chargeback reason codes. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargeback. chargeback reason codes

 
 RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargebackchargeback reason codes  Some reason codes are easy to verify

In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Time Frames by Chargeback Type and Reason Code. President Lyndon B. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. A truly effective chargeback management strategy must encompass. 1 chargeback: 1. Find out the differences between the reason codes, how. MASTERCARD. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. The main chargeback reasons look like this: Malicious fraud. FR6 Partial Immediate Chargeback Program. In all, there are four major categories of Chargeback Reason Codes. Visa chargeback reason codes, for example, are numerals with decimals. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback reason code 10. The cardholder claims they were charged multiple times for a single transaction. Reason Code 04. It was created to protect. The letter indicates the category the reason code falls under: A for Authorization, C for Cardmember Dispute, F for Fraud, and P for Processing Errors. Chargeback Reason Codes. Below is a comprehensive list of the most common Mastercard chargeback reason codes and their explanations, along with prevention strategies you can. 1. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. Either the acquiring or issuing bank could initiate the. These companies can also handle the entire representment process. Different card networks have different reason code systems. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. Here is what each one means: R01 – Insufficient Funds: The account holder did not have enough money in their account to cover the transaction. Reason Code 12. Reason Codes Category 1: Authorization. Also, remember that the time frame for your response includes any processing required by the acquirer. When one cardholder initiates a dispute with their issuing. 6? Chargeback reason code 13. Merchants can find a. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. 6. About Visa chargeback reason codes. A retrieval request—sometimes called a “soft chargeback”—is a method of obtaining a copy of the paperwork to validate a transaction. Your first step is to identify the chargeback reason code, which is a kind of shorthand that indicates why the transaction is being disputed. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. This can include. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. 5%. This Chargeback Reason Code has to do with all authorization issues, such as when someone makes a. In order to compile the right kind of evidence, you need to know what justification the cardholder gave to the bank for requesting a chargeback. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. For example, transactions. Each chargeback is assigned a reason code that explains the justification for the chargeback. The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. Quality. Cardholder Disputes. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. 4853 Cardholder Dispute. A chargeback with reason code 4834 may refer to disputes in which the merchant failed to present the transaction within the required timeframe. Acquirer Use of Message Reason Code 7623. This means they are 100% preventable. R03 Insufficient Reply. A recurring transaction is a payment card charge that automatically reoccurs on a. For the sake of simplicity and standardization, card networks like Visa created a breakdown of the acceptable causes for a customer to dispute a charge by filing a chargeback. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. Reason codes are created by the major card networks: American Express, Discover, MasterCard, and Visa. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 3: Goods or services were not received: C08: RG: 4855: 13. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Visa uses a numeric scheme for its chargeback reason codes. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. M01 Chargeback Authorization. Nor is the situation static. 4870 – Chip Liability Shift. In most cases, you will have 20-45 days in which to respond to a chargeback. About Mastercard chargeback reason codes. If you do choose to dispute these chargebacks, you are putting yourself at risk of incurring additional fees: Reason code 4808 – Authorization-Related Disputes; Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift ; How can I actively prevent fraudulent. Chargeback Code: Type: Processing Error: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. Some of the most common ACH Reason Codes that merchants may encounter. This process is called. About Visa chargeback reason codes. Many subscription payment disputes are made under code 13. Step 1: The cardholder disputes a charge. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). Visa groups its various reason codes into several broad dispute categories. . M10 Vehicle Rental – Capital Damages. This process is called representment. Learn more about chargeback reason codes Chargeback Time Limits: One More Thing to Worry About. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. . . Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. Though the credit card networks have a vast choice of codes, loopholes still happen. Chargeback Reason codes are Alphanumeric and Numeric Code, to describe the reason a card issuer is disputing for the particular transaction. Quality. For example, the merchant bills the cardholder in installments. Visa chargeback reason codes. Compile Relevant Evidence: Review the documentation you've gathered and select the pieces of evidence that directly counter the cardholder's claim. Whenever a card used in a transaction is declined, the sale should be terminated. Friendly fraud. In some cases, chargebacks from Visa Reason Code 12. 4 billion online transactions every year, representing clients in 87 different countries. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. 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. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. Chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. FR4 Immediate Chargeback Program. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. This value reflects why the request or dispute was initiated. Not every transaction can be charged back to the merchant; however, most card issuers will err on the customer’s side and generate a chargeback. Learn how to interpret Mastercard chargeback reason codes, the codes that tell merchants why cardholders requested a chargeback. However, if you notice the overpayment before they contact you, there’s still time to stop it by canceling the transaction and reporting it to PayPal. Learn how to identify and fight chargeback reason codes from Visa, Mastercard, American Express, and Discover, the four major US-based card schemes. CHARGEBACK REASON CODES Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. All ACH return reason codes consist of the letter “R” followed by two. com. [email protected] American Express chargeback reason codes. Some legacy codes are no longer supported by a chargeback reason. American Express, Discover (and Diners Club International, which it owns) use a combination of numerals and letters. Reason codes. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. The Allocation workflow applies to any chargeback assigned a “Fraud” or “Authorization”. Quality. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity There are over 80 unique return codes, and each one represents a different type of return. . The Merchant failed to obtain a valid Authorisation for the full amount of the Transaction. Chargeback time frames - A specific period during which a chargeback can be raised. The codes for each card brand are listed below along with the recommended documentation to provide. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. You should code appropriately to handle all codes applicable to the transactions you use. You must contact your Relationship Manager for information about the. The Merchant requested Authorisation for the Transaction, but it was declined or reversed, and the Merchant. Chargeback reason code 4853 can be used to indicate disputes in which the cardholder feels that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at. 1 is an updated version of legacy reason code 30, which was phased out under the Visa Claims Resolution initiative. . Thus, the merchant is at fault for. Sometimes, cardholders perpetrate first. message. However, it's a bad idea not to do so. Each card company has its own set of codes that indicate the specific reason that a cardholder initiated a dispute. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. The most comprehensive guide to chargeback reason codes. To represent a chargeback, you need to resubmit the transaction and include a rebuttal of the cardholder’s claims and documented evidence that proves your case. Some payment service providers like PayPal and Stripe have their own reason codes as well. Goods / Services Damaged or Defective. VCR Dispute Reason Code 10. Reason codes are very crucial to assist merchants to. An ACH dispute results in a chargeback for the business that processed the payment. These codes are established by the payment brands to categorize the incoming dispute requests by reason. Table A-1 shows all possible values for the <response> and <message> elements. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Fraud. Consumer Disputes. But cardholders and merchants have different time limits. Please note that the most common Chargeback reason code for Allocation disputes is 10. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. Chargeback Reason Codes by Industry. Chargeback reason codes are meant to help you understand the cause for the chargeback and determine the best way to validate the original transaction. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. . The shorthand description is “Late Presentment. CHARGEBACK REASON CODESMastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. The problem continues to grow out of control with each year. Card networks send these codes to merchants to indicate why a chargeback has been filed. It was originally one of several possible scenarios covered by legacy Visa reason code 83. 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. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCardVisa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Non-fraud reason codes represent customer disputes with product or services, shipping problems, and recurring billing chargebacks. 15, 2021. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. Reason codes categories Authorization. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 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 addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. They may have returned an item, for example, or perhaps were billed for a service. When a cardholder has an issue with a transaction, they can contact their bank to dispute the charge. About Visa chargeback reason codes. F01. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Visa uses a numeric scheme for its chargeback reason codes. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Visa, Mastercard and Maestro each have their own set of reason codes for chargeback cases. . ). Chargeback Reason Codes: 5 Things For Merchants to Know 1. In theory, reason codes help merchants understand why customers dispute purchases. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Like other parts of the process, learning all the types and exceptions of chargeback time limits will take a lot of effort and money. 6: Credit not. We also included the reason code descriptions and an indication of when the allowable time frame begins. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 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. 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. R02 – Account Closed: The account holder has closed their account since the transaction was initiated. United States. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderIn the case of reason code 11. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment. Identifying the chargeback. 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. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. . eCommerce grew too fast for the payments industry to respond. Friendly fraud. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. The format depends on the credit card company. But, it could be up to 540 days, in some situations. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:WEX began issuing chip cards in Q4, 2020. Visa Chargeback Reason Codes. About Visa chargeback reason codes. The claim often, but not always, involves automated teller machines (ATMs). The case will be removed from the Chargeback Queue Worklist and your ‘accept’You'll learn about the major categories of chargeback reason codes: fraud, authorization errors, processing errors, customer disputes; You'll learn about the usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift); You. 3 applies when a cardholder claims a charge—made in a card-present environment—was. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). Only an issuer can initiate the chargeback process. 5 Categories of Visa Chargeback Reason Codes. Find a detailed explanation of the Visa reason codes, the new format of the reason codes, and the categories they fall under. 3: Goods or services were not as described: C31: RM: 13. Explanation. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. Notification of Fraud. There are multiple situations in which this can occur. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. This provided a number of insights into the typical. Or fill in the chargeback form because it seems easier than contacting the merchant directly. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 2, which specifically deals with. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 6: Duplicate processing/Paid by other means. 4846. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. Reason codes. The sales receipt and/or date and amount of the authorization if other than the transaction date. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The chargeback reason codes below explain why this happened. This is commonly caused by either true fraud or friendly fraud. 1 falls under the “Processing Errors” category. . The same is true of all chargeback reason codes. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. The reason code is accompanied by its description on. American Express has its own set of chargeback reason codes, and they refer to situations that correspond to Visa and Mastercard reason codes you may already be acquainted with. Chargeback prevention strategies vary based on the reason for the dispute. Reason Code 12. . About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. Feel free to submit topic suggestions, questions or requests for advice to:. Fraud. If you believe you have received an ACH return in error, you can contact your bank. The implication is that the merchant failed to put adequate purchase controls on the account when it was set up. When you get a chargeback, it means that the funds from a completed transaction are being taken out of your merchant account and returned to the cardholder. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Which is meant to know the reason for the dispute. Discover Chargeback Reason Codes Explained. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. ©Some new codes do not have legacy counterparts and should be coded 0 – Unknown/Unspecified. com; Europe; Vantage House;chargebacks, even on cases where you accept liability. Assemble Your Evidence. These codes are currently defined within the ANSI X9. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. These codes can help a merchant with an inquiry or chargeback reversal. Some credit card companies also include a short phrase describing the code and chargeback. According to Visa regulations, if the transaction is not deposited within the allotted time. About Visa chargeback reason codes. 29. Multiple Authorization Requests. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Mastercard chargeback reason code 4808 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Discover uses unique codes to explain those reasons to merchants. Now, 10. Understanding these codes is essential because they'll guide your response strategy. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. 2 falls under the “Processing Errors” category. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. reason code information. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. This code collects all the. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback applies to the claim. Declined Authorization Authorization Visa Code: 11. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Retry after 8 days. . Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. Merchant must provide proof of authorization. A chargeback with reason code 4834 may refer to disputes involving Dynamic Currency Conversion (DCC) at the point of the interaction. Issuers must wait 15 calendar days from the credit transaction receipt date before initiating a dispute, unless doing so would cause the dispute to exceed the time limit. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. The terminal action codes are in Table 122 of the 4. When a chargeback is filed, a bank selects the code that best fits the reason a chargeback was filed. Chargeback reason code 12. 2. . If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. Learn about the different chargeback reason codes and what they mean. Whenever a card used in a transaction is declined, the. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. . Card networks send these codes to merchants to indicate why a chargeback. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The transaction took place in a "card-present" environment using a counterfeit EMV (chip) card. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. In 2020, MasterCard revised their chargeback rules and eliminated the “second chargeback” step. This can be transaction receipts, proof of. ”. American Express. . Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. For American Express; For Visa; For Mastercards; Chargeback Reason Codes List for American Express Visa Chargeback Reason Codes. The chargeback transfers funds from the acquirer to the issuer. Each card network has their own set of chargeback policies and reason codes, and they frequently change them. The most comprehensive guide to chargeback reason codes. . In theory, reason codes help merchants. If merchants find that the order didn’t ship or wasn’t received, then accepting the. Credit Posted as a Purchase chargebacks, for example, at. Refer to Understanding disputes for a high level flow, and to Chargeback guidelines for scheme-specific information. . The chargeback can be for the total transaction amount or a lesser amount. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Understanding chargeback time limits is a critical part of recovering revenue, though. ”For Visa disputes, the reason code also dictates which workflow the case will take. 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. 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. 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. Identifying the. However, banks assign reason codes based on cardholders’ claims. ” 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. Chargeback reason code 11. Invalid chargebacks from Visa chargeback Reason Code 13. instagram. 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. Category. Discover. That’s because customers often use the chargeback process incorrectly, either as an intentional attempt to get something for free or an innocent misunderstanding. © Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. RG Non-Receipt of Goods, Services, or Cash. . The terminal action codes are in Table 122 of the 4. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback. When alerted about a potential chargeback, businesses can reach out to the customer promptly to understand and address their concerns. . 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 validThe most common ACH return codes are R01, R02, R03, R04, R07, and R10. Mastercard. We say the given reason because it may or may not reflect the true reason.