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Chargeback reason codes explained

Chargeback reason codes explained

Dec 15, 2023

As the old quote goes, “Everything happens for a reason” – and that includes chargebacks.

That’s because when a customer raises a credit card dispute against your business, they have to select a reason for it.

Perhaps the goods didn’t arrive or weren’t sold as advertised; maybe the item was faulty, and a requested refund never materialized; the purchase could even have been made on a lost or stolen card, or the customer–facing an unfamiliar billing descriptor – might simply have failed to recognize the charge on their statement. (And, lurking beneath all these reasons, there’s still the looming, ever-present possibility of chargeback fraud.)

When the customer’s bank passes on this dispute, it’ll assign a chargeback reason code. These two- to four-digit codes are small but mighty – because they can help you understand not only why you’re receiving chargebacks but how to prevent them going forward.

To this end, we’re explaining exactly what chargeback reasons are – and why they matter – below. Then, we’ll list out every chargeback reason code from Visa, Mastercard, and American Express and explain how you can use these codes to win chargebacks. And mitigate against the frustrating, costly fees credit card disputes can have on your business.

What is a chargeback reason code?

A chargeback reason code is an alphanumeric code – typically two to four digits long – provided by the issuing bank when you, the merchant, receive a chargeback.

Chargeback reason codes are the bank’s attempt at translating the customer’s justification for raising a credit card dispute, via the language of a standardized list of reasons, into something your business can work with. Which, as we’ll see shortly, is vital when it comes to understanding why a chargeback has been raised against you, whether it could be chargeback of friendly fraud, and – most importantly – whether to fight it or not.

Each major card scheme – Visa, Mastercard, American Express, and Discover – has its own set of chargeback reason codes, which we’ll explore in more detail below.

Why are chargeback reason codes important?

Chargeback reason codes are necessary because they give you vital clues as to why your business has received a chargeback. By neatly grouping each credit card dispute you receive into a category, reason codes help you get to grips with the root cause of chargebacks.

With this information, you can optimize your business and payment strategy to reduce the number of chargebacks you receive. For example:

  • If you’re tracing a lot of chargebacks back to fraudulent causes, it could be time to revamp your fraud prevention and detection strategies.
  • If authorization issues or processing errors are to blame, it could be time for a long, honest conversation with your payment service provider.
  • If a lot of chargebacks are arising from concerns around the quality of your products or incorrect advertising, it could be time to review your quality-control policies or audit how you’re showcasing your goods and services online.

What’s more, chargeback reason codes help you ascertain whether or not to dispute a chargeback. (The representment process is, after all, tiresome, tedious, and time-consuming – and you can’t fight everything). If you do choose to stand your corner and contest the dispute, however, chargeback reason codes can give you an idea as to what kind of evidence you’ll need to make your case.

If, for example, a chargeback arrives with a reason code that indicates the customer never received the goods they paid for, you know you’ll need shipment tracking information as evidence that you shipped the items. If the customer reports misrepresentment – claiming that the goods didn’t arrive as advertised – you could supply a picture taken of the packaged goods before they were shipped as proof of their quality and likeness to what was advertised.

Ultimately, taking the time to delve deeper into chargeback reason codes can help you address customer concerns, improve how your company operates, and prevent future chargebacks. It can also help you bolster your business against fraud and – by understanding and adhering to chargeback policy and best practices – stay on the right side of card scheme compliance.

Chargeback reason codes by scheme

As we touched on earlier, each card scheme or brand (Visa, Mastercard, Discover, and American Express) records chargeback reason codes in a similar way – just not the same.

Depending on the card your customer pays with, the dispute they raise will be attached to a different code depending on the scheme their bank operates with. This means that, despite being made for the exact same reason, four disputes can have completely different codes.

What’s more, each scheme groups chargebacks into similar categories, such as:

  • Authorization issues
  • Fraud
  • Processing errors
  • Point-of-interaction errors
  • Consumer/cardholder disputes

These categories aren’t always consistent – or consistently named – across card schemes, though they are generally applicable to all.

Now, let’s break down each of the top card scheme’s chargeback reason codes.


Visa has the most chargeback reason codes, and, thanks to its system’s use of (sometimes several) decimal points, it can be a little harder to read and understand. That said, Visa’s chargeback reason codes are neatly separated into five different categories, which makes them easier to parse and process. 

Visa’s chargeback reason codes: Fraud

These codes are assigned when the cardholder claims the transaction was fraudulent. The customer could, for example, have had their physical card stolen or seen their card details exposed in a data breach or phishing scheme.

  • 57: Fraudulent Multiple Transactions
  • 62: Counterfeit Transaction
  • 81: Fraud – Card-present Environment
  • 83: Fraud – Card-Absent Environment
  • 93: Visa Fraud Monitoring Program
  • 10.1: EMV Liability Shift Counterfeit Fraud
  • 10.2: EMV Liability Shift Non-Counterfeit Fraud
  • 10.3: Other Fraud: Card-Present Environment/Condition
  • 10.4: Other Fraud: Card-Absent Environment
  • 10.5: Visa Fraud Monitoring Program

Visa’s chargeback reason codes: Authorization

Credit card authorization is a crucial part of the payment process and involves ensuring that the card the customer is using to pay with has sufficient funds to complete the transaction.

Chargebacks of this ilk could include transactions where authorization was declined or not given or where an expired card was used.

  • 70: Card Recovery Bulletin or Exception File
  • 71: Declined Authorization
  • 72: No Authorization
  • 73: Expired Card
  • 74: Service Code Violation
  • 11.1: Card Recovery Bulletin
  • 11.2: Declined Authorization
  • 11.3: No Authorization

Visa’s chargeback reason codes: Processing errors

Processing errors could include failing to process funds in the correct currency, entering an incorrect amount, or debiting payment for the same purchase more than once.

  • 12.1: Late Presentment
  • 12.2: Incorrect Transaction Code
  • 12.3: Incorrect Currency
  • 12.4: Incorrect Account Number
  • 12.5: Incorrect Amount
  • 12.6: Duplicate Processing/Paid by Other Means
  • 12.6.1: Duplicate Processing
  • 12.6.2: Paid by Other Means
  • 12.7: Invalid Data

Visa’s chargeback reason codes: Point-of-interaction error

A point of interaction error is one that occurs at the point where the payment is initiated and processed. (This could be a traditional point-of-sale system, a mobile payment app, or an online payment gateway.)

  • 74: Late Presentment
  • 76: Incorrect Currency or Transaction Code
  • 77: Non-Matching Account Number
  • 78: Incorrect Transaction Amount or Account Number
  • 82: Duplicate Processing
  • 86: Paid by Other Means

Visa’s chargeback reason codes: Consumer disputes

Consumer dispute-related chargeback reason codes are when the cardholder, dissatisfied with some element of the service or products they’ve received with your business, initiates a dispute. These could contest the quality of the goods and services you’ve provided or how they were delivered or presented, and whether that matches up to the way you advertised them.

  • 30: Services Not Provided or Merchandise Not Received
  • 41: Cancelled Recurring Transaction
  • 53: Not as Described or Defective Merchandise
  • 75: Transaction Not Recognized
  • 85: Credit Not Processed
  • 90: Non-receipt of Cash or Load Transaction Value at ATM
  • 13.1: Merchandise/Services Not Received
  • 13.2: Cancelled Recurring Transaction
  • 13.3: Not as Described or Defective Merchandise/Services
  • 13.4: Counterfeit Merchandise
  • 13.5: Misrepresentation
  • 13.6: Credit Not Processed
  • 13.7: Cancelled Merchandise/Services
  • 13.8: Original Credit Transaction Not Accepted
  • 13.9: Non-Receipt of Cash or Load Transaction Value


Mastercard’s chargeback reason codes are four digits long and always begin with the number pairing ‘48’. We’ve listed them out in full below.

Mastercard’s chargeback reason codes: Fraud

  • 4837: No Cardholder Authorization
  • 4840: Fraudulent Processing of Transactions
  • 4849: Questionable Merchant Activity
  • 4863: Cardholder Does Not Recognize – Potential Fraud
  • 4870: Chip Liability Shift
  • 4871: Chip/PIN Liability Shift

Mastercard’s chargeback reason codes: Authorization

  • 4807: Warning Bulletin File
  • 4808: Authorization-Related Chargeback
  • 4812: Account Number Not on File

Mastercard’s chargeback reason codes: Point-of-interaction error

  • 4834: Point-of-interaction error
  • 4831: Transaction Amount Differs
  • 4842: Late Presentment
  • 4846: Correct Transaction Currency Code Not Provided
  • 4850: Installment Billing Dispute
  • 4999: Domestic Chargeback Dispute (Europe Only)

Mastercard’s chargeback reason codes: Cardholder disputes

  • 4853: Cardholder Dispute
  • 4841: Cancelled Recurring or Digital Goods Transactions
  • 4854: Cardholder Dispute – Not Elsewhere Classified (US Only)
  • 4855: Goods or Services Not Provided
  • 4859: Addendum, No-Show, or ATM Dispute
  • 4860: Credit Not Processed

American Express

Handily, American Express codes are just three characters long, with a letter – which corresponds to the category the chargeback reason code belongs to – preceding two digits.

American Express’s chargeback reason codes: Fraud

  • F10: Missing Imprint
  • F14: Missing Signature
  • F24: No Card Member Authorization
  • F29: Card Not Present
  • F30: EMV Counterfeit
  • F31: EMV Lost/Stolen/Non-Received

American Express’s chargeback reason codes: Authorization

  • A01: Charge Amount Exceeds Authorization Amount
  • A02: No Valid Authorization
  • A08: Authorization Approval Expired

American Express’s chargeback reason codes: Processing errors

  • P01: Unassigned Card Number
  • P03: Credit Processed as Charge
  • P04: Charge Processed as Credit
  • P05: Incorrect Charge Amount
  • P07: Late Submission
  • P08: Duplicate Charge
  • P22: Non-Matching Card Number
  • P23: Currency Discrepancy

American Express’s chargeback reason codes: Card member disputes

  • C02: Credit Not Processed
  • C04: Goods/Services Returned or Refused
  • C05: Goods/Services Cancelled
  • C08: Goods/Services Not Received or Only Partially Received
  • C14: Paid by Other Means
  • C18: “No Show” or CARDeposit Cancelled
  • C28: Cancelled Recurring Billing
  • C31: Goods/Services Not as Described
  • C32: Goods/Services Damaged or Defective

American Express’s chargeback reason codes: Inquiry/miscellaneous

  • M10: Vehicle Rental – Capital Damages
  • M49: Vehicle Rental – Theft or Loss of Use
  • M01: Chargeback Authorization
  • R03: Insufficient Reply
  • R13: No Reply
  • FR2: Fraud Full Recourse Program
  • FR4: Immediate Chargeback Program
  • FR6: Partial Immediate Chargeback Program

How to use chargeback reason codes to win chargebacks

Chargeback reason codes can help you win disputes because they give you strong clues as to what kind of evidence you’ll need to make a successful case.

So, after reviewing the chargeback reason code, the next step is to gather the relevant documentation with which to tackle the representment process.

This evidence could include:

  • Proof of delivery for physical goods (this could include a tracking number or delivery confirmation from your shipping carrier)
  • Communication with your customer (emails or screenshots from live chat conversations)
  • Records of online transactions (which you should be able to find in your online dashboard with your payment service provider)
  • Proof that the customer authorized the transaction (so, anything like a signed receipt at the point of sale, or – for online transactions – proof of an AVS or CVV check)

Along with this evidence, you’ll need to provide a clear, concise, and compelling written rebuttal that states why the chargeback isn’t valid. You can only respond to a chargeback based on the reason code the issuing bank has provided – so ensure your response is tailored to that code accordingly. This means adjusting your response to the language of the reason code: addressing its specific criteria, and explaining how your evidence aligns with that criteria.

For more information about how to win credit card disputes and the representment process, our dedicated explainer article will help.

Reason codes and chargeback fraud

Reason codes are a crucial cog in your business’s chargeback-fighting machinery. However, they’re not perfect – namely, because they often fail to account for ‘friendly fraud’.

Often, chargebacks aren’t legitimate. A customer may, for instance, initiate a chargeback: claiming fraud, when in fact, their real motivation is to claim something for free or to recoup their money after experiencing buyer’s remorse.

Instead of requesting a refund – which may not be allowed or available, and in any case, requires the goods to be returned – these fraudsters simply initiate a chargeback, confident they’ll get to keep both their money and their ill-gotten “purchase.” (For more information about chargebacks and refunds – and their big differences – our guide will help.)

Since there are no dedicated reason codes for these illegitimate chargebacks, they end up bundled together under the same umbrella of justification as actually fraudulent transactions – making them even harder for you, as a merchant, to distinguish and deal with.

Essentially, then, the best way to win a chargeback is to simply not receive a chargeback in the first place. But how?

Combat chargebacks with

As we’ve explored here, chargeback reason codes are a useful tool when it comes to fighting chargebacks. But, if you’d prefer to try to prevent them altogether (as much as that’s even possible), can help.

Our Fraud Detection Pro solution harnesses AI-driven machine learning algorithms and advanced rules to reduce false declines and friction and increase the success and security of the payments you accept. With on your side, you can strengthen your business against fraud and mitigate against the likelihood of chargebacks – and the financial and reputational havoc they can wreak on your brand and business.

When chargebacks do occur, though, Fraud Detection Pro – by working in parallel with our disputes product – is equipped to handle disputes, sniff out fraud, and help you with every aspect of chargeback representment and resolution. This includes Rapid Disputes Resolution (RDR), which helps you automatically resolve transaction disputes without them being classed as chargebacks by Visa (and thus impacting your status as a trustworthy merchant).

Want to learn more about Fraud Detection Pro, and how it works? Get in touch with our team of chargeback experts today for a friendly, no-obligation conversation.

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December 15, 2023 15:22
December 15, 2023 15:22