. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Be sure you understand the cardholder’s claim. Field name: reasonCode. After a few days, the merchant from whom Linda bought the necklace receives a chargeback from her bank under the Reason Code 78: Ineligible Transaction/ Service Code Violation. Retrieval Request/ Copy request Reason Codes. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. Also, remember that the time frame for your response includes any processing required by the acquirer. ” 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. Here's a list of all the current Visa reason codes: Chargeback Code. Specify the invoice date and net due date that you want the system to assign to chargebacks. By entering your email, you agree to receive marketing emails from Shopify. 3. The most comprehensive guide to chargeback reason codes. 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. Versions Affected: v5, v6. Reason Code: Numeric: Code for the chargeback request (see below). R03 Insufficient Reply. ”. Ethoca alerts can prevent chargebacks before they hit your bank account. With the chargeback code in hand, the merchant can now review the transaction. F02. 1 EMV Liability Shift 10. Invalid Reasons for a DisputeCorresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. Betty's issuing bank assigned chargeback reason code 10. Chargebacks are a problem that is growing worse across the board, and gas station. 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. 2? Visa chargeback reason code 12. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Having a Lax Attitude Toward Industry Rules & Regulations. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. 6: Duplicate processing/Paid by other means. Only an issuer can initiate the chargeback process. Chargeback reason code 10. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. Receiving a damaged product. For each reason code, a definition is Oftentimes, the reason code assignment is based on limited knowledge and insight. 6 %âãÏÓ 2036 0 obj > endobj 2049 0 obj >/Filter/FlateDecode/ID[5449EEF7E92B4E348DFFF959ACC41A76>]/Index[2036 116]/Info 2035 0 R/Length 96/Prev 5434729/Root. These are only a handful of common Visa chargeback reason codes. Chargebacks from all three categories can show . Valid Values/Format: 22 - First Chargeback Handling Fee. 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. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Code 215 – Lost/stolen card – The cardholder’s credit card company flagged the account as lost or stolen and therefore blocked all the transactions. The implication is that the merchant is at fault. . Collect Compelling Evidence. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. The most comprehensive guide to chargeback reason codes. 79. 1. Lost card, pick up (fraud account) (41) If you see this response, it means the credit card owner has reported this card as lost. Reason Code: Numeric: Code for the chargeback request (see below). 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. 3: Goods or services were not as described: C31: RM: 13. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardVisa Claims Resolution (VCR) is the new VISA only chargeback resolution process. Merchants who believe they have received an invalid chargeback under reason code 13. 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. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. It’s even more frustrating if you don’t understand what the chargeback code means. Specifically, these updates only pertain to transactions that are charged back after Oct. Knowing these codes can help you dispute chargebacks more effectively. many chargeback reason codes that exist today. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. 5. Responding to Mastercard Reason Code 4853 Chargebacks. But, merchants should be aware that, eventually, everyone will be required to use the new designations. The actual underlying cause of this chargeback is. REQUEST A DEMO. 15, 2021. Most reason codes apply to any merchant, regardless of what’s being sold. 31. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. 4853 Cardholder Dispute. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 4 Section . Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). 69%), and debit cards (7. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. ” This reason code indicates that the cardholder is disputing the credit card transaction because they provided payment via some other method, such as cash, check. At Chargebacks911®, we combine expert human analysis with our own proprietary technologies to create the most powerful chargeback and fraud management solutions. Documentation must be a direct result of cardholder communication. 4630 . 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. From there, the merchant can look up the code to figure out what the dispute is about. Chargebacks are something every business wants to avoid, as they can. Chargeback Reason Codes Page 1 of 5 Card Type Reason Code Reason Text Chargeback Category Preventable Reversible MASTERCARD 4802 Requested/Required Item Illegible or Missing Request for Information YES YES MASTERCARD 4803 Documentation received was invalid/incomplete Request for Information YES YES Codes 51 (insufficient funds) and 05 (do not honor) are especially common. There are over 80 unique return codes, and each one represents a different type of return. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. 5, and all aspects of chargeback reason codes, with proprietary. Description: Reason code for applying handling fee. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 0 is to make the chargeback process more efficient, transparent, and fair. 4633 . If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. The list of chargeback reason codes in this article. Please note that each card network (MasterCard, VISA, American Express, etc. #9. Description of Change Where to Look Updated Chip Liability Shift table elements Second Presentment Condition bullet #2, Supporting Documents and DE 72. Merchants can find a. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. 76 (2, 4 & 5) Incorrect. Reason Code: 10. Overall returns (all codes): 15%. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. 2 - Incorrect Transaction Code. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment) 2. 3 applies when a cardholder claims a charge—made in a card-present environment—was. May 2011: 5. com Europe. A chargeback happens when a customer requests for a transaction to be reversed. Documentation must be a direct result of cardholder communication. 1: Use the corresponding dates from the invoice. 4634. To facilitate the RuPay members in raising and resolving a dispute on a transaction which had previously been cleared by RuPay, RuPay has defined the rules and guidelines for the dispute management process in this manual. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. Chargeback reason codes can change with new information. Chargeback prevention strategies vary based on the reason for the. By understanding the root cause of chargebacks, merchants can strategically refine policies and approaches to reduce chargeback activity. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. Reason codes are important to help merchants address recurring. By entering your email, you agree to receive marketing emails from Shopify. However, the 30 day waiting period can be waived if you’ve. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. 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. 13. Code 534 – Do not honor, high fraud – The transaction failed authorization. Contactless Payment Fraud. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Combined the Authorization-related Chargebackssection into chargeback reason code 4808(Authorization-related Chargeback) as announcedin the Global Operations Bulletin No. CR . The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Chargeback reason codes are one piece of evidence you can use to make your case. A fraudulent chargeback represents much more than a lost sale for merchants. The reason code. Visa is planning to shake up the chargeback process with new compelling evidence rules for fraud disputes with Reason Code 10. All chargebacks start with a customer making a purchase in person, in an app, or online. 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. This is commonly caused by either true fraud or friendly fraud. Specify the default reason code that you want the system to assign when you enter a chargeback amount. ). Receive the Chargeback. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. AVS works to verify that the address entered by the customer is associated with the cardholder’s credit card account. The chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. Each bank card network has its owner list of reason codes banks must prefer from. 3 No Authorization. MasterCard: Reason Code 4859 Services not rendered. 3. 1; Reason: EMV Liability Shift. Reference these when rebutting cardholder disputes at your small business. The current list of 22 Visa chargeback reason codes will be replaced with new values and grouped into four new categories of disputes: Authorization, Fraud, Processing Errors and Consumer Disputes. Also, just like American Express, Discover functions as both a card network and an. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. 3. 2 falls under the “Processing Errors” category. 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. An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. M49 Vehicle Rental – Theft or Loss of Use. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 4 Counterfeit Merchandise 78 (1) 11. 3: Goods or services were not as described: C31: RM: 13. [noun]/* fren • dlē • frôd • /. There are dozens of reasons why cardholders and issuers dispute transactions. The codes for each card brand are listed below along with the recommended documentation to provide. There are also specific return time frames, which can differ. EMV Liability Shift Non-Counterfeit Fraud. 4854 Cardholder Dispute—Not Elsewhere Classified (U. Contactless payment fraud can refer to any attempt to gain cardholder account. 3. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Braintree Support Articles. According to Signifyd data, the total cost of a fraudulent purchase of $100 is actually $196. Here are a few high-level examples. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 80General Arbitration Chargeback. Inform your acquirer of the date that the credit was issued. 99. Search the Chargeback Reason Code Database. Customer not disputed more than the Original Transaction Amount. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. 0. A chargeback filed due to buyer’s remorse is a prime case. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Never swipe a card back and forth or at an angle, as it may cause the reader to misread the stripe. Updated: Valid values updated. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated through. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. 5 billion lost in 2020. Otherwise, the acquiring bank sends a chargeback notification. These codes are broken down into five different category. Post Views: 841. A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. Try Shopify free for 3 days, no credit card required. 4853 – Cardholder Dispute – Goods or Services Not Provided. The chargeback can be for the total transaction amount or a lesser amount. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. The shorthand description is “Paid by Other Means. See full list on paymentdepot. Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer. About Discover chargeback reason codes. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. By entering your email, you agree to receive marketing emails from Shopify. Each of the major. each reason code has been categorized under four categories Dispute Condition – is the description of the Reason Codes. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Chargeback Reason Codes Reason code are the first key to understanding the root causes . Card Number:. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Chargeback . American Express chargeback reason code C42. M10 Vehicle Rental – Capital Damages. Stop order fulfillment so cost of goods isn’t lost. According to Visa’s press release announcing the changes, those response codes are as follows: Response Code 62—Restricted card (card invalid in region or country) Response Code 78—Blocked, first used (transaction from new cardholder, and card not properly unblocked) Response Code 93—Transaction cannot be completed—violation of law. 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. 1. There are plenty of reasons as to why this would happen, hence the many. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. STEP #7: Bank Review & Decisioning. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. PCI DSS v3. The reason for the dispute was false or inaccurate. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. The customer regrets their purchase. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches. Reason Code 12. However, it is important to note that this reason code is based on the reason given by the customer to their bank. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. 2. Click on “report a problem” and select the transaction in question. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 6. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. Discover: Reason Code 4755 Non-receipt of goods or services. Europe Region Operations Bulletin No. 4632. In the case of friendly fraud, that reason could be completely invalid and. Visa Reason Codes Quick Reference Guide Author: TD Canada Trust Subject: Visa Reason Codes Quick Reference Guide Created Date:American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 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. Description. 00 in chargebacks. Fraud is the number one chargeback reason, but it is important to note that there are two types of fraud: After the issuer initiated the dispute, the merchant issued a credit for the whole transaction amount in the merchant's local currency. Search the Chargeback Reason Code Database. Each card. Credit not processed for cancelled or. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Visa Chargeback Reason Codes; MasterCard. Chargeback reason codes have changed. Technical. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. At Chargebacks911®, we combine expert human analysis with our own proprietary technologies to create the most powerful chargeback and fraud management solutions. Expedited Dispute Resolution forms will not be allowed. eCommerce grew too fast for the payments industry to respond. Banks may issue a credit to an account holder at their discretion. Step 2: Customer initiates the chargeback. 4 Funding Process. Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. Across open networks and include account numbers sent over email, instant messaging, text, or chat. It's essential to respond within the. Customer Dispute. 9808 info@chargebacks911. 7 RBI Penalty (Reason Code - 1065/ AC & AT RBI Compensation is settled today on manual basis RBI Compensation is completely automated. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. 1 Merchandise / Services not received . Once you receive this notification, you have 11 days to submit a response. 3 It is not described or defective (Merchandise and Services) DM y ND . Chargeback amount is equal to or less than the exceeded limited /authorised amount. Contactless payment fraud refers to any attempt to make unauthorized purchases using information obtained by hijacking a near-field communication (NFC) -enabled transaction. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Shopify has four status categories for chargebacks and inquiries: Open: No response has been sent yet and evidence can still be added. UA06 Fraud – Chip and PIN Transaction. 3. Use clear and consistent billing descriptors. 78 Service Code Violation 11. Chargeback reason codes vary by the credit card company. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. for chargeback reason code 4863 (Cardholder Does Not Recognize). A chargeback is the potential outcome of a disputed credit or debit card transaction. PCI DSS v3. one jurisdiction to another. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. Issuer Review;Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRRONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. A provisional credit is a temporary credit issued by a bank to an account holder. The sales receipt and/or date and amount of the authorization if other than the transaction date. 3. Specify the invoice date and net due date to assign to chargebacks. FR4 Immediate Chargeback Program. A chargeback reason code is a number that helps to inform a hotel why a chargeback was filed. Chargeback reason codes identify the general reason behind a chargeback. If you do perform a key-entered transaction, make a manual imprint of the card. 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. [noun]/kän takt ləs pā mənt frôd/. 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. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. Discover is a credit card network and an issuing bank—just like American Express. This Chargeback Reason Code has to do with all. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. 3. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. This process is called a chargeback. 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. 3. When one cardholder initiates a dispute with their issuing bank, a. Here’s how your store can prevent and deal with chargebacks. The reason code. The shorthand description is “Declined Authorization. 10. Date Option. 1 Card Recovery Bulletin 11. 1: Use the corresponding dates from the invoice. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Late Presentment Rules: Mastercard. For example, 10. 0: Changed report name from Downloadable Dispute Report to Case Report. Chargeback . According to Nilson, 56% of global card transactions were done on Visa in 2015. GraphQL Docs & Tools. Processing recurring payments increases your susceptibility to chargebacks. UA05 Fraud – Chip Counterfeit Transaction. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A. Values are: Blank: Use the receipt G/L date. 3 is the less common version for card-present transactions. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. 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. Reason codes. Reason. A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. Issuer’s Arbitration Chargeback. 5 Misrepresentation. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. The cardholder claims they were charged multiple times for a single transaction. [MasterCard Reason Codes 4853, 4855, 4859; Visa. 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. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Legacy code as currently displayed in the AWC. According to our research, friendly fraud will represent six out of every ten chargebacks filed in North America by 2023. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Chargebacks. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. In short: yes. the chargeback reason code. The credit will then appear on the cardholder’s statement as its own distinct. Multiple Authorization Requests. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Updated the following columns - card type, response due date. About American Express chargeback reason codes. You can see a reason code 11. It gets worse. The merchandise was as described or was not defective. DISCOVER Chargeback reason codes vary but it all means the same thing -. 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. 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. Discover uses unique codes to explain those reasons to merchants. UA02 Fraud – Card Not Present Transaction. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. That said, looking up purchases using this number can make it easier to provide info following an. If the order was genuinely not as described, then the cardholder has a case. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card.