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Paymetrix

Chargeback Codes: Complete Reference Guide

Comprehensive guide to chargeback reason codes from Visa, Mastercard, American Express, and Discover.

title: "Chargeback Codes: Complete Reference Guide" excerpt: "Comprehensive guide to chargeback reason codes from major card networks including Visa, Mastercard, American Express, and Discover." date: "2024-01-01" tags: ["Chargebacks", "Fraud", "Payments", "Reference"] author: "Paymetrix Team"

Chargeback reason codes help merchants understand why a chargeback was initiated and how to respond. This guide covers the most common codes from major card networks.

Visa Chargeback Codes

Fraud-Related Codes

10.1 - EMV Liability Shift Counterfeit Fraud

  • Description: Card was used fraudulently and the transaction was processed without EMV chip
  • Time Limit: 120 days
  • Prevention: Use EMV chip readers, implement fraud detection

10.2 - EMV Liability Shift Lost/Stolen Fraud

  • Description: Lost or stolen card used fraudulently without EMV chip
  • Time Limit: 120 days
  • Prevention: EMV chip readers, address verification

10.3 - EMV Liability Shift Non-Counterfeit Fraud

  • Description: Other types of fraud when EMV chip not used
  • Time Limit: 120 days
  • Prevention: EMV chip readers, fraud detection

10.4 - Other Fraud

  • Description: Fraudulent transaction not covered by other codes
  • Time Limit: 120 days
  • Prevention: Strong fraud detection, customer verification

Authorization-Related Codes

10.5 - No Authorization

  • Description: Transaction processed without proper authorization
  • Time Limit: 120 days
  • Prevention: Always obtain authorization, check response codes

10.6 - Late Presentment

  • Description: Transaction submitted after the allowed time limit
  • Time Limit: 120 days
  • Prevention: Submit transactions promptly, monitor processing times

Processing Errors

10.7 - Incorrect Transaction Code

  • Description: Wrong transaction type used (e.g., credit instead of debit)
  • Time Limit: 120 days
  • Prevention: Use correct transaction codes, train staff

10.8 - Incorrect Account Number

  • Description: Wrong account number used in transaction
  • Time Limit: 120 days
  • Prevention: Verify account numbers, use tokenization

Mastercard Chargeback Codes

Fraud-Related Codes

4837 - No Cardholder Authorization

  • Description: Cardholder claims they didn't authorize the transaction
  • Time Limit: 120 days
  • Prevention: Strong authentication, fraud detection

4840 - Fraudulent Processing of Transactions

  • Description: Merchant processed fraudulent transactions
  • Time Limit: 120 days
  • Prevention: Fraud detection, customer verification

Authorization-Related Codes

4807 - Warning Bulletin File

  • Description: Card was on warning bulletin at time of transaction
  • Time Limit: 120 days
  • Prevention: Check warning bulletins, use fraud detection

4808 - Authorization-Related Chargeback

  • Description: Authorization-related issue
  • Time Limit: 120 days
  • Prevention: Proper authorization procedures

Processing Errors

4801 - Requested Credit Not Processed

  • Description: Credit not processed as requested
  • Time Limit: 120 days
  • Prevention: Process credits promptly, maintain records

4802 - Incorrect Transaction Amount

  • Description: Wrong amount charged
  • Time Limit: 120 days
  • Prevention: Verify amounts, use proper procedures

American Express Chargeback Codes

Fraud-Related Codes

F01 - Fraudulent Transaction

  • Description: Cardholder claims fraudulent use
  • Time Limit: 120 days
  • Prevention: Fraud detection, customer verification

F02 - Fraudulent Transaction (Card Not Present)

  • Description: Fraudulent online or phone transaction
  • Time Limit: 120 days
  • Prevention: Strong authentication, fraud detection

Authorization-Related Codes

A01 - Chargeback Authorization

  • Description: Authorization-related chargeback
  • Time Limit: 120 days
  • Prevention: Proper authorization procedures

A02 - No Valid Authorization

  • Description: No valid authorization obtained
  • Time Limit: 120 days
  • Prevention: Always obtain authorization

Processing Errors

P01 - Unassigned Card Number

  • Description: Card number not assigned
  • Time Limit: 120 days
  • Prevention: Verify card numbers, use tokenization

P02 - Credit Not Processed

  • Description: Credit not processed
  • Time Limit: 120 days
  • Prevention: Process credits promptly

Discover Chargeback Codes

Fraud-Related Codes

UA - Fraud/No Authorization

  • Description: Fraudulent transaction or no authorization
  • Time Limit: 120 days
  • Prevention: Fraud detection, proper authorization

UB - Fraud/Processing Error

  • Description: Fraud or processing error
  • Time Limit: 120 days
  • Prevention: Fraud detection, proper procedures

Authorization-Related Codes

UC - No Authorization

  • Description: No authorization obtained
  • Time Limit: 120 days
  • Prevention: Always obtain authorization

UD - Authorization-Related

  • Description: Authorization-related issue
  • Time Limit: 120 days
  • Prevention: Proper authorization procedures

Responding to Chargebacks

1. Understand the Code

Review the chargeback reason code to understand the specific issue.

2. Gather Evidence

Collect relevant documentation to support your case:

  • Transaction receipts
  • Authorization records
  • Customer communication
  • Delivery confirmations
  • Terms of service

3. Submit Response

Provide a clear, factual response with supporting evidence.

4. Monitor Results

Track the outcome and learn from the experience.

Prevention Strategies

Fraud Prevention

  • Implement strong fraud detection
  • Use EMV chip readers
  • Verify customer identity
  • Monitor for suspicious patterns

Authorization Best Practices

  • Always obtain authorization
  • Check response codes
  • Handle declines properly
  • Maintain authorization records

Processing Best Practices

  • Use correct transaction codes
  • Verify account numbers
  • Process credits promptly
  • Maintain accurate records

Conclusion

Understanding chargeback reason codes is essential for merchants to respond effectively and prevent future chargebacks. By implementing proper prevention strategies and maintaining good records, merchants can reduce their chargeback rates and protect their business.

Remember to always respond to chargebacks promptly and with complete documentation to maximize your chances of winning the dispute.