This definitive guide includes the chargeback reason codes coming each of the four greater menu networks. Reason Code 04. M49 Vehicle Rental – Theft or Loss of Use. a) Code 75 (Cardholder Does Not. 2. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. Global chargeback volume reached 615 million cases last year. 2 Compliance CasesChargeback Reason Codes by Industry. Visa, MasterCard, and American Express all list compelling evidence by reason code. F02. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Early Warning: Reaching a chargeback ratio of 0. Values are: Blank: Use the receipt G/L date. RN2: Credit Not Received: NC: Not Classified: Processing: 4834: Point of Interaction Error: 4834: Transaction Amount Differs: 4834: Late Presentment: 4834: Point-of-Interaction Currency. Chargeback Reason Codes by Network - 2023 Guide. It's essential to respond within the. 04/09/14 Discover: DC, U02. Clerical These are only a handful of common Visa chargeback reason codes. The chargeback reason code list is a standardized set of codes that are used by credit card companies and banks to categorize the reasons for a chargeback request. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. 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. Your actions in response to a Reason Code 57 chargeback will depend on the particular circumstances, the most typical of which are listed in the table below: You did process the appropriate credit to your customer’s card account. This definitive guide includes the chargeback ground codes by each the the four main card wired. Build & Submit a Representment Case in 4 StepsSTEP #7: Bank Review & Decisioning. Effective for Transactions completed on or after 15 April 2016, A Transaction for which Authorization was obtained after a Decline Response was received for the same purchase. 5 Visa Fraud Monitoring Program. Try Shopify free for 3 days, no credit card required. 1 falls under the “Processing Errors” category. However, they don’t address the reason why that chargeback was issued in the first place. 2 – EMV Liability Shift Non-Counterfeit Fraud. The chargeback process can last from one month to six months. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. Specifically, these updates only pertain to transactions that are charged back after Oct. 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. Ethoca alerts can prevent chargebacks before they hit your bank account. MasterCard: Reason Code 4859 Services not rendered. The old-fashioned way of determining the root causes of your chargebacks involves comparing. 10. Description: Reason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. Standard Threshold: Reaching a chargeback ratio of 0. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. 02 Research and familiarize yourself with the specific chargeback reason codes used by your industry or payment processor. Duplicate Processing - 81While the updates have been published, they do not go into effect until Oct. This information should be based on the Visa chargeback reason codes assigned to the case. 3? Visa chargeback reason code 13. This reason code is accompanied by a fraudulent reason code (UA). American Express – Consumer Disputes: C02 – Credit Not Processed C04 – Goods or. Try Shopify free for 3 days, no credit card required. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. As a merchant, you face the brunt of chargeback losses. 6. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Read the Chargeback Advice letter carefully. If the order was genuinely not as described, then the cardholder has a case. Analyze your chargeback data. Merchants can analyze the root causes of their chargebacks by examining the reason code of the chargeback and their own records regarding the purchase in question. That’s 50% more time than what the major card networks allow. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. These disputes are commonly referred to as friendly fraud. com. The major card networks have unique reason code systems, and banks use separate tools. The chargeback transfers funds from the acquirer to the issuer. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. 3: Goods or services were not as described: C31: RM: 13. Visa - 13. The most comprehensive guide to chargeback reason codes. 1: Use the corresponding dates from the invoice. 1 Quick Reference Lead. M01 Chargeback Authorization. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. The network hasn't wholly disallowed some old codes. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Chargeback Reason Codes; Payment Industry Glossary;. It was created to protect. 4. 11. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. 5 Dispute Reason Code is a code that refers to fraud disputes where the card issuer was permitted to dispute the fraudulent transaction on behalf of the cardholder. 3. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. You must submit your response packet prior to the expiration date that is set by your payment processor, some of which only allow 5-10 days to respond to a chargeback claim. AT Authorization Noncompliance. The network plans to reduce response times even further to just 20 days in the near future. Here are a few high-level examples. The following are some examples: Visa Reason Code 13. You must tailor your representment case — including the compelling evidence — to the reason code under. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Reason Code 04. Other Fraud—Card Present Environment. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. For example, Mastercard has a code which indicates a ‘consumer dispute. 3. 1 EMV Liability Shift 10. However, Visa is the largest card brand in both the United States and the world. There are two parts to this. DP — Duplicate Processing One transaction was processed multiple times. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. This code tells you why the customer or bank initiated the dispute. 0) Digital usage logs; ContractsCard 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. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Stage 1: First Chargeback. Articles; Chargeback Reason Codes;. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. Chargeback. What is Visa chargeback reason code 12. Below are some examples of more common reason codes. This definitive guide includes the chargeback rationale codes from each of to four major card networks. 3 Fraud – Card-Present Environment. Code 4807: Fraudulent Card-Present Transaction. Every chargeback has a reason. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. In particular, one of. 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. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. 1. This reason code is accompanied by a fraudulent reason code (UA). Below is a list of Mastercard chargeback codes used in eCommerce. 1. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. ”. These codes are established by the payment brands to categorize the incoming dispute requests by reason. This definitive guide include the chargeback base codes from each away and four more card networks. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. “Visa has 28 different reason codes. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Category. A fraudulent chargeback represents much more than a lost sale for merchants. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. . Breaking Down Chargeback Fees. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Updated August 23, 2023. 2022 Visa Chargeback. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. As expected, chargeback reason codes exemplified consumer sentiment. CHARGEBACK REASON CODES 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. Each chargeback is assigned a reason code that explains the justification for the chargeback. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. But why do they happen? 4 common types of hotel chargebacks. Visa Chargeback Reason Codes are divided into six general groups, with 22 subcategories (codes): 1. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Click “add filter”. Different card networks have different reason code systems. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. We’ll Handle the Chargebacks. Spot these types of chargebacks using the below reason codes. Chargeback Reason Codes by Network - 2023 Guide. This ranges anywhere from roughly 60 to 90 days after purchase. Fight;. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Protect stored cardholder data. 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. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. In most cases, the bank chooses a course of action based on information the cardholder provides. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12:. A few reason codes allow for shorter timeframes. RN2 - Credit Not Processed. If you're contesting a chargeback, you'll need solid evidence. . Blog additionally Articles; Success Stories; Chargeback Reason Keys; BIN Look-up; eGuides and Reports;. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. A chargeback happens when a customer requests for a transaction to be reversed. Overall returns (all codes): 15%. Blog and Articles; Success Stories;. 15, 2021. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). As we touched on earlier, chargebacks can happen due to technical errors. Typical reason codes are: BD: Bad debt DC: Damaged goodsVisa recently shortened chargeback time limits from 45 days to 30. Chargeback 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—QuestionableFirst, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. See the list of reason codes below: Card Network. The chargeback can be for the total transaction amount or a lesser amount. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Many subscription payment disputes are made under code 13. Administrative returns (R02, R03, R04): 3%. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. S. 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. . A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Typical reason codes are: BD: Bad debt DC: Damaged goodsVisa recently shortened chargeback time limits from 45 days to 30. The customer regrets their purchase. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. For perspective, the next highest. In order to fight a chargeback effectively, however, you'll need to know the reason code. The incorrect amount being charged. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by the. Documentation must be a direct result of cardholder communication. 800. Check with the issuing banks to determine what time limits may apply to you. 1, 55, C08, RG: The notifications you receive will indicate the. If the conflict can be settled, the acquiring and issuing banks do so. chargeback: The buyer filed a chargeback with the credit card issuer. 3 falls under the “Consumer Disputes” category. Below are some examples of more common reason codes. High-Risk (Excessive): Reaching a chargeback ratio of. Try Shopify free for 3 days, no credit card required. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was requested. Other Fraud—Card Absent Environment. How you respond is determined by the chargeback reason code: Embed This Graphic. This extra step can be frustrating for Card Members and lead to lost sales. 1 Merchandise/ Services Not Received. This can provide important information to fight the dispute. Chargeback reason codes. Customer Dispute. Please see which evidence is suggested for each chargeback reason, as the needs may vary. Fight; Prevent; Recover; Resources. Every chargeback has a reason code associated with it. “It’s a lot tougher with. The date the merchandise was returned. Discover chargeback Reason code RN/RN2 is applied when issuing bank gets a notice from the card owner that merchandise was returned, but merchant hasn’t refunded, and. That’s 50% more time than what the major card networks allow. Reason codes are created by the major. Legacy Code: 71. FR2 Fraud Full Recourse Program. It also delivers an improved customer experience. You can see a reason code 11. Updated Disputes/Chargeback Policy Coming April 2024These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. 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. This chargeback<br />. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. You will lose your case if it’s the wrong one. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. Before the cardholder can file a chargeback, they must give a reason to their card provider. Reason codes. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. The cardholder claims that an expected credit from the merchant was not received. Chargeback reason codes vary by the credit card company. The aim of CE 3. One catch is that CE3. If the retrieval request is returned to the issuer by the acquirer after the 120-day deadline, the issuer gets an extra 30 days to file a chargeback. Fight; Prevent; Recover; Resources. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. “Credit Not Processed,” the reason code for unreceived refunds, accounted for 12% of consumer disputes at the height of the pandemic. However, they don’t address the reason why that chargeback was issued in the first place. 3. 4 Ways to Fight Chargebacks: Gather compelling evidence. The date the services were cancelled. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. . If you get a chargeback,. Not remembering the original purchase. Your request for a chargeback reversal has been reviewed. Partnerships; Integrations; About. Merchandise/Services Not Received. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. Also, remember that the point which qualifies as "Day One" will reset at each stage of the chargeback process. Shopify has four status categories for chargebacks and inquiries: Open: No response has been sent yet and evidence can still be added. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. Payment capture comes after authorization; at this point, the payment is effectively "settled," and the transaction is over. Reason Code: 10. Both EFM and ECM measure compliance at the MID level. The cardholder claims they were charged multiple times for a single transaction. 1 Different workflows Disputes will be routed in two different workflows, called Allocation and Collaboration. Processing recurring payments increases your susceptibility to chargebacks. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Merchants. pdf), Text File (. 3, 13. Chargeback time frames - A specific period during which a chargeback can be raised. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. According to Signifyd data, the total cost of a fraudulent purchase of $100 is actually $196. Fraud. Code 10. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. Chargeback Reason Codes by Mesh - 2023 Guide. 10. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. 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. The chargeback initially results in the debit or credit card charge being reversed and the funds that you received for the payment being returned to the customer. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. Reason Code 03. The bottom line: 3-D Secure 2. Mastercard also considers some chargeback reason codes to be indisputable. In short: yes. Step 2: Customer initiates the chargeback. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. The most comprehensive guide to chargeback reason codes. 4, 12. 3: Goods or services were not received: C08: RG: 4855: 13. Here are some chargeback reason codes by card type. Other Fraud—Card Present Environment. The actual underlying cause of this chargeback is typically either friendly fraud or merchant error. The card provider then processes this information and determines the. Goods / Services Damaged or Defective. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. Written by Chargeback Curators. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 0 is simply a better protocol than 1. Discover chargeback Reason code RN/RN2 is applied when issuing bank gets a notice from the card owner that merchandise was returned, but merchant hasn’t refunded, and credit hasn’t appeared on the bank statement. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. New Visa CE 3. 4: Fraud—Card-Absent Environment. There is a USD 25 limit for the First Chargeback (Reason Code 22). The issuing bank will evaluate the evidence provided and, if they find it. 101. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaThe existing 22 chargeback reason codes will be replaced by new reason codes and grouped into 4 categories: 1. 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. 10. If you believe you have received an ACH return in error, you can contact your bank. Category. compliance process depending on whether a chargeback right exists. The chargeback process is mandated by law in the United States. Assemble Your Evidence. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. There are multiple situations in which this can occur. Check with the issuing banks to determine what time limits may apply to you. Availability Date: October 24th, 2021. A code that identifies the reason that the write-off occurred. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Choose the representment amount. Number two: Product Not Received chargebacks. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. Consumer Disputes. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. Chargeback prevention strategies vary based on the reason for the dispute. In most cases, cardholders may only file a chargeback within 120 calendar days of the Central Site Business Date, with some codes requiring shorter timeframes. Mastercard has plans to follow suit. Chargeback Reason Codes Visa. This does not include an AuthorizationChargeback Reason Codes; BIN Lookup; ROI Tool; Company. The card scheme receives the chargeback and forwards it to the acquirer. After an authorization request is declined, the merchant forces the transaction through, typically by key-entering it, without making another authorization. The cardholder alleges they never received the products or services. 1 – EMV Liability Shift 10. Some credit card companies also include a short phrase describing the code and chargeback. Card Brand Code. 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. RN2 – Credit Not Processed. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. 2. Chargeback prevention strategies vary based on. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. This chargeback may be reversed if merchant can. Write customer-friendly policies. Having a Lax Attitude Toward Industry Rules & Regulations. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. 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. Note. A chargeback happens when a customer requests for a transaction to be. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. When filing a chargeback,. Field name: reasonCode. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 5, 53, C31, C32, RM. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 16 Chargeback Reason Code 71 – Declined Authorization. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. R13 No Reply. Your account becomes eligible for 10. 4853 – Cardholder Dispute – Credit Not Processed. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. Typical chargeback reason codes are: DA: Disputed amounts. Write a chargeback rebuttal letter (with sample template) 8 Ways to Prevent Chargebacks. Chargebacks911 offers the most comprehensive chargeback management system available,. 3. 10. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. Vantage HouseAccording to the 2022 Chargeback Field Report, global costs associated with chargebacks will have skyrocketed in recent years. Quickly and proactively respond to customer complaints. FR6 Partial Immediate Chargeback Program. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. 4 Other Fraud Card Absent. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute.