This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. 3 Other Fraud – Card Present Environment 83(1) 10. Retry after 10 days. 4512: Duplicate Processing:Chargeback reason codes have changed. Thus, the easiest way to prevent chargeback reason code 75 from being filed is. Chargeback Reason Codes In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Claims Resolution. At Visa they used to receive reason code 98. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. underlying your chargeback. Discover is a credit card network and an issuing bank—just like American Express. To provide a successful chargeback representment case, Visa and other credit card companies allow (indeed, they urge) merchants to provide compelling evidence to. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. The good news is that most of these invalid claims are disputable by the merchant. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. A smarter, simpler way to stop fraud. Chargeback reason code 10. Take the time to note the following dispute reason codes for Visa. 51% anticipate spending between $50 and $100 on gift cards, while 24% say they will likely spend between $500 and $5,000. Betty's issuing bank assigned chargeback reason code 10. Acquirer Use of Message Reason Code 7623. Unfortunately, fraudsters. Card no present transaction can be applied to internet health care transactions, mail orders. 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 chargeback can be for the total transaction amount or a lesser amount. 99. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. Your firm needs to embrace a customer-centric approach focused on transparency and. This will be referenced in the chargeback notice you received. MasterCard does not have an equivalent reason code. The specific guarantee terms and reimbursement procedures will. Authorization errors generate due to a lack of authorization or a non-compliance issue. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 3? Visa chargeback reason code 13. & xquhdgdeoh 83& edu frgh rq yhqgru wlfnhw1 %honb&rpsoldqfh#ehon frp 0lvvlqj ru 8qdffhswdeoh +dqjhu 6l]hu1 %honb&rpsoldqfh#ehon frp 0lvvlqj 8qvfdqqdeoh *6 odeho ru plvvlqj lqirupdwlrq rq fduwrq odeho1 %honb&rpsoldqfh#ehon frp 8quhdgdeoh *6 odeho rq fduwrq1 %honb&rpsoldqfh#ehon frp & 1r uhwdlo rq 83& wlfnhw 1 %honb&rpsoldqfh#ehon frp Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. Chargeback response template for Digital Goods Not Received chargeback. The cardholder did not recognize the transaction on her statement or had her account taken by fraud. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. A service chargeback is filed by a customer, which means that you need to note the card type and dispute reason code so that you can determine which types of information to submit if you dispute the claim. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. For each reason code, a definition isThe customer regrets their purchase. 3: Goods or services were not received: C08: RG: 4855: 13. The most popular type of disputes of the chargeback category. Values are: Blank: Use the draft G/L date. For each reason code, a definition is8. Cardholder Dispute — Not Elsewhere Classified (U. Chargeback Reason Codes will help you better understand why you are involved in a Chargeback Dispute and what you need to do to prevent future Chargebacks. However, the disputes themselves are still categorized by the issuing. 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 validExplain your situation, and ask for their intervention. A recent survey reported that 83% of consumers intend to purchase a gift card this holiday season. The cardholder isn’t claiming that the entire transaction is invalid—that it was fraudulent or unauthorized—but that they either didn’t agree to certain charges or that the merchant failed. There are dozens of reasons why cardholders and issuers dispute transactions. You must designate the write-off reason code for the system to use when you activate the automatic write-off feature. 29. 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. Every of the major card brands, the. . Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. (See the reason codes for a full description. Often, this is the result of one of the. FR6 Partial Immediate Chargeback Program. 100187 and ANSI X9. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Every chargeback is filed with a reason code that identifies the given reason for the dispute. 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. 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. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. The transaction was refunded prior to the initiation of the chargeback: provide proof of refund. 4: “Other Fraud. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Chargeback reason codes used to categorize fraudulent chargebacks include American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040. ”. Visa chargebacks can be a major inconvenience for merchants. The nature of the threat makes it a moving target. The documents you submit are essentially telling a story that you want to relay to the bank. Additionally, one clearing transaction. Description: Reason code for applying handling fee. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 30. High-Risk (Excessive): Reaching a chargeback ratio of 1. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. Mastercard Collaboration will be a step in the right direction. Terms and conditions. Protected Chargeback Reason Codes: Visa USA: Credit & Debit Cards – Authentication & Attempts. Merchant Agreement, Merchant Responsibilities and Pricings. Chargeback reason code 11. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12:. 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. Valid Values/Format: 22 - First Chargeback Handling Fee. Chargeback time limits vary depending on the reason for the dispute. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. Dec 6, 2021 — Betty's bank issued the chargeback for $9. All ACH return reason codes consist of the letter “R” followed by two. 0. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. MASTERCARD Reason Code Description. What’s required to board a High Risk Business Merchant? Chargeback Representment Cycle. 2. What is a reason code? 3. ”. Encrypt transmission of cardholder data. For example, suppose a cardholder filed a case about an order processing issue, and you disputed the chargeback. 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. Chargeback reason codes can change with new information. If the customer’s story matches. Some payment service providers like PayPal and Stripe have their own reason codes as well. Number two: Product Not Received chargebacks. 31. UA06 Fraud – Chip and PIN Transaction. Depending on the code, that could mean gathering proof of authorization, signed receipts, proof of delivery, email correspondence and/or the cardholder’s IP address with transaction date and time for online purchases. Not recognizing your billing descriptor on a statement. A new update to Visa’s Chargeback reason code 83 adds more options for online sellers to dispute said related chargebacks, and help reduce friendly fraud. . F02. Invalid Visa Reason Code 83 Chargebacks. 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. 86: Paid by other means. , American Express, Discover, MasterCard, and Visa), there are 151 chargeback reason codes. Depending on the code, that could mean gathering proof of authorization, signed receipts, proof of delivery, email correspondence and/or the cardholder’s IP address with transaction date and time for online purchases. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 4853 – Cardholder Dispute – Goods or Services Not Provided. Unfortunately, fraudsters. Reason code 4853 refers to the broad category “Cardholder Dispute. 4840 — Fraudulent Processing of Transactions. 1? Visa chargeback reason code 10. The shorthand description is “Fraud—Card-Absent Environment. If you’re not, there’s a good chance you’re about to see a high volume of chargebacks with “fraud” reason codes come pouring in. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. Reason Code ≠ Reason 4. Include any terms relevant to the transaction, including return, cancellation and. I don't know why he's firing chargeback. Each card network maintains reason codes to cover all the disputes that qualify for. Also, just like American Express, Discover functions as both a card network and an. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. If you believe you have received an ACH return in error, you can contact your bank. The chargeback applies to the following scenarios: The. 1003 - Transaction Supporting Document (TSD) needed for cardholder’s personal records expense reporting. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Specify the invoice date and net due date to assign to chargebacks. If this fails and the Issuer has already billed the Transaction to the Cardholder, the Issuer must creditthe Cardholder for the Chargeback amount. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor… 3 min read · Nov 23, 2017 Chargeback ExpertzThe chargeback reason codes below explain why this happened. ”. The first thing you should do when you receive a chargeback notification is to check the reason code that the card issuer assigns to the dispute. The newer system is designed to. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. For each reason code, a definition isCard networks send these codes to merchants to indicate why a chargeback has been filed. Spot these types of chargebacks using the below 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. Code 81. 30. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. M01 Chargeback Authorization. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. The cardholder withdrew their chargeback: Provide a letter or email from the cardholder that states. 2. The shorthand description is “No Authorization. 4 spec (Section 8. Those reasons are explained through the corresponding reason codes. Respond to invalid disputes. UA02 Fraud – Card Not Present Transaction. 3 falls under the “Consumer Disputes” category. . AMERICAN EXPRESS; CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. 1 • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. For those unfamiliar with the concept, Friendly Fraud is when a cardholder claims fraudulent activity when a transaction was processed legitimately. Does this mean I could never get my money back? The buyer paid me on Mar. American Express is incentivized to keep their customers happy. Availability Date: October 24th, 2021. Reason Code 12. When that happens, the issuing bank will gather evidence from the customer and assign a reason code to the chargeback based on the card issuer. Try Shopify free for 3 days, no credit card required. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. A chargeback can happen when a customer initiates a transaction dispute. Both EFM and ECM measure compliance at the MID level. What is Visa chargeback reason code 10. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 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. 6: Duplicate processing/Paid by other means. Reason Code. The Allocation workflow applies to any chargeback assigned a “Fraud” or “Authorization”. Receiving a damaged product. What to Include in Your eCommerce Return PolicyA provisional credit is a temporary credit issued by a bank to an account holder. The format depends on the credit card company. 2. 3 falls under the “Consumer Disputes” category. VISA 83 Fraud-Card Absent Environment Fraud NO YES VISA 85 Credit Not Processed Cancelled/Returned by CardholderDec 6, 2021 — Betty's bank issued the chargeback for $9. When you get one of these response codes, you’re going to have to ask the customer to provide a different payment method: 5 - Do Not Honor. 83: Fraud-Card Absent Environment: Fraud: NO: YES: VISA: 85: Credit Not Processed: Cancelled/Returned by Cardholder: NO: YES: VISA: 86: Paid by Other. Chargeback prevention strategies vary based on the reason for the. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of. The Electronic Fund Transfer Act is a piece of US legislation that requires banks to provide certain information to customers regarding electronic fund transfers (EFTs). This scenario applies when the arbitration was raised by either the. For example, 'R04' indicates that an invalid account number was provided. ; Resources. It balances out the process and gives merchants the much-needed opportunity to influence the progression of a dispute before it becomes a fully-fledged chargeback. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. Example: 25. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. 1. Going back to our Reason Code C08 response, there are two modifiers that affect the evidence presented. The sales receipt and/or date and amount of the authorization if other than the transaction date. 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 Code Directory. You’ll put that reason code, the transaction amount and authorization number, and state that the. The initial release of this standard does not add, remove or change any Return Reason Codes. We would like to submit compelling evidence that the purchase was legitimate. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and. Chargebacks. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. 4860 Credit Not Processed. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. In most cases, the bank chooses a course of action based on information the cardholder provides. 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. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, Oftentimes, the reason code assignment is based on limited knowledge and insight. The bottom line: true fraud and chargeback prevention requires a more comprehensive. Visa - 10. PCI DSS v3. 0 represents the first rules change of its kind that specifically provides merchants with the opportunity to reverse the fraud status applied to a transaction associated by reason code 10. A reason code is an alphanumeric code that explains the reason behind the dispute. Now, compliance cases go through Visa Resolve Online (VROL). This code applies when a cardholder disputes a charge, and the merchant is informed by the processor that there is a problem with the transaction currency code. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. S. 60 for every $1 in sales. They provide banking services to customers, allowing. Retrieval Request/ Copy request Reason Codes. 3 No Authorization. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. In most cases, you will have 20-45 days in which to respond to a chargeback. 100- 140 standards- , and will be removed in future releases. 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. 00. Find explanations for the major credit card issuers’ dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaFor Visa disputes, the reason code also dictates which workflow the case will take. Visa Chargeback Reason Codes. Administrative returns (R02, R03, R04): 3%. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. The assigned chargeback reason code outlines why a customer submitted the dispute. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. ”. Updated the following columns - card type, response due date. Select a tab to see the possible. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. Often, this is the result of one of the. 0 August 4, 2023;Chargeback Reason Codes by Industry. 4 Other Fraud Card Absent. . Unauthorized returns (R05, R07, R10, R29, R51): 0. Customer Dispute. For example, some reason codes offer cardholders over a year to file. 3 is the less common version for card-present transactions. 3 applies when a cardholder claims a charge—made in a card-present environment—was. 10 Tips to Prevent Fashion Chargebacks. These chargebacks occur to resolve chargeback-related disputes between network members. 1 falls under the “Fraud” category. Below you can find all of the chargeback reason codes listed by each credit card company. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Spot these types of chargebacks using the below reason codes. Merchants who believe they have received an invalid chargeback under reason code 13. Some credit card companies also include a short phrase describing the code. 10. Choosing what compelling evidence to submit. Discover is a credit card network and an issuing bank—just like American Express. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). ONE 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. . Chargeback Reason Codes Reason code are the first key to understanding the root causes . Chargeback reason code. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. What is Visa chargeback reason code 13. up under any number of different chargeback . Versions Affected: v5, v6. This list was generated 5/4/2022. 00 EUR as a Withdrawal fee. CHARGEBACK REASON CODES THE ENCYCLOPEDIA recover lost r e c o v eyour r yo u r l orevenue st revenue Table of. Reason Code. ”. - Reason Code 83, "Fraud-Card-Absent Environment" - Reason Code 85, "Credit Not Processed" First. Reason Code Revised Explanation of Charges Penalty Team ADLTRD Product found adulterated upon receipt $500/incident DC Ops HNDGLU DC Ops Handling to fix glued boxes on pallet $75 + $100/hr + supplies DC OpsVisa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of the transaction. Now, compliance cases go through Visa Resolve Online (VROL). What is Visa chargeback reason code 13. If you leave this processing. 3. This liability shift essentially provides merchants. Managing Reason. Every time a merchant processes a transaction, they are supposed to send an. 1. TOP REASON CODE. 4863: Cardholder not recognized. ; Resources. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. 1. Updated these MasterCard Chargeback Codes: 08, 12, 55. Managing Reason Code 83 chargebacks. A reason code is how banks categorize the reason for a chargeback. For example, for Visa reason code 83, Fraud – Card Not Present, this is defined as “Proof the cardholder participated in the transaction,. The chargeback process is lengthy, time-consuming, and will always end up costing you more money than the original transaction was worth. Code 10. As we touched on earlier, chargebacks can happen due to technical errors. Reason code 83 represents a chargeback categorized as. 83: Card Absent Fraud:. An issuing bank — sometimes called a “card issuer” or simply “issuer” — is a member of a card network that issues credit cards to consumers. Read the Chargeback Advice letter carefully. The aim of CE 3. 4. Some payment service providers like PayPal and Stripe have their own reason codes as well. 31th and it's been 4 months. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. Every dollar disputed represents a loss to the merchant of $3. Chargeback reason code. The following message reason codes designate chargebacks resulting from issues related to customer disputes: Response Time Frame. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 7. Description A card-not-present transaction occurs when cardholder files a complaint that he/she neither participated nor authorized a particular charge. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 6. For more information on these and other updates, check out our complete chargeback reason. Feel free to submit topic suggestions, questions or requests for advice to:. Check with the issuing banks to determine what time limits may apply to you. 8% with at least 1,000 total disputes. 1. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. The shorthand description is “Incorrect Transaction Code. 4837: Cardholder non-authorization. S. The codes for each card brand are listed below along with the recommended documentation to provide. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. A new update to Visa’s Chargeback reason code 83 adds more options for online sellers to dispute said related chargebacks, and help reduce friendly fraud. Retrieval Request/ Copy request Reason Codes. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. 10. Search reason codes 2. By entering your email, you agree to receive marketing emails from Shopify. 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. 08. For example, a debit may have been processed instead of a credit, or a credit processed instead. reason code listing (updated 3-1. 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. Slideshow 7717267 by chargebackprevention 81 – Fraud – Card Present Environment 83 – Fraud – Card Not Present Environment Applicable Chargeback Reason Codes Effective for Representments Processed On or After 17 October 2015 30, 53, 81, 83 Evidence, such as photographs or emails, to prove a link between the person receiving the Description: Reason code for applying handling fee. Visa Chargeback Reason Codes Mastercard Chareback Reason Code; 30: Services Not Provided or Merchandise Not Received 57: Fraudulent Multiple Transactions 62: Counterfeit Transactions 81: Fraud- Card-present environment 83: Fraud- Card-absent environment 13. Reason codes vary by card brand. 8qnqrzq 83& < %honb&rpsoldqfh#ehon frp vnx qrw rq 6wruh doorfdwlrq1 %honb&rpsoldqfh#ehon frp & plvvlqj ru ghihfwlyh 5),' wdj< %honb&rpsoldqfh#ehon frp $ ,qyrlfh vhqw sulru wr ilqdo $61 vklsphqw1 %honb&rpsoldqfh#ehon frp 6kruw vklsphqw ri juhdwhu wkdq ri 321 %honb&rpsoldqfh#ehon frp. 4853. Updated these Discover Chargeback Codes: RG, RM, U01, U02. The immediate cause for this type of chargeback can be one of the following: The merchant processed a transaction from a person who was fraudulently using the card. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. After compiling your evidence according to the provided reason code, it’s time to organize your response for submission. 4853 Cardholder Dispute. If your issuing bank agrees with your claim, they will contact the merchant’s bank to notify them of the disputed charge. 75: Cardholder does not recognize transactions. For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card charge by filing a chargeback. The cardholder did not recognize the transaction on her statement or had her account taken by fraud. About Discover chargeback reason codes. A new 4 byte reason code will be used moving forward.