A reason code is a numeric code that describes the cause behind a chargeback dispute. Knowledge of such codes can help businesses file a chargeback dispute successfully. In simple words, the chargeback reason code provides the reason why you are dealing with a chargeback.
Chargebacks can pile up your expenses and can be annoying. The most effective to deal with chargebacks is to have the right information. You can check the details of the chargeback reason code to know why the chargeback was filed, the time within which you can file a chargeback, and what evidence can be used to corroborate your claim.
Chargeback reason codes vary a lot with different credit card companies. This confuses because what code 30 in visa, Credit Card Company, means (Services not provided) doesn’t necessarily mean the same thing in a different credit card company. This underscores the importance of knowing the reason codes of different companies because the early you know about the reason for the chargeback, the sooner you can file a claim of a chargeback dispute.
Reasons for use
The network simply sends the reason code with a brief description explaining the reason for a chargeback. If the issue is from the merchant side, then the merchant would not have any option to file a chargeback dispute.
If there is no issue from the merchant’s end and it can be verified by the evidence provided by him then a merchant can file a chargeback dispute.
Some of the most common reason codes by Visa, MasterCard, and American Express
Visa
11.1 No Authorization
11.2 Declined Authorization
13.1 Merchandise/Services not received
13.2 Cancelled Recurring
13.3 Not as Described or Defective Merchandise/Services
13.5 Misrepresentations
13.6 Credit not processed
10.3 Other fraud: Card present environment
10.4 Other fraud: Card absent environment
10.5 Visa fraud monitoring program.
MasterCard
4837 No Cardholder Authorization
4840 Fraudulent Processing of Transactions
4849 Questionable Merchant Activity
4863 Cardholder Does Not Recognize — Potential Fraud
4871 Chip/PIN Liability Shift
4807 Warning Bulletin File
4808 Authorization-Related Chargeback
4812 Account Number Not On File
4834 Point-of-Interaction Error
4831 Transaction Amount Differs
American Express
F10 Missing Imprint
F14 Missing Signature
F24 No Card Member Authorization
F29 Card Not Present
F30 EMV Counterfeit
F31 EMV Lost/Stolen/Non-Received
A01 Charge Amount Exceeds Authorization Amount
A02 No Valid Authorization
A08 Authorization Approval Expired
P01 Unassigned Card Number
Broad reason code categories
All the chargeback reason codes across major credit card companies can be classified into the following categories.
Fraud or No Authorization — It is applicable when any real fraud has occurred when any other identity could have tried to use the card. Cancel Recurring Billing — When a customer is charged for any subscription which has already been canceled by the customer before. Products and Services — This is applicable when there is any inconsistency between the quality of goods and services ordered and that which is received by the customer. Liability Shift — This is applicable in the case of any chargebacks related to non-chip credit cards. Other — A broad category in which all the reason codes that don’t belong to the above categories fall under this category