A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. The shorthand description is “No Authorization. non_receipt: The buyer claims they didn't get the goods or services. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. UniBul August 16, 2010 Credit Card Processing Blog 0 Comments. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. With the right compelling evidence,. The codes for each card brand are listed below along with the recommended documentation to provide. Chargeback reason codes identify the general reason behind a chargeback. In fact, 91. Depending on. The most comprehensive guide to chargeback reason codes. 6 –. Late Presentment Rules: Mastercard. Visa, for example, has reason codes: 11. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableUse fallback options—like manually entering transaction data—as a last resort. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. 2. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Processing Errors 12. Pursuant to the Fair Credit Billing Act. Managing Reason Code 41 chargebacks. The chargeback can be for the total transaction amount or a lesser amount. REQUEST A DEMO. 5 Appendi New Reason Code 1150 – Addition of New Reason 69 x C23 “Chip Card Counterfeit Code 1150 under Transaction” added International Chargeback Reason Codes 04-09-2015 1. Each card network maintains reason codes to cover all the disputes that qualify for. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. 3. While there are many chargeback reason codes, all chargebacks fall into one of three categories: On that note, below are some vendor missteps that could result in Visa reason code 13. As we touched on earlier, chargebacks can happen due to technical errors. Chargeback reason code. The other member could accept the chargeback or contest it, escalating the dispute to compliance where Visa adjudicates. Chargeback Reason Codes by Industry. 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. Field name: reasonCode. 1 EMV Liability Shift 10. The following chargeback reason codes are related to EMV: Visa: 10. Code. up under any number of different chargeback . 3. Across the four major credit card networks (i. Step 1: Identify the Source. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. August 2021 Marks the 10 th Anniversary of Chargebacks911®. Stop order fulfillment so cost of goods isn’t lost. UA02 Fraud – Card Not Present Transaction. The problem continues to grow out of control with each year. The other member could accept the chargeback or contest it, escalating the dispute to compliance where Visa adjudicates. If the transaction date listed in the clearing record is incorrect, provide documentation that proves authorization was obtained on the correct date. That’s 50% more time than what the major card networks allow. 196Breaking Down Chargeback Fees. However, these chargeback reason codes cannot. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 4846 — Incorrect Currency Code. Specify the invoice date and net due date to assign to chargebacks. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, and recommendations are given for resubmitting the transaction and preventing similar chargebacks in the future. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Also, just like American Express, Discover functions as both a card network and an. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. If your chargeback ratio is high [i. Updated August 23, 2023. 0 is to make the chargeback process more efficient, transparent, and fair. Eligible Chargeback Reason Codes . A chargeback filed due to buyer’s remorse is a prime case. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. 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. 5 percent of all transactions. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Merchants who believe they have received an invalid chargeback under reason code 13. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. What is Visa chargeback reason code 12. If the. 4 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. WEX began issuing chip cards in Q4, 2020. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. 2 – Incorrect Transaction Code 12. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Reason code 83 represents a chargeback categorized as. FR6 Partial Immediate Chargeback Program. Mastercard: n/a This chargeback is caused by Authorization. MasterCard chargeback reason code 4540. Code 10. Consumer Disputes. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. 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. Respond to invalid disputes. Chargebacks911 is the original chargeback management company with solutions to prevent chargebacks before they happen and fight. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. 3 falls under the “Authorization” category. This will be referenced in the chargeback notice you received. Q. If you leave this processing. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. Here's a list of all the current Visa reason codes: Chargeback Code. Today, Visa expects members to communicate through VROL and try to. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Pre-arbitration gives the acquirer and issuer. 3? Visa chargeback reason code 11. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. Additionally, one clearing transaction. Specify the default reason code to. for chargeback reason code 4863 (Cardholder Does Not Recognize). Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. The cardholder may be the customer or the someone who lent their card to a friend or relative. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. 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. Updated these Discover Chargeback Codes: U05, U06. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Solutions. The chargeback reason code. Now, compliance cases go through Visa Resolve Online (VROL). Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. A second presentment transfers funds from an issuer to an acquirer. For more information on these indicators, check out our full article on Discover reason codes. Visa chargeback reason code 12. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. Step 1: The cardholder disputes a charge. 4 spec (Section 8. A chargeback guarantee is a service provided by third-party vendors that protects merchants against the financial impact of chargebacks. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. In that way, winning one dispute may help prevent the next chargeback to come after it. 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. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). Understand the reason for the chargeback. Time and Labor. 3? Chargeback reason code 13. 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. May 2011: 5. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Card Recovery Bulletin Authorization Visa 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: Account Number Not on File: 31: Transaction Amount Differs: 34:Visa recently shortened chargeback time limits from 45 days to 30. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. What are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. These symbols stand for reasons why a financial. 2 Declined Authorization; 11. 2. The Complete Chargeback Reason Codes List. Chargebacks are a major threat to businesses big and small. Chargeback reason codes. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 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. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 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. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. Protect stored cardholder data. without a reason code will be assigned a default code of 1. Some consumer disputes are legitimate complaints about an order that doesn’t go as planned. 6). These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. A chargeback happens when a customer requests for a transaction to be reversed. ”. Visa chargeback reason code 11. In the case of friendly fraud, that reason could be completely invalid and. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. ”. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. ”. 1220. If you do perform a key-entered transaction, make a manual imprint of the card. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. Provide exemplary customer service. Use order validation and prevention alerts. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. The Code 10 call gives merchants a chance to bring possible fraud to the card issuer’s attention and receive instructions from them about how to proceed with the transaction. 5, and all aspects of chargeback reason codes, with proprietary. A reason code is an alphanumeric code that explains the reason behind the dispute. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. Updated: Valid values updated. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. What are reason codes?. But, merchants should be aware that, eventually, everyone will be required to use the new designations. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. 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. In fact, the total costs of chargebacks exceed $30 billion per year, which is more than the revenue of many Fortune 500 companies, like McDonald’s and Netflix. 0: Changed report name from Downloadable Dispute Report to Case Report. Based on the information provided, Paymentology will investigate the transaction being disputed. Merchant. 5 Appendi New Reason Code 1149 – Addition of New Reason 70 x C23 “ Lost or Stolen. 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. MasterCard - 4855 Goods or Services Not Provided. 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. The idea was to allow the merchants to dispute the chargeback process and help prevent certain chargeback frauds. A chargeback happens when a customer requests for a transaction to be. 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. 1 Quick Reference Lead. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Faxing and Mailing Agencies: What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. The shorthand description is “Goods/Services Not as Described. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Most reason codes apply to any merchant, regardless of what’s being sold. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. ” Currently, merchants can already prevent many 10. 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). According to Nilson, 56% of global card transactions were done on Visa in 2015. To determine the problem, you need to examine customer interactions, transaction details, and business practices. Date Option. Availability Date: October 24th, 2021. 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. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. All card brands have their own number of codes). So don’t spend another second worrying about chargebacks. While the updates have been published, they do not go into effect until Oct. 0. Learn the details, the cause, how to respond and how to prevent Visa Reason Code 11. 3: Goods or services were not received: C08: RG: 4855: 13. 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. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. 7: Defective goods and services: C32: RM: 13. There are tricks you might use to circumvent an. 3. Level 3/Phase 3: Second presentment, second chargeback, or pre-arbitration. ’It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. Try Shopify free for 3 days, no credit card required. For example, 10. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F29, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Valid Values/Format: 22 - First Chargeback Handling Fee. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. Description. They can also be caused by a merchant failing to process a cancellation promptly. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. Reason code 83 represents a chargeback categorized as. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. Holders of merchant accounts at Wells Fargo will be charged $25 for each chargeback filed. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. Chargeback Reason Codes. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. 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. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. The reason code. Chargeback prevention strategies vary based on the reason for the. All ACH return reason codes consist of the letter “R” followed by two. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Write customer-friendly policies. UA06 Fraud – Chip and PIN Transaction. 2. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 RequestedRequired information illegible or missing 07 Warning Bulletin File 08 RequestedRequired authorization not obtained 12 Account number not on file 31. Responding to Mastercard Reason Code 4853 Chargebacks. 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. e. Each chargeback reason code has specific rules and documentation requirements. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 3 No Authorization. 0 to 5. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. 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. e above 0. . When a transaction is declined, the specific code provides information about the reason for the decline. The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. Chargeback reason codes were created to standardize the list of acceptable reasons why a bank may file a credit card chargeback or debit chargeback on their customer’s behalf. Modified the matching 68 xG criteria for Refund transaction 04-09-2015 1. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. 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. Knowing these codes can help you dispute chargebacks more effectively. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. “Visa has 28 different reason codes. Include any terms relevant to the transaction, including return, cancellation and. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. The chargeback process can last from one month to six months. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. com The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. 26% - the number of chargebacks that result from undelivered orders. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. 3. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. Being familiar with these codes will help. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 15, 2021. 2. 1130: No Authorization: up to 120 days: Authorization: Visa: 1210: Late Presentment: up to 120 days: Processing Errors: Visa: 1220: Incorrect. 4 – Incorrect Account Number 12. The cardholder initiates contact with their bank or credit union to file a dispute. Each bank card network has its owner list of reason codes banks must prefer from. In most cases, the bank chooses a course of action based on information the cardholder provides. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. In the distribution industry,. Sometimes, customers get wrongly debited due to manual data entry errors by the merchant’s team. Chapter 2 1. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. 4. Example: 25. underlying your chargeback. The better news: Merchants have the option to challenge said chargebacks and, when successful, reclaim money lost. 6: Duplicate processing/Paid by other means. 3. Thursday, February 10, 2022. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. 1130. The sales receipt and/or date and amount of the authorization if other than the transaction date. About American Express chargeback reason codes. The shorthand description is “Credit Not Processed. Collect Compelling Evidence. ”. Any chargeback that is received without a reason code will be assigned a default code of 53. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. Review your credit card processor’s policies to understand its chargeback dispute process. High-Risk (Excessive): Reaching a chargeback ratio of. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. 4 applies to eCommerce, whereas code 10. This process is called. Feel free to submit topic suggestions, questions or requests for advice to:. It depends on the chargeback reason code associated with the dispute. When one cardholder initiates a dispute with their issuing. The Merchant Reviews the Partial Chargeback Claim. A new 4 byte reason code will be used moving forward. Summary of Changes, 13 December 2018There are over 80 unique return codes, and each one represents a different type of return. Dispute Best. many chargeback reason codes that exist today. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Analyze your chargeback data. 9808; [email protected]: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. You should place a Code 10 call when. 3 Category Authorization Workflow Allocation DESCRIPTION Why did I receive this dispute? You. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. MasterCard and. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. Discover - RG Non-Receipt of Goods, Services, or Cash. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. A number of factors contribute to a high chargeback ratio. Each reason code has its own set of regulations regarding: Proper and. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Both EFM and ECM measure compliance at the MID level. The merchant did not receive any returned merchandise. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. 2 falls under the “Processing Errors” category. 1. For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. All the major card networks use chargeback reason codes to convey the reason for a chargeback. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. ”About American Express chargeback reason codes. 2 Added chapter providing information about the DiscoverChargeback reason code 13. Fraud. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Identify issues within 24 hours of a cardholder dispute, rather than waiting. By entering your email, you agree to receive marketing emails from Shopify. How you respond is determined by the chargeback reason code: Embed This Graphic. 75 for every $1. We’ll Handle the Chargebacks. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. 7. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. 3 No AuthorizationHere 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 purchase occurs. The most popular type of disputes of the chargeback category. Fewer chargeback reason codes. 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. That’s 50% more time than what the major card networks allow. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. Overall returns (all codes): 15%. This extra step can be frustrating for Card Members and lead to lost sales. There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches.