If your chargeback ratio is high [i. 2 for Visa and Reason Code 4850 for Mastercard). But, merchants should be aware that, eventually, everyone will be required to use the new designations. Respond to invalid disputes. ECM monitors first presentment chargebacks regardless of reason code or transaction type. Chargeback Reason Code. Either the acquiring or issuing bank could initiate the. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Once you hear from. . Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. A reason code is an alphanumeric code selected from a predetermined list by the issuing bank to indicate the reason the cardholder gave for requesting a chargeback. Chargeback Representment. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. As a merchant, you face the brunt of chargeback losses. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. 4 Funding Process. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. Here’s how. 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. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Chargeback Reason Codes. The list of chargeback reason codes in this article. Here’s how your store can prevent and deal with chargebacks. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. Mastercard Chargeback Reason Code 71: Disputed Amount. Unfortunately, it is pretty challenging to prevent friendly fraud. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. message. Date Option. Here are the two possible scenarios: 1. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. 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. The new reason codes follow a format of two digits, a period, then a third digit. There are two parts to this. The cardholder has a chip card and someone made a counterfeit copy of it. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. The chargeback reason code. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. M10. For example, 10. Any chargeback that is received without a reason code will be assigned a default code of 53. Written by Chargeback Gurus. Incorrect TransactionEvery chargeback comes with a reason code. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. FR2 Fraud Full Recourse Program. A reason code is an alphanumeric code that explains the reason behind the dispute. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. The status of the claim is set to S1 in the DDR. M49 Vehicle Rental – Theft or Loss of Use. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. 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 requested documentation, your account will be debited. Download this sample Chargeback Rebuttal Letter. Both EFM and ECM measure compliance at the MID level. The most popular type of disputes of the chargeback category. 4798. 1 Goods and Services Related Issues 1. Reason codes vary by card brand. 15, 2021. 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. 1. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. Chargebacks. 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. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Watch on. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. 3: Goods or services were not as described: C31: RM: 13. 1: Use the corresponding dates from the invoice. The keys to this are improved communication, enhanced customer satisfaction measures, and effective dispute resolution when necessary. Both EFM and ECM measure compliance at the MID level. It is associated with a chargeback reason code, and it is specific per Card Scheme. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. 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). The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. If you do perform a key-entered transaction, make a manual imprint of the card. Early Warning: Reaching a chargeback ratio of 0. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. UA06 Fraud – Chip and PIN Transaction. Visa chargeback reason code 75 is filed as an honest mistake. If the available information indicates that the customer dispute is a valid one, American Express will automatically debit your merchant account for the amount of the disputed transaction and will send you a chargeback notification for you to review. UA01 Fraud – Card Present Transaction. 2. PCI DSS v3. A reason code is how banks categorize the reason for a chargeback. This code tells you why the customer or bank initiated the dispute. 4853 – Cardholder Dispute – Goods or Services Not Provided. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. Visa anticipates that changes to the required up-front information will help eliminate the back-and-forth between merchant, acquirer, and issuer, intending to result in a quicker chargeback resolution time for our merchants. 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. Not only do you need to know how long the timeline is, but you also need to know when the clock. 3. Discover is a credit card network and an issuing bank—just like American Express. Read chargeback reason code descriptions carefully, especially if they include any transaction modifiers. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. 1 for Visa, 4842 for Mastercard, and LP for Discover). It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. M01 Chargeback Authorization. What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. Chargeback reason code 10. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. All ACH return reason codes consist of the letter “R” followed by two. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. There are two common causes of code 10. 2. There are several reasons why many merchants turn a blind eye to suspected return fraud. chargeback: The buyer filed a chargeback with the credit card issuer. This authoritative guide includes the chargeback reason key from each from the four major card netz. 4512:Last updated: October 15, 2019 . What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. Chargeback. MasterCard: Reason Code 4859 Services not rendered. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 196First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. Typical chargeback reason codes are: DA: Disputed amounts. 5 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. There are over 80 unique return codes, each representing a different return type. 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. Using the same link provided above, contact PayPal to report the scam. 0, these guidelines guarantee merchant protections from certain categories of disputes. pdf), Text File (. You double and triple check your customer service records to see if the customer wrote in about the shipment (they haven’t), you check the tracking. They may also have requirements that must be met in order for a transaction to be eligible for coverage, such as delivery confirmation. Invalid Authorisation (ISO 4521) / Charge amount exceeds Authorisation amount (A01). How you respond is determined by the chargeback reason code: Embed This Graphic. Every card brand has a unique set of chargeback reason codes banks must choose from. In that way, winning one dispute may help prevent the next chargeback to come after it. Pursuant to the Fair Credit Billing Act. Use this guide as a quick resource for Visa chargeback reasons at a. Understanding these codes is essential because they'll guide your response strategy. 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. This list was generated 5/4/2022. 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. 7. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. The implication is that the merchant is at fault. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Reason codes. 2: No Authorization Legacy Code: 71. UA06 Fraud – Chip and PIN Transaction. It indicates that the merchant has not properly deposited the transaction amount within the card network’s acceptable time frame and a chargeback will be issued as a result. Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. Visa, MasterCard, and American Express all list compelling evidence by reason code. The most comprehensive guide to chargeback reason codes. 3. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. A chargeback happens when a customer requests for a transaction to be reversed. The cardholder says they were incorrectly charged for capital damages for a car rental. You must tailor your representment case — including the compelling evidence — to the reason code under. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. Categories. M10 P01 P03 P04 P05 P07 P08 P22 P23 R03 R13 Select a code to see the details QUICK REFERENCE Time to respond: 20 days from date of chargeback. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. What Are Chargeback Reason Codes?. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. 00 in chargebacks. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Added the following fields - Store ID, Credit Card Chargeback Reason Code. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. Other Fraud—Card Present Environment. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. One catch is that CE3. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. The Chargeback Reason is fraud-related and the Chargeback Notice identifies that one of the below chargeback codes (each, an "Acceptable Reason Code") applies: Acceptable Reason Codes. Reason codes are important to help merchants address recurring. Others require banks to wait for a certain period before they can issue a chargeback. MASTERCARD Reason Code Description. 0: Updated report version from 1. Reason . Everyone from processors and card brands to local and federal governments has rules about how payments should be handled. Chargebacks from all three categories can show . processed the transaction correctly. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. This definitive guide includes the chargeback rationale codes from each of to four major card networks. 16, 2021. This may be done by either the merchant or the issuing bank. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. What is Visa chargeback reason code 12. Written over Chargeback Gurus. 2, below. Other countries. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Section5. 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. ; Resources. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. 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. Other Ineligible Transactions Under Reason Code 62, Condition 2 . Fraud. Additionally, one clearing transaction. 3. However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization. You can learn more about each one by visiting the Mastercard Chargeback Guide. Administrative returns (R02, R03, R04): 3%. The reason code used to describe the dispute will determine the chargeback time limit. This chargeback occurs when merchants do not adequately provide currency information. 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. Values are: Blank: Use the draft G/L date. The EFTA was first enacted in 1978. Field name: reasonCode. . Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. Understanding these codes is essential because they'll guide your response strategy. 4846 — Incorrect Currency Code. A chargeback happens when a customer requests for a transaction to be. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. 1 alpha followed by 2 numeric digits. Scenario 2. 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 TRR According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. The business has the chance to refute 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. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. 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. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. All chargebacks start with a customer making a purchase in person, in an app, or online. Each card company has its. 3? Visa chargeback reason code 13. ” This chargeback comes into play when a cardholder is charged incorrectly for damages to a rented vehicle. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. Transaction unauthorized make up 30% of all. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. FAQ: What is Chargeback Representment?. Discover - UA02 Fraud – Card Not Present Transaction. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). M49 — Vehicle Rental – Theft or. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. The system does not accept blank as a value, even if it is defined in the user defined code table. As we touched on earlier, chargebacks can happen due to technical errors. The system does not accept Blank as a value, even if it is defined in the UDC table. Acquirer Use of Message Reason Code 7623. 1. Updated August 23, 2023. 4, 12. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. Versions Affected: v5, v6. Protect cardholder data. What is Visa Reason Code 13. The sales receipt and/or date and amount of the authorization if other than the transaction date. At the start of a transaction. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Now, compliance cases must be submitted through Visa Resolve Online (VROL). 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. 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. Time Frames by Chargeback Type and Reason Code. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. Each reason code has its own set of regulations regarding: Proper and. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 103. Subsection5. Chargeback Reason Codes by Mesh - 2023 Guide. 6). 1. 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. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. ”. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. 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. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. These are only a handful of common Visa chargeback reason codes. reason code information. 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—QuestionableAn 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. non_receipt: The buyer claims they didn't get the goods or services. But sometimes, a chargeback can be fraudulent. Assemble Your Evidence. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. A reason code or a chargeback reason code is a string of symbols (numbers and letters). It’s even more frustrating if you don’t understand what the chargeback code means. 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. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Chargeback Reason Codes by Network - 2023 Orientation. reason codes. . Chargeback Report. Vehicle rental-capital damages, theft or loss of use. 46 4. About Discover chargeback reason codes. Reason Code Description. m10 Vehicle Rental - Capital Damages. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. School Yeshiva University; Course Title BUS MISC; Uploaded By KidGorilla7385. American Express. Merchants who believe they have received an invalid chargeback under reason code 13. Collect Compelling Evidence. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment. Chargebacks occur. Credit card fraud is a big problem for eCommerce merchants, leading to many true. Try Shopify free for 3 days, no credit card required. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Each chargeback comes with a code that designates the reason it was filed. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. 3 Changed Discover Reason Codes to match what is shown in the UI. However, Visa is the largest card brand in both the United States and the world. [noun]/* chahrj • bak • rə • pôrt/. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. for chargeback reason code 4863 (Cardholder Does Not Recognize). Assemble Your Evidence. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Always ask for authorization regardless of the transaction amount. 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. 9905. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. According to our research, friendly fraud will represent six out of every ten chargebacks. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 4853 – Cardholder Dispute – Credit Not Processed. M10 Vehicle Rental – Capital Damages. Reason codes vary by card brand. 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. Acquirer Use of Message Reason Code 7623. for chargeback reason code 4863 (Cardholder Does Not Recognize). MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. Discover Chargeback Reason Codes Explained. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. A “No Authorization” code chargeback can also be the. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Card issuers are in the process of enrolling all cards issued to cardholders to participate in 3-D Secure. All online retailers have to deal with at least some false positives. In short: yes. Pages 124 This preview shows page 90 - 93 out of 124 pages. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. 3 DUE DATE Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. Write customer-friendly policies. 5 Visa Fraud Monitoring Program. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. 3: Goods or services were not as described: C31: RM: 13. Now, 10. Chargebacks911® can help your business manage all aspects of chargeback reason codes, using proprietary technologies and experience. REQUEST A DEMO. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. 4853 – Cardholder Dispute – Goods or. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Look below the surface. The implication is that the merchant is at fault. According to Discover, cardholders officially have 120 days from the date of the transaction to initiate a chargeback, although the network may accept claims filed outside of that window on a case-by-case basis. 7: Defective goods and services: C32: RM: 13. Step 2: Customer initiates the chargeback. . The nature of the threat makes it a moving target. M10 — Vehicle Rental – Capital Damages. We also included the reason code descriptions and an indication of when the allowable time frame begins. Dubbed "Compelling Evidence 3. "Acceptable Reason Codes" has the meaning set out in section 2. The merchandise was as described or was not defective. 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. “Visa has 28 different reason codes.