Get definitive guide includes the chargeback reason codes from all of the to majority card networks. Chargeback Reason Codes. UA01 Fraud – Card Present Transaction. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. The reason code used to describe the dispute will determine the chargeback time limit. Each code has a different timeline. Spot these types of chargebacks using. The reason codes are grouped into several broad. Different card networks have different reason code systems. It is important for the merchant to know about the American Express Chargeback Reason Codes when dealing with a chargeback. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)These chargebacks occur to resolve chargeback-related disputes between network members. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Understanding these codes is essential because they'll guide your response strategy. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Either the acquiring or issuing bank could initiate the chargeback. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. These may impact the dispute time limits. 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. The following are some examples: Visa Reason Code 13. Visa chargeback reason code 11. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. It was originally just one facet of legacy reason code 81. Step #2 | Report the Scam to PayPal. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. 4. Look below the surface. UA02 Fraud – Card Not Present Transaction. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 4853 – Cardholder Dispute – Goods or. Reason Codes Category 4: Processing Errors. FR6 Partial Immediate Chargeback Program. Blog and Featured; Success Stories; Chargeback Reasoning Codes; BIN Look-up; eGuides and Reports;. Reason Code. Write Off. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. The shorthand description is “No Authorization. However, the return request is invalid, as the customer does not have a. Batch chargeback process. UA06 Fraud – Chip and PIN Transaction. Visa Chargeback Life Cycle. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Step 1: Identify the Source. Here’s how your store can prevent and deal with chargebacks. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. Many subscription payment disputes are made under code 13. 3? Chargeback reason code 13. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. M49 Vehicle Rental – Theft or Loss of Use. FAQ: What remains Chargeback Representment? TIPS. Each reason code has its own set of regulations regarding: Proper and. 1, multiple conditions must be met: A merchant processes a transaction, and the transaction is approved. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Below is a list of Mastercard chargeback codes used in eCommerce. Mastercard Chargeback Reason Code 71: Disputed Amount. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. Card issuers are in the process of enrolling all cards issued to cardholders to participate in 3-D Secure. Description. Credit card fraud is a big problem for eCommerce merchants, leading to many true. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. According to our research, friendly fraud will represent six out of every ten chargebacks. Aforementioned definitive guide includes and chargeback reason codes from each of the four major bill networks. Below is a list of Mastercard chargeback codes used in eCommerce. The cardholder has a chip card and someone made a counterfeit copy of it. Each card. The following chargeback reason codes are related to EMV: Visa: 10. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Card not present. The keys to this are improved communication, enhanced customer satisfaction measures, and effective dispute resolution when necessary. 10. Mastercard Chargeback Reason Code 73: Duplicate Transaction. 1 falls under the “Fraud” category. Any of those things could easily result in a recurring billing chargeback ( Reason Code 13. Now, 10. This code tells you why the customer or bank initiated the dispute. See moreTime Frames by Chargeback Type and Reason Code. However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Other countries. The system does not accept blank as a value, even if it is defined in the user defined code table. 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. Reason Code 03. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. 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. 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. There are two parts to this. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. The chargeback system was designed as a last resort; only to be used in specific situations. Check the chargeback reason code. 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. for chargeback reason code 4863 (Cardholder Does Not Recognize). 5 billion lost in 2020. Transaction unauthorized make up 30% of all. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Blog and Articles; Success Stories; Chargeback Reason Codes;. Instead, ask for a different form of payment. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. 3? Visa chargeback reason code 13. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. . underlying your chargeback. Chapter 2 1. Categories. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Try Shopify free for 3 days, no credit card required. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. 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. Valid Values/Format: 22 - First Chargeback Handling Fee. Technical. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. 4: Fraud—Card-Absent Environment. The reason for the dispute was false or inaccurate. According to Nilson, 56% of global card transactions were done on Visa in 2015. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. And chargeback guarantees aren't without. The system does not accept blank as a value, even if it is defined in the user defined code table. Reason Code 11. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Category. 3. The good news is that most of these invalid claims are disputable by the merchant. 3. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. As we touched on earlier, chargebacks can happen due to technical errors. 104. Card Brand. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. . If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Always ask for authorization regardless of the transaction amount. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. 4540. MASTERCARD Reason Code Description. 3 falls under the “Consumer Disputes” category. There are over 80 unique return codes, each representing a different return type. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. This may be done by either the merchant or the issuing bank. 4 Funding Process. Responding to Mastercard Reason Code 4853 Chargebacks. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. US and Canada. Chargeback reason codes 71 and 4808 are caused when merchants ignore a declined authorization response from the issuer and attempt one of the following actions: Forced posting. Chargeback Reason Codes. But sometimes, a chargeback can be fraudulent. 1. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. 2. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. 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. 9808 info@chargebacks911. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. 1? Visa chargeback reason code 12. • Rule changes for chargeback reason codes involving unjust enrichment associated with credits issued before or after a chargeback and/or after a second presentment. Section5. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. So don’t spend another second worrying about chargebacks. Visa Chargeback Reason Codes. 6. It’s generally more efficient to take a proactive stance when it comes to chargeback management. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. M10 Capital damages M11 Credit processed M12 Compliance M13 Not as described - Unable to resolve. ” This. M01 Chargeback Authorization. Then, they charge the merchant this credit amount to compensate for the bank’s loss, plus a. The chargeback system was designed as a last resort; only to be used in specific situations. 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). 6. 1. The terminal action codes are in Table 122 of the 4. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The assigned chargeback reason code outlines why a customer submitted the dispute. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. A chargeback happens when a customer requests for a transaction to be reversed. Blog and Articles; Success Stories; Chargeback Reason Codes; BIN Look-up; eGuides the Reports; Webinars; Knowledgebase; Online; Partners. Specify the invoice date and net due date that you want the system to assign to chargebacks. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Reason codes are important to help merchants address recurring. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 2022 Visa Chargeback. Solutions. ©Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. By entering your email, you agree to receive marketing emails from Shopify. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. 2: No Authorization Legacy Code: 71. These disputes are commonly referred to as friendly fraud. This provided a number of insights into the typical. Values are: Blank: Use the draft G/L date. 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. txt) or read online for free. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. Code 4807: Fraudulent Card-Present Transaction. M10. At Visa they used to receive reason code 98. 1 EMV Liability Shift 10. It can range from 60 to 120 days from the billing date. message. The Fintech Times. Merchant Accepted Chargeback-Miscellaneous: Amex: M10: Capital damages-Miscellaneous: Amex: M11: CM Credited- Chargeback Reversed. What is a chargeback time limit? The chargeback response. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. RuPay has categorized all the chargeback reason codes into 5 different groups as stated below. Review your credit card processor’s policies to understand its chargeback dispute process. If you're contesting a chargeback, you'll need solid evidence. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). 3: Goods or services were not as described: C31: RM: 13. There are dozens of reasons why cardholders and issuers dispute transactions. This means providing evidence that will undermine the cardholder’s claim. That said, looking up purchases using this number can make it easier to provide info following an. 46 4. reason code information. In that way, winning one dispute may help prevent the next chargeback to come after it. United States. By entering your email, you agree to receive marketing emails from Shopify. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Scenario 1 — upfront chargeback. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) These chargebacks occur to resolve chargeback-related disputes between network members. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. Chargeback reason codes. Invalid Authorisation (ISO 4521) / Charge amount exceeds Authorisation amount (A01). Here are some chargeback reason codes by card type. 3 Changed Discover Reason Codes to match what is shown in the UI. Improve chargeback-resolution time. M10. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. 1: goods not received. The network hasn't wholly disallowed some old codes. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. resolved via the chargeback management process and within timeframes. Reason codes are very crucial to assist. 1 Chargeback. It gets worse. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. EMV Liability Shift Counterfeit Fraud. Fraudulent TransactionsEvery chargeback comes with a reason code. Dispute Category. Code description a01 charge exceeds authorization. A chargeback happens when a customer requests for a transaction to be reversed. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. 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. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Once you hear from. Use order validation and prevention alerts. It is subject to change and may not include every currently known dispute reason code. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. There are several reasons why many merchants turn a blind eye to suspected return fraud. Updated August 23, 2023. 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. Incorrect TransactionEvery chargeback comes with a reason code. Chargeback Representment. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. Prevented; Recover; Tools. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. ) A no-nonsense summary of evidence that proves transaction is legit. FAQ: What is Chargeback Representment?. For example, Mastercard has a code which indicates a ‘consumer dispute. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. Terms and conditions. 1. “Credit Not Processed,” the reason code for unreceived refunds, accounted for 12% of consumer disputes at the height of the pandemic. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. Read chargeback reason code descriptions carefully, especially if they include any transaction modifiers. Breaking Down Chargeback Fees. If you're contesting a chargeback, you'll need solid evidence. Chargeback prevention alerts require you to monitor and respond to notifications within a short time frame, usually 24 to 72 hours. The bottom line: true fraud and chargeback prevention requires a more comprehensive. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Chargeback reason codes are one piece of evidence you can use to make your case. Visa has recently announced changes to its chargeback rules. 1. 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. 3 Changed Discover Reason Codes to match what is shown in the UI. Chargeback Reason Codes All received credit card disputes include a reason code. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. By entering your email, you agree to receive marketing emails from Shopify. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Other Fraud—Card Absent Environment. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to. Administrative returns (R02, R03, R04): 3%. This list was generated 5/4/2022. Which definitely guide includes the chargeback motive. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. 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. Provide Explanation Give a clear overview of the documents you’re submitting, address the specific dispute reason, provide any changes made to the original purchase/agreement and explain the steps you’ve taken to resolve the dispute. The chargeback reason code. 10. 0" or CE3. Dubbed "Compelling Evidence 3. Fewer chargeback reason codes. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. 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. ECM monitors first presentment chargebacks regardless of reason code or transaction type. The 12 calendar day response time period begins from the dispute filing date in the DDR. A “No Authorization” code chargeback can also be the. Chargeback Reason Coded by Network - 2023 Guide. That suggests that in the times when merchants. Paymentology will submit the chargeback using the appropriate chargeback reason code. This definitive guide include the chargeback base codes from each away and four more card networks. This authoritative guide includes the chargeback reason key from each from the four major card netz. All card brands have their own number of codes). Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. 3 falls under the “Consumer Disputes” category. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. Others require banks to wait for a certain period before they can issue a chargeback. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Discover uses unique codes to explain those reasons to merchants. REQUEST A DEMO. Fight; Hinder; Recover; Resources. Analyze your chargeback data. 3. 2. After an authorization request is declined, the merchant forces the transaction through, typically by key-entering it, without making another authorization. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Merchants. Unauthorized returns (R05, R07, R10, R29, R51): 0. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. ; Help Center Find answers to common questions about Midigator’s technology,. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. This can provide important information to fight the dispute. This list can provide you with a brief detail on the reasons for chargebacks. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. 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. m10 Vehicle Rental - Capital Damages. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. up under any number of different chargeback . Chargebacks. Reason Code. If you don’t reply in time or with . If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Chargeback Reason Codes by Network - 2023 Orientation. Updated August 23, 2023. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. Either the acquiring or issuing bank could initiate the. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. It is associated with a chargeback reason code, and it is specific per Card Scheme. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Standard Threshold: Reaching a chargeback ratio of 0. 105. Stage 1: First Chargeback. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. This ranges anywhere from roughly 60 to 90 days after purchase. 1=1010,. Each reason code has its own set of regulations regarding: Proper and. The chargeback transfers funds from the acquirer to the issuer. “Late Presentment” is a reason code description for three of the four card brands (reason code 12. 16, 2021. Reason codes are created by the major. 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. com Europe. You must tailor your representment case — including the compelling evidence — to the reason code under. A payment capture is the legally binding point at which transactional funds move from a cardholder's account into a merchant’s account. 5. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. There are two parts to this.