Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. 57 - Transaction Not Permitted to Cardholder. The chargeback reason code; The transaction amount and the chargeback amount; The action(s) already completed by the acquirer; The deadline for submitting representment documents;. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. Remember: A PayPal transaction dispute is an internal matter between two PayPal users, and a PayPal claim is handled by the company directly. The bank files that disagreement on the cardholder’s behalf, overturning the sale, then claws the funds back from the merchant and. It can have serious consequences for the perpetrator. 9 was previously covered by legacy Visa reason code 90. Square’s chargeback fee: $15 to $25. Credit Card Chargebacks. 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. 4853 – Cardholder Dispute – Credit Not Processed. But if they have a lot of chargebacks (usually above 1% - 1. Credit card fraud happens when a payment goes through without the card holder’s consent, usually because the card has been stolen. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. A recurring transaction is an automatic credit card payment that occurs on a regular basis. Consumers who use a credit card or debit card to make purchases are protected by both local regulations and Visa and/or Mastercard international dispute resolution guidelines. P04 — Charge. When a merchant receives an invalid chargeback, they can fight it by representing the charge along with the evidence that proves the transaction was carried out properly. 3-D Secure. A chargeback on a credit card is when you try to get your money back for things like fraudulent transactions, unauthorized payments, or other credit card disputes where you got the short end of the stick. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction. If they lose, the funds are taken away and the seller is charged a $20 dispute fee. If not, check out our latest blog where we briefly discuss credit card chargeback laws. Disputing a chargeback claim. BINs are placed at the beginning of the card number, after the first digit, which is called. For each reason code, a definition is The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. 4807 Warning Bulletin File. The credit card issuer—which could be their bank, Visa, Discover, Mastercard, or American Express—will then assign a reason code to the chargeback. The request is usually made when the cardholder is disputing a charge on their credit. They can go much higher, though, especially if your business is considered “high risk. 39 or refused C05 Goods/services canceled. In addition to losing the amount that. ’ Well, what is it exactly? With Visa CE 3. . Mastercard chargeback reason code 4807 – Warning Bulletin File is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. The code is used to help verify buyers during a card-not-present transaction. This guide shares an overview of chargebacks, how the dispute process works, and how to prevent them in your online store. 3: No Authorization For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. Chargeback Reason. Learn More about Discover Chargeback Reason Code NC: Not Classified A chargeback is a safety net designed for cardholder’s security. 2. Code. A Bank Identification Number (BIN) is a four to six digit code contained within every credit and debit card number. To make matters worse, the consumer that had their card stolen will also call their credit card-issuing bank and hit you with the chargeback against the $2,000 charge. Step 2 | Identify the Reason Code. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. [noun]/THrē • dē • sə • kur/. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. What is the chargeback reason code? The reason code is an alphanumeric 2 to 4-digit code provided by the issuing bank that identifies the reason for the dispute. It also you to upload evidence to fight a Discover chargeback. Unlike Visa and Mastercard, AmEx is the issuing. If a customer asks to use another form of payment after the Visa card transaction has been processed, credit from the original. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. The cost of payment. American Express chargeback codes. How a Credit Card Chargeback Affects Your Business. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. This is not always as straightforward a process as it might seem. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. Credit cards, clocks, calendars and include numbers - 02, 01, 03, 21, 04, 24, 26, 30, 27, 29, 25, 28. Follow these links to learn more about the chargeback reason codes from each credit card company:. 1003 - Transaction Supporting Document (TSD) needed. Like credit card disputes, ACH returns are monitored. How Do Credit Card Chargebacks Affect Your Business? Credit card chargebacks cost businesses their revenue and increase their chargeback rate, which can have serious consequences if it reaches 1%. Credit Card Chargeback Time Constraints. ” Improving the chargeback system will be helpful to acquirers, not just merchants. A chargeback is an action taken by a bank to reverse a payment and trigger a dispute resolution process. C01:. A concern for businesses is the fact that chargebacks have been increasing by 20% year over year. Some MCC codes don’t offer the same chargeback protections to customers. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. You can also view your latest chargebacks. A credit card authorization code is an alphanumeric code, typically between 2-6 figures long, meant to indicate whether or not a credit card transaction has been approved. Overdrafts also can damage your credit. 1, which covers duplicate processing errors, and 12. The first step in. card networks like Visa have created a breakdown of the. The most common reason for chargebacks (30%) is that the purchase was made with a stolen card. 4. Requirements © When you get one of these response codes, you’re going to have to ask the customer to provide a different payment method: 5 - Do Not Honor. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. C08. The most comprehensive guide to chargeback reason codes. We suggest you review the documentation provided to you by your credit card company and issuer. The credit card number used for a sale is not assigned to a valid account or cardholder. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is more critical than ever. 0: 3DS2 is the technology behind automated fraud detection programs that compare over 100 data points to verify the buyer as the. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. When a company notifies you of a chargeback, a reason code is attached to the document. Every cardholder’s favorite transaction type—a refund transaction—is when a credit is processed to return funds to the cardholder’s account. American Express Credit Card Account Customer Service Department PO Box 981532 El Paso, TX 79998 FAX 623-444-3000 For fraud-related disputes:Credit cards are big business. eCommerce grew too fast for the payments industry to respond. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. The claim the cardholder is making here is that they did not authorize the transaction and are alleging their card was used fraudulently or that the merchant pushed a transaction through without. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. PayPal is one of the world’s largest and most recognizable payment companies. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. American Express Credit Card Account . Even if a merchant disputes a chargeback and wins, it still counts against their ratio. What Laws Govern the Chargeback Process? Federal regulation of credit card transactions started with the 1968 Truth in Lending Act (TILA). Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. For Visa disputes, the reason code also dictates which workflow the. Reason Card Type Reason Code Description Merchant Action Code This chargeback occurs when a customer does not recognize the transaction and is stating that they did not authorize the charge to their credit card. There are several different methods for obtaining a credit card payment reversal. 65 - Exceeds Withdrawal Frequency Limit. The cardholder claimed they didn’t receive the goods or services or only partially received the order. How it Works: Merchant Advice Codes in Practice. 1001 - Cardholder does not recognize the transaction. How can merchants fight code 4837 chargebacks? Merchants can fight code 4837 chargebacks by providing evidence that the charge was authorized, such as signed delivery confirmation or records showing the cardholder downloaded or used a digital purchase. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. Case number assigned to the chargeback. The problem continues to grow out of control with each year. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. Sift’s Visa chargeback reason code guide features every single Visa reason code, its description, expert insights, and real world examples. The merchant failed to ship the merchandise to the agreed-upon location. Credit Card Chargeback Time Constraints. 3 Other Fraud – Card Present Environment 83(1) 10. In short: yes. The credit card company then debits the merchant’s account for the disrupted amount. Chargebacks allow consumers to reverse a disputed charge directly through their credit card provider. That said, fees normally range between $20 and $100 per claim. When a chargeback happens, the bank withholds or withdraws funds from. Administrative returns (R02, R03, R04): 3%. However, it’s important to have this documentation on hand so you can. . One reason the issuing bank requires significant evidence before it allows a chargeback on a customer dispute is the prevalence of chargeback fraud when customers abuse the credit card chargeback process. 2. Visa or Mastercard) to ask them to reverse a charge made on your credit card, however chargebacks are not always available. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. Late Presentment Rules: Mastercard. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. They also assign a numeric reason code for the chargeback, then electronically transmits all the chargeback information to the acquirer. Below is a list of VISA chargeback codes. 8, which indicates a disputed transaction that the cardholder does not believe they should be responsible for receiving. The credit card issuer—which could be their bank, Visa, Discover, Mastercard or American Express—will then assign a reason code to the chargeback claim. In such. However it happened, just about the only way you could earn an incorrect transaction code chargeback is by mistyping the transaction code. According to the customer, the product or service purchased was never received or used. A credit card chargeback is a charge that’s refunded to you after you successfully dispute a credit card transaction. [noun]/* kre • dǝt • kard • dis • pyōōt/. 60 for every $1 in sales. R13 No Reply. Typically, customers can file a chargeback within 60 to 120 days from the date of purchase. The exact time frame will vary based on factors such as the reason code or the card network. This can cover unintentional “friendly” fraud, as well as deliberate abuse of the chargeback process. Chargebacks were first established for credit cards by the Fair Credit Billing Act of 1974, with chargebacks for debit cards coming with the Electronic Funds Transfer Act of 1978. Unfortunately, the chargeback process was not some financial version of Athena, springing fully formed from the head of the U. Card Member cancelled, refused or returned goods and/or services A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. The Federal Trade Commission (FTC) reports 4. What it Means: When a customer demands a chargeback, that money isn’t drawn directly from the merchant’s account. With the overhaul of their reason code system, Visa divided reason code 83 into multiple different codes, including 10. Chargeback Fraud Is on the Rise. A chargeback is a cancellation of a transaction. The primary difference between credit card chargebacks and those involving ACH payments is that the customer has only 90 days from the date of the transaction (or 60 days from receipt of the. • If the card is present at the time of sale, be sure to compare the credit or debit card account number on an electronically printed draft to the credit or debit card number embossed on the card. When you look up a chargeback reason code, it should tell you exactly what type of evidence is needed to get the chargeback. Here are some of the most common chargeback culprits: 1) Fraudulent transactions. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. FR4 Immediate Chargeback Program. Only an issuer can initiate the chargeback process. Chargeback representment is the process through which merchants can submit evidence to prove that a chargeback is illegitimate. ” Banks assign the appropriate code to each case, so everyone knows the given reason for the chargeback. You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. All received credit card disputes include a reason code. Get $20 when you sign up for a free KOHO account with code HARDBACON and enjoy 3 months of KOHO Extra to unlock up to 4. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. Discover provides a dashboard called the Discover Network Dispute System. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. A credit card authorization code is an alphanumeric code, typically between 2-6 figures long, meant to indicate whether or not a credit card transaction has been approved. The Credit Card Company; The credit card company is the organization that owns and supplies the credit card. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. The issuer will also claw back the disputed amount from the acquirer. If a reason code 4834 chargeback stems from a claim of “paid by other means,” it is the result of a simple mistake on the part of the merchant. Provide relevant documentation as requested (e. The “Cardholder Number” is the series of digits used to identify the cardholder, issuer and card brand. 2023-09-07. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. If the card validation code 2 (CVC 2) was provided in the authorization request/0100 message and the card validation code result (DE 48, subelement 87. (the only difference that the code is in a physical plastic card) Also keep in mind chargebacks are to be used for extenuating circumstances. Visa Reason Code 10. S. 65 - Withdrawal limit exceeded: The transaction would exceed the. This chargeback may be reversed if you can supply an imprinted or swiped sales draft signed. Chargeback. Customer Service Department PO Box 981532. “It’s a lot tougher with Mastercard because they only use four main codes. M01 Chargeback Authorization. Chargeback. The most relevant Mastercard chargeback codes for the majority of merchants can be broken down into four main categories—authorization, cardholder. With a chargeback, funds are held from businesses until payment card issuers decide what to do. The purpose of the FCBA was to protect cardholders from fraud and unfair billing practices. On eBay, the chargeback process is not the only recourse buyers have. Can you dispute a partial charge on your credit card? Yes. ”. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. S. The situation described by Visa chargeback reason code 13. In some cases it can be upwards of 540 days, though, depending on. CVV2. A02 No Valid Authorization. This is a common mistake when processing a reversal. A chargeback occurs when a customer disputes a charge from your business on their credit or debit card. This is the name of the business responsible for the charge; often a shortened, yet still recognizable version of the “doing business as” (or “DBA”) name. Therefore, any transaction with a merchant designated with MCC code 5812, representing restaurants,. The credit card issuer might take out the wrong amount or bill you for something you didn’t charge. Credit Not Processed Applies to Reason Codes. What is Visa Reason Code 11. After. The card company will then review the chargeback request – Every chargeback request should have a reason code . When you discover an unauthorized or incorrect charge on your credit card. A chargeback occurs when your customer contacts their bank or credit card company to dispute the charge for an order that they placed on your website. Discover provides a dashboard called the Discover Network Dispute System. Each chargeback is disputed by a specific reason code. Canceled Recurring Billing. Step 1: Require credit card security codes. While there are a lot of similarities between the two, debit cards and credit cards each offer different levels of fraud protection. Chargeback Reason Codes. Chargebacks are also known as "charge disputes" and reversals, and they can be filed for a variety of reasons, including unauthorized use of the credit card. Card networks recommend that both issuing banks and merchant acquirers support the protocol. 2. However, under certain circumstances, you may not be charged the Disputed Chargeback fee. 3-D Secure is a customer authentication protocol created for eCommerce. 3. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 7: Invalid Data For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. Step #4. The cardholder files a chargeback – The chargeback process begins when a dissatisfied customer files a chargeback request with the card company. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. In these cases, a credit card chargeback is fairly straightforward. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment volume, according to Payments Canada. 3 Fraud – Card-Present Environment. purchase receipts, account statements, written communication or cancellation of a direct debit). Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Without the card, fraudsters won’t know the code. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. Here are a few examples of the ways in which MCC codes can come into play: You possess a credit card that offers 2% cash back on dining. How can merchants fight code 13. The issuer returns the disputed transaction to the acquirer explaining the reason for the dispute, potentially with supporting documentation. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. FR2 Fraud Full Recourse Program. The credit card issuer—which could be their bank, Visa, Discover, Mastercard, or American Express—will then assign a reason code to the chargeback claim. . Merchants can sell in-person, online, over the phone, or out in the field. Chargebacks Explained;. Card networks like Mastercard allow cardholders to dispute a credit card transaction by filing a chargeback under certain circumstances. American Express will give you separate numbers for each merchant you intend to patronize, while Capital One and Citibank will provide you with a new number per request, even for the same merchant. Goods/Services Not Received or Only Partially Received. A chargeback occurs when a customer questions a credit card transaction and asks their bank to reverse it. 265. Start your 3-day free trial today! Try Shopify free for 3 days, no credit card required. This is further complicated because the rights for each incident are based on the reason code. 10. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. g. federal Mail Fraud and Wire Fraud laws, fraudsters face the possibility of time in jail. Here's what you need to know about the chargeback process. They help categorize cardholder disputes and determine next steps, and they vary by card network. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. If a merchant runs into chargebacks throughout their business, everyone knows that it happens. Card. For each reason code, a definition isRetrieval Request. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. A chargeback filed due to buyer’s remorse is a prime case. 0, the data will be more accurate. Adjustment date. Chargeback is for debit AND credit cards and can be used on any amount – Section 75 only applies to credit cards and for certain amounts. Credit card receipts contain key information about credit card purchases such as the name of the merchant and the date, time and amount of a transaction. 461 trillion in purchase volume in 2021. The codes also appear on financial reporting associated with disputes. So the company has more incentive to side with customer during cardholder disputes. 10. The acquirer or merchant has 30 days to respond to a chargeback filed under reason code 12. Requests for debit and credit card chargebacks may arise from fraud, identity theft, or the illicit use of the card or card number. Chargebacks are typically initiated by the original buyer. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. A retrieval request—sometimes called a “soft chargeback”—is a method of obtaining a copy of the paperwork to validate a transaction. Credit Card Dispute. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Card Member cancelled, refused or returned goods and/or. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. A refund comes directly from a merchant, while a chargeback comes from your card issuer. 6. 1 chargeback: The merchant failed to ship the merchandise or provide the service as agreed. [noun]/cē • vē • vē • tö • kōd/. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Merchants need to understand the unique chargeback processes for each. Reason Code 12. Updated these Discover Chargeback Codes: RG, RM, U01, U02. Chargebacks were introduced as a form of consumer protection against fraud. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is. We break it down by card network, reason code, and more. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Post Views: 1,028. What causes code 10. 4846. Updated these MasterCard Chargeback Codes: 08, 12, 55. Chargeback fraud occurs when cardholders dispute a transaction with the bank instead of contacting the merchant for a refund. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. Download our rebuttal letter template and writing checklist today. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. A chargeback isn’t just a single event. Chargeback Scheme. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization. This process occurs strictly between the two banks. By entering your email, you agree to receive marketing emails from Shopify. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. 1. 4853 – Cardholder Dispute – Credit Posted as a Purchase. What causes code 4808 chargebacks? In most cases, code 4808 chargebacks occur when a fraudster with a stolen or counterfeit credit card targets a merchant without EMV-compatible payment terminals or convinces a merchant to swipe or key in the card rather than use the chip. Updated Disputes/Chargeback Policy Coming April 2024You may have processed a debit instead of a credit, processed a credit instead of a reversal, or in some other way submitted a transaction that differed from the obtained authorization. P03 — Credit Processed as Charge. Once the 16-digit virtual card number is generated, tap “accept. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the end of. If a customer asks to use another form of payment after the Mastercard transaction has been processed, credit from the original. These come in the form of two, three, and four-digit numbers. Any action(s) already completed by the acquirer. In fact, there are literally thousands of pages of chargeback regulations published by the card networks. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Chargeback Reason. They’ll ask the merchant to run it again, insisting that the magnetic stripe is worn, or that the. We say the given reason because it may or may not reflect the true. Added these Discover. 9 Essential Merchant Chargeback Rights You Need to Know. Fraudulent transaction chargebacks happen when a cardholder does not recognize a charge on their card. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. Top chargeback fraud statistics. If a transaction has been declined, the authorization code will provide further details. Learn how to create a winning debit or credit card chargeback rebuttal letter. The Disputed Chargeback fee for representation is $20 per chargeback. For example, Mastercard has a code which indicates a ‘consumer dispute. How can merchants fight code 12. g. MasterCard: Reason Code 4859 Services not rendered. Bank of America’s chargeback fee: $25 to $50. Accept the chargeback. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. This field communicates information about credit card declines post-transaction attempt. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. This usually occurs in e-commerce transactions or in situations where the customer provides their card information over the phone or via mail order. Step 3 – The acquiring bank receives the. 4 chargebacks? Merchants can fight code 13. Learn which strategies to use as you fight and prevent consumer disputes by reason code. Chargeback Guide - Mastercard. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Disputes also arise regarding the bill itself. Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 13. For example, Mastercard has a code which indicates a ‘consumer dispute.