Reasons for chargebacks were created to standardize the list of acceptable reasons for which an issuing bank may accept a chargeback.
The most common chargeback reasons are:
- Ignorance of purchase: when the customer claims not to have made the purchase, a reason that falls under the category of fraud.
- Unauthorized transaction: the customer claims that an unauthorized person made the purchase without their consent, which falls under the category of fraud.
- The product does not match the description: the customer reports that the product or service received was not the one specified by the merchant.
- Credit not processed: when the customer requests the return of a purchase made.
- Duplicate transaction: occurs when the same purchase is processed more than once.
A chargeback reason code is a 2- to 4-digit alphanumeric code provided by the issuing bank involved in a chargeback, the purpose of which is to identify the reason for the dispute. Each of the major credit card brands, including Visa, Mastercard and others, has its own reason code system. Reason codes are important to help merchants address the claim and provide fair and necessary information for representation.
Most common codes by brand
10.3 - Card Present Environment (Fraud)
10.4 - Card absent environment (Fraud)
12.6 - Duplicate Processing / Payments by Other Means
13.2 - Recurring transaction cancelled
13.3 - Non-described or defective product or services
13.6 - Credit not processed
13.7 - Product or service cancelled
4837 - Without Cardholder Authorization
4840 - Fraudulent transaction
4841 - Recurring transaction cancelled
4855 - Goods or services not rendered
4860 - Credit not processed
4863 - Cardholder does not recognize the transaction (Possible fraud)