reason code 13. AT Authorization Noncompliance. 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. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. These companies can also handle the entire representment process. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. That's why we've created this guide, which goes over what reason codes are and how they help fight chargebacks and includes up-to-date lists of the reason codes for all the major US card networks. Each card network maintains reason codes to cover all the disputes that qualify for. Chargeback. While there are many chargeback reason codes, all chargebacks fall into one of three categories: The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. And chargeback guarantees aren't without. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. Reason Code 12. 78. 2? Visa chargeback reason code 13. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. Protect stored cardholder data. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. For example, suppose a cardholder filed a case about an order processing issue, and you disputed the chargeback. In fact, 91. 11. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). At Visa they used to receive reason code 98. 2=1020 etc. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. -0. During this process, the representative of the institution examines the reasons’ list. However, Visa is the largest card brand in both the United States and the world. Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. The merchant did not receive any returned merchandise. Visa Chargeback Reason Codes; MasterCard. This chargeback occurs when merchants do not adequately provide currency information. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. 98: Good Faith Collection: Other: NO: YES: VISA: 99: Pre-Compliance: Other: NO: YES: Card Type Reason Code Reason Text Chargeback Category. Chargeback reason codes can change with new information. This is a code taken from the card scheme’s published list, which identifies why the issuer filed the dispute: Visa Chargeback Reason Codes. Vantage House1. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. reason codes. Next, you can log in to your PayPal account and click on Open Cases in the Resolution Centre. Cardholder-Activated Terminal (CAT) 3 Device. 634. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. Chargeback Reason Codes by Industry. 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. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Mastercard Chargeback Reason Codes. Updated August 23, 2023. August 2021 Marks the 10 th Anniversary of Chargebacks911®. [2] JUSTT. Category. 4807 Warning Bulletin File. . If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Additionally, one clearing transaction. There is a USD 25 limit for the First Chargeback (Reason Code 22). Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. Thus, the easiest way to prevent chargeback reason code 75 from being. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. FR6 Partial Immediate Chargeback Program. This ranges anywhere from roughly 60 to 90 days after purchase. The list of chargeback reason codes in this article. Reason codes vary by card brand. Make sure the evidence you include and the claims you make are relevant to the chargeback reason code, the product purchased, the cardholder’s claims, the type of transaction processed, etc. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Time Frames by Chargeback Type and Reason Code. Chargeback /Dispute; Merchant Response. 1 Card Recovery Bulletin or Exception File. Acquirer Use of Message Reason Code 7623. By entering your email, you agree to receive marketing emails from Shopify. FR4 Immediate Chargeback Program. Type. Also, remember that the time frame for your response includes any processing required by the acquirer. It’s of utmost importance to understand why the customer requested a chargeback. Visa Chargeback Reason Codes. Please see the below “cheat sheet” for the new 4 byte reason codes. 31. UA05 Fraud – Chip Counterfeit Transaction. The following chargeback reason codes are related to EMV: Visa: 10. Once you receive this notification, you have 11 days to submit a response. The terminal action codes are in Table 122 of the 4. 4808 Authorization-Related Chargeback. Visa chargeback reason codes. A chargeback happens when a customer requests for a transaction to be reversed. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. By entering your email, you agree to receive marketing emails from Shopify. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. ) Collect Compelling Evidence. Also, they’ll often issue a provisional credit to the customer until there is an investigation on the claim. 2. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. com Europe. ; Resources. Every chargeback comes with a reason code. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. 9808 info@chargebacks911. UA06 Fraud – Chip and PIN Transaction. Here’s how. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Check the chargeback reason code. Updated: Valid values updated. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. NACHA Return Codes. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing. American Express is incentivized to keep their customers happy. R13 No Reply. M01 Chargeback Authorization. processed the transaction correctly. A Merchant Category Code is a four-digit number that identifies the type of products or services the merchant provides. In the world of chargebacks, card networks almost always side with cardholders. 4: Other Fraud–Card-Absent Environment. Stage #1: Awareness - be aware of the chargeback response time limitWhat are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. 08. S. Try Shopify free for 3 days, no credit card required. Using the same link provided above, contact PayPal to report the scam. FAQs About Visa Chargebacks How does a Visa chargeback work? Chargebacks begin when a cardholder disputes a charge. Step 2: Customer initiates the chargeback. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. In most scenarios, professional chargeback assistance can substantially raise your ROI. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. 2 Declined Authorization. The reason code may not reflect the true reason for the chargeback. Each chargeback reason code has specific rules and documentation requirements. 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 REASON CODES Chargebacks. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. Try Shopify free for 3 days, no credit card required. Chapter 2 1. They were mandated by the Internal Revenue Service in 2004 to facilitate tax reporting. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. About American Express chargeback reason codes. 3: Goods or services were not as described: C31: RM: 13. Unauthorized returns (R05, R07, R10, R29, R51): 0. Each bank card network has its owner list of reason codes banks must prefer from. ACH return codes and explanations for R01 – R33 returns. 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. 4 applies to eCommerce, whereas code 10. The chargeback filing period for cardholders is usually 120 days. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Encrypt transmission of cardholder data. However, a business’s success rate may vary depending on its dispute approach. American Express chargeback reason code C42. 4 spec (Section 8. Learn more about Mastercard chargeback reason. The most effective chargeback professionals can deliver customized solutions for chargeback management with every facet of your dispute process. As we touched on earlier, chargebacks can happen due to technical errors. For example, 10. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. [noun]/* rēzən kōd / A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the. 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 assigned chargeback reason code outlines why a customer submitted the dispute. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that includedAT Authorization Noncompliance. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. The most comprehensive guide to chargeback reason codes. Thus, the easiest way to prevent chargeback reason code 75 from being. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. There are also specific return time frames, which can differ. Overall returns (all codes): 15%. “It’s a lot tougher with Mastercard because they only use four main codes. Clearing. The customer is claiming that this purchase was not authorized. Reason codes. Protect cardholder data. Try Shopify free for 3 days, no credit card required. And according. What is Visa chargeback reason code 13. Which is meant to know the reason for the dispute. Fraud and chargebacks always result in revenue loss, but they also include fixed-rate fees and other negative consequences. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. Chargeback fees can start at US$25 and go up from there. The shorthand description is “Cancelled Recurring Transaction. PCI DSS v3. In this article, you’ll learn the key takeaways for merchants: Visa standard chargeback regulations; 3 most common Visa dispute reason codes; New Visa mandate Compelling Evidence 3. The cardholder claims they were charged multiple times for a single transaction. Fraudulent Activity. 634. 7: Defective goods and services: C32: RM: 13. In order to fight a chargeback effectively, however, you'll need to know the reason code. We’ll send you a notification, request for relevant information, and temporarily hold the transaction funds. It depends on the chargeback reason code associated with the dispute. Maestro. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. There are over 80 unique return codes, each representing a different return type. 3: Goods or services were not as described: C31: RM: 13. Responding to a chargeback request. 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. FR2 Fraud Full Recourse Program. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. This reason code is used when the cardholder claims that their card was used fraudulently without their permission. Receiving a damaged product. This may include: Transaction receipts; Merchant credentials; Customer authorizationReason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. chargeback: The buyer filed a chargeback with the credit card issuer. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. . prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Explore more ACH Return Codes. Choose the representment amount. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Chargeback reason codes.