Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. The main chargeback reasons look like this: Malicious fraud. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. This should include notation that indicates the specific reason for the chargeback. We also included the reason code descriptions and an indication of when the allowable time frame begins. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. These codes can help a merchant with an inquiry or chargeback reversal. Every chargeback is filed with a reason code that identifies the given reason for the dispute. . 2. 6: Credit not. supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). Before you begin. According to Visa regulations, if the transaction is not deposited within the allotted time. 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 is valid. com. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. . RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. . The issuing bank assigns each case a code according to the consumer’s claim, and the merchant must adhere to the time limits for that specific code. To take advantage of these new advice codes, merchants and their acquirers must learn to recognize the new data values and their meanings and use them. The request is usually made when the cardholder is disputing a charge on their credit. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. . Without understanding the true. To help you identify what happened, look up the code you received for the dispute below. 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. There are dozens of reasons why cardholders and issuers dispute transactions. Now, compliance cases go through Visa Resolve Online (VROL). Updated Disputes/Chargeback Policy Coming April 2024A chargeback with reason code 4834 may refer to disputes in which the cardholder participated in an ATM cash withdrawal, but claims to have not received part—or all—of the cash amount requested. Reason Code 04. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Nevertheless, you must respond to the chargeback based on the given code. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. Mastercard Chargeback Reason Code 71: Disputed Amount. Overall returns (all codes): 15%. 4 spec (Section 8. Visa groups its various reason codes into several broad dispute categories. 3: Goods or services were not received: C08: RG: 4855: 13. com Europe. 1? Visa chargeback reason code 12. 1, multiple conditions must be met: A merchant processes a transaction, and the transaction is approved. About Mastercard chargeback reason codes. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. 30. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The terminal action codes are in Table 122 of the 4. 6. These dispute must be processed no later than 120 calendar days from either:What is a Reason Code? Each chargeback and retrieval request bears a reason code, established by the payment brands. But, it could be up to 540 days, in some situations. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. We say the given reason because it may or may not reflect the true reason. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. You can see a reason code 11. Visa chargeback reason code 13. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. Under Visa’s previous chargeback rules, merchants could contest a reason code 10. 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 is valid. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. 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. The same is true of all chargeback reason codes. Discover is a credit card network and an issuing bank—just like American Express. 2: Incorrect Transaction Code. 2, which specifically deals with. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. The list of chargeback reason codes in this article. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. . Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Make sure customers know how to reach you and that they always get a quick response—leaving a message from an unhappy customer unanswered is always an invitation to a chargeback. Visa uses a numeric scheme for its chargeback reason codes. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase. 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. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. It can range from 60 to 120 days from the billing date. ACH Return Codes. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Originally filed under legacy reason code 85 (condition 3), this code applies when a credit transaction was not accepted, usually for one of two reasons: The cardholder did not accept the credit. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type. VCR Dispute Reason Code 10. These are only a handful of common Visa chargeback reason codes. FR2 Fraud Full Recourse Program. eCommerce grew too fast for the payments industry to respond. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. . "Acceptable Reason Codes" has the meaning set out in section 2. Any chargeback that is received without a reason code will be assigned a default code of 53. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 5%. 2 falls under the “Processing Errors” category. There are dozens of reasons why cardholders and issuers dispute transactions. . This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. 4: Fraud—Card-Absent Environment. A chargeback is a transaction reversal resulting from a credit card payment dispute. Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s claim is valid. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. . Request for Information. With this information, you can determine the root causes of your chargebacks and take. 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). . RG Non-Receipt of Goods, Services, or Cash. For information concerning Chargeback Response Code, see the Chargeback API Reference Guide. This code applies when a transaction is not deposited within the timeframe designated by Visa (see chart below). Quality. According to Visa regulations, if the transaction is not deposited within the allotted time. Enhanced Customer Service. Take the time to note the following dispute reason codes for Visa. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. Knowing these codes can help you dispute chargebacks more effectively. Administrative returns (R02, R03, R04): 3%. It was created to protect. 4 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. 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 chargeback reason codes below explain why this happened. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Find this type of chargeback with the below reason codes. Reason codes vary by card brand. Thanks for following the Chargeback Gurus blog. 6. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. American Express. These guarantees typically involve reimbursement for chargeback-related losses or the assumption of liability for chargeback disputes. It is subject to change and may not include every currently known dispute reason code. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. The transaction took place in a "card-present" environment using a counterfeit EMV (chip) card. Some credit card companies also include a short phrase describing the code. 5 can be disputed. . Sometimes, cardholders perpetrate first. . 5, and all aspects of chargeback reason codes, with proprietary. Feel free to submit topic suggestions, questions or requests for advice to:. Understand the Reason Code: Start by ensuring you understand the reason code of the chargeback and the claim it represents. 634. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. F01. Card Recovery Bulletin Authorization Visa Code: 11. 3: Goods or services were not as described: C31: RM: 13. The case will be removed from the Chargeback Queue Worklist and your ‘accept’You'll learn about the major categories of chargeback reason codes: fraud, authorization errors, processing errors, customer disputes; You'll learn about the usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift); You. F01. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Alerts providers work closely with banks to ensure that merchants using the service receive advance notice of impending chargebacks. The most comprehensive guide to chargeback reason codes. 4: Other Fraud–Card-Absent Environment. 2 Chargebacks: Prevention and Response. We say the given reason because it may or may not reflect the true reason. The chargeback reason codes below explain why this happened. Chargeback reason code 12. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 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. 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 is valid. [noun]/* fren • dlē • frôd • /. To represent a chargeback, you need to resubmit the transaction and include a rebuttal of the cardholder’s claims and documented evidence that proves your case. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. However, a truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. The cardholder’s bank assigns a reason code to each chargeback before sending it to the merchant. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputesMastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. message. Duplicate Processing - 81How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Chargebacks with the following reason codes are requested due to fraudulent activity. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Invalid chargebacks from Visa chargeback Reason Code 13. . 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—QuestionableThe Truth in Lending Act, or TILA, serves as a safeguard for consumers in their interactions with lenders and creditors. Chargeback reason codes are meant to help you understand the cause for the chargeback and determine the best way to validate the original transaction. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. 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. It’s important to note that time starts when the. If you do perform a key-entered transaction, make a manual imprint of the card. FR6 Partial Immediate Chargeback Program. 4 chargeback by showing at least one transaction from any time period in which the IP address, email address, physical address, and telephone number match the details of the disputed transaction. However, for simplification, they are divided into eight categories:. 1. Customer Dispute. This lets the merchant resolve the issue before a chargeback happens. ”. This second chargeback is what was commonly referred to as a “pre-arbitration chargeback. Chargeback prevention strategies vary based on the reason for the dispute. Chargeback reason code 12. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 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. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. It could apply for merchandise or services being different than described, or disputes involving counterfeit goods (just to name a few examples). 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. Chargeback time frames - A specific period during which a chargeback can be raised. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. About American Express chargeback reason codes. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. About Discover chargeback reason codes. 4 applies to eCommerce, whereas code 10. 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. FR4 Immediate Chargeback Program. Each chargeback is assigned a reason code that explains the justification for the chargeback. The codes for each card brand are listed below along with the recommended documentation to provide. 8 Added American Express chargeback information Chapter 3 1. . Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. Region Only) 4855 Goods or Services Not Provided. “At the end. The implication is that the merchant is at fault. Primary Menu. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. This code applies when a cardholder disputes a charge, and the merchant is informed by the processor that there is a problem with the transaction currency code. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. Card networks send these codes to merchants to indicate why a chargeback has been filed. . M49 Vehicle Rental – Theft or Loss of Use. 6 deals with chargebacks stemming from a credit not being processed. Chargeback reason code 11. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Category. Assemble Your Evidence. 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. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. The system does not accept blank as a value, even if it is defined in the user defined code table. . R02 – Account Closed: The account holder has closed their account since the transaction was initiated. Chargeback reason code 11. Reason Code 12. ”For Visa disputes, the reason code also dictates which workflow the case will take. In fact, the same thing could be said of other chargeback reason codes, too. Reason codes are very crucial to assist. NF Non-Receipt of Cash from ATM. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Understanding these codes is essential because they'll guide your response strategy. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. Merchants should review these codes, track which ones they receive, and respond to inquiries and chargebacks with the appropriate supporting evidence. . Below is a list of Mastercard chargeback codes used in eCommerce. Which is meant to know the reason for the dispute. 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. 3 is the less common version for card-present transactions. 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 TRREvery chargeback comes with a reason code. The shorthand description is “Paid by Other Means. As mentioned above, a reason code is a string of text that helps you, the business owner, decipher the chargeback. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. When one cardholder initiates a dispute with their issuing bank, a. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. Chargeback Reason Codes by Industry. Mastercard chargeback reason codes are four numerals without decimals. To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. Mastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. The following chargeback reason codes are related to EMV: Visa: 10. Visa Chargeback Reason Codes. Network reason code is available on the dispute object. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This umbrella category can be applied to multiple specific situations, many of which had their own specific codes at one time. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity There are over 80 unique return codes, and each one represents a different type of return. Retry after 10 days. Each chargeback is assigned a reason code that explains the justification for the chargeback. 1. 6: Duplicate processing/Paid by other means. The format depends on the credit card company. Each code begins with 'R' followed by a two digit number. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. If the merchant is not EMV-compliant, the liability for a fraudulent transaction shifts from the card issuer to the actual merchant. 4860 Credit Not Processed. Either the acquiring or issuing bank could initiate the. Unauthorized returns (R05, R07, R10, R29, R51): 0. Quality. Chargeback alerts allow. 5, and all aspects of chargeback reason codes, with proprietary technologies and. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. PCI DSS v3. 3 applies when a cardholder claims a charge—made in a card-present environment—was. Retry after 8 days. A chargeback guarantee is a service provided by third-party vendors that protects merchants against the financial impact of chargebacks. 4870 – Chip Liability Shift. 2, below. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. Which is meant to know the reason for the dispute. 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 is valid. 2 Compliance CasesSome Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Reason Codes Category 4: Processing Errors. 634. A “No Authorization” code chargeback can also be the. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. It can also apply when the merchant processed a recurring billing charge after the issuer requested cancelation. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback. reason code information. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. . Learn how to identify and fight chargeback reason codes from Visa, Mastercard, American Express, and Discover, the four major US-based card schemes. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. . Reason Code 03. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. These codes are currently defined within the ANSI X9. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Chargeback reason code 11. Learn what each reason code means, how to fight chargebacks, and how to prevent disputes from Visa and other card networks. In the case of friendly fraud, that reason could be completely invalid and. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. 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. Chargeback reason codes are one piece of evidence you can use to make your case. Merchants can find a. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. 6: Credit not. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. If you fulfilled the cancellation request but the cardholder continued to use the services, provide documentation that proves the charge covers services used after the cancellation. A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Thus, the merchant is at fault for. MASTERCARD. An 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. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. . In most cases, the bank chooses a course of action based on information the cardholder provides. . Nor is the situation static. Mastercard Chargeback Reason Code 70: Chip Liability Shift. There are several scenarios where a customer may reasonably expect a payment reversal. Overview. Code. Mastercard chargeback reason code 4808 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Each bank card network has its owner list of reason codes banks must prefer from. Thanks for following the Chargeback Gurus blog. Mastercard. This can provide important information to fight the dispute. com; Europe; Vantage House;chargebacks, even on cases where you accept liability. It might be possible that the customer. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. The chargeback transfers funds from the acquirer to the issuer. The chargeback system was designed as a last resort; only to be used in specific situations. Fraud. . Some reason codes are easy to verify. What is Visa chargeback reason code 12. Overall returns (all codes): 15%. In theory, reason codes help merchants. Chargebacks with the following reason codes are requested due to fraudulent activity. .