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. Take the time to note the following dispute reason codes for Visa.
All of Visa's existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. The new regulations simplify certain aspects of the dispute process and help stop some fraudulent claims before they become chargebacks.
What causes code 10.1 chargebacks? This chargeback usually happens when a fraudster creates a counterfeit credit card and goes looking for a merchant who doesn't use EMV-compatible payment terminals.
Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 12.2, which indicates an improperly processed transaction that the cardholder does not believe they should be responsible for paying. The actual underlying cause of this chargeback usually tends to be merchant error.
Visa organizes chargeback reasons into six basic categories — non-receipt of information, fraud, authorization error, processing error, canceled or returned merchandise, and non-receipt of goods or services — and clearly outlines the protocol for each situation.
What causes code 11.1 chargebacks? While code 11.1 chargebacks are technically caused by a card being listed on Visa's card recovery bulletin, the true root cause of the chargeback is that the merchant failed to process an authorization request for the transaction.
Reason Code 10.3 - Other Fraud, Card-Present Environment
The cardholder claims the transaction was unauthorized and it was either a key-entered or unattended transaction.
The shorthand description is “Merchandise/Service Not Received.” This reason code means that the cardholder is disputing a transaction by claiming that they never received the merchandise or services they purchased.
If a business receives a reason code 4808 chargeback (or reason code 08 for single message system transactions), it simply means an authorization-related error was cited as the reason for the chargeback. In other words, authorization for the transaction in question was required, but not properly obtained.
Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 12.1, which indicates an improperly processed transaction that the cardholder does not believe they should be responsible for paying. The actual underlying cause of this chargeback is usually merchant error.
The actual underlying cause of this chargeback may be true fraud, friendly fraud, or merchant error. Merchants who believe they have received an invalid chargeback under reason code 5 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.
The [14] Card No.
error code means that the credit card number was entered incorrectly. To fix this issue, re-submit your credit card or use a different credit card.
Visa chargeback reason code 30 falls under the “Consumer Disputes” category. The shorthand description is “Services Not Provided or Merchandise Not Received.” This reason code means that the cardholder is claiming that the merchant never provided the goods or services that they paid for.
Visa chargeback reason code 12.4 falls under the “Processing Errors” category. The shorthand description is “Incorrect Account Number.” This reason code is used when a transaction is posted to the wrong account number.
Visa chargeback reason code 10.4 falls under the “Fraud” category. The shorthand description is “Other Fraud: Card-Absent Environment.” This reason code indicates that the cardholder is claiming that they did not authorize or participate in a card-not-present transaction, and therefore it must be fraudulent.
A reason code is a predefined set of categories or codes used to classify and track the reasons why certain events or transactions occur in a business. These codes are used to identify and understand the underlying causes of business processes, events, or outcomes.
The Issuer may use reason code 79 if the Cardholder's Account has been debited for a POS or an electronic commerce Transaction, but the Cardholder or his or her authorized representative did not receive the goods or services that were to be shipped, delivered or otherwise provided by the expected delivery date.
The customer's card issuer has declined the transaction and requested that your customer's card be retained. You should check transactions processed after any declined transactions receiving this particular error to monitor for fraudulent transactions on alternate cards.
American Express chargeback reason code F10 falls under the “Fraud” category. This chargeback reason code applies when a merchant processes a transaction without using the magnetic stripe or EMV card chip data, and the cardholder claims that they did not participate in the purchase.
Visa chargeback reason code 41 falls under the “Consumer Disputes” category. The shorthand description is “Cancelled Recurring Transaction.” This reason code indicates the cardholder is claiming that they were charged for a recurring billing transaction that they had already canceled.
Visa chargeback reason code 81 falls under the “Fraud” category. The shorthand description is “Fraud—Card-Present Environment.” This reason code is used when a cardholder is claiming that they neither authorized nor participated in a card-present transaction and that it, therefore, must be fraudulent.
Reason code 12.6. 2 applies when a cardholder claims that a transaction was actually paid for using an alternate method—not the Visa card in question. This can be cash, check, or some other type or brand of payment card.
This code is often returned from the issuer when they do not accept the transaction. This can possibly be when a transaction for the same amount and merchant is attempted multiple times quickly for the same card. The cardholder should contact their issuing bank.
To the issuing bank, however, “Code 10” signifies that the merchant suspects possible fraud: either that the payment card has been stolen or tampered with, or that the customer is not who they claim to be.
This simply indicates the bank would like you to call and provide more information about the transaction. The response may or may not be related to fraud. The authorization response is “Pick Up Card.”