The major card networks have unique reason code systems, and banks use separate tools. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Fight; Prevent; Recover; Resource. Identify the type of transaction, such as card-not-present, and use appropriate codes for identifying transactions as e-commerce, telephone order, and Mail order during settlement process and authorization. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Losing Fraud-Related Customer Disputes If the bulk of reason codes your business sees are fraud-related and you lose these chargebacks after submitting compelling evidence, true fraud. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. 6). Reason Code 53: Not as Described or Defective Merchandise. Clerical Merchants and Partners can request that Forte remove an account from the "Known Bad Accounts" database by calling Customer Service at 800-337-3060 option 1. chargeback management with an easy to use online system. • Proof that merchandise was shipped to a positive AVS-confirmed address (response of10 Ways to Prevent Delivery Service Chargebacks. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Reason. These numeric codes vary via card brands, yet all hypothetically fill the same need: to provide explanation behind the chargeback dispute. The sales receipt and/or date and amount of the authorization if other than the transaction date. There are over 80 unique return codes, each representing a different return type. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaECM monitors first presentment chargebacks regardless of reason code or transaction type. A01 | A02 | A08. Scenario 2. 4763: FR2: Full recourse: A cardholder is claiming that they did not authorise or participate in a transaction that you processed. American Express is incentivized to keep their customers happy. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. It’s not unusual for a customer to ask you for a refund. 1; Reason: EMV Liability Shift. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. 5%. EMV Liability Shift Non-Counterfeit Fraud. com you have received an email. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. 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. Category. Visa, MasterCard, and American Express all list compelling evidence by reason code. The good news is that most of these invalid claims are disputable by the merchant. Choose the representment amount. Please note that each card network (MasterCard, VISA, American Express, etc. Using the same link provided above, contact PayPal to report the scam. txt) or read online for free. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. 1. Here are a few high-level examples. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and. Each card. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Read the Chargeback Advice letter carefully. They are provided to the merchant by the issuing bank, and they help all involved parties categorize disputes and determine next steps. Following is the list of Chargeback Reason Codes used by American Express (AMEX): AMEX Chargeback Reason Codes. pdf - Free download as PDF File (. The assigned chargeback reason code outlines why a customer submitted the dispute. Info Us; In and. Blog and Articles; Success Stories; Chargeback Reason Codes;. Other Fraud—Card Absent Environment. Promo abuse can refer to any situation in which customers take advantage of a business’s promotional offer, in a way which was not intended by the merchant, for the purpose of monetary gain. Ethoca alerts can prevent chargebacks before they hit your bank account. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Chargebacks were introduced as a form of consumer protection against. When you receive a chargeback request, respond promptly with any relevant information or evidence that supports your case. Supporting Documents You could potentially reverse a Chargeback by providing the. Chargeback stands If you don’t reply in time or with the right documentation, the Chargeback will stand. 101. Updated Disputes/Chargeback Policy Coming April 2024That definitive guide included the chargeback reason codes from each of the quad larger card connectivity. 4808 Authorization-Related Chargeback. Goods / Services Damaged or Defective. Some credit card companies also include a short phrase describing the code and chargeback. But why do they happen? 4 common types of hotel chargebacks. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andChargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. This authoritative guide includes the chargeback reason key from each from the four major card netz. 0 rule changes take effect April 15,. Below is a list of Mastercard chargeback codes used in eCommerce. A chargeback happens when a customer requests for a transaction to be. Try Shopify free for 3 days, no credit card required. Stage 1: First Chargeback. The key below describes the applicable classification and code structure of Chargeback codes by country: Classification. 99. TRINIDAD, RespondentsAbout American Express chargeback reason codes. Your first step is to identify the chargeback reason code, which is a kind of shorthand that indicates why the transaction is being disputed. The actual underlying cause of this chargeback is. . Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. 6. Reason Codes Category 4: Processing Errors. Reason code encyclopedia Your comprehensive guide to reason codes, modifiers, time limits, and compelling evidence. 65 fee for uploading scanned documents. Visa. Dispute Category. Written to Chargeback Gurus. Last updated: August 16, 2023. All countries outside of US and Canada. The following chargeback reason codes are related to EMV: Visa: 10. What are Chargeback Reason Codes? Chargeback reason codes are issued by the bank when a customer files for a chargeback. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card. Chargebacks from all three categories can show . A double refund chargeback occurs when a cardholder requests a refund for a transaction, then files a chargeback for the same purchase. This definitive guide comprise which chargeback reason encrypted with apiece of the four greater bill networks. [noun]/prow • mow • ə • bjuz/. There is a USD 25 limit for the First Chargeback (Reason Code 22). Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. Overview. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. To start a chargeback process on your AmEx card, follow these steps: Get in touch with American Express by logging into your account. Different card networks have different reason code systems. Try Shopify free for 3 days, no credit card required. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. Discover. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. A chargeback happens when a customer requests for a transaction to be reversed. The tickets were held at the box office, and no signature,. 1 chargeback: 1. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Solutions. If the available information indicates that the customer dispute is a valid one, American Express will automatically debit your merchant account for the amount of the disputed transaction and will send you a chargeback notification for you to review. Non-Receipt of Goods or Services. Written by Chargeback Gurus. By entering your email, you agree to receive marketing emails from Shopify. Here finalizing user includes the chargeback reason codes from either of the foursome major card networks. Chargeback Reason Codes Card Type DISCOVER DISCOVER DISCOVER Reason Code 4502 4534 4540 DISCOVER 4541 DISCOVER 4550 DISCOVER 4553 DISCOVER DIS. Check the chargeback reason code. There are 151 chargeback reason codes across the four major card networks. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. The cardholder initiates contact with their bank or credit union to file a dispute. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Accessed October 31, 2022. Chargeback Base Codes by Network - 2023 Guide. Code. But cardholders and merchants have different time limits. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Across open networks and include account numbers sent over email, instant messaging, text, or chat. In short, chargebacks are costly. Blog and Articles; Success Stories;. Scenario 1 — upfront chargeback. Chargeback time frames - A specific period during which a chargeback can be raised. Today, Visa expects members to communicate through VROL and try to resolve their. The code is used to help verify buyers during a card-not-present transaction. NIÑA JEWELRY MANUFACTURING OF METAL ARTS, INC. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. 3: Goods or services were not received: C08: RG: 4855: 13. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Additionally, Amex uses a fifth "Miscellaneous" category. Other Ineligible Transactions Under Reason Code 62, Condition 2 . Technical. American Express Reason Code FR2 - Fraud Full Recourse Program; American Express Reason Code FR4 - Immediate Chargeback Program; American Express Reason Code FR6 - Partial Immediate Chargeback Program; NOTE: If you receive one of the above chargeback reason codes and aren’t aware of being in a fraud monitoring program, contact your payment. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. VCR Dispute Reason Code 10. This definitive guide includes the chargeback reason codes coming each of the four greater menu networks. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. PCI DSS v3. About American Express chargeback reason codes. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Each card issuer follows their own standards for defining reason type, code and its format. It can range from 60 to 120 days from the billing date. In the distribution industry,. Specify the invoice date and net due date to assign to chargebacks. FAQ: What is Chargeback Representment?. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Upfront Chargeback If we determine we have sufficient information to pursue a Chargeback, we may debit your account up front. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. EMV Liability Shift Counterfeit Fraud. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. All ACH return reason codes consist of the letter “R” followed by two. (otherwise known as NIÑA MANUFACTURING AND METAL ARTS, INC. Non-Receipt of Merchandise. This means that Chargeback Protection does not apply to payments you receive prior to enrolling in Chargeback Protection or payments you receive after your enrollment in Chargeback Protection ends. For scenario A, send an echeck sale transaction with the following data: routing_number=064000101. Visa also overhauled its system of chargeback reason codes. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. Blog and Featured; Success Stories; Chargeback Reasoning Codes; BIN Look-up; eGuides and Reports;. It also has a multiplier effect that extends damages well beyond the amount of the disputed charge in question. 0 only applies to reason code 10. 4. One catch is that CE3. The third digit indicates the specific reason within that category. The good news is, the chargeback reason code should give you a great indication of where to start. 102. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Note. Only an issuer can initiate the chargeback process. R01. The reason code may not reflect the true reason for the chargeback. It depends on the chargeback reason code associated with the dispute. 5 Categories of Visa Chargeback Reason Codes. R03. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. F01. Fraud. Chargeback Reason Codes by Network - 2023 Guide. Both EFM and ECM measure compliance at the MID level. This definitive guide includes the chargeback reason codes from each of the four major card networks. This reason code indicates that the merchant. Values are: Blank: Use the draft G/L date. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. 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. Any time. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. You should maintain dispute templates for each reason code and include your intent to fight the chargeback and why. Get started . 2. ”. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. Fewer chargeback reason codes. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Stage #1: Awareness - be aware of the chargeback response time limitA chargeback reason code is a number that helps to inform a hotel why a chargeback was filed. The reason code. 3: Goods or services were not received: C08: RG: 4855: 13. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. Moreover, there are other two categories to handle the Amex chargeback: inquiry and chargeback programs. Please refer to chapter 5 for more information. 4807 Warning Bulletin File. It's essential to respond within the. ”. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F24, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. What is the chargeback reason code? The reason code is an alphanumeric 2 to 4-digit code provided by the issuing bank that identifies the reason for the dispute. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Chargeback reason code 10. Prevented; Recover; Tools. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. Some crucial examples of specific documents used as compelling evidence are as follows: Delivery confirmation of the order; Conversations with the customer; Verification codes (AVS, Authorization, Card Security Code, 3D Secure 2. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. A chargeback happens when a customer requests for a transaction to be reversed. Unauthorized returns (R05, R07, R10, R29, R51): 0. Chargeback Category. 4763: FR2: Full recourse: A cardholder is claiming that they did not authorise or participate in a transaction that you. See the definitions of the various chargeback codes you may receive during the chargeback process. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 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. None, although there is a $0. Recommend Documents. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Learn How Chargebacks Work. 3. Maestro. 2. Card networks send these codes to merchants to indicate why a chargeback has been filed. FR2 PreArbitration S01 R13 nc P08 R12 sv M01 P17 R21 Curr. Knowing these codes can help you dispute chargebacks more effectively. The business has the chance to refute the chargeback. 3. 0 to 5. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. To start a chargeback process on your AmEx card, follow these steps: Get in touch with American Express by logging into your account. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. pdf), Text File (. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. 4: Fraud—Card-Absent Environment. Here are the most common chargeback culprits. Reason . Discover chargeback reason code 7030. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. These codes are broken down into five different category. Before the cardholder can file a chargeback, they must give a reason to their card provider. A chargeback reason code can offer merchants a lot of information, including which chargebacks you should fight and how to rework your return policy. Chargeback Reason Coded by Network - 2023 Guide. Once your business is approved, we will reimburse you for any eligible disputes (subject to the criteria above) you received during that time and waive any related dispute fees. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Below is a list of Mastercard chargeback codes used in eCommerce. This definitive guide includes the chargeback rationale codes from each of to four major card networks. Visa assesses the following fines, as specified in the table below, to a U. You must designate the write-off reason code for the system to use when you activate the automatic write-off feature. 4 Other Fraud Card Absent. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 5158. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. To subscribe and learn more about the free online chargeback management system, or contact Chase Paymentech Client Services at 1. Description: Reason code for applying handling fee. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. Chargeback Reason Codes. Know Which “Compelling Evidence” Is Required. The chargeback can be for the total transaction amount or a lesser amount. A chargeback reason code can offer merchants a lot of information, including which chargebacks you should fight and how to rework your return policy. Chargeback reason codes can change with new information. The only way to reveal the cause of the chargeback is to submit a comprehensive and complete response specific to the reason code used. These are only a handful of common Visa chargeback reason codes. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. The chargeback transfers funds from the acquirer to the issuer. By entering your email, you agree to receive marketing emails from Shopify. The merchandise was as described or was not defective. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. American Express Reason Code FR2 - Fraud Full Recourse Program; American Express Reason Code FR4 - Immediate Chargeback Program; American Express Reason Code FR6 - Partial Immediate Chargeback Program; NOTE: If you receive one of the above chargeback reason codes and aren’t aware of being in a fraud monitoring program,. “It’s a lot tougher with Mastercard because they only use four main codes. FAQ: What is Chargeback Representment? TIPS. Select the value “open”. About American Express chargeback reason codes. American Express chargeback reason code C18 falls under the “Card Member Disputes” category. Most commonly the payer is a consumer. American Express reason code 155, Visa reason code 30, MasterCard reason code 4855, and Discover reason code 4755 are all specific reason codes for Shopify payment chargebacks. While there are many chargeback reason codes, all chargebacks fall into one of three categories:UA01 Fraud – Card Present Transaction. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. FAQ: What is Chargeback. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. Fight; Prevent; Recover; Predict; Success Story; Resources. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. About Discover chargeback reason codes. Which is meant to know the reason for the dispute. The chargeback is ordered by the bank that issued the consumer's payment card. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud) The cardholder denies participation in a mail; telephone or internet-type transaction. The cardholder may be the customer or the someone who lent their card to a friend or relative. 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. It is important to check the time limit in chargeback reason codes because it determines how long a cardholder has to initiate a chargeback after a transaction has taken place. 4853 – Cardholder Dispute – Credit Posted as a Purchase. A chargeback reason code can offer merchants a lot of information, including which chargebacks you should fight and how to rework your return policy. If the customer’s story matches. 60 due to merchandise, fees, overhead, and other sources of loss. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. 4. Late Presentment Rules: Mastercard. Today, Visa expects members to communicate through VROL and try to. Merchants who believe they have received an invalid chargeback under reason code FR2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Code. There are dozens of reasons why cardholders and issuers dispute transactions. US and Canada. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Understanding these. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. FAQ: What is Chargeback Representment?. Additionally, Amex uses a fifth "Miscellaneous" category. Chargeback Reason Codes by Mesh - 2023 Guide. American Express . Check the chargeback reason code. Reason Code 02. © 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. 9808 info@chargebacks911. 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. YES YES by Cardholder AMEX FR2 Fraudulent Transaction Fraud NO NO AMEX P08 Paid. If a criminal manages to defeat the technology and complete an online. We've made some changes to our API. S. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Reason Code 04. FR2: Fraud - Full Recourse Agreement: 120: The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. Customer Dispute. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. . S. account_number= Any account number. FR2: Fraud Full Recourse Program: FR4: Immediate. However, it is important to note that this reason code is based on the reason given by the customer to their bank. FR2 - Fraud Full Recourse Program. FR2 Fraud Full. 1. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. File a claim and explain why you’re disputing the transaction. . The shorthand description is “No Authorization. The customer regrets their purchase. 7: Defective goods and services: C32: RM: 13. 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. Network Processing ® ©Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. ABELLA, Petitioners, - versus - MADELINE C. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. . FR2 FR4 FR6 M01 M10 P01 P03 P04 P05 P07 P08 P22 P23 R03 R13 Select a code to see the details. Click on Review Charges. Card Brand Code Description. Breaking Down Chargeback Fees. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. Chargebacks are a major threat to businesses big and small. Now, compliance cases must be submitted through Visa Resolve Online (VROL). This scenario applies when the arbitration was raised by either the. American Express chargeback reason codes REASON ODE. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. Reason Text. txt) or read online for free. Less. You can learn more about each one by visiting the Mastercard Chargeback Guide. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. As expected, chargeback reason codes exemplified consumer sentiment. Typical reason codes are: BD: Bad debt DC: Damaged goodsWith an eCommerce transaction, 3-D Secure technology works like an online PIN code. If you are a new Stripe user and we have activated your access to Chargeback Protection, we may hold all dispute-related funds and fees until your business is approved. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. You need to embrace a customer-centric approach focused on transparency and satisfaction.