. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingDescription of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvinginstead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. ECM monitors first presentment chargebacks regardless of reason code or transaction type. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Summary of Changes, 13 December 2018 The following are changes with the most recent publication of this document. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that included instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. . It can range from 60 to 120 days from the billing date. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. Mastercard chargeback reason code 4999 falls under the “Point-of-Interaction Error” category. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. BIO 101. But friendly fraud is much more ambiguous. Clearing. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)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. 11, 16 November 2015, Elimination. 1: 10: Fraud: EMV Liability Shift Non-counterfeit Fraud: 10. The reason code used to describe the dispute will determine the chargeback time limit. There are plenty of reasons as to why this would happen, hence the many. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involving instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. These codes are given by the card issuer at the point of time that the customer disputes a given transaction. Unfortunately, it is pretty challenging to prevent friendly fraud. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 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. Specify the default reason code to. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. There are dozens of reasons why cardholders and issuers dispute transactions. 4: Other Fraud – Card-Absent Environment. This will be referenced in the chargeback notice you received. Learn the details, the cause, how to respond and how to prevent Mastercard Reason Code 4999 Domestic Chargeback Dispute (Europe) . 6). Cyber-criminals have benefited from on-line banking (OB), regardless of the extensive research on financial cyber-security. It is associated with a chargeback reason code, and it is specific per Card Scheme. 4. 4 spec (Section 8. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Clearing. 11, 16. 4999: Domestic Chargeback Dispute. This chargeback occurs when merchants do not adequately provide currency information. Collect Compelling Evidence. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. But, merchants should be aware that, eventually, everyone will be required to use the new designations. The list of chargeback reason codes in this article is organized by card brand and type of dispute. The network hasn't wholly disallowed some old codes. 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. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. 2. The<br /> transaction amount may be charged back one time by the issuer, either as<br /> a full chargeback amount, a partial chargeback amount, or multiple partial<br /> chargeback amounts not to exceed the original clearing message amount. 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. \. 11, 16 November 2015, Elimination. . With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Date Option. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). You can see a reason code 11. Level 3/Phase 3: Second presentment, second chargeback, or pre-arbitration. Valid Values/Format: 22 - First Chargeback Handling Fee. Double-check calculations and transactions before finalizing them. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. [noun]/kän takt ləs pā mənt frôd/. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. 4999: Domestic Chargeback Dispute (Europe Region Only) Merchant Accounts; Credit Card Processing;Reason Code 02. Of course, some of these inquiries will still inevitably progress to the chargeback phase. . When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Reason codes vary by card brand. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that includedACH 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. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. . A Mastercard chargeback reason code is a code number that’s assigned to one or more specific chargeback issues when a Mastercard is declined. However, the return request is invalid, as the customer does not have a. 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. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 08. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. Technical. 10. May 2011: 5. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. . Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. Chargebacks with the following reason codes have been requested due to fraudulent activity: Chargeback reason American Express reason code. (11) Authorisation:The Visa Digital Goods Merchant Fraud Monitoring Program is effective as of April 1, 2023. 11, 16. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. EN. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Train the staff on how to handle credit, debits, and reversal. Typical chargeback reason codes are: DA: Disputed amounts. Credit not processed for cancelled or returned goods and services 2. Note. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Use this resource to prevent and fight chargebacks with greater accuracy. Reason Code 12. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. 1: goods not received. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. T01: We have provided proof that the ticket(s) were. non_receipt: The buyer claims they didn't get the goods or services. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Region Only) 4855 Goods or Services Not Provided. 0. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Visa chargebacks can be a major inconvenience for merchants. From there, a merchant can accept the chargeback or take action through the representment process to attempt to have the chargeback reversed. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Chargeback Guide (PDF) - MasterCard. 45. Network Processing ® © instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. The cardholder may be the customer or the someone who lent their card to a friend or relative. If the merchant has a signature showing that the order was delivered, or evidence that the. Contactless Payment Fraud. This guide covers the chargeback cycle, the roles and responsibilities of the parties involved, and the specific chargeback codes and time frames for each card program. 6: Technical. If the conflict can be settled, the acquiring and issuing banks do so. 190 Acquirer Use of Message Reason Code 7627-No MAC Provided. Find your dispute ticket by choosing between the “Open” and “Closed” tabs. Printer-friendly version; Login to post. There are multiple situations in which this can occur. 11, 16. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Updated August 23, 2023. Click on “report a problem” and select the transaction in question. Double-check calculations and transactions before finalizing them. 3. For more information on these and other updates, check out our complete chargeback reason. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. During this process, the representative of the institution examines the reasons’ list. The chargeback reason code. Depending on the reason code, chargeback disputes may have different time limits. 11, 16 November 2015, Elimination. All card brands have their own number of codes). . 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. . Chargeback guide 4 may 2021 189 supporting documents. While the format of chargeback reason codes varies. 4800–4999. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. 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. . On the home screen, tap “Disputes. Do you want to know how to handle chargebacks as a merchant? Download the Chargeback Guide from Mastercard and learn the rules, procedures and best practices for managing disputes and preventing fraud. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. PratikZanke. MASTERCARD. Reason code:. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. This list was generated 5/4/2022. ”. Pre-arbitration gives the acquirer and issuer. Common reason codes Mastercard. Otherwise, the bank may reject the transaction. Partial Immediate chargeback program. 4 Fraud – Card-Absent Environment. 5600–5699. . . Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Reason Code Reason Code North-America Reason Description; 4540: F29:. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. FR4 Immediate Chargeback Program. For example, the merchant bills the cardholder in installments. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. The main chargeback reasons look like this: Malicious fraud. 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. Section5. Try Shopify free for 3 days, no credit card required. EN. . Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. All chargebacks start with a customer making a purchase in person, in an app, or online. 02/10/16 Added Debit Chargeback Reason Codes. . On that note, below are some vendor missteps that could result in Visa reason code 13. The terminal action codes are in Table 122 of the 4. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. The following are some examples: Visa Reason Code 13. . Doc Preview. These can be classified into three types of chargebacks. 4, 12. 196 related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. Most commonly the payer is a consumer. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involving The new reason codes follow a format of two digits, a period, then a third digit. Clearing. Arbitration Chargeback Message Reason Code Removed first bullet in Supporting Documents section Arbitration Chargeback. ). 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. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingA chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. This means providing evidence that will undermine the cardholder’s claim. Do you want to know how to handle chargebacks as a merchant? Download the Mastercard Chargeback Guide - Merchant Edition, a comprehensive resource that explains the chargeback process, the reasons, the time frames, and the best practices to prevent and dispute chargebacks. 4808: This code can refer to: Account Number Not on File. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that includedEvery chargeback is filed with a reason code that identifies the given reason for the dispute. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Here’s how your store can prevent and deal with chargebacks. 3 falls under the “Consumer Disputes” category. 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. While creating the reason codes, the bank asks the customer about the reason for dispute and then assigns a code. 3? Visa chargeback reason code 13. You can learn more about each one by visiting the Mastercard Chargeback Guide. F02. Chargebacks are something every business wants to avoid, as they can. Paymentology will submit the chargeback using the appropriate chargeback reason code. These are only a handful of common Visa chargeback reason codes. 11, 16. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 0 only applies to reason code 10. Goods and services not as described or cardholder received defective goods or services 3. There are also specific return time frames, which can differ. 4999 – Domestic Chargeback Dispute (Europe Region Only) Discover – Processing Errors: IN –. What is a chargeback time limit? The chargeback response. Then it chooses the most applicable code for a. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. . This reason code is used when the cardholder claims that their card was used. Listed as American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040, customers file fraudulent chargebacks when they believe fraud has occurred. Auto Write Off. Summary of Changes, 10 May 2016 This document reflects changes made since the 28 April 2016 publication. These codes fit into four categories: (10) Fraud: For transactions where no EMV chip was used, stolen payment card credentials were used or transactions were flagged by the Visa Fraud Program. A reason code is how banks categorize the reason for a chargeback. Cardholder-Activated Terminal (CAT) 3 Device. 4841 Canceled Recurring or Digital Goods Transactions. Administrative returns (R02, R03, R04): 3%. Reason code: Explanation: 4853 - Cardholder Dispute:The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. The issuer investigates. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. 4859 Addendum, No-show, or ATM Dispute. ”. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that included Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that included Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that included Try Shopify free for 3 days, no credit card required. F01. Chapter 2 1. Multiple Authorization Requests. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Deleted Failure to Compare Signature table Compliance Case Filing, Time Frames andIssuer Use of Message Reason Code 7622. American Express is incentivized to keep their customers happy. FR2 Fraud Full Recourse Program. Each code has a different timeline. F02. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 5%. MasterCard does not have an equivalent reason code. Pages 100+ Identified Q&As 7. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Reason Code 4999 Category Other Claim Used when a cardholder claims a particular transaction charged as a sale should have been a credit. 0 rule changes take effect April 15,. Across the four major credit card networks (i. About American Express chargeback reason codes. There are four general chargeback code categories: Fraud; Quality; Clerical; Technical; Fraud. For defective or “Not as Described” reason codes. Clerical The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. eco_warrior Posts: 563 Forumite. New Visa CE 3. 1 Quick Reference Lead. Example: 25. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. Nachstehend haben wir für Sie die häufigsten Ursachen mit ihren sogenannten Reason Codes aufgelistet. Typical causes The cardholder has a chip card and someone has made a counterfeit copy of it. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. So don’t spend another second worrying about chargebacks. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. . 3 Fraud – Card-Present Environment. . Download this sample Chargeback Rebuttal Letter. Section5. Visa chargeback reason codes. Chargeback reason code. . . Consider Deadlines. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. There are several types of chargeback reason codes that can be used, including the following: 1. Removed Revolution Card section and retired reason codes. Please refer to chapter 5 for more information. 6. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 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. The system does not accept Blank as a value, even if it is defined in the UDC table. FRAUD. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Learn the details, the cause, how to respond and how to prevent Mastercard Reason Code 4999 Domestic Chargeback Dispute (Europe) . 10. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. 4. 11, 16. Below is a simple set of instructions, based on different situations: If the transaction was verified using SCA ( 3D Secure ): provide this proof. 6: Duplicate processing/Paid by other means. Corrected the calendar days for the Authorization-related Chargeback, in the Additional ArbitrationChargeback Options table for IPM ArbitrationChargeback Message Reason Code 4901. Code 10. 1. It covers. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). R03 Insufficient Reply. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. 04/09/14 Discover: DC, U02. . 1: Use the corresponding dates from the invoice. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. 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. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. Goods or Services Not Provided. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Level 2/Phase 2: Chargeback. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. If the chargeback is in the customer’s favor, the bank reverses the transaction and debits the business’s acquiring bank instead of crediting itThose reasons are explained through the corresponding reason codes. . This guide is updated regularly to reflect the latest rules and. “Visa has 28 different reason codes. 2. These are the phases: Level 1/Phase 1: Retrieval request or first presentment. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. 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. Merchants. Please note that each card network (MasterCard, VISA, American Express, etc. Fraud. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. Visa Chargeback Codes: 30: Services not provided or Merchandise not received : 41: Cancelled recurring transaction : 53: Not as Described or Defective merchandise : 57:. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. . The shorthand description is “Domestic Chargeback Dispute (Europe Region Only). Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. 4? Visa chargeback reason code 12. Improper Use of Message Reason Code 4999. 2 EMV Liability Shift. #9. 11, 16. Knowing these codes can help you dispute chargebacks more effectively. 1 for Visa, 4842 for Mastercard, and LP for Discover). Notification of Fraud. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Immediately reverse erroneous or duplicate transactions or issue credits to cancel it. This definitive tour containing the chargeback reason codes after each of the four major card networks. 11, 16. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the. Regardless, merchants must respond to the given reason code.