Chargeback reason codes

Gain a better understanding of the nature of your chargebacks and effectively manage them

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.

Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. Understanding the specific reason for a chargeback can help merchants identify areas where they can improve their business practices to prevent future chargebacks.

Overall, reason codes play a crucial role in the chargeback process and are an important tool for both merchants and card issuers to manage disputes and maintain trust in the payment system. Below you can find details and classification of these codes for the 4 major card schemes.

It is important to check the time limit in chargeback reason codes because it determines how long a cardholder has to initiate a chargeback after a transaction has taken place. Each card scheme has its own time limits for chargeback disputes, which can range from 60 to 120 days from the transaction date. If a chargeback is initiated outside this time frame, the issuing bank may reject the dispute and the merchant may be able to keep the funds from the transaction.

Visa

Visa’s Reason Codes follow a format of two digits, a period, and a third digit. 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. The third digit indicates the specific reason within this category.

Fraud

Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
10.1	EMV Liability Shift Counterfeit Fraud The cardholder is claiming that they did not authorize or participate in a transaction that you processed.	The cardholder has a chip card and someone has made a counterfeit copy of it. They made a transaction with a counterfeit card at a non-EMV terminal instead of using a chip reader that can detect fraud. Now the cardholder claims the purchase was unauthorized.	Use only EMV-compatible terminals. Always use the proper method of cardholder verification - signature, PIN, etc. Create an electronic or manual imprint for each transaction, where the cards present.
10.2	EMV Liability Shift Non-Counterfeit Fraud The cardholder is claiming that they did not authorize or participate in a transaction that you processed.	The cardholder has a PIN-preferring chip card, but you didn’t use a chip-reading device to process the transaction or used a chip-reading device that wasn’t PIN compliant. Now, the cardholder claims the purchase was unauthorized.	Upgrade to EMV PIN-compliant terminals. Always obtain the appropriate Cardholder Verification Method (CVM). ake an imprint (either electronic or manual) for every card-present transaction. Train staff on the proper handling of terminal issues.
10.3	Fraud – Card-Present Environment The cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.	Merchant did not ensure that the card was either swiped or that the chip was read; merchant did not obtain manual card imprint on a key-entered transaction; a card-not-present transaction was not identified as such.	Upgrade to compliant terminals. Make sure all card-present transactions are either chip-read or magnetic stripe-read. Obtain an imprint or perform additional validation, such as PIN.
10.4	Fraud – Card-Absent Environment The cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.)	In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) the cardholder believes the transaction to be fraudulent due to an unclear or confusing merchant descriptor.	Consider using all the tools available to you including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Use a billing descriptor that is easily recognized by the cardholder. Always submit an authorization request, no matter the transaction amount. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders.
10.5	Visa Fraud Monitoring Program Visa notified the cardholder’s bank that the Visa Fraud Monitoring Program (VFMP) identified the transaction and the cardholder’s bank has not successfully disputed the transaction under another dispute condition.	For merchants in the Visa Fraud Monitoring Program only: Visa identifies a potentially fraudulent transaction and informs the issuer, AND the issuer has not successfully filed a chargeback under another reason code.	Monitor your fraud-to-transaction ratio and take necessary steps to prevent breaching thresholds established by Visa. Keep accurate records.

Authorization

Time limit - 75 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
11.1	Card Recovery Bulletin The merchant apparently did not get authorization for the transaction through an account number listed in the Card Recovery Bulletin.	A transaction is processed for an amount beyond the merchant’s floor limit, and despite the account number being listed in the Card Recovery Bulletin for that day and region.	Always send an authorization request before processing a transaction if the amount is above your floor limit. Check the Card Recovery Bulletin if the transaction is below your floor limit. If you process transactions with multiple authorizations, make sure you fully understand Visa’s rules and regulations.
11.2	Declined Authorization An Authorization Request received a Decline Response and the merchant completed the transaction.	The merchant does not request authorization; the merchant makes multiple attempts on a card that is declined, or otherwise attempts to force, circumvent, or override a declined authorization.	If you receive a Decline or Pickup authorization response, either terminate the transaction or submit a second authorization request. Never proceed without authorization. If you process transactions with multiple authorizations, make sure you fully understand Visa’s rules and regulations.
11.3	No Authorization Correct and valid authorization was not obtained by the merchant.	The merchant does not request authorization; the merchant waits a day or more before requesting authorization; the merchant requests authorization for one amount, then adds a tip to the total before processing.	Always authorize every transaction in accordance with the Visa Rules. Obtain authorization on the day of the transaction. Do not include the tip on a previously authorized.

Processing errors

Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Note, 12.7 Invalid data - 75 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
12.1	Late Presentment The transaction was not sent to Visa within the timeframe required.	The merchant does not process a transaction in a timely manner; the account was no longer in good standing at the time of processing.	Make sure you send completed transactions to your payment processor within the timeframe specified in your merchant agreement. A good practice is to submit transactions on the day of the sale or as soon as possible.
12.2	Incorrect Transaction Code A cardholder claims the converted amount of charge on an international transaction is incorrect.	The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization.	Double check calculations and the final transaction amount before processing. Train staff on the proper procedures for processing credits, debits, and reversals.
12.3	Incorrect Currency The merchant made one or more errors related to the transaction currency.	The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.	Inform cardholders of the use of currency conversion and applicable fees. Always give the cardholder the option to make the purchase using local currency. Train your sales staff on proper procedures for transaction using a different currency.
12.4	Incorrect Account Number The account number in the authorization does not match the account number used in the transaction.	The transaction was processed to an incorrect account number; the adjustment was processed more than 45 days from transaction date; an adjustment was posted to a “closed” or “non-sufficient funds” account more than 10 days after the transaction date; an adjustment was processed more than once for the same transaction; the cardholder disputes the validity of the adjustment.	As far as possible, swipe card or read chip for transactions. Process all transactions and adjustments in a timely manner. Double-check numbers before processing. Train staff on the proper procedures for processing transactions.
12.5	Incorrect Amount The cardholder claims that the amount they agreed to pay differs from the amount charged.	An error was made entering numbers manually. The amount of the transaction was changed without the cardholder’s consent.	Unless authorized, never change the amount of a completed transaction without the cardholder’s consent. Use caution when entering handwritten transaction information. Always swipe or dip a card - only use fall-back options in emergencies.
12.6.1	Duplicate Processing A single transaction was processed two or more times.	The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed, but the cardholder paid for the same merchandise or service by other means.	If you notice a duplicate transaction, issue a credit as soon as possible. Double check all transaction receipts before they are deposited. Only send batches one time. If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.
12.6.2	Paid By Other Means A single transaction was processed two or more times.	The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.	Review transaction receipts before depositing. Submit a batch only one time. Void/credit any duplicate transactions. Deposit receipts with one acquirer. Train staff on the proper procedures for handling credits.
12.7	Invalid Data An authorization was obtained using invalid or incorrect data.	The merchant submits an authorization request containing an incorrect transaction date, MCC, merchant or transaction type indicator, country or state code, or other required field.	Supply all necessary information with each authorization request, including transaction date, MCC, transaction type indicator, country code, and state code. Make sure your correct MCC is used in the authorization request and it matches what will be sent with transaction clearing.

Customer disputes

Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
13.1	Merchandise/Services Not Received The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up)	The customer claims you didn’t provide the goods or services as promised. The merchant delays delivery. The merchant charges the cardholder before shipping or delivery. The merchant ships on time or has the product available for pick-up but does not inform the customer. The merchant ships on time or has the product available for pick-up but does not inform the customer. The cardholder fraudulently claims the goods or service did not arrive.	Provide goods and services as promised. Do not charge the cardholder’s account until after the product has been shipped. Let cardholders know when the product has been shipped and the estimated date for delivery li>Use tracking and delivery confirmation. Make sure products are available for pickup when specified. Provide documentation to prove that the cardholder or an authorized person received the goods or services at the agreed location or by the agreed date.
13.2	Cancelled Recurring A recurring transaction was processed after it cancelled or that the cardholder’s account was closed.	The cardholder withdraws permission to charge the account or cancels payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder’s account was closed.	Provide documentation to prove that the service was not cancelled or to show that neither you nor the acquirer were notified that the account was closed. In all regions excluding Europe, you may also provide documentation to prove that the transaction was not previously charged back.
13.3	Not as Described or Defective Merchandise/Services The cardholder claims the goods were not as described or disputes the quality of the merchandise or services.	The merchandise was damaged in transit; the merchandise does not match the merchant’s description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged. (Note: Merchant may not direct the customer to the manufacturer for resolution. Also, this reason code supersedes merchants’ return policy.)	You need to provide documentation to prove that the goods or service matched what was described, a rebuttal addressing the cardholder’s claims, and if applicable, documentation to prove that the cardholder did not attempt to return the merchandise.
13.4	Counterfeit Merchandise The merchandise was identified as counterfeit by a third party.	The merchant is unaware of the counterfeit merchandise; the customer fraudulently claims the goods are not genuine. (Note: This reason code supersedes merchants’ return policy.)	Provide proof that the purchased merchandise is authentic, and that the cardholder knew of its quality during the transaction.
13.5	Misrepresentation The cardholder’s bank received a notice from the cardholder claiming that the terms of the sale were misrepresented.	The merchant’s product descriptions are vague, inaccurate, or insufficient. Examples of typical merchant types for this dispute include: timeshare reseller, debt consolidation, credit repair, foreclosure relief services, investment products, and the like. (Note: This reason code supersedes merchants’ return policy.)	Make sure all descriptions of the services or merchandise are complete, accurate, and not misleading. Clearly and concisely communicate your terms of service and make it easy for customers to find the information. Fully comply with all of Visa’s requirements for free trials, introductory offers, and upsells.
13.6	Credit Not Processed The cardholder’s bank received a notice from the cardholder claiming that they received Authorization,credit or voided transaction receipt that has not been processed.	The merchant didn’t credit the account; the merchant issued the credit but not in time to be posted to the customer’s most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided.	You need to provide either the transaction receipt or other records to prove that the merchant properly disclosed a limited return or cancellation policy at the time of the transaction, or evidence to demonstrate that the cardholder received the merchant’s cancellation or return policy and did not cancel according to the disclosed policy.
13.7	Cancelled Merchandise/Services The cardholder’s bank received a notice from the cardholder stating that they returned merchandise or cancelled services, but the credit has not appeared on the cardholder’s Visa statement.	The cardholder claims to have returned merchandise or cancelled a service, but credit hasn’t been applied to the cardholder’s statement yet. The merchant has not yet issued a due credit; issued the credit, but it hasn’t posted to the customer’s account yet; the merchant the customer misunderstood or was never clear on the return policy.	If you never received returned merchandise from the cardholder, provide documentation that proves inaction on the cardholder’s part. If you received returned merchandise but didn’t accept it because it violated your return policy, provide documentation that proves you refused delivery for the merchandise and why. Share your return policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase. If the cardholder didn’t abide by your cancellation policy, provide documentation that proves why you didn’t fulfill the cancellation requisition. 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. 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. If the dispute is invalid, provide documentation that proves the reasoning: the dispute is based solely on claims related to the quality of purchased items, or the dispute amount includes the cash-back portion of the transaction, or the merchandise cleared the merchant’s customs but is being held by the customer’s customs agency. If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account. If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
13.8	Original Credit Transaction Not Accepted The original credit was not accepted.	Either the cardholder does not accept the credit, or the issuer does not allow Original Credit Transactions (OCT’s) on certain types of cards due to local law.	You need to provide either the transaction receipt or other records to prove that the merchant properly disclosed a limited return or cancellation policy at the time of the transaction, or evidence to demonstrate that the cardholder received the merchant’s cancellation or return policy and did not cancel according to the disclosed policy.
13.9	Non-Receipt of Cash or Load Transaction Value Cardholder did not receive the full cash withdrawal at an ATM.	The cardholder claims not to have received cash or only received a partial amount from an ATM withdrawal. Or, the cardholder did not receive the correct load transaction value.	Provide a copy of the ATM cash disbursement transaction or load transaction record containing at least an account number, transaction time or sequential number identifying the individual transactions, and an indicator that confirms that the ATM cash disbursements or load transaction values were successful. Reconcile ATMs in a timely manner. Adjust any out of balance machines promptly. In case of a discrepancy, process a credit/reversal as soon as possible.

Mastercard

Instead of having a different code for each individual reason like the other card networks, Mastercard uses a single code for all Authorization-Related Chargebacks, one for all Point of Interaction Error chargebacks, and one for all Cardholder Disputes chargebacks. Mastercard’s reason codes are listed as four-digit numbers, with all initial chargebacks received by the merchant beginning with 48. For transactions processed through the Single Message System, the 48 is omitted, leaving only the two digits that indicate the reason code.

Fraud

Time limit - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
4837	No Cardholder Authorization The cardholder states that neither he, she, nor anyone authorized by him or her engaged in the transaction.	The transaction was made by someone who had fraudulently obtained the account information; the cardholder didn’t recognize the transaction (billing descriptor) on the card statement; a family member used the account without the primary cardholder’s knowledge.	Consider using all the tools available to you including Mastercard Secure Code, CVC2, and Address Verification Service (AVS). Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Use a billing descriptor that is easily recognized by the cardholder. Always submit an authorization request, no matter the transaction amount. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders. Only use EMV-compliant terminals. Always use the correct cardholder verification method signature, PIN, etc. Create clear billing descriptors. Do not accept expired cards under any circumstances. Obtain secondary validation (PIN, signature, imprint etc.). Do not override declined transactions. Train staff on the proper procedures for handling terminal issues.
4840	Fraudulent Processing of Transactions The cardholder claims that a fraudulent purchase was made while the card was in the cardholder’s possession at the time of the transaction.	The cardholder claims to have authorized one card-present transaction with you, but one or more additional transactions conducted in the next 15 minutes were not authorized.	If you notice a duplicate transaction, issue a credit as soon as possible. Double check all transaction receipts before they are deposited. Only send batches one time. If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.
4849	Questionable Merchant Activity The acquirer processed a transaction for the merchant that later was listed in a MasterCard Global Security Bulletin for violating GMAP, QMAP, or reported to SAFE.	This transaction is listed in a Mastercard Announcement under the Global Merchant Audit Program (GMAP). This transaction violates Mastercard’s rules or the merchant was on a Mastercard security list. The acquirer processed a transaction for the merchant that later was listed in a MasterCard Global Security Bulletin for violating GMAP or QMAP.	You can respond to this chargeback by showing that you were not listed in the MasterCard Global Security Bulletin or that the transaction did not occur when you were listed on the MasterCard Global Security Bulletin. lways adhere to Mastercard rules and regulations. Maintain accurate records. Check transactions against the Mastercard Global Security Bulletin list.
4863	Cardholder Does Not Recognize-Potential Fraud The cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their card.	The cardholder claims not to recognize a card-not-present transaction.	Provide the authorization or clearing message that would help identify the transaction and any additional information not included in those messages that would help the cardholder recall the transaction. Consider using all the tools available to you-including Mastercard Secure Code, CVC2, and Address Verification Service (AVS). Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Use a billing descriptor that is easily recognized by the cardholder. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Use a billing descriptor that is easily recognized by the cardholder. Make sure you differentiate between card-absent and card-present transactions during authorization and clearing.
4870	Chip Liability Shift The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount.	The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.	Upgrade to compliant terminals. Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN. Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used.
4871	Chip/PIN Liability Shift The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount.	The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount.	Upgrade to compliant terminals. Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN. Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used.

Authorization

Time limit - 90 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note, 4808 Legacy 4807 Warning Bulletin File, 4812 Account Number Not On File - 45 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
4808 Legacy 4807	Warning Bulletin File Correct and valid authorization was not obtained by the merchant.	Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4807, however, this code will soon be eliminated. It will be incorporated into code 4808.	You can respond to this chargeback by providing the date and time of original sale where an authorization code was obtained or evidence that a credit was issued. This code, while currently functional, is being consolidated into 4808, and therefore should not be used.
4808	Authorization-Related Chargeback Correct and valid authorization was not obtained by the merchant.	A transaction where authorization was required, but not obtained. It can also occur for transactions where the primary account number (PAN) does not exist. And, also in Card Not Present transactions declined by the issuer and subsequently approved through stand-in processing or X-Code with an approval response as specified in the Authorization Manual.	Prove the transaction was presented within seven calendar days of the pre-authorization or authorization approval date and the pre-authorization or authorization was not reversed. You can also provide evidence that the issuer has not permanently closed the account or to prove that the transaction was either approved online by the issuer or offline by the chip. Confirm authorization on all transactions. Make sure terminal are chip-compliant. Do not override declined transactions.
4808	Authorization-Related Chargeback-Required Authorization Not Obtained The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing.	The merchant was required to request authorization for the transaction, but did not.	Always request authorization request before processing a transaction. Do not exceed 20% when adding gratuities. Adhere to Mastercard regulations and best practices.
4808	Authorization-Related Chargeback-Expired Chargeback Protection Period The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing.	The merchant waited too long to settle the transaction.	Always request authorization before processing a transaction. Settle pre-authorized transactions within 30 calendar days of the latest authorization date. Settle any transaction that are not pre-authorized within seven calendar days of the authorization date.
4808	Authorization-Related Chargeback-Multiple Authorization Requests A card-not-present transaction was declined by the issuer, but later approved using Stand-In processing or X-Code.	The original attempt at authorization was not approved, but the merchant swiped over and over to receive authorization. An alternative authorization method was used (key entering, voice authorization).	Always request authorization before processing a transaction. Terminate any declined transactions and request an alternate method of payment. Adhere to Mastercard rules and regulations.
4808	Authorization-Related Chargeback-Cardholder-Activated Terminal (CAT) 3 Device Unauthorized transactions processed at a cardholder-activated terminal (CAT).	The amount of a CAT 3 transaction exceeded the acceptable limit; a card used in a CAT 3 transaction was not valid at the time.	Always request authorization before processing a transaction. Terminate any declined transactions and request an alternate method of payment. Adhere to Mastercard rules and regulations.
4812	Account Number Not On File Account number does not correspond to the account numbers the issuer has on file for this cardholder.	The issuer receives a transaction with an account number that does not match any account numbers on file for the cardholder. An issuer may continue to use reason code 4812, however, MasterCard will eventually eliminate 4812 as a valid reason code. 4808 will be used instead.	Provide evidence that the account number on the transaction receipt is correct and matches cardholder information. This code, while currently functional, is being consolidated into 4808, and therefore should not be used.

Point of Interaction Error

Time limit - 90 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note

4834 Point-Of-Interaction Error - ATM Disputes, 4834 Point-Of-Interaction Error - Duplication/Paid by Other Means - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
4850 Installment Billing Dispute, 4999 Domestic Chargeback Dispute (Europe Region Only) - 45 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
4834	Point-of-Interaction Error A single transaction was processed more than one time.	The cardholder paid twice for the same transaction using two different forms of payment. OR The cardholder’s account has been debited more than once for the same transaction using the same form of payment.	Your response to this chargeback can include evidence that both transactions were valid and were authorized by PIN, a credit was issued, documentation indicating the two separate transactions and that they were valid, or that the chargeback is invalid because the issuer failed to provide the original ARD in Data Record. Review transaction receipts before depositing. Submit a batch only one time. Credit any duplicate transactions. Deposit receipts with only one acquirer. Train staff on the proper procedures for handling credits.
4834 Legacy 4831	Point-of-Interaction Error - Transaction Amount Differs The amount the cardholder was charged doesn’t match what’s on the receipt.	The merchant made an error when calculating the transaction amount; the merchant increased or otherwise altered the amount after the transaction was completed (without the cardholder’s permission).	Respond to this chargeback by providing documentation and a written explanation showing two separate transactions were correctly processed. If this is an unreasonable amount of dispute, provide documentation showing that the cardholder agreed to an amount range as reasonable and that the transaction did not exceed this amount of range. Double check calculations and the final transaction amount before processing. Don’t change the transaction amount without the cardholder’s consent. Void any transactions if the cardholder wishes to use a different payment method.
4834 Legacy 4842	Point-of-Interaction Error - Late Presentment The transaction was not deposited within 30 days of the date a valid authorization code was obtained.	The transaction wasn’t processed in a timely fashion and the account has since been closed; transaction was posted after 180 days of the original transaction date.	Provide evidence showing that the transaction date was not more than 7 calendar days prior to the central processing date of the central processing date of the presentment. Always send an authorization request before processing a transaction. Present transactions to the issuer within the specified time limit. Send completed transactions to your card processor as soon as possible (preferably on day of the sale).
4834 Legacy 4846	Point-of-Interaction Error - Correct Transaction Currency Code Not Provided (Dynamic currency) A cardholder claims the converted amount of charge on an international transaction is incorrect.	The transaction currency differs from the currency transmitted through Mastercard; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.	Prove that the correct transaction amount was processed in the country where the transaction originally took place, or evidence that a credit was issued. Don’t automatically apply dynamic currency conversion to transactions. Give customers the option to select the service if they are interested, but don’t require its use. Have systems in place to manage multiple currencies. Make sure staff are trained on procedures. Inform cardholders of the use of currency conversion and applicable fees. Always give the cardholder the option to make the purchase using local currency. Train your sales staff on proper procedures for transaction using a different currency.
4834	Point-Of-Interaction Error - ATM Disputes The cardholder charges that an inaccurate amount of cash was dispensed by an ATM, or that the ATM withdrawal had been debited to the account multiple times.	ATM issues.	Reconcile ATMs in a timely manner. Report out-of-balance ATMs.
4834 Legacy 4859 (Addendum, No-show, or ATM Dispute)	Point-Of-Interaction Error - Loss, Theft, or Damages The cardholder claims an unauthorized charge for loss, theft, or damage was added to the transaction up front.	The merchant processed a transaction which included an upfront charge for loss, theft, or damage, without the cardholder’s approval.	Do not add damage charges to a transaction without the knowledge and agreement of the cardholder. Clearly explain any circumstances which might trigger a charge for loss, theft, or damage. If loss, theft, or damage charge is to be added, process the original transaction, then process a second transaction for any additional fees.
4834	Point-Of-Interaction Error - Duplication/Paid by Other Means A single transaction was processed more than one time.	The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times on same card or to another payment method.	Review transaction receipts before depositing. Submit a batch only one time. Credit any duplicate transactions. Deposit receipts with only one acquirer. Train staff on the proper procedures for handling credits.
4850	Installment Billing Dispute The cardholder claims an installment charge to their account was made incorrectly.	The merchant charged the cardholder prematurely; the merchant charged the cardholder the incorrect amount, or the transaction was not an installment.	Provide either a copy of the TID or other documentation showing that the cardholder agreed to the number of installments processed or proof that the acquirer corrected the discrepancy that led to the dispute. Make sure you bill the cardholder installment transactions correctly as agreed. Train staff on importance of accuracy.
4999	Domestic Chargeback Dispute (Europe Region Only) A centrally acquired domestic transaction, or a domestic transaction processed through the Masterсard Network, where a chargeback is available according to the applicable domestic rule, but cannot be processed under a different message reason code.	A chargeback that occurs when a customer states the transaction should have been a credit to the account but was processed as a sale.	Responses to these disputes are varied based on the details provided from the cardholder and issuer.

Customer disputes

Time limit - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note 4853 Legacy 4855 Goods or Services Not Provided - The timeline may vary based on the start date: Unspecified delivery date or service performance date: Issuer must wait a minimum of 30-but no more than 120-calendar days past the transaction processing date to initiate a chargeback; this 30-day waiting period may be waived if the merchant has gone out of business. Delivery/service date was specified but has passed: The chargeback must be initiated no later than 120 calendar days past the transaction processing date. Terminated ongoing services: The chargeback must be initiated within 120 calendar days past the date services ended (not to exceed 540 days of the original transaction processing date). Prepaid gift cards where the merchants have since gone out of business: In these situations, the chargeback must be initiated within 120 calendar days of the card’s expiration date if the card has no expiration date, the chargeback must be initiated within 540 calendar days of the transaction processing date. For ACQUIRER/MERCHANT - 45 calendar days.

Reason Code	Reason	Typical causes	Prevention steps
4841	Cancelled Recurring or Digital Goods Transactions A recurring transaction was processed after it cancelled or that the cardholder’s account was closed. The cardholder states they shouldn’t have been charged because they already cancelled the transaction. An issuer may continue to use reason code 4841, however, MasterCard will eventually eliminate 4841 as a valid reason code. 4853 will be used instead.	Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4841, however, this code will soon be eliminated. It will be incorporated into code 4853. Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder. Cardholder did not understand the original terms of the transaction; cardholder received goods/used services after cancelling the recurring transaction; cardholder cancelled too late to stop the transaction; merchant did not cancel the transaction.	Show that the chargeback is either remedied or invalid. Either by displaying that the transaction was not a recurring transaction, the transaction was recurring and the cardholder failed to meet the cancellation terms of the signed contract, documentation that services are being provided to and used by the cardholder after the cancellation date, or documentation that proper disclosure of entering into the recurring transaction was provided to and accepted by the cardholder.
4853 Legacy 4841	Cardholder Dispute Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder.	The merchant sent the wrong item; the item was damaged during shipping; the merchant inaccurately described the products or services; the merchant didn’t perform the services as described; the merchant did not accept a product return; the merchant sold counterfeit products; the quality of goods or services wasn’t adequate.	This chargeback may be reversed by supplying proof that the cardholder received the goods which fit the description at the time of the purchase. Specific compelling evidence based on applicable modifiers can be found in the modifiers section. Clearly explain the situations that might cause you to charge the card including charges for loss, theft, or damage. Have the cardholder read and agree to terms of service before processing the original transaction. Double check orders to ensure the correct item is shipped. Provide honest, detailed product descriptions. Accept returns from cardholders and issue credit promptly. Never sell counterfeit products.
4853 Legacy 4855	Goods or Services Not Provided The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up).	The merchant failed to provide goods or services; the merchant has gone out of business or can no longer provide the goods or services for some other reason.	If you have already issued a credit to the cardholder’s MasterCard account, you Do not need to submit a response to this chargeback. If you processed the credit by other means, provide compelling evidence displaying the credit occurred. Adhere to promised delivery dates. Accurately describe the services that will be provided, including availability window. Do not process the charge prior to order shipment. Immediately advise customers of unforeseen delays (merchandise is out of stock, shipping delays, etc.).
4853 Legacy 4859	Addendum, No-show, or ATM Dispute The cardholder claims an additional, unauthorized charge was added after a valid transaction without their consent.	The cardholder claims they are not responsible for an addendum, no-show, or ATM dispute.	Provide evidence showing that the cardholder participated in and authorized the addendum or no-show transaction, or is response for said transaction based on agreement to your merchant policies. Clearly explain all term and conditions and costs prior to finalizing. Respond to cancellation requests in a timely manner, and confirm with the cardholder. Train staff members on the correct ways to handle cancellations or reservation changes.
4853 Legacy 4860	Credit Not Processed The cardholder claims they are due a credit from an establishment that has not been processed.	The merchant did not acknowledge the return or cancellation; the merchant failed to process the credit or reversal; the merchant failed to fully explain the return/cancellation policy.	In your response, you need to either show that the merchandise was never returned, that the cancellation was not accepted, or that a credit or a reversal was processed. Process all qualified requests for cancellation or refund as soon as possible. Clearly advise customers on no-return or limited return policies, including any fees. For card-not-present transactions, require customer acknowledgment and confirmation action prior to final purchase. Refuse delivery of any returns that do not adhere to your stated policy. Advise the customer if the credit will be for a lesser amount, and explain why.
4853	Goods/Services not as Described or Defective The cardholder claims goods or services provided didn’t match the description listed or verbally provided at the time of purchase, were defective or damaged, or the quality wasn’t what was expected.	The merchant shipped the wrong merchandise to the cardholder; the merchandise was damaged during shipment due to improper packing; the merchandise was defective in some way before shipping; the merchant inaccurately described the merchandise or services; the merchant did not perform the services as described.	Check all service and product descriptions for clarity and accuracy. Immediately fulfill all valid requests for replacements or refunds. Do not refer customers to the manufacturer in cases of damaged or defective goods. Employ best practices for packing/shipping.
4853	Digital Goods $25 or less The cardholder claims that card information used to create an account for digital purchases lacked necessary purchase controls, leading to unauthorized purchases.	The merchant did not ensure that sufficient purchase controls were in place for the account, and digital goods were purchased (valued at less than $25).	Disable purchases by default and require cardholders to opt-in for purchasing. Require cardholders to provide authentication information before each purchase. Time-out purchase ability after a set period of inactivity. Clearly show total transaction amounts for pending purchases and require cardholder confirmation. Confirm purchases immediately via email or text.
4853	Counterfeit Goods The cardholder received counterfeit merchandise.	The merchant knowingly or unknowingly shipped goods that were not what they were claimed to be.	Order and sell only genuine merchandise. Check to ensure that inventory is what it claims to be. Double-check all product descriptions for accuracy.
4853 Legacy 4855	Transaction Did Not Complete Merchandise or services were not used by the purchaser, who believed the transaction was not actually processed.	The cardholder believed that goods or services were not provided (and therefore were not used) because the transaction was never processed.	Always confirm transactions via text or email
4853 Legacy 4860	Credit Posted as a Purchase A credit was processed as a debit.	The merchant knowingly or unknowingly processed a sale which should have been processed as a credit.	Train staff on the proper procedures for processing credits.
4854	Cardholder Dispute - Not Elsewhere Classified (U.S. Region Only) The cardholder claims they are unhappy with the goods or services provided and that they have been unable to resolve the situation with the merchant.	The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant.	Respond by providing an assertion based on the documentation that you corrected the deficiency that led to the chargeback or otherwise resolved the complaint. You may also provide proof that the chargeback was invalid because the cardholder paid the disputed amount before contracting the merchant or issuer about the dispute.

American Express

American Express has a slightly longer list of reason codes than the other card networks. These reason codes consist of a letter followed by two numbers. The letter indicates the category the Reason Code falls into: A for Authorization, C for Card Member Dispute, F for Fraud, and P for Processing Errors. The two codes that refer to the merchant’s response (or lack thereof) to a request begin with R, and the code that indicates that the merchant authorized the chargeback begins with M. The two-digit number indicates the specific reason for the chargeback. The reason code is used for North America, Canada, and the United States of America; there may be a different identifier for the rest of the world.

Fraud

Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
FR2 All other countries 4763	Fraud Full Recourse Program The cardholder denies authorizing the charge and your business has been placed in the Fraud Full Recourse Program.	Merchant falls under high-risk category; The issuer receives an unusual number of inquiries and chargebacks compared to processing history; merchant account has been disabled or cancelled due to suspicious activities or violation of the agreement.	To respond, provide proof that you had not been placed in the Fraud Full Recourse Program at the time of the chargeback, or proof that a credit which directly offsets the disputed charge has already been processed. Always obtain authorized approval for an e-commerce and recurring transactions regardless of the dollar amount. Always verify the account number to prevent errors or misunderstandings. Properly identify the type of transaction, such as card-not-present. Use security codes and AVS. Simplify/clarify billing descriptors.
FR4	Immediate Chargeback Program The cardholder has disputed the charge, and you have been placed in the Immediate Chargeback Program.	Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry.	Provide proof that you had not been placed in the Immediate Chargeback Program at the time of the chargeback, or prove that a credit which directly offsets the disputed charge has already been processed. Always obtain an authorized approval for e-commerce and recurring transactions regardless of the dollar amount. Always verify account numbers. Use security codes and AVS. Set billing descriptor correctly. Train staff on the proper handling of terminal issues.
FR6	Partial Immediate Chargeback Program The cardholder has disputed the charge and the merchant has been placed in the Partial Immediate Chargeback Program by American Express.	Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry.	Prove that you had not been placed in the Partial Immediate Chargeback Program at the time of the chargeback, or show that a credit which directly offsets the disputed charge has already been processed. Always obtain an authorized approval for e-commerce and recurring transactions regardless of the dollar amount. Always verify account numbers. Use security codes and AVS. Set billing descriptor correctly.
F10	Missing Imprint Cardholder did not participate in a purchase and was not provided a copy of the card imprint (card-present environments only).	The cardholder claims they did not participate in this charge and you have not provided a copy of an imprint of the card. Note: Not applicable to Card Not Present charges or charges that qualify under the Keyed No Imprint Program.	Send proof that the charge qualifies under the Keyed No Imprint Program, or proof that this was a Card Not Present charge. Always request authorization for mail order, telephone order, internet, and recurring transactions, regardless of the dollar amount. Obtain additional validation, such as an imprint or PIN, or through CDCVM. Set billing descriptor correctly.
F14	Missing Signature The cardholder claims not to have been involved in a transaction that was processed (card-present environments only).	The merchant neglected to give the cardholder a copy of the signed receipt; signature on the receipt is invisible or not prominent due to light ink, ribbed or colored paper, or fading; the original order receipt is mishandled or is scanned at a smaller size.	Scan or make copies of the order receipt at actual size. Maintain full ink/toner in machines. Print and keep a copy of the order receipt. Always provide cardholder with a copy of the receipt.
F24 All other countries 4534	No Cardholder (Card Member) Authorization The cardholder claims they did not participate in this charge, and the merchant submitted the payment, but the change was not authorized, was declined, or was submitted with an expired authorization.	The merchant processed an invalid account number; a family member ordered from the primary cardholder’s account without permission; the cardholder is not able to recognize purchase on the billing statement; criminal fraud was committed.	Provide proof that you’ve processed a credit which directly offsets the disputed charge. Always obtain authorized approval. Use secondary validation methods such as PIN. Set clear billing descriptors.
F29 All other countries 4540	Card Not Present The cardholder’s bank received a complaint from the cardholder indicating an unauthorized card-not-present transaction.	In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) Due to an unclear or a confusing merchant name the cardholder believes the transaction to be fraudulent.	You’ll need to provide proof that the cardholder participated in the charge (e.g., billing authorization, usage details, proof of delivery to the cardholder’s billing address, contract) or proof that the transaction contains a shipping address that matches a previously used shipping address from an undisputed transaction. You may also supply proof that you attempted to validate the CID and you did not receive a response, or you received an “unchecked” response. Similarly, you can provide proof that you validated the address via authorization and shipped goods to the validated address. Always request authorization for mail order, telephone order, internet, and recurring transactions, regardless of the dollar amount. Obtain additional validation, such as an imprint or PIN. Clearly and properly identify card present and card absent transactions.
F30 All other countries 4798	EMV Counterfeit The cardholder denies participation in the charge and a counterfeit chip card was used at a POS system where the transaction was not processed as a chip transaction because either: the POS system was not an enabled chip and-PIN POS system, or the transaction was manually keyed. Note: Not applicable for contactless transactions and Digital Wallet payments.	The POS system was not an enabled for chip, or the transaction was manually keyed; the merchant’s card processor did not transmit the full chip data to Visa; a chip-reading terminal was not actually used.	Provide proof that this was a Card Not Present charge or proof that the POS system processed a chip card transaction. Upgrade to compliant terminals. Make sure to obtain additional validation, such as an imprint or PIN. Take an imprint (either electronic or manual) for every card-present transaction. Train staff on the proper handling of terminal issues.
F31 All other countries 4799	EMV Lost/Stolen/Non-Received The cardholder denies participation in the charge and chip card with PIN capabilities was lost/stolen/non-received and was used at a POS system where the transaction was not processed as a chip card transaction with PIN validation because either: the POS system is not an enabled chip-and-PIN POS system, or the transaction was manually keyed. Note: Not applicable to contactless transactions and Digital Wallet payments, and charges that qualify under the No Signature/No PIN Program.	Merchant did not ensure that the card was either swiped or that the chip was read; merchant did not obtain manual card imprint on a key-entered transaction; a card-not-present transaction was not identified as such; fraud was committed.	Either provide proof that this was a Card Not Present charge, proof that the POS system processed a chip card transaction with PIN validated, or proof that a credit which directly offsets the disputed charge has already been processed. Upgrade to compliant terminals. Make sure to obtain additional validation, such as an imprint or PIN. Take an imprint (either electronic or manual) for every card-present transaction. Train staff on the proper handling of terminal issues.

Authorization

Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
A01	Charge amount exceeds authorization amount The merchant has submitted a transaction that was of an amount greater than the authorized approval.	A transaction is processed for an amount beyond the merchant’s floor limit; an error was made entering numbers manually.	Provide proof that a valid authorization approval was obtained for the full amount of the charge in accordance with the agreement (unless exceptions apply). Do not process a transaction when a declined authorization has been received. Do not process a transaction for more than the allowed tolerance level above the authorization amount.
A02 All other countries 4521	No Valid Authorization No authorization was requested by the merchant, the card has expired, or the card was declined.	Transaction was made after the authorization code and transaction date; the limited authorization index was present in the authorization request; the transaction amount exceeds the amount in the limited authorization response; the vendor did not exclude the tip in the authorization amount; the card was expired and/or the account was closed.	Provide proof that a valid authorization approval was obtained in accordance with the agreement. For an expired or not yet valid card, you should provide proof that the charge was incurred before the expiration date or within the valid dates on the card. Always authorize every transaction in accordance with merchant agreement. Obtain authorization on the day of the transaction. Do not include the tip on a previously authorized amount li>Obtain confirmation of authorization before completing all transactions.
A08	Authorization Approval Expired Transaction submission was made after the authorization approval had expired.	The transaction was not approved; the transaction was submitted after the expiration of the authorization approval; the authorization request was denied; or the transaction was made using an expired card.	Provide proof that a valid authorization approval was obtained in accordance with the agreement, or that a credit offsetting the disputed charge has already been processed. Process all transactions in a timely manner. Do not process a transaction when a declined authorization has been received. Do not process a transaction made with an expired card li>Train staff on the proper handling of authorization approvals.

Processing errors

Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
P01 All other countries 4523	Unassigned Card Number The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.	The merchant erred, either in entering or calculating information; the cardholder supplied an incorrect or invalid card number.	To respond to this chargeback, provide a copy of the imprint that confirms card number, proof that you obtained an authorization approval for such card number, or a copy of the charge record from the terminal that electronically read the card number. Double check numbers. Obtain secondary validation, such as PIN.
P03 All other countries 4752	Credit Processed as Charge The merchant processed a credit as a charge.	The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization.	Respond by providing proof that the charge was submitted correctly, or proof that a credit which directly offsets the charge has already been processed. Double check calculations, amount, and type of transaction before processing. Train staff on the proper procedures for processing credits, debits, and reversals.
P04 All other countries 4752	Charge Processed as Credit Merchant needed to charge an account, but instead processed it as a credit.	The merchant processed a credit instead of a debit, or in some other way processed a transaction that differed from the obtained authorization.	Respond by providing proof that the credit was submitted correctly, or proof that a credit which directly offsets the charge has already been processed. Double check calculations, amount, and type of transaction before processing. Train staff on the proper procedures for processing credits, debits, and reversals.
P05 All other countries 4507	Incorrect Charge Amount The cardholder claims the charge amount the merchant submitted differs from the agreed amount.	The merchant erred, either in entering or calculating information; the merchant changed the amount of the transaction for some reason, such as adding a tip; exchanged the amount post-transaction without cardholder permission.	Provide proof that the cardholder agreed to the amount submitted, proof that the cardholder was advised of and agreed to pay for any additional or delayed charges using the card the charge was submitted to, an itemized contract or documentation substantiating the charge amount submitted, or proof that a credit which directly offsets the disputed charge has already been processed. Double check calculations and the final transaction amount before processing. Do not alter the transaction amount without the cardholder’s consent.
P07 All other countries 4536	Late Submission The charge was not submitted within the required timeframe.	The transaction wasn’t processed in a timely fashion and the account has since been closed; transaction was posted after 181 days of the original transaction date.	Prove that the charge was submitted within the required timeframe, or that a credit which directly offsets the disputed charge has already been processed. Deposit order receipt with your acquirer as soon as possible, preferably on the day of the sale. Complete payment batches as soon as possible. Process transactions within 180 days of the original purchase. Be aware that paper receipts typically take longer to process.
P08	Duplicate Charge An individual charge was submitted more than once.	The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.	Provide documentation showing that each charge is valid, or proof that a credit which directly offsets the disputed charge has already been processed. Review transaction receipts before depositing. Submit a batch only one time. Void and credit any duplicate transactions li>Train staff on the proper procedures for handling credits.
P22	Non-Matching Card Number The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.	The processed the transaction to an incorrect account number; The merchant did not authorize the transaction and it was processed to an account number not on the issuer’s master file.	Send a copy of the card imprint confirming the card number, or copy of the charge record from the terminal that electronically read the card number as your response. As far as possible, swipe card or read chip for transactions. Double-check numbers before processing. Confirm account numbers with customers for card-not-present transactions. Train staff on the proper procedures for processing transactions.
P23	Currency Discrepancy The merchant made one or more errors related to the transaction currency.	The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.	Provide evidence that a credit which directly offsets the disputed charge has already been processed. Inform cardholders of the use of currency conversion and applicable fees. Always give the cardholder the option to make the purchase using local currency. Train your sales staff on proper procedures for transaction using a different currency.

Inquiry/Miscellaneous

Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
M01	Chargeback Authorization American Express received merchant authorization to process a chargeback for the charge.	The merchant authorized the chargeback.	Since you indicated acceptance of the chargeback, you likely won’t need to respond to these disputes. If you do, supply proof that a credit has already been processed. Maintain complete and accurate records for each transaction you process. Make sure you can access this information quickly and easily.
M10	Vehicle Rental – Capital Damages The cardholder claims the merchant incorrectly billed for capital damages.	Cardholder misunderstood responsibility for capital damages. Cardholder disagrees with charges. Total damages exceed 110% of the agreed-upon amount. The merchant made an error in calculating the total.	Submit proof that the charge submitted was within the specific estimate of the damages agreed in writing by the cardholder, plus 15%. Or submit proof that can refute the cardholder’s claim that they were covered by insurance. Or show that the charge was valid and not for theft or loss of use. Maintain proof that the cardholder agreed to and signed an acknowledgment of responsibility for capital damages. Make sure total charges do not exceed 110% of the agreed-upon amount.
M49	Vehicle Rental - Theft or Loss of Use The cardholder claims to have been incorrectly charged for theft or loss of use of a rental vehicle.	The merchant bills the cardholder for AMX-covered costs.	Maintain proof that charges were valid and not for theft, loss of use, or other fees. Maintain proof that a credit which directly offsets the disputed charge has already been processed.
R03	Insufficient Reply Complete support and/or documentation were requested but not provided.	The merchant did not supply documents requested. The merchant supplied only partial documentation.	Maintain complete and accurate records for each transaction you process. Make sure you can access this information quickly and easily.
R13	No Reply American Express did not receive a response to an inquiry within the specified timeframe.	The merchant did not respond to an American Express inquiry. The merchant responded to an American Express inquiry, but not within 20 days.	Maintain proof you responded to the original inquiry within the specified timeframe. Maintain proof that a credit which directly offsets the disputed charge has already been processed.

Customer disputes

Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT

Reason Code	Reason	Typical causes	Prevention steps
C02	Credit Not Processed The authorization has expired before the transaction was submitted.	The merchant didn’t credit the account; the merchant issued the credit but not in time to be posted to the customer’s most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided.	If no credit (or only partial credit) is due, provide a written explanation of why credit is not due with appropriate documents to support your position, or proof that a credit which directly offsets the disputed charge has already been processed. Issue credits promptly. Share the return policy with the cardholder before completing the transaction. Notify the cardholder when the credit has been issued. Consider simplifying/clarifying your return policy.
C04	Goods/services returned or refused The cardholder has provided proof that merchandise was returned.	Cardholder refused delivery of goods or services and has not yet received a credit; cardholder returned goods and has not yet received a credit.	Supply a written explanation refuting the cardholder’s claim that goods were returned. If the items were returned, provide a copy of your return policy, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the return policy, or a copy of the charge record indicating the terms and conditions of the purchase with details explaining how the cardholder did not follow the policy. If goods/services refused, provide proof that they were accepted. For card-present transactions, clearly disclose the return policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure. For card-present transactions, print the words “no refunds” or “in-store credit only” on all copies of the transaction receipt if you do not allow returns or have a limited return policy. For online transactions, clearly disclose the return policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase. Don’t accept delivery of returned merchandise if it doesn’t comply with your policy. Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement. If you will be crediting the cardholder for a reduced amount, communicate the difference before processing the credit.
C05	Goods/services cancelled The cardholder claims that the order for goods or services was cancelled.	The cardholder claims that the goods or services ordered were cancelled, but you didn’t provide a refund.	Respond to this chargeback by providing a copy of your cancellation policy or terms and conditions, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the cancellation policy or terms and conditions. If you’ve already issued a credit, include proof that a credit which directly offsets the disputed charge has already been processed.
C08 All other countries 4554	Goods/Services Not Received or Only Partially Received A charge represents merchandise that was not received by the cardholder. American Express cannot bill the cardholder for merchandise not in their possession.	Merchant did not ship the goods/service by the agreed delivery date or shipped only a partial order; merchant did not clearly explain the expected shipping/arrival date; merchant billed the cardholder before delivery of merchandise; merchant did not make order available for pick-up.	For goods, provide proof of delivery; including delivery date and full shipping address. For services, provide proof that the services were provided and the dates the services were provided, or a signed completion of work order showing the cardholder received the services and dates that the services were used/provided. You can also prove a direct connection between the person who received the goods and services and the cardholder (e.g., photographs, emails). In the case of a delayed order, always notify the customer. Provide cardholder the option of either continuing with the order or cancelling it. Clearly display the expected shipping date and delivery date on the invoice or order receipt. Provide a signed order receipt or invoice showing receipt of services or merchandise.
C14 All other countries 4515	Paid by Other Means The cardholder has provided American Express with proof of payment by another method.	The merchant didn’t void multiple transactions; the transaction was processed but the cardholder paid for the same merchandise or service by other means.	Provide documentation showing that the cardholder’s other form of payment was not related to the disputed charge, or proof that the cardholder provided consent to use the card as a valid form of payment for the disputed charge. Double check calculations and the final transaction amount before processing. Void any transactions if the cardholder wishes to use a different payment method.
C18	“No Show” or Card Deposit Canceled The cardholder’s account was charged for a “no-show” billing, despite cancelling the reservation. The cardholder has obtained a cancellation number. This number will be listed.	Cardholder was billed for lodging services that were allegedly cancelled.	Either supply documentation supporting the validity of the “no show” reservation or CARDeposit charge. Always inform the cardholder of your cancellation policy at the time of the reservation. Log all confirmation and cancellation numbers as required by the CARDeposit programs.
C28 All other countries 4544	Canceled Recurring Billing A charge has been submitted after the merchant was advised to discontinue all future billing.	The cardholder withdraws permission to change the account, or cancelled payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder’s account was closed.	Provide a copy of your cancellation policy, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the cancellation policy. Alternatively, you can provide proof that the cardholder has not cancelled and continues to use the service or receive the goods. Terminate recurring transactions when the cardholder requests cancellation. Consider a no-strings-attached cancellation policy. Do not increase the transaction amount without the cardholder’s consent. Do not prematurely bill the cardholder. Send notifications for upcoming charges.
C31	Goods/Services Not as Described The cardholder claims to have received goods or services that are different than the written description provided at the time of the charge.	The merchandise was damaged upon its arrival; the merchandise does not match the merchant’s description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged or not as described.	You may provide proof refuting the cardholder’s claim that the written description differs from the goods/services received, or proof that the cardholder agreed to accept the goods/services as provided or “as is”, or proof that goods/services matched what was described. For goods/services that were received in a damaged or defective state, show that an attempt was made to repair/replace goods, or to replace services. If the goods/ services were returned, state how the cardholder did not comply with your clearly documented cancellation/return policy or applicable law and regulations. Double check orders to ensure the correct item is shipped. Package items carefully to avoid damage during shipping. Provide honest, detailed product descriptions. Accept returns from cardholders and issue credit promptly. Never sell counterfeit products.
C32	Goods/Services Damaged or Defective The cardholder’s bank received a claim from the cardholder stating that the goods were shipped to the cardholder, but were damaged or defective.	The merchandise was damaged upon its arrival; the merchandise does not match the merchant’s description; the cardholder fraudulently claims the merchandise is damaged.	Supply proof refuting the cardholder’s claim that the goods/services were damaged or defective (provided that they were not returned ), or proof that the cardholder agreed to accept the goods as delivered, or proof that the goods/services were not returned. Package items carefully to avoid damage during shipping. Provide honest, detailed product descriptions. Accept returns from cardholders and issue credit promptly. Never sell counterfeit products.

Discover

Unlike the other card networks, Discover’s reason codes do not follow any particular pattern. Most are two-character codes, but there are some exceptions to this pattern. In particular, all reason codes in the fraud category begin with UA (for unauthorized) followed by a two-digit number. For many of these two-digit codes, you can see the meaning at a glance, e.g., NA for No Authorization or EX for Expired Card. Unfortunately, this is not the case everywhere. For example, the reason code for a changed amount is not AA, but AW. The reason code AA instead means Cardholder Does Not Recognize.

Fraud