Chargeback reason code 37. After the issuing bank’s unsuccessful attempt to identify the transaction for the cardholder, the chargeback process begins. Chargeback reason code 37

 
 After the issuing bank’s unsuccessful attempt to identify the transaction for the cardholder, the chargeback process beginsChargeback reason code 37  The following reason codes require compelling evidence: Fraudulent transaction (83) Fraud/card absent environment (1040) Merchandise/services not received (1310) What does transaction response code 37 - Contact Acquirer Security Department, Retain Card mean? 25/11/2016

“American Express Chargeback Reason Codes | Sift”. Always submit an authorization request, no matter the transaction amount. In 2021, 43 percent of companies identified customer service delays as a top reason for their increase in chargebacks. On that note, below are some vendor missteps that could result in Visa reason code 13. If the order was genuinely not as described, then the cardholder has a case. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. Region Only) 4855 Goods or Services Not Provided. The following reason codes require compelling evidence: Fraudulent transaction (83) Fraud/card absent environment (1040) Merchandise/services not received (1310) No cardholder authorization. High Level Visa Chargeback Dispute Flow. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37 — Updated Special Notes. The shorthand description is “Invalid Data. Ready to Start Preventing. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. A reason code or a chargeback reason code is a string of symbols (numbers and letters). The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Each card network maintains reason codes to cover all the disputes that qualify for. Each card network has their own set of chargeback policies and reason codes, and they frequently change them. All chargebacks start with a customer making a purchase in person, in an app, or online. 0. a chargeback or a debit. Merchants can find a. Reason code 4870 refers to the broad category designated “No Cardholder Authorization. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Chargeback /Dispute; Merchant Response. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. EMV has been a mostly global standard since 2004. 3 falls under the “Authorization” category. Reason Code 03. Visa chargeback reason code 75 is filed as an honest mistake. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)About American Express chargeback reason codes. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. . This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and believes that the transaction was fraudulent. Mastercard Chargeback Reason Code 71: Disputed Amount. As we touched on earlier, chargebacks can happen due to technical errors. Many subscription payment disputes are made under code 13. This can be transaction receipts, proof of. If the customer’s story matches. reason code information. As a merchant, you face the brunt of chargeback losses. Please refer to chapter 5 for more information. The first is true fraud, where someone used stolen credit card or account information to make a purchase. The transaction amount and authorization number (ARN. Reason Code 37 not allowed when merchant supports UCAF: 100007: 400* INVALID_REQUEST: Reason code 37 is not allowed for AFD transactions with CAT Level 2. The implication is that the merchant is at fault. Chargeback Reason Codes Page 2 of 5. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 3: Goods or services were not as described: C31: RM: 13. Reason Code 53 re-presentments must be processed within 45 calendar days from the. In the event of alleged criminal fraud or merchant error, the code returned. Encrypt transmission of cardholder data. 37 No Cardholder Authorization 40 Fraudulent Processing of Transactions. 4835. These codes are broken down into five different category. According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. 4855. The sales receipt and/or date and amount of the authorization if other than the transaction date. 24 = not authorized. 1: goods not received. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. the reason code doesn’t reflect the real reason for the dispute. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. At Visa they used to receive reason code 98. Learn the details, the cause, how to respond and how to prevent Visa Reason Code 13. If the order was genuinely not as described, then the cardholder has a case. Code 4837 chargebacks are most often caused by either a fraudster making a purchase with stolen payment credentials or a cardholder failing to recognize a legitimate charge. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Accessed October 31, 2022. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. 18167 US Highway 19 N Clearwater, FL 33764 877. 42. For educational purposes, here is an overview of the general chargeback process with most major processors: Step 1: A purchase occurs – All chargebacks start with a customer making a purchase, either in-person, in-app or online. You are required to submit evidence to defend against the dispute. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. UA01 Fraud – Card Present Transaction. 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. Always print and double-check the account number on all phone and mail orders. puts the burden of proof back on the consumer and/or Issuer to “prove” or substantiate the reason for the chargeback. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring PaymentChargeback reason codes. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. 56. Valid Chargeback Codes June 21, 2023 19:49; Updated; Legacy and Standard Chargeback Codes. In that case,. 23 = item exceeds dollar limit. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. 4860 Credit Not Processed. 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. 96%: 0. 38 = retired/ineligible routing number. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderThe chargeback reason code. From there, the merchant can look up the code to figure out what the dispute is about. without a reason code will be assigned a default code of 1. Documentation must be a direct result of cardholder communication. The sales receipt and/or date and amount of the authorization if other than the transaction date. Reason code 4842 (Late Presentment) was retired. 1 Merchandise/ Services Not Received. 7. Always use the correct cardholder verification method—signature, PIN, etc. Chargeback Reason Code 30 - Services Not Provided or Merchandise Not Received The chargeback time limit is calculated based on one of the following: 120 calendar days after the transaction processing date 120 calendar days after the last date the cardholder expected to receive the goods or services (not to exceed 540 days of the transaction. This chargeback will include a description that provides additional information: Digital Goods $25 or Less. 3? Visa chargeback reason code 13. Friendly fraud. For first chargebacks,. The codes also appear on financial reporting associated with. 6. 4: Fraud—Card-Absent Environment. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. For example, there are two key components in the American Express chargeback process: inquiries and. CARDeposit is a long-running American Express program. When this occurs, the merchant receives a notification with a chargeback reason code. This reason code means that the cardholder claims that they were billed for lodging services that they had already canceled. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. reason_description: string. According to Nilson, 56% of global card transactions were done on Visa in 2015. Overall returns (all codes): 15%. The Solution. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. By entering your email, you agree to receive marketing emails from Shopify. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. Chargeback Reason Codes by Industry. 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. Dec 6, 2021 — Betty's bank issued the chargeback for $9. The separation of the Return Reason Cardholder Disputes. 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. 8 Added American Express chargeback information Chapter 3 1. If you believe you have received an ACH return in error, you can contact your bank. 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. 7? Visa chargeback reason code 12. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. These companies can also handle the entire representment process. On xx/xx/xxxx, we received a chargeback under the reason code 11. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. Eligible Chargeback Reason Codes . 0 : Unknown/Unspecified : 1 : Non-Receipt of Requested Item. They utilize bank identification numbers in the range between 34*. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. 2. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. FR6 Partial Immediate Chargeback Program. The codes for each card brand are listed below along with the recommended documentation to provide. Step 01 | Identify the Reason Code. Chargeback fees can start at US$25 and go up from there. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Eligible Chargeback Reason Codes . The same is true of all chargeback reason codes. We recommend keeping records of all transactions, so you are prepared in the event that a chargeback does happen. By entering your email, you agree to receive marketing emails from Shopify. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments. Review your credit card processor’s policies to understand its chargeback dispute process. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Having a Lax Attitude Toward Industry Rules & Regulations. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. F01. Thanks for following the Chargeback Gurus blog. Type. Always ask for authorization regardless of the transaction amount. 1. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Chargeback. Overview. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. 3. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 3: Goods or services were not as described: C31: RM: 13. 4 Funding Process. ”. 2, which specifically deals with transactions billed by other means. CNP transactions are incredibly varied; with customers purchasing everything from. Cardholder-Activated Terminal (CAT) 3 Device. They can also be caused by a merchant failing to process a cancellation promptly. 0 rule changes take effect April 15,. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. If you get a chargeback,. The good news is that most of these invalid claims are disputable by the merchant. Combine card acceptance rules compliance with the latest technology to shift fraud liability is the number one method to prevent. FR4 Immediate Chargeback Program. 13. Reason code 37 chargeback For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. These codes are currently defined within the ANSI X9. Nevertheless, you must respond to the chargeback based on the given code. • For Visa Allocation reason codes (RC 10. UA02 Fraud – Card Not Present Transaction. [1] Sift. Specifically, these updates only pertain to transactions that are charged back after Oct. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. 4835. chargeback reason codes. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. All 1. 1042. 10. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. The chargeback transfers funds from the acquirer to the issuer. In 2020, MasterCard revised their chargeback rules and eliminated the “second chargeback” step. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Cause. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. 1. 5%. Only use EMV-compliant terminals. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. 54 - Expired Card. Provide exemplary customer service. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Reason code 83 represents a chargeback categorized as. 16, 2021. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. MasterCard: Reason Code 4859 Services not rendered. 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. The first thing to understand is that not all chargebacks are the same. 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. R13 No Reply. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. Cause. But don't worry – we're here to help! Here are some important terms to keep in mind: : A claim against a charge, initiated by a customer with their bank. 3 Changed Discover Reason Codes to match what is shown in the UI. For example, a code might cite a high utilization rate of available credit as the. The reason code. A chargeback occurs when a customer disputes a charge from your business on their credit or debit card. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. 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. Clearing. Compare account numbers. The most comprehensive guide to chargeback reason codes. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. 01/2099. F24. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. Combine card acceptance rules compliance with the latest technology to shift fraud liability is the number one method to prevent. Nevertheless, you must respond to the chargeback based on the given code. By entering your email, you agree to receive marketing emails from Shopify. . 3. 14 - Invalid Card Number. Category. The way you manage chargebacks depends on your account setup. It's essential to respond within the. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Process a canceled guaranteed reservation properly. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Visa chargeback reason code 57 falls under the “Fraud” category. 65 - Exceeds Withdrawal Frequency Limit. Definition. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. 04/09/14 Discover: DC,. 4854 Cardholder Dispute—Not Elsewhere Classified (U. The chargeback can be for the total transaction amount or a lesser amount. Discover - RG Non-Receipt of Goods, Services, or Cash. : The act of challenging any claim over the. As we touched on earlier, chargebacks can happen due to technical errors. A “No Authorization” code chargeback can also be the. Most dispute reason codes that. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Based on the information provided, Paymentology will investigate the transaction being disputed. Reason Code 04. Reason Code 04. Chapter 2 1. 3. Below is a full list of reason codes that require compelling evidence: 37; 83; 1040; 1310; 7030; C08; F29; UA02; Empty reason codes; If a dispute has any other reason code, there are no specific evidence requirements, and the evidence does not need to be categorized. Credit card fraud is a big problem for eCommerce merchants, leading to many true. Look below the surface. Administrative returns (R02, R03, R04): 3%. Date Option. See more10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. up under any number of different chargeback . 5 billion lost in 2020. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. American Express chargeback reason code C18 falls under the “Card Member Disputes” category. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. Dispute Best Practices Guide Overview This guide includes: An overview of authorization and transaction processing An overview of retrievals and chargebacks Reason code guidelines for all. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. The Late Presentment chargeback rights and language were moved from chargeback reason code 4834 (Point of Interaction Errors) to reason code 4808 (Authorization-Related Chargebacks). 0 only applies to reason code 10. Cardholders can dispute digital goods transactions of $25 or less (or the equivalent in local currency) if certain purchase controls were not put. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback reason codes and categories specified below. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. “It’s a lot tougher with Mastercard because they only use four main codes. 2. Note that a chargeback is a forced bank reversal that always results in additional fees and penalties for sellers, regardless of the validity of the buyer’s claim. 3. 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. 4 Other Fraud Card Absent. 6%. We also included the reason code descriptions and an indication of when the allowable time frame begins. 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. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. 4860 Credit Not Processed. 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. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. 4837 (37) (MasterCard) No cardholder authorization: 4863 (63) (MasterCard) Cardholder does not recognize: FraudulentGoods / Services Damaged or Defective. The new reason codes follow a format of two digits, a period, then a third digit. 4808: This code can refer to: Account Number Not on File. 2 Compliance CasesUse fallback options—like manually entering transaction data—as a last resort. Terms and conditions. Select the value “open”. UA02 Fraud – Card Not Present Transaction. Proof you have already refunded the transaction and credited the cardholder’s account. In fact, the same thing could be said of other chargeback reason codes, too. 15, 2021. Merchants can find a. Visa Chargeback Reason Codes. Reason code 12. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. What is Visa chargeback reason code 12. Ready to Start Preventing. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. This extra step can be frustrating for Card Members and lead to lost sales. For more information on these and other updates, check out our complete chargeback reason. Reason Code 03. Technical. Availability. Reason codes are very crucial to assist. What is Visa Reason Code 12. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. Also, remember that the time frame for your response includes any processing required by the acquirer. MasterCard Chargeback Reason Codes MasterCard uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors. Product/service not received. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. While counterfeit card fraud remained the most popular method of criminal attack, it was closely followed by card-not-present (CNP) fraud. Time Frames by Chargeback Type and Reason Code. 7: Defective goods and services: C32: RM: 13. Updated August 23, 2023. 634. ECM monitors first presentment chargebacks regardless of reason code or transaction type. . underlying your chargeback. 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). The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Visa chargebacks can be a major inconvenience for merchants. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Also, remember that the time frame for your response includes any processing required by the acquirer. 1=1010,. Please see the below “cheat sheet” for the new 4 byte reason codes. The cardholder files a chargeback via their bank. The codes also appear on financial reporting associated with disputes. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. Visa also overhauled its system of chargeback reason codes. Either the acquiring or issuing bank could initiate the chargeback. 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. Code 4837 chargebacks are most often caused by either a fraudster making a purchase with stolen payment credentials or a cardholder failing to recognize a legitimate charge. The scammer claims to be from the bank, and is seeking to confirm a specific transaction, which the victim denies. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. Unauthorized returns (R05, R07, R10, R29, R51): 0. F02. 2. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Check the chargeback reason code. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. Oftentimes, the reason code assignment is based on limited knowledge and insight. Thanks for following the Chargeback Gurus blog. A reason code will be provided. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 0. Protect stored cardholder data. It is associated with a chargeback reason code, and it is specific per Card Scheme. Description. compliance process depending on whether a chargeback right exists. Valid chargeback reason codes are defined in UDC 03B/CB. An ACH dispute results in a chargeback for the business that processed the payment. For best results, your chargeback win rate should be as close to 100% as possible. The third digit indicates the specific reason within that category. 4. Because you have not met Seller Protection performance requirements the transaction will be reversed. 46%: 1. This second chargeback is what was commonly referred to as a “pre-arbitration chargeback. Either the acquiring or issuing bank could initiate the. paper processing and mailing costs. In that way, winning one dispute may help prevent the next chargeback to come after it. chargeback: The buyer filed a chargeback with the credit card issuer. It is very similar to: Mastercard's 4853- Defective/Not as Described Reason Code. 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. A reason code helps explain why a transaction was disputed. Every chargeback is different, so the evidence you provide will vary depending on the reason for the chargeback and the documents you have available. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. ”. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. ).