In most cases, you will have 20-45 days in which to respond to a chargeback. Amex Dispute Codes 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. Info Us; In and. American Express chargeback reason codes are divided into five categories: authorization, cardmember disputes, fraud, processing errors, and miscellaneous. Visa has recently announced changes to its chargeback rules. reason code information. Discover. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. 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. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Unauthorized returns (R05, R07, R10, R29, R51): 0. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. There are multiple situations in which this can occur. 6: Credit not. In order to fight a chargeback effectively, however, you'll need to know the reason code. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. 3. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. Review your credit card processor’s policies to understand its chargeback dispute process. many chargeback reason codes that exist today. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. Acquirer Use of Message Reason Code 7623. Here are some chargeback reason codes by card type. Fraudulent TransactionsA chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. MasterCard: Reason Code 4859 Services not rendered. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Even though these codes are not detailed enough, they are crucial when it comes to successfully preventing and fighting chargebacks. Visa chargeback reason codes. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. While the format of chargeback reason codes varies. Chargeback representment is the process through which merchants can submit evidence to prove that a chargeback is illegitimate. 4 Funding Process. American Express Chargeback Reason Codes – Chargeback Expertz. If a dispute is filed with Discover and a ticket retrieval request is sent, the merchant has just five calendar days to respond with. This code tells you why the customer or bank initiated the dispute. American Express chargeback. For best results, your chargeback win rate should be as close to 100% as possible. 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. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. The cardholder may be the customer or the someone who lent their card to a friend or relative. September 2011: 5. These codes can help a merchant with an inquiry or chargeback reversal. . With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. 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. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Scenario 2. If a criminal manages to defeat the technology and complete an online purchase, Mastercard will shift liability away from the merchant and onto the issuer. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. 2 chargebacks are frequently caused by customers forgetting to cancel a subscription before the next billing and then going to their bank to try to get their money back. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Either the acquiring or issuing bank could initiate the. the Chargeback. P04: Charge Processed as Credit: Processing Errors: P05: Incorrect Charge Amount:. 2. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. With that said, you still need to understand the reason codes with any chargebacks from Amex. Reason. Categories for reason codes have changed over the years, especially because of the increasing number of. Some credit card companies also include a short phrase describing the code and chargeback. 0. ; Help Center Find answers to common questions about Midigator’s technology,. Fight; Prevent; Recover; Predict; Success Story; Resources. This reason code is used when a cardholder claims that the merchant charged them for a different amount than what they agreed to pay. Chargebacks have both short and long-term ramifications for merchants. The nature of the threat makes it a moving target. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Assemble Your Evidence. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card. Once filed, the merchant generally has 20 days to respond to the chargeback. In the normal chargeback notification process, it can take 2-5 weeks to be notified. Chargeback . In some cases it can be upwards of 540 days, though, depending on. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. 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. 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. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. About American Express chargeback reason codes. Reason codes are important to help merchants address recurring. So the company has more incentive to side with customer during cardholder. Visa - 13. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. 0 is to make the chargeback process more efficient, transparent, and fair. And according. Learn about the different chargeback reason codes and what they mean. P01 – Unassigned Card Number. Additionally, Amex uses a fifth "Miscellaneous" category. Here’s how your store can prevent and deal with chargebacks. 1 EMV Liability Shift 10. This information should be based on the Visa chargeback reason codes assigned to the case. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. 10301. This may be done by either the merchant or the issuing bank. Reason Code P04 – Charge Processed As Credit. Chargeback . Note: Fraud is generally the most common chargeback dispute reason. 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). Find out the hidden impact of chargeback reason codes. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Solution. American Express chargeback reason codes REASON ODE ENCYCLOPEDIA sift. Friendly fraud. 10. 2. 265. Time Frames by Chargeback Type and Reason Code The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing. FAQ: What is Chargeback Representment?. Discover - RG Non-Receipt of Goods, Services, or Cash. 5. ©Please note that the most common Chargeback reason code for Allocation disputes is 10. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. MASTERCARD Reason Code Description. 63 P05 Incorrect charge amount. 4808 Authorization-Related Chargeback. Chargeback amount is equal to or less than the exceeded limited /authorised amount. New Visa CE 3. Reason Code North-America: Canada and United States of America; Reason Code: All other countries;. Additionally, Amex uses a fifth "Miscellaneous" category. These codes can help a merchant with an inquiry or chargeback reversal. 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. Upfront Chargeback If we determine we have sufficient information to pursue a Chargeback, we may debit your account up front. The assigned chargeback reason code outlines why a customer submitted the dispute. The cardholder does not recognize the Merchant. 0 is to make the chargeback process more efficient, transparent, and fair. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Note that a chargeback is a forced bank reversal that always results in additional fees and penalties for sellers, regardless of the validity of the buyer’s claim. A “No Authorization” code chargeback can also be the. For example, 10. Reason Code 03. Updated August 23, 2023. Mastercard: n/a This chargeback is caused by Authorization. Reason codes vary by card brand. By entering your email, you agree to receive marketing emails from Shopify. However, they don’t address the reason why that chargeback was issued in the first place. That's why we've created this guide, which goes over what reason codes are and how they help fight chargebacks and includes up-to-date lists of the reason codes for all the major US card networks. 00 in chargebacks. 4808 – Authorization-Related Chargeback – Multiple Authorization Requests. For more information on these and other updates, check out our complete chargeback reason. Analyze your chargeback data. If your reply addresses the . That’s 50% more time than what the major card networks allow. This may include: Transaction receipts; Merchant credentials; Customer authorizationREQUEST A DEMO. Solutions. If you believe you have received an ACH return in error, you can contact your bank. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. Visa Code # MasterCard Code # Reason. chargeback: The buyer filed a chargeback with the credit card issuer. 2. A01 | A02 | A08. Chargebacks Explained;. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. Declined Authorization Authorization Visa Code: 11. There are two types of invalid chargebacks. American Express chargeback reason code C42. Reason codes are very crucial to assist. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. 3: Goods or services were not as described: C31: RM: 13. Summary of Changes, 13 December 2018Reason. 60. P04 – Charge Processed as Credit. Carefully analyze the reason provided by the cardholder for the chargeback. 2. The terminal action codes are in Table 122 of the 4. You can check on the status of your dispute by following these steps: Login to your Chime mobile app. ; Resources. Visa ® has launched the CE 3. Written by Chargeback Curators. Chargeback prevention strategies vary based on the reason for the. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. It is associated with a chargeback reason code, and it is specific per Card Scheme. Discover: Reason Code 4755 Non-receipt of goods or services. Fight;. com. 4 spec (Section 8. Reason Codes Category 4: Processing Errors. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. 4: . ECM monitors first presentment chargebacks regardless of reason code or transaction type. American Express chargeback reason code P05 falls under the “Processing Errors” category. . 34 Chargeback Chargeback Reason Codes. Card Recovery Bulletin Authorization Visa Code: 11. Try Shopify free for 3 days, no credit card required. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. The cardholder does not recognize your name on their statement. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . Chargeback Reason Codes All received credit card disputes include a reason code. Shopify has four status categories for chargebacks and inquiries: Open: No response has been sent yet and evidence can still be added. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. Merchant processed transaction below floor limit without authorization. . Reason Code 53 re-presentments must be. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. 10. Discover Chargeback Reason Codes Explained. To diagnose the P0604 code, it typically requires 1. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Let’s say you got a Visa chargeback with reason code 13. might reverse the Chargeback. UA05 Fraud – Chip Counterfeit Transaction. Specify the invoice date and net due date that you want the system to assign to chargebacks. 2 – EMV Liability Shift Non-Counterfeit Fraud. See moreAmerican Express chargeback reason code P04 falls under the “Processing Errors” category. 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. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. Every chargeback comes with a reason code. P04 – Charge Processed as Credit. 10. Also, remember that the time frame for your response includes any processing required by the acquirer. This reason code is used when a cardholder claims that the merchant charged them for a different amount than what they agreed to pay. Code. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. A reason code or a chargeback reason code is a string of symbols (numbers and letters). American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Chargeback time frames - A specific period during which a chargeback can be raised. There are two parts to this. Cardholders can dispute digital goods transactions of $25 or less (or the equivalent in local currency) if certain purchase controls were not put. VCR Dispute Reason Code 10. 0. Depending on. Use order validation and prevention alerts. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. 103. It's essential to respond within the. There are over 80 unique return codes, and each one represents a different type of return. Based on the information provided, Paymentology will investigate the transaction being disputed. The business has the chance to refute the chargeback. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Get definitive guide includes the chargeback reason codes from all of the to majority card networks. Visa chargeback reason code 11. Reason Code 53 re-presentments must be. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. Each chargeback reason code has specific rules and documentation requirements. 5 billion lost in 2020. 3 Fraud – Card-Present Environment. Either the acquiring or issuing bank could initiate the chargeback. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. This chargeback occurs when merchants do not adequately provide currency information. It gets worse. 2=1020 etc. Paymentology will submit the chargeback using the appropriate chargeback reason code. Chargeback amount is equal to or less than the exceeded limited /authorised amount. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. About Discover chargeback reason codes. Code. Once filed, the merchant generally has 20. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Category. Expired Chargeback Protection Period. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. EMV Liability Shift Counterfeit Fraud. 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. MasterCard - 4855 Goods or Services Not Provided. Other Ineligible Transactions Under Reason Code 62, Condition 2 . The issuing bank reviews the information. Conditions which may cause a P0604 to be stored may affect engine management in a serious manner. On the home screen, tap “Disputes. P05 – Incorrect Charge Amount. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. Blog and Articles; Success Stories;. Expedited Dispute Resolution forms will not be allowed. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). 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. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Chargebacks. pdf), Text File (. . Importance of Chargeback Reason Codes Reason Code P04 Category Processing Error Claim The cardholder claims the merchant should have processed a regular transaction on their card, but instead, the merchant credited their account. Paymentology will submit the chargeback using the appropriate chargeback reason code. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. 0 hour of labor. 101. 3. Expedited Dispute Resolution forms will not be allowed. Categories for reason codes have changed over the years, especially because of the increasing number of. Chargeback Representment. F01. By entering your email, you agree to receive marketing emails from Shopify. 105. Administrative returns (R02, R03, R04): 3%. This code tells you why the customer or bank initiated the dispute. The issuing bank will evaluate the evidence provided and, if they find it compelling, reverse the chargeback. 0: Updated report version from 1. A new 4 byte reason code will be used moving forward. reason_description: string. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Each time a consumer files a chargeback, the merchant is hit with a fee ranging from $20 to $100 per transaction. Dispute Category. Try Shopify free for 3 days, no credit card required. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. The cardholder does not recognize your name on their statement. 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. Build & Submit a Representment Case in 4 StepsA counterpart program, the Visa Dispute Monitoring Program, may apply to both fraud- and non-fraud-related reason codes. 4 Fraud – Card-Absent Environment. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. Explanation. It can range from 60 to 120 days from the billing date. The sales receipt and/or date and amount of the authorization if other than the transaction date. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback 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. Collect Compelling Evidence. underlying your chargeback. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. This definitive guide includes the chargeback rationale codes from each of to four major card networks. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. The shorthand description is “No Authorization. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 65% with at least 75 total disputes. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. 0. 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. /HealthCare IIAS Auto-sub Data Retrieval Request 70 Int'l only Effective Change Date AMEX F24 FR4 FR5 M01 M04 M10 P01 P04 P05 R03 R13 Duplicate Billing Captial damages M19 Offset adjustment Non-Matching Account Number Late. The chargeback process can last from one month to six months. Values are: Blank: Use the draft G/L date. As a merchant, you face the brunt of chargeback losses. Once filed, the merchant generally has 20 days to respond to the chargeback. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. American Express Chargebacks / Disputes. Knowing these codes is vital for merchants to understand the reason for chargebacks and how to manage them. Summary of Changes, 13 December 2018Over the last three years, so-called friendly fraud has become the number-one source of fraud as reported by merchants are forced to deal with. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. The cardholder does not recognize the Merchant. most common reason codes for recurring merchants include: 7. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Chargeback Code: Type: Processing Error: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect. 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. Chargebacks. Information provided with the. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. Try Shopify free for 3 days, no credit card required. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. compliance process depending on whether a chargeback right exists. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. With the chargeback code in hand, the merchant can now review the transaction. Time Frames by Chargeback Type and Reason Code. 4. It is important to identify and understand the root cause and take the necessary steps to dispute the chargeback. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. pdf), Text File (. A reason code is an alphanumeric code that explains the reason behind the dispute. May 2011: 5. A chargeback happens when a customer requests for a transaction to be reversed. Understanding these codes is essential because they'll guide your response strategy. Complete Guide to Visa Compelling Evidence Update CE 3. P04 Credit Posted as a Sale P05 Transaction amount differs P06 Late PresentmentA chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. Unauthorized returns (R05, R07, R10, R29, R51): 0. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. A03: A valid six digit authorization code was not provided in your submission file. Overall returns (all codes): 15%. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. Quickly and proactively respond to customer complaints. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. Amex Dispute Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. txt) or read online for free. Chargeback codes Last updated: August 16, 2023 Below you'll find a list of chargeback codes along with an explanation of what each one means, covering both. without a reason code will be assigned a default code of 1. It can range from 60 to 120 days from the billing date. High Level Visa Chargeback Dispute Flow. 9808 info@chargebacks911. Once filed, the merchant generally has 20 days to respond to the chargeback. It also has a multiplier effect that extends damages well beyond the amount of the disputed charge in question. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 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. 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. UA01 Fraud – Card Present Transaction. Chargeback Reason Codes by Mesh - 2023 Guide. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. A reason code helps explain why a transaction was disputed. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Specify the default reason code to. Mastercard chargeback reason code 4853 falls under the “Cardholder Disputes” category. 1. 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. 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. These fees are nonrefundable, even if the merchant ultimately beats the chargeback. com. It is subject to change and may not include every currently known dispute reason code. Fight; Prevent; Recover; Resources. The merchandise was as described or was not defective. Learn about the different chargeback reason codes and what they mean. Step 1: The cardholder disputes a charge.