message. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. Owned by Willi Von Borstel (Unlicensed) Last updated: Dec 08, 2015 by Former user (Deleted) Loading data. 4870 – Chip Liability Shift. Chargebacks can be a costly part of accepting card payments and entail administrative. • Require cardholder letter or email as supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). Sift’s MasterCard chargeback reason code guide features every single MasterCard reason code, its description, expert insights, and real world examples. . MasterCard chargeback reason codes are a set of four digits beginning with the 48xx. Please note that the most common Chargeback reason code for Allocation disputes is 10. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. Chargeback reason codes; Chargeback Reason Codes. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. 5. 4807 – Warning Bulletin File. . Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. 518 Invalid Chargeback. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Code 4871 chargebacks usually occur when a fraudster with a stolen credit card targets a merchant whose POS terminals don't support PIN entry or convinces the merchant to bypass the PIN requirement. 6. 4 disputes through Verifi’s Order Insight®, which ChargebackHelp clients are integrated with already under CBH+Deflect . In other words, if you dispute the chargeback, the case may proceed directly to arbitration. Acquirers may use message reason code 2870 (Chip Liability Shift) to invoke the chip liability shift as a final remedy to a chargeback initiated under message reason codes 4837 (No Cardholder Authorization). First Chargeback failed: Reason Code 4870 not allowed for “Mag Stripe” Service: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4870 not allowed for Chip to Chip Transactions under CLS: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Codes 4837 and 4863 not allowed for SecureCode Transactions: 100001: 400. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. These chargebacks occur to resolve chargeback-related disputes between network members. The chargeback reason code classifies the type of chargeback, the reason for why the . 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37Chargeback Guide (PDF) - MasterCard. Be sure to communicate with the customer and their bank professionally and courteously. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. those with reason code 4871 (Chip Liability Shift Lost/Stolen/Never Received Issue). As chargeback time limits get shorter and shorter, automated technology will become more and more valuable. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. These errors are sorted by some of these codes : 4802, 4803, 4841, 4850, 4855, 4870, 4871 and many mores. One catch is that CE3. 7. Reason codes vary by card brand. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. PCI DSS v3. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. MasterCard time limits vary depending on the applicable reason code. 60. Chargebacks. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. 4870: EMV Chip Liability Shift: 4871: EMV Chip/PIN Liability. 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. 4837 No cardholder authorisation. A smarter, simpler way to stop fraud. Documentation must be a direct result of cardholder communication. 3. Chargeback Guide June 2020 - Free ebook download as PDF File (. That's why we've created this guide, which goes over what reason codes. Here’s how. June 5, 2023. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. If the customer is still. 10. This will be referenced in the chargeback notice you received. Check the chargeback reason code. FAQ: What remains Chargeback Representment? TIPS. Chargeback Code: Type: Processing Error: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect. This chargeback guide can be used as a sample guide when applying for credit card chargebacks. They automatically reject the chargeback reply and give Reason Code: 4870 - CHIP LIABILITY SHIFT. UA01 Fraud – Card Present Transaction. . However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization issues;. 4 spec (Section 8. Each transaction or deal has a unique receipt no. Updated Disputes/Chargeback Policy Coming April 2024STAR Chargeback Reason Codes; Visa Chargeback Reason Codes; Network Limits; Published BIN Files; 🧭 Best Practices. 4807 – Warning Bulletin File. Chargeback Guide (PDF) - MasterCard. 4812. The Mastercard chargeback flow: Optional: Request for Information (Deprecated) Information Supplied 4846 — Incorrect Currency Code. 0 to 5. Chargeback prevention strategies vary based on the reason for the. 2. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. 4802: Requested/Required Information Illegible or Missing. 30. Lack of proper chargeback reason codes. . Pursuant to the Fair Credit Billing Act. FR4 Immediate Chargeback Program. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. 4870 . 4870 Chip Liability Shift; 4871 Chip/PIN Liability Shift; 4999 Domestic Chargeback Dispute (Europe Region Only). In the Mastercard chargeback process, an issuer can escalate a dispute and file a Pre-Arbitration case. Create a manual or electronic imprint of each card-present transaction. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. Codes are not often shared between issuers which means it can be difficult to remember the details of each. 516 Improper Use of Intra-European Message Reason Code 4870. The Reason Code is a number that represents the reason for an action in the chargeback process. Steps to Prevention. Reason Code. Merchants can find a. . Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. This second chargeback is what was commonly referred to as a “pre-arbitration chargeback. MasterCard chargeback reason codes are a set of four digits beginning with the 48xx. Responding to a chargeback request. Post on 21. pdf. Here’s how reason codes make it easy for you to check the status of your disputes or chargebacks: Mastercard Chargeback Reason Codes Demystified. It specifies the cause of dispute between the issuer and the merchant. 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 list of chargeback reason codes in this article is organized by card brand and type of dispute. Make sure customers know how to reach you and that they always get a quick response—leaving a message from an unhappy customer unanswered is always an invitation to a chargeback. The terminal action codes are in Table 122 of the 4. While there are many chargeback reason codes, all chargebacks fall into one of three categories:Or fill in the chargeback form because it seems easier than contacting the merchant directly. The time limit for issuers to instigate a first chargeback are calculated based off the Central Site Business Date (the processing date of the first presentment) and are usually 60, 90, or 120 days in duration. MasterCard ChargeBack Guide 20141030. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. 2 — EMV Liability Shift Non-Counterfeit Fraud; Mastercard Chargeback Reason Code 4870 — Chip Liability Shift; Mastercard Chargeback Reason Code 4871 - Chip Liability Shift – Stolen Card; Amex Reason Code F30 — EMV Counterfeit Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. If you leave this processing. 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. 4870: Chip Liability Shift : 4871: Chip/PIN Liability Shift: 4807: Warning Bulletin Files: 4808: Authorization-Related Chargeback: 4812: Account Number Not On File:Codes: Chargeback Reason: 4801: Requested transaction data is not received: 4802: Required information is illegal or missing: 4808: Required authorization not obtained: 4831: Transaction amount is different: 4834: Duplicate order process:. Visa chargeback reason codes. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. Mastercard Chargeback Reason Code 73: Duplicate Transaction. 540 Proper Use for Acquirer’s Second Presentment. See full list on chargeflow. 2. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. Three Cycles for Mastercard Chargeback Resolution Cycle #1. M01 Chargeback Authorization. 4808. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. Chargebacks may happen for a variety of reasons: the most common are returns of goods, cancelled services, quality disputes or processing errors, and fraud. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Also, just like American Express, Discover functions as both a card network and an. UA02 Fraud – Card Not Present Transaction. For chargeback reason code 4837 (No Cardholder Authorizations) second presentments, new information such as a merchant name, location, or dates will no longer be allowed as a potential remedy to this chargeback when a merchant’s information is a complete mismatch between the authorization and clearing. 0: Updated report version from 1. 4837 No cardholder authorisation. And many U. 3, 1 March 2016. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Authorisation. The chargeback filing period for cardholders is usually 120 days. Technical. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Proof you have already refunded the transaction and credited the cardholder’s account. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. . Sometimes, customers get wrongly debited due to manual data entry errors by the merchant’s team. While the updates have been published, they do not go into effect until Oct. Updated the following columns - card type, response due date. You must designate the write-off reason code for the system to use when you activate the automatic write-off feature. 4 Proper Use for Issuer’s First Chargeback, changing “optimally” to “as applicable”1. Preventing Mastercard Reason Code 4837 Chargebacks. The major card networks have unique reason code systems, and banks use separate tools. Generally speaking, cardholders have 120 days from the transaction date to file a chargeback. Pages 798Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. VCR Dispute Reason Code 10. Dispute Category. Mastercard chargeback reason code 4840 falls under the “Fraud” category. Time Limit in Calendar Days. These are only a handful of common Visa chargeback reason codes. Upload michellehsu. These numeric codes are varied by card network, but serve the same purpose. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. Collect Compelling Evidence. Category. Investigate suspicious orders. 4840 Fraudulent processing of transaction. Visa flagged the transaction under the Fraud Monitoring Program, and the issuer has not filed a chargeback under another reason code. “Visa has 28 different reason codes. 4512: Duplicate Processing:prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. UA05 Fraud – Chip Counterfeit Transaction. 2 Compliance CasesCustomer Dispute. Discover: Reason Code 4755 Non-receipt of goods or services. 4870: Chip Liability Shift: 4871: Chip/PIN Liability Shift: 4999: Domestic Chargeback Dispute (Europe Region Only) Merchant Accounts;In most cases, you will have 20-45 days in which to respond to a chargeback. Overview. 1. About Visa chargeback reason codes. Authorization. This scenario applies when the arbitration was raised by either the. High Level Visa Chargeback Dispute Flow. Updated August 23, 2023. A dispute often has a reason code associated with it. 328 Proper Use for Issuer’s First Chargeback. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. Application: Smart Dispute for Acquirers: Scheme Impact: MCOM:. Issuers can only submit a chargeback on. ”. pdfOverview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed section numbers, reorganized sections to focus on chargeback reasons; of 418 /418. The shorthand description is “Authorization-Related Chargeback. 4 Fraud – Card-Absent Environment. Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. MasterCard offers longer response from merchants, with up to 45 days to respond. Message. Chargebacks are something every business wants to avoid, as they can. Fraud. Europe Region Operations Bulletin No. Overview of Chargeback Reason Codes : Each transaction or deal has a unique receipt no. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. In the case of friendly fraud, that reason could be completely invalid and. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. It. 4 Ways to Fight Chargebacks: Gather compelling evidence. Visa Chargeback Reason Codes. Chargeback Reason Codes Visa. . Mastercard chargeback reason code 4870 falls under the “Fraud” category. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. 4: 4863 Regarding April HotFix 83179, in the following scenario, should Smart Disputes allow a Fraud chargeback to be resubmitted using reason codes 4837/4870/4871? - 15 Fraud CB's are submitted. EN. Maintaining an information security policy. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case. Verify case lands on to the Review Inbound Chargeback screen. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. Message Reason Codes, Message Reason Code 4870—Chip Liability Shift. This extra step can be frustrating for Card Members and lead to lost sales. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. 4880 . The shorthand description is “Fraudulent Processing of Transactions. Here’s how reason codes make it easy for you to check the status of your disputes or chargebacks: Mastercard Chargeback Reason Codes Demystified. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. In this article, we'll cover some of the major changes that Mastercard has made to chargebacks in recent years, starting with. And many U. 62 4870/4871 Counterfeit TransactionTop chargeback reason codes: Mastercard reason code. EMV LAIBILITY SHIFT – Card lost / stolen . Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 10. This change applies if the. The cardholder claims the purchase was unauthorized. It covers topics such as chargeback rights, time frames, reason codes, arbitration and compliance. pdf), Text File (. 328 Improper Use of Interregional Message Reason. 1 - Card Recovery Bulletin: The transaction was below your credit floor limit and was not authorised. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment did. Chargeback Reason Codes / Mastercard / 4870 – Chip Liability Shift Dispute Code 4870 Category Fraud Message System Dual Message System DESCRIPTION Why did I. 4871 . 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. reason code information. Message Reason Codes, Message Reason Code 4870—Chip Liability Shift. At Visa they used to receive reason code 98. Step 1: Identify the Source. This document reflects changes made since the 28 April 2016 publication. ”. 4870 – Chip Liability Shift. Summary of Changes, 2 November 2017Chargeback Reason Codes, Chip Liability Shift Chargebacks—Mastercard Europe ATM Transactions (Mastercard, Maestro, and Cirrus), Message Reason Codes, Message Reason Code 4870—Chip Liability Shift Summary of Changes, 20 November 2017Each chargeback received a numeric code which is known as the “reason code”. Top chargeback reason codes Mastercard reason code. Nothing immediately identifies a chargeback as being the result of first-party misuse. 1. F02. Sobald wir eine Chargeback-Meldung erhalten, leiten wir diese unmittelbar an Sie weiter. pdf from BIO 101 at Collège April-Fortier. By entering your email, you agree to receive marketing emails from Shopify. Get your complete guide to Mastercard reason codes, included all the detailed information, chargeback time limitings, or other important information it need. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. For counterfeit transactions, liability remained with the party. txt) or read online for free. merchants have been seeing large increases in chargebacks with Visa's liability shift code, Reason Code 62 (4870 or 4871 for MasterCard). A reason code is how banks categorize the reason for a 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. These mandates often involve changes to the transaction process, the addition or removal of certain chargeback reason codes, or changes to the various phases and deadlines involved in the chargeback process. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardVisa categorizes these types of disputes as “first-party misuse” under their reason code 10. Chargeback reason code. The tickets were held at the box office, and no signature, swipe or imprint. Reason Code Description; 10. Each reason code has certain standards of proof and evidence associated with it that determine whether the chargeback is valid or not. Chargeback Reason Coded by Network - 2023 Guide. It is associated with a chargeback reason code, and it is specific per Card Scheme. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. 4807 – Warning Bulletin File. 62 4870/4871 Counterfeit TransactionTop chargeback reason codes: Mastercard reason code. Authorization. It covers topics such as chargeback rights, time frames, reason codes, arbitration and compliance. Either the acquiring or issuing bank could initiate the. 13. Each chargeback claim is given a reason code, which helps explain to merchants the reason for the dispute. 10. The merchant did not receive any returned merchandise. This code indicates the cardholder placed an authorized card-present transaction with a merchant but received one or more additional non-authorized transactions within the next fifteen minutes. Chargebacks Maestro POS Transactions Message Reason Codes for Interregional. Operation CHIP POS Late submission . 1 = EMV-Liability Shift counterfeit. What is a chargeback. 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. Here’s how reason codes make it easy for you to check the status of your disputes or chargebacks: MasterCard chargeback reason codes are a set of four digits beginning with the 48xx. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. 1, 3Each chargeback received a numeric code which is known as the “reason code”. 328 Proper Use for Acquirer’s Second Presentment. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. The cardholder claims either that the merchandise was never. Time Limit. . List and additional information about all reason codes by card brand. Documentation must be a direct result of cardholder communication. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. 10. 4870 - Chip Liability Shift. Each chargeback needs to be managed on a case-by-case basis. 01. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. Either the transaction was processed with a forged EMV chip card or the merchant processed a transaction. The changes in this fourth phase do not apply to the following reason codes: 4870 – Chip Liability Shift. Notes Replace NN with the chargeback count value provided by the Fraud Notification ServiceinPDS0200, subfield2oftheFirst Chargeback/1442message. Auto Write Off. Mastercard chargeback reason code 4808 falls under the “Authorization” category. Terms and conditions. For example, 10. 4. Monitoring and testing networks. 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. Chargebacks. The transaction amount and authorization number (ARN. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. Each chargeback comes with a code that designates the reason it was filed. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Check with the issuing banks to determine what time limits may apply to you. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. But, merchants should be aware that, eventually, everyone will be required to use the new designations. Reason code 83 represents a chargeback categorized as. 4:. 3. Both EFM and ECM measure compliance at the MID level. Chargebacks can be a costly part of accepting card payments and entail administrative. 4: 4863 Code 4837 chargebacks are most often caused by either a fraudster making a purchase with stolen payment credentials or a cardholder failing to recognize a legitimate charge. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. The most comprehensive guide to chargeback reason codes. Products. Try Shopify free for 3 days, no credit card required. . If the customer’s story matches. Chargeback reason codes. 1 — EMV Liability Shift Counterfeit Fraud; Visa Chargeback Reason Code 10. 195 Acquirer Use of Message Reason Code 7627. Visa recently shortened chargeback time limits from 45 days to 30. Below is a list of American Express chargeback codes used in eCommerce. 2. 4870. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. . This definitive guide comes that chargeback reason codes from jeder of of four majority card networks. 4870 – Chip. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. For example, the merchant bills the cardholder in installments. Every card brand has a unique set of chargeback reason codes banks must choose from. 1, 5 January 2016. 10. ; Resources. Mastercard Reason codes fall under four categories. MasterCard chargeback reason codes are a set of four digits beginning with the 48xx. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. The card scheme receives the chargeback and forwards it to the acquirer. Managing vulnerability. 3. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). When a fraudster places a transaction using stolen payment credentials, it may result in a true fraud chargeback under this reason code. Mastercard Reason codes fall under four categories. 2021. . The chargeback reason code. Which Mastercard chargeback reason codes were condensed down in 2016, like the processed that Visa just underwent with Passport Claims Dissolution. Although each card network has its own chargeback reason codes, their end goal is the same: Clearly describe why a customer is disputing a transaction. Update Supporting Documents bullet list Single Message System Chargebacks > Chargeback Reason Codes > Cash Dispute -ATM Only. Either way, the end result is an unauthorized transaction that results in a chargeback. . Chargeback reason codes tell merchants the reason the customer is disputing a charge, according to the information they provided to their bank. pdf from BIO 101 at Collège April-Fortier. Friendly fraud Mistreatment, neglect of customer. The chargeback transfers funds from the acquirer to the issuer. 4: 4863 Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Insist that every chip card should be inserted or tapped instead of swiped. For example, Mastercard has a code which indicates a ‘consumer dispute. Discover uses unique codes to explain those reasons to merchants. Visa Chargeback Reason Code 10. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card. 3: Card-Present Environment.