Which is meant to know the reason for the dispute. 7 Violation for Coercion Claim. Choosing what compelling evidence to submit. com. The customer is claiming that this purchase was not authorized. What is American Express chargeback reason code C08?. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. The separation of the Return ReasonAs both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. This reason code indicates the cardholder had reason to believe they were going to receive a refund, but no credit to their account has been processed. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. While the updates have been published, they do not go into effect until Oct. 4 spec (Section 8. Please refer to chapter 5 for. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. MasterCard chargeback reason code 4540. This may include information about the. Code 34 – will be renamed 'Point of Interaction Error' and will be used for the following issues: 31 Transaction amount differs; 34 Duplicate processing; 42 Late presentment; 46 Correct transaction currency code not provided; Issuers have the option of using the existing chargeback reason codes or the renamed code covering a variety of issues. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Any time. 4808: This code can refer to: Account Number Not on File. There are over 80 unique return codes, each representing a different return type. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. 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. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. 100187 and ANSI X9. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. It is associated with a chargeback reason code and it is specific per Card Scheme. Each bank card network has its owner list of reason codes banks must prefer from. SecureCode also includes another important benefit just for merchants: if fraud is reported on a transaction that was authenticated with SecureCode. But friendly fraud is much more ambiguous. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. Real-Time Account Reporting. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. See more04/04/16 Added American Express Chargeback and Retrieval Reason Codes. 43 Reason Code 73: Expired Card. From there, a merchant can accept the chargeback or take action through the representment process to attempt to have the chargeback reversed. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. If using any other currency than this, it should be equivalent to the specified amount. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. 04/09/14 Discover: DC, U02. 2. In the case of friendly fraud, that reason could be completely invalid and. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. Look below the surface. 4: Other Fraud–Card-Absent Environment. This chargeback will include a description that provides additional information: Digital Goods $25 or Less;When the customer disputes a charge, the issuing bank then begins the chargeback process. If a dispute has a strong enough basis to warrant a chargeback, Discover will send a chargeback notice to the merchant along with the reason code for the chargeback. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. M01 Chargeback Authorization. According to Nilson, 56% of global card transactions were done on Visa in 2015. For example, the merchant bills the cardholder in installments. 3. 2 Retrieval Request Reasons and Reason Codes. Apparel retailers and suppliers must proactively address chargeback issues. 16, 2021. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. Updated August 23, 2023. Each American Express reason code consists of one or more letters, indicating the category, and a number that identifies the. ”. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Services industry for image exchange and the creation of IRDs. 60 due to merchandise, fees, overhead, and other sources of loss. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. Please see the below “cheat sheet” for the new 4 byte reason codes. American Express chargeback reason code C42. At Visa they used to receive reason code 98. 03%: AP: 21: 1. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. Time and Labor. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Date Option. You’ll put that reason code, the transaction amount and authorization number, and state that the. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. Why did I get a chargeback with Mastercard Reason Code. • For Visa Allocation reason codes (RC 10. Having a Lax Attitude Toward Industry Rules & Regulations. 60 due to merchandise, fees, overhead, and other sources of loss. 3. A smarter, simpler way to stop fraud. Mastercard Chargeback Reason Code 73: Duplicate Transaction. 7: Defective goods and services: C32: RM: 13. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. 80. Include any terms relevant to the transaction, including return, cancellation and. Write customer-friendly policies. Reason Code. Complete Guide to Visa Compelling Evidence Update CE 3. 3 - Incorrect Currency . 3. , as a result of a legitimate purchase of the Driving Manual from our online store drivingmanual. Search the Chargeback Reason Code Database. ”. This chargeback occurs when merchants do not adequately provide currency information. 12. Visa ® has launched the CE 3. compliance process depending on whether a chargeback right exists. Try Shopify free for 3 days, no credit card required. 6 General update and rebranding. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Those reasons are explained through the corresponding reason codes. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. NOTE: Domestic Processing Violations are not a covered reason under new Visa chargeback codes. False declines lead to missed legitimate purchases, while false. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Chargeback reason code. 0 initiative to update compelling evidence requirements for dispute reason code 10. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. Sift’s MasterCard chargeback reason code guide features every. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. High Level Visa Chargeback Dispute Flow. Updated these Visa Chargeback Codes: 30, 62, 85. In fact, 91. . Chargeback reason code 12. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. 0 is to make the chargeback process more efficient, transparent, and fair. 4 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. ’For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Specify the default reason code to. 00. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. As a merchant, you face the brunt of chargeback losses. Now, compliance cases go through Visa Resolve Online (VROL). 2. This ranges anywhere from roughly 60 to 90 days after purchase. “American Express Chargeback Reason Codes | Sift”. 26: Outcome: Type: String; Unique: No; Blanks: Yes; Max Length: 3000 characters compliance process depending on whether a chargeback right exists. 3? Visa chargeback reason code 13. 1002 - Cardholder disputes billed amount. Not remembering the original purchase. The chargeback can be for the total transaction amount or a lesser amount. Follow the Rules. Specify the invoice date and net due date that you want the system to assign to chargebacks. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested. A chargeback is the potential outcome of a disputed credit or debit card transaction. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and. When a merchant sees this reason code, it means that they presented a transaction to the cardholder’s issuing bank after the deadline for doing so. As we touched on earlier, chargebacks can happen due to technical errors. Card networks send these. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. he goes on to say he is missing 34 bottles which adds up to a. 4841 Canceled Recurring or Digital Goods Transactions. Beaufort House, 11th Floor,15 St Botolph Street, EC3A 7BB, LondonChargeback Reason Codes; BIN Lookup; ROI Tool; Company. The shorthand description is “Goods/Services Not as Described. Chargeback reason codes. 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. . 6 General update and rebranding. The business has the chance to refute the chargeback. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. M49 Vehicle Rental – Theft or Loss of Use. . 1 to RC 11. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP) 4863 – Cardholder Does Not Recognize – Potential Fraud. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. Mastercard chargeback reason code 4999 falls under the “Point-of-Interaction Error” category. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. PCI DSS v3. With the right compelling evidence,. This reason code means that the customer claims to have received goods or services that were damaged, defective, or otherwise unacceptably faulty. The Merchant Reviews the Partial Chargeback Claim. Click on “report a problem” and select the transaction in question. 47 Reason Code 75: Transaction Not. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Select a tab to see the possible. MASTERCARD Reason Code Description. 0 rule changes take effect April 15,. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. 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. R13 No Reply. Chargeback. 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. ©The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. 1 EMV Liability Shift 10. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. Example: If there is a known or suspected fraudulent transaction, the merchant can refund the money, or if there should have been a refund due to operational error, they can issue a refund to prevent a chargeback from occurring. 1004 - For fraud /dispute investigation or legal/ regulatory issues. . Chargeback Representment. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. Eligible Chargeback Reason Codes . By entering your email, you agree to receive marketing emails from Shopify. Code 34 – will be renamed 'Point of Interaction Error' and will be used for the following issues: 31 Transaction amount differs; 34 Duplicate processing; 42 Late presentment; 46 Correct transaction currency code not provided; Issuers have the option of using the existing chargeback reason codes or the renamed code covering a variety of issues. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. . 12. 4846. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. The merchant did not receive any returned merchandise. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. 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. 196It means the issuer has placed a stop or hold on a transaction. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. We’ll Handle the Chargebacks. 10 Tips to Prevent Fashion Chargebacks. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 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. The deadline for a Chase Bank customer to dispute a transaction is 60 days. For example, Mastercard has a code which indicates a ‘consumer dispute. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. The chargeback reason code. On that note, below are some vendor missteps that could result in Visa reason code 13. The Reason Code is a number that represents the reason for an action in the chargeback process. The shorthand description is “Transaction Amount Differs. But, it could be up to 540 days, in some situations. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Mastercard chargeback reason code 4846 falls under the “Point-of-Interaction Error” category. Whenever a card used in a transaction is declined, the sale should be terminated. 5%. Fraudsters can create counterfeit. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. 7. Values are: Blank: Use the receipt G/L date. 33%: Moreover, region-specific laws can also impact chargeback rates. . Protect stored cardholder data. This chargeback occurs when merchants do not adequately provide currency information. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingOnce you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. Step 1: Identify the Source. This chargeback is more commonly initiated. This is commonly caused by either true fraud or friendly fraud. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. Here’s how your store can prevent and deal with chargebacks. [1] Sift. 06%: 1. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Duplicate Processing - 81Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Now, compliance cases must be submitted through Visa Resolve Online (VROL). Each of the major card brands, including Visa,. It can range from 60 to 120 days from the billing date. The functionality of the Activity Report presented in greater detail on pages 34-48 in the following guide:. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Based on this, you can. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) You can see a reason code 11. 3: Goods or services were not received: C08: RG: 4855: 13. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. But, merchants should be aware that, eventually, everyone will. 26: Outcome: Type: String; Unique: No; Blanks: Yes; Max. 3 Changed Discover Reason Codes to match what is shown in the UI. Custom Notifications. 3 No Authorization. Try Shopify free for 3 days, no credit card required. Chargeback reason codes have changed. 8 Added American Express chargeback information Chapter 3 1. 4. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. By entering your email, you agree to receive marketing emails from Shopify. 42 - Late Presentment. Try Shopify free for 3 days, no credit card required. 3. Paymentology will submit the chargeback using the appropriate chargeback reason code. The initial release of this standard does not add, remove or change any Return Reason Codes. A chargeback happens when a customer requests for a transaction to be reversed. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. The shorthand description is “Incorrect Account. The sales slip must include both aUA01 Fraud – Card Present Transaction. Type. In the case of reason code 11. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. Nearly 1 in 4 online businesses have a chargeback rate that exceeds 1%, while 80% of merchants report a chargeback rate above 0. 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. Transaction Amount: Decimal 0. 02/10/16 Added Debit Chargeback Reason Codes. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. These codes are currently defined within the ANSI X9. Acquirer Use of Message Reason Code 7623. It indicated that the transaction amount wasn't what the cardholder agreed to. Stripe maps each network code into one of eight categories, based on the general claim and the evidence you need to submit to effectively challenge that type of claim. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. A recent survey by Checkout. Credit card chargeback reason code: Type: varchar; Max length: 32 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. These codes are established by the payment brands to categorize the incoming dispute requests by reason. Some reason codes indicate a high likelihood of fraud, and instruct you to hold on to the card and contact the bank: 4 - Pick Up Card; 7 - Pick Up Card, Special Conditions; 33 - Expired Card – Pick Up; 34 - Suspected Fraud – Pick Up; 35 - Contact Acquirer – Pick Up; 36 - Restricted Card – Pick Up; 37 - Call Acquirer Security – Pick UpCardholder Disputes. Every chargeback comes with a reason code. The shorthand description is “Goods/Services Damaged or Defective. With that said, you still need to understand the reason codes with any chargebacks from Amex. Chargeback /Dispute; Merchant Response. 6%. Everyone has had the experience of buying. legitimate duplicate processing chargeback, do not issue a direct credit to the cardholder - the credit will automatically be applied. 1, 5 January 2016. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. 3. Dispute Best Practices Guide Overview This guide includes:Some credit card companies also include a short phrase describing the code and chargeback. This area shows you the type of dispute (chargeback in the example above) and the reason code. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. The customer regrets their purchase. Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience. For some merchants, foreign currency transactions are rare. The transaction amount and authorization number (ARN. 3: Goods or services were not as described: C31: RM: 13. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. mastercard chargeback reject codes. What is Visa chargeback reason code 12. . From there, the merchant can look up the code to figure out what the dispute is about. Mastercard Chargeback Reason Code 71: Disputed Amount. ”. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. FACT: A quarter of online businesses are in the chargeback “danger zone. Across open networks and include account numbers sent over email, instant messaging, text, or chat. 1: Use the corresponding dates from the invoice. The shorthand description is “Domestic Chargeback Dispute (Europe Region Only). This chargeback reason code is also referred to as “Point-of-Interaction” Errors. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. For example, a shopper bought some goods and paid for these on the 14th of October 2017: this is the date that appears as the Disputed date. 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). There are four common causes for this type of dispute: You entered the same transaction into your terminal more than once. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. The specific decline code is meant to give a brief explanation as to why the issuer rejected the purchase. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Visa Chargeback Codes — removed retired codes. The newer system is designed to. Understanding these codes is essential because they'll guide your response strategy. ”. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. It is subject to change and may not include every currently known dispute reason code. FR2 Fraud Full Recourse Program. France saw a drop of roughly 50% during the same period. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Everyone from processors and card brands to local and federal governments has rules about how payments should be handled. chargebackcodeguide (1) chargebackcodeguide (1) Priya Das. Reason codes vary by card brand. However, Visa is the largest card brand in both the United States and the world. The list of chargeback reason codes in this article is organized by card brand and type of dispute. reason code information. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. 8 Added American Express chargeback information Chapter 3 1. Only an issuer can initiate the chargeback process. ”. 00 EUR as a Withdrawal 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. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 — Updated Special Notes. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. DisputeFlow™. A chargeback happens when a customer requests for a transaction to be reversed. 2 - Incorrect Transaction Code. (Reason Code 4850) > Arbitration Case Filing-For Chargebacks Initiated On or Before 16 April 2020. message. 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. The cost of fraud relative to the transaction amount also increases by 12%. The shorthand description is “Point-of-Interaction Error. UA06 Fraud – Chip and PIN Transaction. mastercard chargeback reason code 34. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. There are 151 chargeback reason codes across the four major card networks. ”. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. Chargeback Reason Code. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Whenever an incorrect account number is processed, or the.