Chargeback Codes and their Meaning

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A Chargeback is a refund that consumers may initiate by contacting their bank over a debit item on their card by filing a substantiated complain. This could happen for a number of reasons ranging from fraudulent use of a card to simple human error such as being charged twice. Whenever a chargeback dispute is filed, the merchant or payment provider will receive a code from its issuing bank, which classifies the dispute, and the merchant will have to resolve the chargeback dispute. There are several tools that are tested and proven that can help reduce a merchants chargeback percentage and retain profits. Some of the most common codes are listed below:

 

Visa Classification Codes

30: Services Not Provided or Merchandise Not Received

41: Cancelled Recurring Transaction

53: Not as Described or Defective Merchandise

57: Fraudulent Multiple Transactions

60: Illegible Fulfillment

62: Counterfeit Transaction

71: Declined Authorization

72: No Authorization

73: Expired Card

74: Late Presentment

75: Transaction Not Recognized

76: Incorrect Currency or Transaction Code or Domestic

77: Non-Matching Account Number

80: Incorrect Transaction Amount or Account Number

81: Fraud—Card-Present Environment

82: Duplicate Processing

83: Fraud—Card-Absent Environment

85: Credit Not Processed

86: Paid by Other Means

96: Transaction Exceeds Limited Amount

 

MasterCard Classification Codes

4802: Requested/Required Information Illegible or Missing

4807: Warning Bulletin File

4808: Requested/Required Authorization Not Obtained

4812: Account Number Not On File

4831: Transaction Amount Differs

4834: Duplicate Processing

4837: No Cardholder Authorization

4840: Fraudulent Processing of Transactions

4841: Cancelled Recurring Transaction

4842: Late Presentment

4846: Correct Transaction Currency Code Not Provided

4847: Requested/Required Authorization Not Obtained and Fraudulent Transaction

4849: Questionable Merchant Activity

4850: Installment Billing Dispute

4853: Cardholder Dispute—Defective Merchandise/Not as Described

4854: Cardholder Dispute—Not Elsewhere Classified (U.S. region only)

4855: Goods or services not provided

4857: Card-Activated Telephone Transaction (fraud only)

4859: Change to Addendum, No-show, or ATM Dispute

4860: Credit Not Processed

4862: Counterfeit Transaction Magnetic Stripe POS Fraud

4863: Cardholder Does Not Recognize—Potential Fraud

4870: Chip Liability Shift

4871: Chip/PIN Liability Shift