This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 3. . A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. Chargeback code vs. Overall returns (all codes): 15%. There are dozens of reasons why cardholders and issuers dispute transactions. 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. QUE: Quebec tax. 0 to 5. Example: 25. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. Additionally, one clearing transaction. 4846 — Incorrect Currency Code. For card-absent transactions, use all Visa tools, including AVS, CVV2, Visa Secure, and more, to reduce instances of fraud. Disputes & Chargebacks. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. For situations where reason code 4855 would utilize, issuers have since assigned go use reason code 4853 choose. What is Discover chargeback reason user RG? Spot chargeback reason code RG falls on the “Services” category. Visit Chargeflow Website. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder approved the quality of goods or services. 105. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. 634. 0: Changed report name from Downloadable Dispute Report to Case Report. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardThe assigned chargeback reason code outlines why a customer submitted the dispute. Investigate suspicious orders. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. 10. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. 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. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. The chargeback can be for the total transaction amount or a lesser amount. Credit card authorization is a notification given by a credit or debit card issuer (i. The cardholder claims either that the merchandise was never. Reason Code Reason Code North-America Reason. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. R13 No Reply. GraphQL Docs & Tools. Overview: The Cardholder or authorized person did not receive the merchandise or services at the location agreed with the merchant by the agreed date. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective; American Express Reason Code C05 – Goods/Services Canceled; However, some reason codes are highly specific and apply only to a certain type of product, such as: Visa Reason Code 13. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. 4. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. However, Visa is the largest card brand in both the United States and the world. 4 Fraud – Card-Absent Environ. WEX began issuing chip cards in Q4, 2020. However, the 30 day waiting period can be waived if you’ve. Card networks send these codes to merchants to indicate. When the customer disputes a charge, the issuing bank then begins the chargeback process. 10. This ranges anywhere from roughly 60 to 90 days after purchase. Accessed October 31, 2022. 104. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. 1. “It’s a lot tougher with Mastercard because they only use four main codes. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. What are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. In all, there are four major categories of Chargeback Reason Codes. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 100187 and ANSI X9. However, they don’t address the reason why that chargeback was issued in the first place. The merchant charged the cardholder before shipping or delivery. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. 4. You’ll put that reason code, the transaction amount and authorization number, and state that the. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. The business has the chance to refute the chargeback. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. 10. Offer shipment and delivery tracking. MasterCard chargeback reason code 4540. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback reason codes and categories specified below. & Fighting Chargebacks? demo experience. 2 Authorization Your for Original. For all other transactions, the maximum amount of. 5, and all aspects of chargeback reason codes, with proprietary. 6. Discover uses unique codes to explain those reasons to merchants. This may include: Transaction receipts; Merchant credentials; Customer authorizationChargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableThe Takeaway. The chargeback process can last from one month to six months. The claim often, but not always, involves automated teller machines (ATMs). In most cases, you will have 20-45 days in which to respond to a chargeback. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder approved the quality of goods or services. ”. 2. 4 United Pay Retrieval Reason Code. 4. M10 Vehicle Rental – Capital Damages. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. The reason code helps categorize the chargeback for the card network and issuing bank, and it also tells the merchant how they can fight the chargeback based on the corresponding reason for the. Dispute Category. The cardholder initiates contact with their bank or credit union to file a dispute. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Other Fraud—Card Absent Environment. [noun]/* kə • stə • mər • di • spyo͞ot/. ” This code indicates that the cardholder damages the salesman acted not ship an goods or offices group paid for. About Discover chargeback reason codes. compliance process depending on whether a chargeback right exists. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Stage 1: First Chargeback. 0 initiative to update compelling evidence requirements for dispute reason code 10. 04/09/14 Discover: DC, U02. Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. Chargeback /Dispute; Merchant Response. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. 6. ” Diese code indicates that the cardholder claims the merchant did none drop the goods or services handful paid for. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Chargeback Reason Codes: Alphanumeric codes issued by banks to categorize the reasons for chargebacks. Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. 5158. 100-187-2013 Standard for image exchange. Overview: The Cardholder or authorized person did not receive the. The reason_description field lists the chargeback reason. 4846. It depends on the chargeback reason code associated with the dispute. Verifi's Chargeback Dispute Resolution Network (CDRN) is a network of issuing banks established by Verifi to help merchants prevent chargebacks. For Visa: Reason Code 30; For MasterCard: Reason Code 4855; For Discover: Reason Code; For American Express: Reason Code 155. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. A “No Authorization” code chargeback can also be the. Removed Visa Chargeback Code 60. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. But cardholders and merchants have different time limits. Proof that the cardholder rejected your attempt to correct the quality. The reason codes are grouped into several broad. With that said, you still need to understand the reason codes with any chargebacks from Amex. If you leave this processing. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. 101. What motives code 4855 chargebacks? Is theory, merchants shouldn't receive chargebacks with reason encipher 4855 anymore. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. Each code corresponds to an issue or problem. Reason codes are very crucial to assist. Reason Code RG : Non-Receipt of Goods or Services ↩ Back to Directory Dispute Card Issuer Discover Reason Code RG Category Service Dispute Claim The cardholder. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card. The delivery was delayed. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. The new codes, which can be found in our reason code guide, start with a two-digit number indicating which of Visa's four dispute categories it falls into: 10 — Fraud; 11 — Authorization; 12 — Processing Errors; 13 — Consumer Disputes; The Visa Claims. A Visa chargeback reason code is a number that identifies the reason why a cardholder disputed a transaction that led to a chargeback. At Visa they used to receive reason code 98. Also, remember that the point which qualifies as "Day One" will reset at each stage of the chargeback process. Vantage HouseMar 29, 2018 - What is Chargeback Reason Code 30? • For Visa: Reason Code 30 • For MasterCard: Reason Code 4855 • For Discover: Reason Code RG • For American Express: Reason Code 155 Overview: The Cardholder or. It gets worse. Updated Disputes/Chargeback Policy Coming April 2024What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Fraudulent Activity. Across open networks and include account numbers sent over email, instant messaging, text, or chat. Chargebacks. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. And we know banks and credit cards. Chargeback of this Reason occurs (Non-Receipt of Goods or Services). Thus, the easiest way to prevent chargeback reason code 75 from being. The event group portion of the T-code is sufficient for reconciliation and report parsing. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Discover: Reason Code 4755 Non-receipts of goods or services. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. com Europe. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. 3. As we touched on earlier, chargebacks can happen due to technical errors. Proof that the cardholder rejected your attempt to correct the quality. 3. Take the time to note the following dispute reason codes for Visa. ” This code indicates that the cardholder claims the merchant did not deliver the goods or services they paid for. Chargeback Reason Codes The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest. Mastercard Chargeback Reason Code 71: Disputed Amount. This can be transaction receipts, proof of. Chargeback Reason Code A numerical code which identifies the specific reason for a chargeback. 00 EUR as a Withdrawal fee. For perspective, the next highest. When filing a chargeback,. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. Time Limit in Calendar Days. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. However, the issuer must wait at least 15 days. 1 – EMV Liability Shift 10. What is Visa chargeback reason code 13. These codes will explain why the chargeback was filed. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. MasterCard - 4863 Cardholder Will Not Recognize - Potential Fraud. a bank, credit union, etc. Customer Dispute. 3:The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Retrieve thine complete guide to the new Visa reason codes, including all the elaborate information, chargeback time limitation, and other important information to need. This extra step can be frustrating for Card Members and lead to lost sales. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Issuer Review; Allocation. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. In theory, the reason code explains why the bank reversed the transaction. Other Fraud—Card Present Environment. ” This code indicates is the cardholder requirements the merchant did not release the goods or services the paid for. 1. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 1 falls under the “Processing Errors” category. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRRThese chargebacks occur to resolve chargeback-related disputes between network members. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. This can provide important information to fight the dispute. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Visa chargeback reason code 75 is filed as an honest mistake. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. Protect stored cardholder data. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Category. Each card network maintains reason codes to cover all the disputes that qualify for. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. Analyze chargeback and wake data by dozens of. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. EMV Liability Shift Non-Counterfeit Fraud. . Every chargeback has a reason code associated with it. Services industry for image exchange and the creation of IRDs. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. 1002 - Cardholder disputes billed amount. 1=1010, 10. Eligible Chargeback Reason Codes . Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. In that way, winning one dispute may help prevent the next chargeback to come after it. There are two parts to this. Reason Codes Category 4: Processing Errors. chargeback real reason. e. Key-in your chargeback reason code and get a detailed explanation concerning what it means, how to fight the chargeback, and how go prevent disputes in the future. Merchants have 20 business days from the notice date to respond to such a notice, before Discover processes a chargeback. Which is Discover chargeback reason code RG? Discover chargeback reason code RG falls under the “Services” category. 1 = EMV-Liability Shift counterfeit. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. FAQ: What remains Chargeback Representment? TIPS. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. A reason code or a chargeback reason code is a string of symbols (numbers and letters). 2. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Cardholder-Activated Terminal (CAT) 3 Device. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. ’A transaction event code, or T-code, is a five-character alphanumeric string, such as T0001. American Express: Reason Code C08 Goods or services. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. Please refer to Annexure — B for details. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. The terminal action codes are in Table 122 of the 4. 3 –. As we touched on earlier, chargebacks can happen due to technical errors. ”. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. Each card. Others require banks to wait for a certain period before they can issue a chargeback. Below are some examples of more common reason codes. Industry Trends. Other Fraud—Card Absent Environment. 6. Chargeback response template for Digital Goods Not Received chargeback. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. Looking for Discover chargeback and dispute reason codes? Check this database—Midigator has tips to prevent & fight chargebacks based on reason codes. 265. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Based on the information provided, Paymentology will investigate the transaction being disputed. 3 falls under the “Consumer Disputes” category. The list of chargeback reason codes in this article. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. A reason code is how banks categorize the reason for a chargeback. Every chargeback is filed with a reason code that identifies the given reason for the dispute. 3: Goods or services were not as described: C31: RM: 13. Receive the Chargeback. Visa Chargeback Reason Codes. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. EXPERT WITNESSES | CERTIFIED CYBER INVESTIGATORS | BEST OF BREED FORENSIC TOOLS & SOFTWARE. The list of chargeback reason codes in this article is organized by card brand and type of dispute. Assemble Your Evidence. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. 10. Visa Chargeback Reason Codes. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Then, apply calculations and chart your results. Not recognizing your billing descriptor on a statement. Different card networks have different reason code systems. Reason Codes for raising adjustments: Please use appropriate reason codes while raising disputes either through front end option or bulk upload option. This category for scamming chargeback claims is represented with the following reason codes: AMEX - F29 Card Don Presentational. “American Express Chargeback Reason Codes | Sift”. Either the acquiring or issuing bank could initiate the chargeback. Reason Code: A code used to provide additional information to the receiving clearing member regarding the nature of a chargeback, subsequent presentment, [. Visa Chargeback Reason Codes. First, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. View Our Full List Here. Technical. [1] Sift. Chargeback reason codes are codes used to categorize the reason for the dispute. Merchants can find a. Discover uses the four main categories to organize its reason codes: Authorization, Service (Discover’s name for Card Member Disputes), Fraud, and Processing Errors. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Visa Good Code 13. This chargeback occurs when merchants do not adequately provide currency information. Copy and paste these chargeback response templates when responding to the toughest chargeback reason codes and increase your chargeback win rate 10x. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. Visa - 10. Also, just like American Express, Discover functions as both a card network and an. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. In this case, the customer files for the pre-compliance chargeback (aka reason code 98). This reason code is accompanied by a fraudulent reason code (UA). Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. MasterCard: Reason Code 4859 Services not rendered. The Return Reason Code could be any of the valid codes listed in the X9. 6: Credit not. Other Ineligible Transactions Under Reason Code 62, Condition 2 . The new reason codes follow a format of two digits, a period, then a third digit. The business has the chance to refute the chargeback. Where: <event-group> is a two-digit general accounting event group. When the chargeback procedure is used legitimately, chargeback reason codes correspond most of the time to the underlying reality, based on the evidence provided by the cardholder and the. Take the time to note the following dispute reason codes for Visa. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. Reason codes. 4 Funding Process. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. Chargeback Reason codes Friday, 6 September 2019. ] fee collection, funds disbursement, or request for a source document. This category for scamming chargeback claims is represented with the following reason codes: AMEX - F29 Card Don Presentational. Protect stored cardholder data. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. 3. Maestro. If you get a chargeback,. There are multiple situations in which this can occur. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. 1: goods not received. If your chargeback ratio is high [i. Understanding Chargeback Reason Code for Each Chargeback Request. What is Discover chargeback base code RG? Discover chargeback reason code RG falls under the “Services” category. Aforementioned shorthand description your “Non-Receipt regarding Goods, Services, or Cash. The shorthand description is “Non-Receipt of Goods, Services, or Cash. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Updated the following columns - card type, response due date. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Discover is a credit card network and an issuing bank—just like American Express. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. MASTERCARD. It can range from 60 to 120 days from the billing date. 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. Order not received fraudulent chargeback notices is represented with the follow-up reason codes: AMEX - C08 Goods/Services Not Received or Includes Parcel Received. Fraud UA01 Fraud – Card Present Transaction UA02 Fraud – Card Not Present Transaction UA05 Fraud – Chip Counterfeit Transaction UA06 Fraud – Chip and PIN. Let’s say you got a Visa chargeback with reason code 13. For more information on these and other updates, check out our complete chargeback reason. Acquiring Banks: Can do the following, i) Accept Chargeback & Compensation Reason code- AT (Attribute to technical issue at merchant/aggregator) ii) Accept only Chargeback and reject compensation - Reason Code - AC (Issue attribute to the customer) iii) Reject the chargeback - No compensation applicable Process Flow for. All chargebacks start with a customer making a purchase in person, in an app, or online. 2. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise.