Chargebacks

Home    Security    Risk Guide    Chargebacks

On this page:

Overview

Chargebacks are transactions in which the cardholder has disputed the charges, shifting the financial liability for the transaction from the cardholder back to the merchant. Charges can occur due to:

  • Fraud
  • Consumer disputes
  • Processing errors

When a chargeback occurs, the merchant may lose the amount of the transaction, any merchandise purchased, and incur additional fees. The cost of chargebacks can be quite significant. Nuvei provides several services for preventing chargebacks and disputing chargebacks should they occur.

Users may initiate a chargeback with a fraud reason up to 120 days since the payment was made.

For chargebacks with the reason “Services Not Provided”, “Goods Not Received,” or “Not as Described/Defective Merchandise”, disputes can be opened:

  • Within 120 days of the date the customer expected to receive the goods/services, or
  • Within 120 days of the date the customer was notified the goods/services were not provided.

In either case, the dispute must be processed by the card issuer within 540 days of the original transaction date.

Chargeback Types

There are two types of chargebacks in Nuvei’s system. Each chargeback type is described below.

Retrieval Request

A Retrieval Request occurs when a credit cardholder does not recognize a charge in their credit card’s monthly statement and asks their issuer bank for clarification. A retrieval request does not have any financial impact or any fees involved, but it may be a preliminary step before the card issuer initiates a Chargeback. At present, Retrieval Requests are available only for Amex, Diners, and Discover.

When you receive a Retrieval Request, you have two options:

  • Crediting the transaction before it becomes a Chargeback – You may use this option when you are convinced that the order is fraudulent and you cannot validate the user’s identity.
  • Defending the case by uploading documents for re-presentment through the Control Panel.

The time frame to re-present a Retrieval Request is 30 days after the retrieval date, which includes your time to review, prepare, and provide the documents, and operational time needed by Nuvei to handle the request. We strongly advise you to send us the documents within 7 days to ensure that the request is handled in a timely manner.

In some cases, if you do not re-present the Retrieval request, you lose your right to defend the case further if a Regular Chargeback is received. For Retrievals received for an AMEX payment, this should be considered a mandatory action.

If you decide to respond to the Retrieval Request, as it is only a request for more information, it can be represented with fewer documents, like more details on the transaction, your comments, and screenshots from the system.

Regular Chargeback

A Regular Chargeback occurs when a cardholder disputes a charge on their monthly statement. When a Regular Chargeback is received, it means that the issuer bank has already refunded the money back to the cardholder. In the case of a Regular Chargeback the merchant is charged for the Chargeback amount and the Chargeback handling fee.

Chargeback Lifecycle

Visa Dispute Lifecycle

Allocation Dispute Process

Under Allocation disputes are categorized the Fraud related disputes, i.e., the ones with the category Fraud and Authorization.

The dispute flow is as follows:

  1. You have processed a successful transaction called Presentment, and it appears in our system as a Sale/Settle transaction type. The money is transferred to your account through the Acquirer.
  2. If the cardholder initiates a Dispute, the money is transferred from your account to the Issuer. In our system, it appears as Regular Chargeback.
  3. In case you are willing to contest the chargeback, you need to send documents to the Acquirer within 7 days from the original Chargeback date. By re-presenting the dispute, you raise a Pre-Arbitration, where the funds are still in the possession of the issuer, i.e., the liability of the dispute is still on the Merchant’s/Acquirer’s side.
  4. Within 30 days, the Issuer should decide whether to Reject or Accept the Pre-Arbitration.
    1. If the Issuer accepts the Pre-arbitration, the Chargeback status is updated as canceled in our system.
    2. If the Issuer rejects the argumentation, they send a Pre-Arbitration response, then the Acquirer decides whether to Accept or Reject this Pre-Arbitration response.
      • If the Acquirer/merchant accepts the Pre-Arbitration response, the case would be decided in the Issuer’s favor; then the Issuer keeps the money. In our system, the Chargeback remains with the status Regular.
      • If the Acquirer/Merchant rejects the Pre-Arbitration response, there is an option to raise an Arbitration within 5 days of the original Pre-Arbitration Response date, where the case is decided by Visa. By raising an Arbitration, the merchant needs to be sure that the full list of compelling evidence is provided.
  5. At the Arbitration Stage, when the Dispute and Re-presentments process fails to resolve the case between the Issuer and the Acquirer, it is reviewed by Visa to assign liability for the disputed Transaction. Visa decides in which favor the case is resolved and assigns relevant fees to the liable part:
    1. If the dispute is closed in the cardholder’s favor, the Chargeback status remains with the status Regular.
    2. In case Visa rules in Merchant’s/Acquirer’s favor, the status changes to Canceled.

Collaboration Dispute Process

Under Collaboration, disputes are categorized the Service-related disputes, i.e., the ones under the category Processing Errors and Consumer Disputes.

The process is as follows:

  1. You have a successful transaction, which is called Presentment. In the Nuvei system, it appears as a Sale/Settle transaction type. The money is then transferred to the Merchant account through the Acquirer.
  2. In case the user initiates a Dispute, the money is transferred from your Merchant’s account to the Issuer. In the Nuvei system, it appears as Regular Chargeback.
  3. To re-present the dispute, you need to send documents within 7 days of the original dispute date so that a Re-presentment is sent to the Issuer. During this step of the Dispute process, the money is again being transferred to the Acquirer’s/Merchant’s side – the Chargeback is updated with the status “canceled” in the Nuvei system.
  4. Within 30 days, the Issuer should decide whether to Accept or Reject the argumentation.
    1. If they Accept it, the case remains with status canceled in our system.
    2. If they Reject it, they raise a Pre-Arbitration. Then the Acquirer decides whether to accept or reject this Pre-Arbitration.
      • If the Acquirer/Merchant accepts the Pre-Arbitration, the case is resolved in the Issuer’s favor; the money is then transferred to the Issuer. In the Nuvei system, such cases are updated as Chargebacks with status Duplicate.
      • If the Acquirer/Merchant rejects the Pre-Arbitration, the Merchant must respond within 7 days, and a Pre-Arbitration response must be filed. Within 10 days, the Issuer has the right to escalate the case to Arbitration.
  5. At the Arbitration Stage, the case is being reviewed by Visa to assign liability for the disputed Transaction. Visa decides in whose favor the case is resolved, and assigns fees to the liable part.
    • If the dispute is ruled in the issuer’s favor, the status of the Chargeback changes to Duplicate.
    • In case Visa rules in Merchant’s/Acquirer’s favor, the status remains Canceled.

In addition, Visa limits the numbers of raising disputes, and Issuers may charge back a maximum of 35 transactions on a single PAN within a 120-day period.

Mastercard Dispute Lifecycle

  1. You have a successful transaction, which is called First Presentment, and in our system appears as Sale/Settle transaction type. The money is transferred to the Merchant’s account through the Acquirer.
  2. If the user initiates First Chargeback, the money is transferred from your account to the Issuer. In our system, it appears as a Regular Chargeback.
  3. To re-present the chargeback, you need to send documents within 7 days so that Second Presentment is sent to the Issuer. During this step of the dispute process, the money is again transferred to the Merchant. The Chargeback is updated with status Canceled in our system.
  4. If the Issuer rejects the documents, it has 30 days after the Re-presentment to raise a Pre-arbitration.
    • If the Acquirer accepts the Pre-arbitration, the case is closed in favor of the Issuer, and the status of the case is changed to Duplicate).
    • If the merchant wishes to continue further with the dispute, they could respond with Pre-Arbitration Response along with new evidence. If the Merchant submits a pre-arbitration response, the case likely advances to arbitration.
  5. Arbitration – At this stage, Mastercard decides which party is liable for the transaction, and relevant fees are applied to the liable part. If Mastercard decides the dispute in the issuer’s favor, the status of the Chargeback is updated to Duplicate. If the case is resolved in the Merchan’t favor, the status remains Canceled.

Amex Dispute Lifecycle

The Amex Dispute process consists of the following stages:

1. Retrieval Request

A message sent by the Issuer to the Amex Network by which the Issuer requires a copy of the Record of Charge (ROC) or other Documentation in relation to a dispute claim. The three (3) most common reasons for an Issuer to initiate a Retrieval Request are to:

  • Satisfy a Cardholder inquiry
  • Substantiate a Chargeback
  • Support a legal or fraud investigation

Retrieval requests can be received for a period of one (1) year (or as required by local law) following the Network Processing Date of the Presentment.

2. Fulfilment

Fulfillment is the transfer of Documentation from the Acquirer to the Issuer in response to the Issuer’s Retrieval Request. Failure to provide the necessary response within 30 calendar days of the date of the Retrieval Request will lead to a limitation of the representment rights.

3. First Chargeback

A chargeback may be filed only for those Transactions where financial liability resides with the Issuer at the time of the Chargeback. Any Transaction that is not disputed by the Cardholder may not be charged back to the Acquirer regardless of whether or not it was in violation of Network policies except for processing errors. Issuers must file a First Chargeback within 120 days from the Network Processing Date of the First Presentment of the disputed Transaction, unless otherwise specified in the applicable rule.

4. Second Presentment / Representment

If the Acquirer determines (based on a review of the item, any further supporting Documentation provided by the Merchant, and the relevant Network policies) that there is sufficient justification to dispute the First Chargeback, a Second Presentment may be filed thereby moving the financial liability from the Acquirer back to the Issuer. Acquirers must file a Second Presentment within forty-five (45) days from the Network Processing Date of the First Chargeback.

5. Final Chargeback

The Issuer determines (based on a review of the Second Presentment, First Chargeback supporting Documentation, and any further supporting Documentation provided by the Acquirer, and the relevant Network policies) if there is sufficient justification to dispute the Second Presentment. A Final Chargeback can be filed with the Network within forty-five (45) days from the Network Processing Date of the Second Presentment. The Chargeback Policies reason code used for a Final Chargeback does not have to be identical to that used for the First Chargeback, but restrictions may apply to modifications of the reason code if changing from a non-fraud type to a fraud type. If the Documentation supplied with the Second Presentment reveals a more appropriate and better supported reason for charging back the Transaction, the Issuer may use that reason.

6. Pre-Arbitration

Acquirers are strongly encouraged, but not required, to pursue a pre-Arbitration attempt prior to submitting an Arbitration Filing.

7. Arbitration

An Acquirer may submit an Arbitration Filing with the AMEX Arbitration Committee if they determine (based on a review of the Final Chargeback, any further supporting Documentation provided by the Issuer, and the relevant Network policies) that there is sufficient justification to dispute the Final Chargeback. An Arbitration Filing must be submitted through AEGNS Network Disputes Manager with all related Documentation within forty-five (45) days from the Network Processing Date of the Final Chargeback.

Diners / Discover Dispute Lifecycle

The DCI Chargeback process Consists of five unique stages:

1. Retrieval Request

A request by an Issuer for a copy of the receipt and/or additional documentation related to a card charge. An Issuer has up to 365 days to submit a Retrieval Request. A Retrieval Response is provision of the receipt and/or documentation. The merchant has up to 30 days to respond to a Retrieval Request from the date sent.

2. Chargeback Request

A request by an Issuer submitted to DCI to dispute a settled charge. A Chargeback Request might occur due to an incomplete response or lack of response to a Retrieval Request, or a Cardholder submitting compelling evidence to support a Chargeback. The Issuer has 120 days from the charge date (or 30 days from the Retrieval Request date, if requested), to initiate a Chargeback. A Chargeback is a transaction processed by DCI that reverses the entire amount or a portion of a card charge.

3. Representment Request

A Merchant response to a Chargeback is called a Representment, or a Representment Request. A Representment is a transaction processed by DCI that reverses all or a portion of a Chargeback. The merchant has up to 30 days to initiate a Representment Request in response to a Chargeback.

4. Pre-Arbitration Inquiry

A request by an Issuer for the reversal of a Representment that has been processed by DCI in connection with a Chargeback. The Issuer has up to 30 days to initiate a Pre-Arbitration Inquiry. Then, the merchant has up to 30 days to respond to a Pre-Arbitration Inquiry with an ‘Accept’ or ‘Deny’ response.

5. Dispute Arbitration Request

If an Issuer disagrees with the response of the Pre-Arbitration Inquiry, they may submit a Dispute Arbitration request to DCI within 10 days from merchant’s response. The merchant has up to 15 days to provide additional information / documentation, if available.

A Dispute Arbitration is a holistic review conducted by DCI. A dispute Arbitration decision is the final and non-appealable action regarding a disputed charge. Either side may accept financial responsibility within 15 days of the dispute arbitration notice, known as the arbitration acceptance period. The party receiving the favorable Dispute Arbitration decision will receive a credit, whereas the opposing party will receive a debit for the Dispute Arbitration amount.

Dispute Process

Nuvei handles disputes on behalf of clients. When you receive a Chargeback, you are required to supply supporting documents, which are contesting the cardholder’s claims. When successfully disputed, the issuer cancels the Chargebacks, and merchants can view the cancelations in Nuvei’s online reports.

Nuvei recommends that you dispute every Chargeback for which you have sufficient evidence. Nuvei automatically disputes Chargebacks received for previously refunded or fully authenticated transactions. Nuvei still recommends that you upload re-presentment documents if such are available.

If you have any questions on the Chargeback dispute process, please send your inquiries to: [email protected].

Contesting a Chargeback

If a Merchant wishes to contest a dispute, this can be done through the Chargebacks Report page in the Nuvei Control Panel.

The feature is available for all Nuvei Acquiring banks and card brands and correlates with Nuvei’s Dispute Team’s queue.

To initiate a Dispute request, you must follow the below steps:

  1. Select the Chargebacks you wish to dispute – From the Chargebacks Report page or the Chargebacks Summary Report page, select the chargeback(s) you wish to dispute (including a bulk selection if the chargebacks belong to the same PAN and Acquiring bank):
  2. Select the Dispute request button – On the lower left-hand corner of the screen and a Chargeback Dispute pop-up appears.
  3. Attach evidence documentation – Drag and drop the relevant document(s) in the Upload documents section and enter relevant free text in the Response evidence section of the Chargeback Dispute pop-up.
  4. Submit the request – Select Yes, submit and a confirmation appears. An edit icon is displayed instead of the checkbox in the respective chargeback row in the chargebacks report. You can press the icon to edit a previously opened dispute.

 

Requested representments are updated and tracked in Chargebacks Reports.

Once a request is submitted, it is reviewed by our Dispute Team. If there are any issues with the documentation, the Merchant is contacted by the Dispute Team.

For existing disputes, you can view an audit of evidence already submitted, and you can amend the request.

Requirements

  • The file types for uploading are JPEG and PDF.
    • Bear in mind that for Mastercard cases, only a PDF of up to 19 pages is acceptable.
  • Each file should be with maximum size of 2 MB.
  • You can upload maximum of 5 files per case.
  • Filling information in the free text field is mandatory. There you can state your position on the case.
  • Only cases with status Retrieval and Regular Chargeback can be represented.
  • For Bulk re-presentment, the transactions should be processed with the same card and through one Acquirer only. If chargebacks from one card are processed through different Acquirers, they should be sent in a separate request.
  • Supporting Documents must be in English or accompanied by an English translation unless both the issuer and the acquirer share a common language.

All information that you submit must be compliant with the requirements of the chargeback reason code.


Chargeback Reason Codes and Documentation

In the section below, you may find information about all Chargeback reason codes as per the card scheme rules and the required documentation for each Chargeback reason code.

VISA

CHARGEBACK REASON CODES

Chargeback CategoryChargeback Reason CodeReason Description
FRAUD10.1 EMV Liability Shift Counterfeit Fraud
10.2 EMV Liability Shift Non-Counterfeit Fraud
10.3 Other Fraud-Card Present Environment
10.4 Other Fraud-Card Absent Environment
10.5 Visa Fraud Monitoring Program
AUTHORIZATION11.1 Card Recovery Bulletin
11.2 Declined Authorization
11.3 No Authorization
PROCESSING ERRORS12.1 Late Presentment
12.2 Incorrect Transaction Code
12.3 Incorrect Currency
12.4 Incorrect Account Number
12.5 Incorrect Amount
12.6 Duplicate Processing/Paid by Other Means
12.7 Invalid Data
CONSUMER DISPUTES13.1 Merchandise/Services Not Received
13.2 Cancelled Recurring
13.3 Not as Described or Defective Merchandise/Services
13.4 Counterfeit Merchandise
13.5 Misrepresentation
13.6 Credit Not Processed
13.7 Cancelled Merchandise/Services
13.8 Original Credit Transaction Not Accepted
13.9 Non-Receipt of Cash or Load Transaction Value

As per Visa Core Rules related to chargebacks for domestic US traffic, even though transactions are processed in 3D-Secure, the merchants from the following industries are liable for the chargebacks.

Below is a list of industries identified as high risk:

  • 4829 (Wire transfer money orders)
  • 5967 (Direct Marketing – Inbound teleservices merchant)
  • 6051 (Non-financial institutions – Foreign currency, non-fiat currency/cryptocurrency, money orders, travelers checks, and debt repayment)
  • 6540 (Non-financial institutions: Stored value card purchase/load)
  • 7801 (Government licensed online casinos/online gambling)
  • 7802 (Government licensed horse/dog racing)
  • 7995 (Betting, including lottery tickets, casino gaming chips, off track betting, and wagers at race tracks)

DISPUTE REQUIRED DOCUMENTATION

FRAUD

Reason Code 10.1 – EMV Liability Shift Counterfeit Fraud

Description:

The Cardholder denies authorization of or participation in the Transaction, and the Card is a PIN-Preferring Chip Card, but EMV authentication was not performed as required.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • The Dispute is invalid.
  • Compelling Evidence proving the transaction was instructed by the Cardholder (US region). For a US Domestic Card-Present Environment Transaction that is key-entered and did not take place at a Chip-Reading Device, either:
    • Evidence that the same Card used in the disputed Transaction was used in any previous or subsequent Transaction that was not disputed.
    • Copy of both:
      • Identification presented by the Cardholder.
      • Receipt, invoice, or contract with information that links to the identification presented by the Cardholder.
  • For pre-Arbitration attempts in US region, the following Compelling Evidence is needed for a delayed charge Transaction:
      • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental).
      • Evidence that an Imprint was obtained at a Chip reading device during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint).
  • In all other regions, for a delayed charge Transaction evidence of one of the following:
      • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental).
      • Evidence that an Imprint was obtained at a Chip reading device during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint).

Reason Code 10.2 – EMV Liability Shift Non-counterfeit Fraud

Description:

The Cardholder denies authorization of or participation in the Transaction, and the Card is a PIN-Preferring Chip Card, but EMV authentication was not performed as required.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • The Dispute is invalid.
  • Compelling Evidence for a delayed charge Transaction, both:
    • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental).
    • Evidence that an Imprint was obtained at a Chip reading device that was EMV PIN-Compliant during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint).

Reason Code 10.3 – Other Fraud-Card Present Environment

Description:

The Cardholder denies authorization or participation in a key-entered Transaction conducted in a Card-Present Environment.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Dispute is invalid.
  • The Cardholder no longer disputes the Transaction.
  • Compelling Evidence for a delayed charge Transaction, both:
    • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental)
    • Evidence that an Imprint1 was obtained during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint)
  • For a US Domestic Card-Present Environment Transaction that is key-entered and did not take place at a Chip-Reading Device, compelling evidence is either:
    • Evidence that the same Card used in the disputed Transaction was used in any previous or subsequent Transaction that was not disputed
    • Copy of both:
      • Identification presented by the Cardholder
      • Receipt, invoice, or contract with information that links to the identification presented by the Cardholder.
  • In all regions except US, for pre-Arbitration attempts for a delayed charge Transaction compelling evidence is both:
    • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental).
    • Evidence that an Imprint1 was obtained during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint).
  • Or evidence of an imprint
    • A pencil rubbing or a photocopy of a Card is not considered as valid imprint.

Reason Code 10.4 – Other Fraud-Card Absent Environment

Description:

The Cardholder denies authorization of or participation in a Transaction conducted in a Card-Absent Environment and the transaction was not properly authenticated.

Supporting Documentation:

  • Evidence that one of the following:
    • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • The Cardholder no longer disputes the Transaction.
  • Compelling Evidence
    • For pre-Arbitration attempts for a delayed charge Transaction both:
      • Evidence that the Transaction relates to a prior stay, trip, or rental period (for example, a parking violation that occurred during the rental).
      • Evidence that an Imprint was obtained during the same stay, trip, or rental (including any approved Authorization containing an Electronic Imprint).
    • For pre-Arbitration attempts the same Payment Credential was used in 2 previous Transactions that the Issuer did not report as Fraud Activity to Visa and was processed between 120 and 365 calendar days prior to the Dispute date, all of the following:
      • A detailed description of merchandise or services purchased for the disputed Transactions and the 2 previous Transactions.
      • Certification of all of the following:
        • Date/time the merchandise or services were provided
        • The device ID, device fingerprint, or the IP address and an additional one or more of the following in the undisputed Transaction(s) are the same as the disputed Transaction, as applicable:
        • Customer account/login ID
        • Full delivery address including house number, street name, city, zip/postal code, and country
        • Device ID/device fingerprint
        • IP address
    • For pre-Arbitration attempts for an Airline Transaction, evidence that the Cardholder name is included in the manifest for the departed flight and matches the Cardholder name provided on the purchased itinerary.
    • Photographic or email evidence to prove a link between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services.
    • For a Card-Absent Environment Transaction in which the merchandise is collected from the Merchant location, any of the following:
      • Cardholder signature on the pick-up form
      • Copy of identification presented by the Cardholder
      • Details of identification presented by the Cardholder
    • For a Card-Absent Environment Transaction in which the merchandise is delivered, evidence that the item was delivered to the same physical address for which the Merchant received an AVS match of Y or M. A signature is not required as evidence of delivery.
    • For an Electronic Commerce Transaction representing the sale of digital goods downloaded from a Merchant’s website or application, description of the merchandise or services successfully downloaded, the date and time such merchandise or services were downloaded, and 2 or more of the following:
      • Purchaser’s IP address and the device geographical location at the date and time of the Transaction
      • Device ID number and name of device (if available)
      • Purchaser’s name and email address linked to the customer profile held by the Merchant
      • Evidence that the profile set up by the purchaser on the Merchant’s website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction Date
      • Evidence that the Merchant’s website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date
      • Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed
    • For a Transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery.
    • For a Mail/Phone Order Transaction, a signed order form
    • For a passenger transport Transaction, evidence that the services were provided and any of the following:
      • Evidence that the ticket was received at the Cardholder’s billing address
      • Evidence that the ticket or boarding pass was scanned at the gate
      • Details of frequent flyer miles relating to the disputed Transaction that were earned or redeemed, including address and telephone number that establish a link to the Cardholder
      • Evidence of any of the following additional Transactions related to the original Transaction: purchase of seat upgrades, payment for extra baggage, or purchases made on board the passenger transport
    • For a T&E Transaction, evidence that the services were provided and either:
      • Details of loyalty program rewards earned and/or redeemed including address and telephone number that establish a link to the Cardholder
      • Evidence that an additional Transaction or Transactions related to the original Transaction, such as the purchase of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed
    • For a virtual Card Transaction at a Lodging Merchant, evidence of the Issuer’s payment instruction sent through Visa Payables Automation, containing all of the following:
      • Issuer statement confirming approved use of the Card at the Lodging Merchant
      • Payment Credential
      • Guest name
      • Name of the company (requestor) and either their phone number, fax number, or email address
    • For pre-Arbitration attempts for a Card-Absent Environment Transaction, evidence that 3 or more of the following had been used in an undisputed Transaction:
      • Customer account/login ID
      • Delivery address
      • Device ID/device fingerprint
      • Email address
      • IP address
      • Telephone number
    • Evidence that the Transaction was completed by a member of the Cardholder’s household or family
    • Evidence of one or more non-disputed payments for the same merchandise or service
    • For a Recurring Transaction, evidence of all of the following:
      • A legally binding contract held between the Merchant and the Cardholder
      • The Cardholder is using the merchandise or services
      • A previous Transaction that was not disputed
    • In the Europe Region: Evidence that the initial Transaction to set up a wallet was completed using Visa Secure but any subsequent Transaction from the wallet that was not completed using Visa Secure contained all wallet-related Transaction data.

Reason Code 10.5 – Visa Fraud Monitoring Program

Description:

Visa notified the Issuer that the Transaction was identified by the Visa Fraud Monitoring Program and the Issuer has not successfully disputed the Transaction under another Dispute condition.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • The Dispute is invalid.
AUTHORIZATION

Reason Code 11.1 – Card Recovery Bulletin

Description:

The Merchant did not obtain Authorization, or on the Transaction Date, the Account Number was listed in the Card Recovery Bulletin for the respective region.

Supporting Documentation:

  • Evidence that one of the following:
    • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • The Cardholder no longer disputes the Transaction.
  • For a dispute involving a Transaction at a Car Rental Merchant, a Cruise Line Merchant, or a Lodging Merchant for which multiple authorizations were obtained, evidence that the Account Number was not listed on the Card Recovery Bulletin on the following dates, as applicable:
    • For a Lodging Merchant, the check-in date
    • For a Car Rental Merchant, the vehicle rental date
    • For a Cruise Line, the embarkation date

Reason Code 11.2 – Declined Authorization

Description:

An Authorization Request received a Decline Response or Pickup Response and the Merchant completed the Transaction.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • Evidence that the Cardholder no longer disputes the Transaction.
  • The Dispute is invalid.
  • Evidence that the Transaction was Chip-initiated and offline-authorized, if applicable.
  • For a dispute involving a Transaction at a Car Rental Merchant, a Cruise Line Merchant, or a Lodging Merchant for which multiple authorizations were obtained, certification of all the following:
    • The check-in date, embarkation date, or vehicle rental date.
    • The checkout date, disembarkation date, or vehicle return date.
    • The dates, authorized amounts, and Authorization Codes of the approved Authorizations.

Reason Code 11.3 – No Authorization

Description:

Authorization was required but was not obtained as required.

Supporting Documentation:

  • Evidence of any of the following:
    • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • The Cardholder no longer disputes the Transaction.
    • Evidence that the Transaction Date in the Clearing Record was incorrect and that Authorization was obtained on the actual Transaction Date.
  • For a dispute involving special Authorization procedures where all the following apply:
    • The first Authorization Request included the initial/Estimated Authorization Request indicator.
    • Subsequent Authorization Requests included the Incremental Authorization Request indicator.
    • The same Transaction Identifier was used in all Authorization Requests.
    • Clearing Records were submitted within the necessary time frames.

Both:

    • The Transaction Receipt or Substitute Transaction Receipt.
    • Certification of all the following:
      • The date the Transaction was initiated.
      • The date the Transaction was completed.
      • The dates, authorized amounts, and Authorization Codes of the approved Authorizations.
PROCESSING ERRORS

Reason Code 12.1 – Late Presentment

Description:

The Transaction was not processed within the required time limit for clearing.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • Evidence that the Cardholder no longer disputes the Transaction.
  • The Transaction Receipt or other record with a Transaction Date that disproves late Presentment and obtained the required authorization.

Reason Code 12.2 – Incorrect Transaction Code

Description:

A credit was processed as a debit, or a debit was processed as a credit, or a credit refund was processed instead of a Reversal or an Adjustment.

Supporting Documentation:

  • For a credit processed as a debit or a debit processed as a credit, either:
    • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • Transaction Receipt or other record that proves that the Transaction code was correct.
  • For a credit refund that was processed instead of a Reversal or an Adjustment, either:
    • Evidence that a Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • Explanation of why a Credit Transaction was processed instead of a Reversal or an Adjustment.

Reason Code 12.3 – Incorrect Currency

Description:

The Transaction Currency is different than the currency transmitted through VisaNet or Dynamic Currency Conversion (DCC) occurred and the Cardholder did not expressly agree to DCC or was refused the choice of paying in the Merchant’s local currency.

Supporting Documentation:

  • Evidence that one of the following:
    • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • The Cardholder no longer disputes the Transaction.
  • Transaction Receipt or other record that proves that the Transaction currency was correct
  • For a Dynamic Currency Conversion (DCC) transaction, either:
    • For a Dispute Response in the Merchant’s local currency, both:
      • Acquirer certification that the merchant is registered to offer DCC.
      • A copy of the Transaction Receipt showing the Merchant’s local currency.
    • For a Dispute Response in the DCC currency, all the following:
      • Evidence that the Cardholder expressly agreed to DCC.
      • Acquirer certification that the Acceptance Device requires electronic selection of DCC by the Cardholder and that the choice cannot be made by the Merchant.
      • A copy of the Transaction Receipt showing the Merchant’s local currency (the local currency of the country where the Branch is located).

Reason Code 12.4 – Incorrect Account Number

Description:

The Transaction or Original Credit Transaction was processed using an incorrect Payment Credential.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • Evidence that the Cardholder no longer disputes the Transaction.
  • Transaction Receipt or other record to prove that the Account Number was processed correctly.

Reason Code 12.5 – Incorrect Amount

Description:

The Transaction amount is incorrect or an addition or transposition error occurred.

Supporting Documentation:

  • A credit or Reversal issued by the Acquirer was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • Transaction Receipt or other record to prove that Transaction Amount was correct.

Reason Code 12.6 – Duplicate Processing/Paid by Other Means

Description:

A single Transaction was processed more than once using the same Payment Credential on the same Transaction date, and for the same Transaction amount or the Cardholder paid for the same merchandise or service by other means.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • Evidence that the Cardholder no longer disputes the Transaction.
  • For a Transaction that is not an ATM Transaction, either:
    • Two separate Transaction Receipts or other record to prove that separate Transactions were processed.
    • Evidence to prove that the Merchant did not receive payment by other means for the same merchandise or service.

Reason Code 12.7 – Invalid Data

Description:

Authorization was obtained using invalid or incorrect data, or the MCC used in the Authorization Request does not match the MCC in the Clearing Record of the first Presentment for the same Transaction.

Supporting Documentation:

Evidence of one of the following:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • The Authorization did not contain invalid data.
CONSUMER DISPUTES

Reason Code 13.1 – Merchandise/Services Not Received

Description:

The Cardholder participated in the Transaction, but the Cardholder did not receive the merchandise or services because the Merchant or Load Partner was unwilling or unable to provide the merchandise or services.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • Documentation to prove that the Cardholder or an authorized person received the merchandise or services at the agreed location or by the agreed date/time.
  • For an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and it matches the name provided on the purchased itinerary.
  • If the Dispute relates to canceled future services, the Dispute is invalid because the services were not canceled.

Reason Code 13.2 – Canceled Recurring Transaction

Description:

The Cardholder withdrew permission to charge the account for a Recurring / Installment Transaction.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • The Cardholder no longer disputes the Transaction
  • The Cardholder requested cancelation for a different date and that services were provided until this date
  • The Merchant posts charges to Cardholders after services have been provided and that the Cardholder received services until the cancelation date
  • Documentation to prove that service was not canceled.
  • Documents to prove Merchant was not notified that account was closed.

Reason Code 13.3 – Not as Described or Defective Merchandise/Services

Description:

The merchandise or services did not match what was described during the purchase, were damaged or defective, or the Cardholder disputes the quality of the merchandise or services received.

Supporting Documentation:

  • Evidence that one of the following:
    • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
    • The Cardholder no longer disputes the Transaction.
  • All the following:
    • Evidence to prove that the merchandise or service matched what was described (including the description of the quality of the merchandise or service) or was not damaged or defective
    • Merchant rebuttal to the Cardholder’s claims
    • If applicable, evidence to prove that the Cardholder did not attempt to return the merchandise or certification that the returned merchandise has not been received.
  • For a Dispute where a travel agency using a Visa Commercial Card Virtual Account has a contractual agreement with a T&E Merchant that covers the terms for specified services, evidence to prove that the terms of service included in the contractual agreement were as described or honored by the Merchant.

Reason Code 13.4 – Counterfeit Merchandise

Description:

The merchandise was identified as counterfeit by the owner of the intellectual property or its authorized representative, a customs agency, law enforcement agency, or a third-party expert.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • Evidence that the Cardholder no longer disputes the Transaction
  • Documentation to support the Merchant’s claim that the merchandise was not counterfeit

Reason Code 13.5 – Misrepresentation

Description:

The Cardholder claims that the terms of sale were misrepresented by the Merchant.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • Evidence that the Cardholder no longer disputes the Transaction.
  • Evidence that the terms of sale were not misrepresented.
  • For a Dispute relating to a Transaction in a Card-Absent Environment where merchandise or digital goods have been purchased through a trial period, promotional period, or introductory offer or as a one-off purchase, both:
    • Proofs that, at the time of the initial Transaction, the Cardholder expressly agreed to future Transactions.
    • Proofs that the Merchant notified the Cardholder of future Transactions at least 7 days before the Transaction Date.

Reason Code 13.6 – Credit Not Processed

Description:

The Cardholder received a credit or voided Transaction Receipt that was not processed.

Supporting Documentation:

  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.

Reason Code 13.7 – canceled Merchandise/Services

Description:

The Cardholder canceled the services and the Merchant did not process a credit or voided Transaction Receipt. The Merchant did not properly disclose or did disclose, but did not apply, a limited return or cancelation policy at the time of the Transaction; or in the Europe Region, the merchandise or services relate to an off premises, distance selling contract (as set out in the EU Directive) which is always subject to a 14-day cancelation period.

Supporting Documentation:

  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • Evidence that the Cardholder no longer disputes the Transaction
  • The Transaction Receipt or other record to prove that the Merchant properly disclosed a limited return or cancelation policy at the time of the Transaction
  • Evidence to demonstrate that the Cardholder received the Merchant’s cancelation or return policy and did not cancel according to the disclosed policy.

Reason Code 13.8 – Original Credit Transaction Not Accepted

Description:

An Original Credit Transaction was not accepted because either the recipient refused the Original Credit Transaction, or OCTs are prohibited by applicable laws or regulations.

Supporting Documentation:

  • A Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Dispute is invalid.

Reason Code 13.9 – Non-receipt of Cash or Load Transaction Value

Description:

The Cardholder participated in the Transaction and did not receive cash or received a partial amount.

Supporting Documentation:

  • A Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • A copy of the ATM Cash Disbursement Transaction or Load Transaction.
  • A record containing at least the following:
    • Account Number
    • Transaction time or sequential number that identifies the individual Transactions.
    • Indicator that confirms that the ATM Cash Disbursement or Load Transaction value was successful.
Compelling Evidence

Visa requires the compelling evidence elements to have the following characteristics:

  • Customer account / login ID:
    • Must contain only one value
    • Must be a unique identifier that the cardholder used to authenticate on the merchant’s e-commerce site or application at the time of the transaction, and must be a value that the cardholder recognizes
    • Must be in clear text and not hashed
  • IP address:
    • Must be the cardholder’s public IP address
    • Must be in clear text and not hashed
    • Must meet prevalent industry formats, which are currently IPV4 and IPV6
  • Device ID:
    • Must be a unique identifier of the cardholder’s device that the cardholder can verify, such as a device serial number (e.g, International Mobile Equipment Identity [IMEI])
    • Must be at least 15 characters o Must be in clear text and not hashed
  • Device fingerprint:
    • Can be derived from a combination of at least two hardware and software attributes such as the operating system and its version or device model, etc.
    • Must be at least 20 characters o May be hashed
  • Shipping address:
    • Must be the cardholder’s full shipping address, including the street address, city, state / province / region (if applicable in the cardholder’s country), postal code and country
    • Must be in clear text and not hashed

Mastercard

CHARGEBACK REASON CODES

Chargeback CategoryChargeback Reason CodeReason Description
Authorization-Related Chargebacks4807Warning Bulletin File
4808Requested/Required Authorization Not Obtained
4812Account Number Not on File
Fraud-Related Chargebacks4837No Cardholder Authorization
4840Fraudulent Processing of Transactions
4849Questionable Merchant Activity
4870Chip Liability Shift
4871Chip/PIN Liability Shift
Errors in Processing or Procedure4802Requested/Required Item Illegible or Missing
4831Transaction Amount Differs
4834Duplicate Processing
4842Late Presentment
4846Correct Transaction Currency Code Not Provided
4850Installment Billing Dispute
4863Cardholder Does Not Recognize – Potential Fraud
Cardholder Disputes4841canceled Recurring Transaction
4853Cardholder Dispute – Defective/Not as Described
4854Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only)
4855Goods or Services Not Provided
4859Addendum, No-show, or ATM Dispute
4860Credit Not Processed
4999Domestic Chargeback Dispute (Europe region only)

DISPUTE REQUIRED DOCUMENTATION

An authorization-related chargeback may be submitted in one of the following situations:

  • Authorization was required, but not obtained.
  • The primary account number (PAN) does not exist.
  • The authorization chargeback protection time period had expired for the presentment (meaning seven days for final or undefined authorizations and 30-calendar days for pre-authorizations) and one of the following:
    • For a transaction occurring at a merchant located in the Europe Region, the account was permanently closed before the chargeback was processed.
    • For a transaction occurring at a merchant located in any other region, the issuer deemed the account not to be in good standing (a “statused” account) before filing the chargeback.
  • A card-not-present authorization was declined by the issuer and subsequently approved through Stand-In processing or X-Code with an approval response with the following exceptions:
    • The issuer generated a decline response that included a value of 02 (Cannot approve at this time, try again later) in DE 48 (Additional Data-Private Use), subelement 84 (Merchant Advice Code).
    • The issuer generated an approval response after previously declining the transaction.
    • The merchant can prove that the cardholder initiated the authorization request.

4807 – Warning Bulletin File

Description:

A magnetic stripe transaction under MCC 4784, 5499, 7523, 7542; or the transaction amount was greater than the CVM limit (EUR 50 in Europe / USD 40 in rest of the world); or it occurred with an invalid card number / listed in the Warning Bulletin; or a positive online auhtorisation was required in Europe region.

Supporting Documentation:

  • Correct Merchant Location: The transaction date was incorrect or missing, and the acquirer can provide the correct date and show that the account was not listed on the correct date in the applicable Electronic Warning Bulletin.
  • Authorized Transaction Face-to-Face: If Authorization was obtained via the magnetic stripe through the Mastercard Network, the acquirer can substantiate that the transaction was card-read because the Authorization shows the account number was electronically obtained from the card’s magnetic stripe, and that the cardholder account number was identical to the account number in the Authorization Request/100 message and First Presentment/1240 message were identical.
  • Authorized Transaction Non–Face-to-Face: The acquirer properly identified the transaction as a non–face-to-face transaction in the Authorization record, and it received Authorization as specified in the Authorization Manual. For example, a properly identified non–face-to-face transaction must have a TCC of T in the Authorization request.
  • Chip-DE 55 Not Provided in First Presentment/1240 Message:
  • The acquirer can prove that the transaction was a valid chip transaction.
  • The transaction did not require online Authorization and DE 55 and related data was not provided in the First Presentment/1240 message.

Account Number Not Listed in Region, Country, or Sub region of Electronic Warning Bulletin File- The acquirer can show that the account number was not listed in the applicable region, country, or sub-region of the Electronic Warning Bulletin File as of the transaction date.

4808 – Requested/Required Authorization Not Obtained

Description:

  • Authorization was required, but was not properly obtained. A transaction may have multiple authorization or clearing records, e.g., several airline ticket transactions may be combined into one authorization record.
  • The transaction occurred at a merchant located in the Europe region and the issuer permanently closed the account before processing the chargeback.
  • The authorization was identified as a preauthorization and the transaction was presented or completed in more than 30-calendar days after the latest authorization approval date.
  • The transaction occurred at a merchant located in any other region and the issuer deems the account not to be in good standing (a “statused” account) before processing the chargeback.
  • The authorization was not identified as a preauthorization and the transaction was presented more than seven-calendar days after the authorization approval date.
  • A Card-Not-Present authorization was declined by the issuer and subsequently approved in Stand-In or X-Code.

Supporting Documentation:

  • Must be provided proof that the transaction has been Authorized by the issuer or CHIP or stand-in (STIP).
  • If the POS terminal has been offline and the amount of the transaction is equal or below 50 EUR/USD, the data record must state “POS Device not online”.
  • Acquirers are not required to provide Authorization logs.
  • Only airlines may split an Authorization into multiple presentments.

4812 – Account Number Not on File

Description:

The original transit transaction declined by the issuer was not a properly identified contactless transit aggregated transaction; or the issuer declined the original contactless transit aggregated transaction or a subsequent transit debt recovery transaction using a DE 39 (Response Code) value categorized as “Not Claimable”; or the acquirer or merchant did not fulfill the criteria for submitting an FRR claim transaction.

Supporting Documentation:

  • Copy of imprinted TID.
  • For card-read transactions that occurred at POI terminals that were not Authorized using the Mastercard Network, the acquirer must provide sufficient documentation to establish the card’s presence; for example, the acquirer’s Authorization log, electronic data capture log, or magnetic stripe reading (MSR) or hybrid terminal printer certification. The acquirer must explain clearly all such documentation in content and in usage. If the transaction occurred at an attended POI terminal, a copy of the printed terminal receipt must accompany the supporting documentation mentioned previously.
  • An Authorization screen print and issuer fax, if available, to verify that the transaction was an Emergency Cash Disbursement.

In addition, the below representment options are available for all authorization-related chargebacks:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • Expired Chargeback Protection Period:
    • The transaction was properly identified in authorization as a preauthorization, the transaction was presented within 30-calendar days of the preauthorization approval date, and was not reversed.
    • The transaction was not properly identified in authorization as a preauthorization, the transaction was presented within seven-calendar days of the authorization approval date, and was not reversed.
    • The transaction was properly identified in authorization as acquirer-financed or merchant-financed installment payment.
    • The transaction was properly identified in authorization as a Mastercard contactless transit aggregated or transit debt recovery transaction.
    • The transaction occurred at, one of the following:
      • A Europe region merchant location and the issuer has not permanently closed the account.
      • A merchant located in any other region and the issuer has not “statused” the account (that is, the issuer considered the account to be in good standing at the time of the chargeback).
  • Multiple Authorization Requests: Evidence of one of the following:
    • The issuer-generated decline response included a Merchant Advice Code of 02 (Cannot approve at this time, try again later).
    • The issuer generated an approval response after previously declining the transaction.
    •  For a card-not-present transaction, the merchant can prove that the cardholder resubmitted the online order.
  • One Authorization with Multiple Clearing Records: Both of the following:
    • One of the following indicators was present in DE 25 (Message Reason Code) of the First Presentment message
      • 1403 (Previously approved authorization—partial amount, multi-clearing)
      • 1404 (Previously approved authorization—partial amount, final clearing)
    • The total of all clearing records submitted in connection with the approved authorization did not exceed the approved amount.
  • CAT 3 Device: The transaction was not a magnetic stripe transaction identified as occurring at a CAT 3 device and the PAN was not listed in the applicable Local Stoplist or Electronic Warning Bulletin File on the date of the transaction and one or both of the following:
    • The transaction was properly identified in clearing as a CAT 3 terminal.
    • The transaction amount was equal to or less than the applicable maximum transaction amount.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account.
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Invalid Chargeback:
      • The first chargeback does not meet the prerequisites for the message reason code.

This section provides information in handling a dispute when the cardholder states that the cardholder did not engage in the transaction.

4837 – No Cardholder Authorization

Description:

The cardholder states that he did not engage in the transaction.

Supporting Documentation:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • Two or More Previous Fraud-related Chargebacks: The issuer approved the transaction after submitting two or more chargebacks involving the same Mastercard card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date).
  • Fraud-related Chargeback Counter Exceeds Threshold: The issuer submitted more than 35 chargebacks involving the same card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date) for message reason codes.
  • Not Reported to the Fraud and Loss Database: The transaction was not properly reported to the Fraud and Loss Database in the Fraud Center application on Mastercard Connect on or before the chargeback date. Mastercard allows three days from the reporting date for this.
  • Contactless Transaction Unattended Terminals: The transaction was a contactless transaction equal to or less than the applicable CVM limit.
  • PIN Transaction: A PIN was present in the Authorization Request
  • Authenticated Transaction: The Authorization Request Response/0110 message reflected the issuer’s approval of the transaction and Electronic Commerce Security Level Indicator and UCAF Collection Indicator contained any of the following values of 211, 212, 215, 217, 221, 222, 225 or 242. For intraregional Europe transactions: The UCAF did not contain the Mastercard-assigned static Accountholder Authentication Value (AAV).
  • Account Takeover: The merchant can provide evidence that the transaction resulted from an account takeover. Evidence may contain a statement from the cardholder confirming that the account was in fact taken over and that fraud subsequently occurred; or the transaction was reported as such by the issuer.
  • Addendum Charges: Documentation substantiating the cardholder has participated in the original transaction and documentation to establish the cardholder is responsible for the addendum transaction. For example, the original rental agreement or hotel folio.
  • Address Verification Service (AVS) Transaction: Both of the following:
    • The Authorization Response/0110 message included a positive Address Verification Service (AVS) response of X or Y.
    • The address to which the merchandise was sent was the same as the AVS-confirmed address.
  • Compelling Evidence for non-face-to-face Airline Transactions: At least one of the following documents and, when necessary, an explanation:
    • Flight ticket or boarding pass showing the passenger’s name.
    • Flight manifest showing the passenger’s name.
    • Additional transactions connected with the disputed flight, such as upgrades, excess baggage charges, and in-flight purchases.
    • Passenger identification documentation showing a link to the cardholder.
    • Credits of frequent flyer miles for the flight, showing connection to the cardholder.
    • Proof of receipt of the flight ticket at the cardholder’s billing address.
  • Compelling Evidence for non-face-to-face Recurring and Installment-based Repayment Transactions: All of the following:
    • A description of the goods or services being provided and documentation proving that the cardholder was informed of and agreed to the recurring or
      installment terms and conditions.
    • The start date of the recurring payment or installment-based repayment arrangement, including the original transaction authorization date, authorization approval code, and if present, the customer-initiated transaction (CIT) value, and SLI value of 212 or 242 or the CVC2 response included a value of M.
  • Compelling Evidence for E-commerce and MOTO Transactions: one of the following documents and, when necessary, an explanation:
    • A receipt, work order, or other document signed by the cardholder substantiating that the goods or services were received by the cardholder, or he cardholder’s written confirmation of registration to receive electronic delivery of goods/services; or copies of written correspondence exchanged between the merchant and the cardholder (such as letter, email, or fax) showing that the cardholder participated in the transaction; or a merchant statement including a description of the goods or services purchased in the initial transaction, date and authorization approval code for the initial transaction; and the initial transaction was not disputed or was an authenticated e-commerce transaction ( SLI value of 212 or 242 or CVC2 with response M); or
    • Documentation confirming the cardholder or authorized user is registered to purchase goods with a password and completed other undisputed purchases prior to, or after, the alleged fraudulent transaction; or the cardholder or authorized user completed the disputed transaction from a registered device and IP address; details of the purchase; signed proof of delivery; email addresses to support digital download delivery; the cardholder or authorized user registered the disputed goods or services. For example, registration for purposes of warranty or future software updates; the disputed goods or services were used; a transaction or Account Status Inquiry request message containing cardholder authentication data was used to register a PAN for future transactions.
  • Invalid Chargeback: the issuer submitted documentation that failed to support the chargeback.
  • Guaranteed Reservation Service (“No-show”): The transaction was the result of a “no show”. Supporting documentation must contain all of the following:
    • The primary account number (PAN).
    • The cardholder’s name present on the card.
    • The confirmation number provided at the time the reservation was made.
  • Chip Liability Shift: All of the following:
    • The transaction was between Customers that participate in the appropriate Chip Liability Shift Program.
    • The transaction was face-to-face, occurred at an attended a hybrid terminal with card-read (not key-entered) account information.
    • The transaction was initiated with a non-EMV chip card.
  • Chip/PIN Liability Shift: A transaction between Customers that participate in the Lost/Stolen/NRI Fraud Chip Liability Shift and the acquirer can show that the transaction occurred at a hybrid terminal equipped with a PIN pad, while the card was not PIN-preferring.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account.
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Invalid Chargeback: The first chargeback does not meet the prerequisites for the message reason code.

4840 – Fraudulent Processing of Transactions

Supporting Documentation:

  • Acquirer needs to provide copies of the legitimate and disputed TID’s and a merchant explanation.
  • If the Second presentment is valid but the issuer still suspects fraud, must be provided another Cardholder letter disputing the merchant’s claim and consider processing an Arbitration Chargeback.

4849 – Questionable Merchant Activity

Description:

The merchant is listed in a Mastercard Announcement for violating the Questionable Merchant Audit Program or the merchant is determined by Mastercard to be performing coercive transactions.

Supporting Documentation:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • Not Considered in Violation of Mastercard Rule for Coercion Claim: One of the following:
    • The claim of coercion was not substantiated against the merchant as determined by Mastercard.
    • The issuer did not include the written notification from Mastercard advising of the substantiated claim of coercion as Supporting Documentation.
  • Late First Chargeback Submission: The issuer submitted the first chargeback more than 30-calendar days after the date of the noncompliance confirmation letter from Mastercard for claims of coercion.
  • Not Reported to the Fraud and Loss Database: the transaction was not properly reported to the Fraud and Loss Database in the Fraud Center application on Mastercard Connect on or before the chargeback date. Mastercard allows three days from the reporting date for this.
  • Ineligible Fraud: the fraud type under which the transaction was reported in the Fraud and Loss Database is not eligible for chargeback (e.g., Account Takeover).
  • Not Listed in Mastercard Announcement: One of the following:
    • The merchant in question was not listed in a Mastercard Announcement.
    • The transaction did not occur within the period specified.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account.
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Invalid Chargeback: The first chargeback does not meet the prerequisites for the message reason code.

4870 – Chip Liability Shift

Description:

The cardholder states that he did not engage in the transaction and the card was an EMV chip card and fraudulent transaction resulted from the use of a counterfeit card at a non-hybrid terminal or the PIN data was not present as required in the authorization message.

Supporting Documentation:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • Two or More Previous Fraud-related Chargebacks: The issuer approved the transaction after submitting two or more chargebacks involving the same Mastercard card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date).
  • Fraud-related Chargeback Counter Exceeds Threshold: The issuer submitted more than 35 chargebacks involving the same card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date) for message reason codes.
  • Not Reported to the Fraud and Loss Database: The transaction was not properly reported to the Fraud and Loss Database in the Fraud Center application on Mastercard Connect on or before the chargeback date. Mastercard allows three days from the reporting date for this.
  • Issuer Authorized Transaction: The transaction was authorized online and did not involve a valid EMV chip card.
  • Technical Fallback: The transaction was the result of technical fallback.
  • Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization: The transaction did not require online authorization and DE 55 was not
    provided in the First Presentment/1240 message and one of the following:
    • The acquirer can prove that the transaction was completed with chip and PIN.
    • Completed with chip while the card was not PIN-preferring.
    • The result of CVM fallback.
  • Chip Transaction-Offline Authorized: All of the following:
    • The transaction was completed by reading the chip.
    • The transaction did not require online authorization.
    • DE 55 was provided in the First Presentment/1240 message.
  • DE 55 Was Provided: Both of the following:
    • DE 55 was provided in the First Presentment/1240 message.
    • The transaction was completed with chip.
  • Invalid Chargeback: The transaction involved an issuer or acquirer located in a country or region without an applicable domestic, intraregional, or interregional chip/PIN liability shift.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account.
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Non-receipt of the required documentation for more than 8 calendar days;
    • Documentation received was illegible;
    • Supporting documentation does not correspond to the transaction being charged back (for example, the documentation concerns a different transaction) or is incomplete.

4871 – Chip/PIN Liability Shift

Description:

  • The cardholder states that:
    • The cardholder did not authorize the transaction.
    • The card is no longer, or has never been, in the possession of the cardholder.
  • Both the issuer and the acquirer are located in a country or region participating in a domestic, intraregional, or interregional lost/stolen/NRI fraud chip liability shift.
  • A fraudulent transaction resulted from the use of a hybrid PIN-preferring card at a magnetic stripe-reading-only terminal (whether PIN-capable or not) or at a hybrid terminal where the PIN pad is not present or not working. Or a fraudulent contactless transaction exceeding the applicable CVM limit resulted from the use of a contactless-enabled hybrid PIN-preferring card or access device at a contactless enabled POS terminal not capable (at a minimum) of performing online PIN verification, or where the PIN pad is not present or not working.”

Supporting Documentation:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • Two or More Previous Fraud-related Chargebacks: The issuer approved the transaction after submitting two or more chargebacks involving the same Mastercard card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date).
  • Fraud-related Chargeback Counter Exceeds Threshold: The issuer submitted more than 35 chargebacks involving the same card account (for this purpose, “account” means primary account number [PAN], or PAN and expiration date) for message reason codes.
  • Not Reported to the Fraud and Loss Database: The transaction was not properly reported to the Fraud and Loss Database in the Fraud Center application on Mastercard Connect on or before the chargeback date. Mastercard allows three days from the reporting date for this.
  • Authorized Online Transaction: Both of the following:
    • The transaction was authorized online.
    • Did not involve a valid EMV chip card.
  • Chip Transaction-DE 55 Not Provided-Did Not Require Online Authorization: The transaction did not require online authorization and DE 55 was not
    provided in the First Presentment/1240 message and one of the following:
    • The acquirer can prove that the transaction was completed with chip and PIN.
    • Completed with chip while the card was not PIN-preferring.
    • The result of CVM fallback.
  • DE 55 Was Provided in the First Presentment/1240 Message: DE 55 was provided in the First Presentment/1240 message and one of the following:
    • The transaction was completed with chip and PIN.
    • The transaction was completed with chip while the card was not PIN-preferring.
    • The transaction was the result of CVM fallback.
  • Invalid Chargeback: The transaction involved an issuer or acquirer located in a country or region without an applicable domestic, intraregional, or interregional chip/PIN liability shift.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Non-receipt of the required documentation for more than 8 calendar days;
    • Documentation received was illegible;
    • Supporting documentation does not correspond to the transaction being charged back (for example, the documentation concerns a different transaction) or is incomplete.
Errors in Processing or Procedure:

A point-of-interaction error chargeback may be submitted when the cardholder contacted the issuer alleging one of the following:

  • The cardholder paid twice for the same transaction using two different forms of payment.
  • The cardholder’s account has been debited more than once for the same transaction using the same form of payment.
  • The cardholder was billed an incorrect amount.
  • Cash was not properly dispensed by an ATM.
  • The cardholder’s account has been debited more than once for the same ATM transaction.
  • The cardholder was billed for loss, theft, or damage in the same transaction as the underlying initial service.
  • A dispute regarding POI Currency Conversion (Dynamic Currency Conversion).
  • The cardholder was billed an unreasonable amount (Intra-EEA Transactions, domestic transactions in EEA countries, transactions between an EEA country and Gibraltar or the UK, Gibraltar domestic transactions, and UK domestic transactions).
  • The cardholder paid an improper merchant surcharge (intra-European and inter-European transactions only).
  • The merchant processed a credit (instead of a reversal) to correct an error which resulted in the cardholder experiencing a currency exchange loss.
  • The acquirer presented a transaction past the applicable time frame.

4802 – Requested/Required Item Illegible or Missing

Supporting Documentation:

The acquirer provides one of the following:

  • Information that was previously missing or illegible.
  • A legible and complete copy of the TID.
  • Supporting Documents Copy of TID or invoice as appropriate.

4831 – Transaction Amount Differs

Description:

  • The cardholder contacted the issuer claiming the cardholder was billed an incorrect amount.
  • The merchant processed a credit (instead of a reversal) to correct an error which resulted in the cardholder experiencing a currency exchange loss. Only the currency exchange loss amount may be charged back.

Supporting Documentation:

  • Payment by Other Means – The merchant provides an explanation plus documents.
  • Correct Transaction Amount- the TID shows that the amount was processed correctly. (For example, there was no error in addition, or the “total” amount on the TID was properly submitted to GCMS.) plus TID doc.
  • Increased Transaction Amount- The merchant can provide documentation that validates the increased debit to the cardholder’s account (Documentation to support that the cardholder is responsible for the disputed amount; for example, charges that the cardholder Authorized were not included on the hotel/motel folio at time of checkout or after the return of the vehicle rental).
  • Unreasonable Amount (Intra-EEA Transactions Only) – The merchant can provide documentation showing the cardholder agreed to an amount range as reasonable, and the transaction amount did not exceed this amount range (Documentation supporting the merchant’s claim that the cardholder agreed to a reasonable amount range; for example:
  • An itemized price list signed by the cardholder and an itemized transaction receipt showing that the transaction amount was calculated on the basis of this price list; or
  • The cardholder’s written agreement to a recurring payment arrangement with the merchant, in which a maximum amount for each payment was specified).
  • The merchant can provide evidence that the cardholder was billed the correct amount.
  • Unreasonable Amount (EEA, Gibraltar, United Kingdom): The merchant can provide documentation showing the cardholder agreed to an amount range as reasonable and the transaction amount did not exceed this amount range.
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account.
  • Improper Merchant Surcharge (Intra-European and Inter-European transactions only): The merchant can provide specific evidence of proper processing in
    response to the cardholder’s claims.
  • ATM Disputes: The acquirer can provide evidence that the funds were correctly dispensed.

4834 – Duplicate Processing

Description:

  • The cardholder’s account has been debited more than once for the same transaction; or the cardholder paid for a transaction using one form of payment and was subsequently debited for the same transaction using another form of payment.
  • The cardholder contacted the issuer claiming the cardholder was billed for loss, theft, or damage in the same transaction as the underlying initial service.
  • An improper merchant surcharge was applied to the total transaction amount.
  • Both the cardholder and the merchant are located in the EEA, Gibraltar, or the United Kingdom.
  • The cardholder contacted the issuer claiming the transaction amount was unreasonable.
  • The exact transaction amount was not specified at the time the cardholder engaged in the transaction.
  • PIN or CDCVM was not used.
  • The transaction amount exceeded what the cardholder could reasonably have expected, taking into account the cardholder’s previous spending pattern, the conditions of the cardholder agreement and the relevant circumstances of the case.

Supporting Documentation:

  • Acquirer provides proof to support two separate transactions or proof that the credit has been processed or the issuer’s first Chargeback was invalid.
  • PIN Transaction- The acquirer can substantiate that a PIN was present in the Authorization Request/0100 message for both transactions.
  • Credit Previously Issued- The acquirer can provide documentation that a credit was issued and processed to the cardholder’s account, correcting the duplication.
  • Two Different TIDs – ATM Only – Documentation that verifies the disbursement of funds. For example, the acquirer provides an audit tape showing that the ATM dispensed the requested amount. Two Different TIDs – Non-ATM – The acquirer can provide documentation to support two separate transactions by providing two different TIDs with the same cardholder account number.
  • Invalid Message Text- The issuer did not include two sets of acquirer reference data with the original Chargeback.
  • The merchant can provide evidence of proper processing in response to the cardholder’s claims. Supporting documentation: TIDs documenting two separate transactions; The documentation must clearly establish that the cardholder was not debited more than once for the same goods or services. A merchant explanation must be included when the documentation does not clearly establish the above.
  • In addition to the above, the merchant can substantiate that a PIN was present in the Authorization Request message for both transactions.

4842 – Late Presentment

Description:

  • The account is permanently closed.
  • The issuer used good-faith efforts to collect the transaction amount from the cardholder.
  • The transaction was not presented within the required clearing time frames.

Supporting Documentation:

  • Correct Transaction Date – The acquirer provides the correct transaction date that is within applicable time limit set forth in the Time Frame for First Presentment section.
  • Account Not Permanently Closed – The acquirer may prove that the account is not permanently closed after the Chargeback was processed.
  • Delayed Presentment:
    • The merchant’s delay in submitting the transaction, Transaction Records of the Transaction Processing Rules; or
    • A national bank holiday of at least four consecutive days prevented the acquirer from receiving the transaction within the applicable seven-calendar-day time frame (Official documentation from the banking regulator or other authority showing the dates of the national bank holiday).
  • One of the following:
    • The account is open.
    • The transaction was presented within the required time frame.
  • For Corrected Transaction Date: Both of the following:
    • The transaction date in the First Presentment message was incorrect.
    • The correct transaction date is within the applicable time frame for a First Presentment message.

4846 – Correct Transaction Currency Code Not Provided

Description:

POI Currency Conversion (Dynamic Currency Conversion) was performed, and the cardholder stated that the cardholder did not consent to the POI Currency Conversion; or Currency conversion was performed incorrectly resulting in an incorrect amount being deducted from the cardholder’s account

Supporting Documentation:

  • Second Presentment Condition – The acquirer determines that the Chargeback was invalid because the correct transaction amount and currency code were provided. In a dual currency environment, the merchant specified a currency indicator on the TID.
  • Supporting Documents – Documentation proving the correct currency was provided or specified.
  • Documentation detailing that the transaction was correctly processed using the correct transaction amount and currency code. If necessary, an explanation to ensure that all parties understand the documentation. The merchant or acquirer can document that the transaction was processed correctly using the correct transaction amount and currency code. This second presentment is not available for POI currency conversion (DCC) disputes regarding the cardholder’s agreement to the conversion. For the avoidance of doubt, this means that an acquirer cannot provide terminal logs or any other documentation as a valid second presentment.

4850 – Installment Billing Dispute

Supporting Documentation:

  • The acquirer can substantiate that the number of installments in the Financial Detail Addendum (Generic Detail)/1644 message is the same as the number of installments agreed by the cardholder at the POI.
  • Supporting Documents One of the following:
  • A copy of the TID or other documentation showing that the cardholder agreed to the number of installments processed, or
  • Proof that the acquirer corrected the discrepancy that led to the dispute
  • A copy of the TID or other documentation showing that the cardholder agreed to the amount processed.

4863 – Cardholder Does Not Recognize – Potential Fraud

Supporting Documentation:

  • Documentation of positive AVS response X or Y.
  • Documentation that shows the merchandise was sent to the AVS-confirmed billing address.
  • The acquirer must provide additional information, not contained in the Authorization or clearing message that would help to identify the transaction.
  • Additional information includes one or more of the following:
  • A description of the merchandise or services.
  • The original transaction amount if the disputed transaction represents partial shipment.
  • “Ship to” address (if applicable).

In addition, the following representment options are available for chargebacks related to point-of-interaction errors:

  • Charges for Loss, Theft, or Damages: The merchant can provide evidence of both of the following:
    • The cardholder was notified of the charges for loss, theft, or damages.
    • The cardholder authorized the charge for loss, theft, or damages.
  • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
  • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
  • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
  • Invalid Chargeback: The first chargeback does not meet the prerequisites for the message reason code;
  • Non-receipt of the required documentation for more than 8 calendar days; 6. Documentation received was illegible;
  • Supporting documentation does not correspond to the transaction being charged back (for example, the documentation concerns a different transaction) or is incomplete.
Cardholder Disputes

A Cardholder Dispute chargeback may be submitted when the cardholder contacted the issuer alleging one of the following:

  • Goods or services were either not as described or defective, including shipped merchandise was received damaged or not suitable for its intended purpose as well as the merchant didn’t honor the terms and conditions of a contract.
  • Goods or services were not provided.
  • Digital goods were purchased totaling USD 25 or less and did not have adequate purchase controls.
  • Credit not processed.
  • Counterfeit goods alleged to be authentic were purchased.
  • Recurring transaction canceled prior to billing.
  • Addendum dispute or “no-show” hotel charge was billed.
  • Purchase transaction did not complete.
  • Timeshare agreement or similar service provision was canceled within Mastercard time frame, regardless of the contractual terms.
  • Credit posted as a purchase.

Gambling and Investment Chargebacks

Chargebacks are available to the issuer for transactions in which value or assets are purchased for gambling, investment, or similar purposes and they are not provided according to the contractual terms and conditions agreed to between the cardholder and the merchant.

Additionally, chargebacks are available when the value or assets are made inaccessible for use in violation of the contractual terms and conditions. This may include, but is not limited to, when the value or assets are unable to be withdrawn by the cardholder or are transferred to an account outside the cardholder’s control without the cardholder’s authorization.

An issuer has no chargeback rights related to the use or authorized transfer of such value or assets, or on any winnings, gains or losses resulting from the use of such value or assets. An example includes, but is not limited to, when the value or assets are subsequently exchanged or otherwise utilized in a separate, non-Mastercard transaction.

4841 – Canceled Recurring Transaction

Description:

  • The cardholder notified the merchant to cancel the recurring transaction and the merchant continued to bill the cardholder; or the cardholder was not aware that he was agreeing to a recurring transaction.
  • The issuer previously notified the merchant or acquirer to cancel the recurring transaction prior to the disputed transaction occurring or initiated a chargeback related to the same card PAN and merchant.

Supporting Documentation:

  • The Acquirer can prove that the CB is not valid; for example, the CH continued to use the service.
  • The acquirer can substantiate one of the following:
  • The transaction was not a recurring transaction. For example, the merchant bills the cardholder in installments.
  • The transaction was recurring and the cardholder failed to meet the cancelation terms of the signed contract.
  • The merchant can document that services are being provided to and used by the cardholder after the cancelation date.

4853 – Cardholder Dispute – Defective/Not as Described

Description:

  • Goods or Services Were Either Not as Described or Defective; the goods arrived broken or could not be used for the intended purpose; or goods and services did not conform to their description. Examples include, but are not limited to: the cardholder claims that the quality of the product is not as described, the specified color, size, or quantity is not as described.
  • The merchant did not honor the terms and conditions of the contract.
  • The cardholder claims that the goods were purported to be genuine, but were counterfeit.

Supporting Documentation:

  • The Acquirer provides evidence that the goods or services described on the TID were “as described”, or, if the CH is claiming defective goods, that the goods were not broken, damaged, or unsuitable when delivered.
  • The merchant corrects the problem that led to CB (for example, the merchant repairs or replaces the merchandise). The Acquirer can provide proof that the merchandise is not counterfeit (Counterfeit Goods).

4854 – Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only)

Supporting Documentation:

  • The acquirer can document it corrected the deficiency that led to the Chargeback (Supporting Documents – Copy of the TID or invoice; Merchant’s written rebuttal).
  • The acquirer substantiates that the Chargeback was invalid. (For example, the necessary supporting documentation failed to support the Chargeback).
  • The acquirer substantiates that the surcharge was correctly processed – Documentation proving the surcharge was correctly processed.
  • The acquirer substantiates that the pro-rated surcharge was incorrectly calculated by the issuer – Documentation proving the surcharge was incorrectly calculated.

4855 – Goods or Services Not Provided

Description:

  • The purchased goods or services were not received.
  • Travel services arranged through an online travel agency or tour operator were not received and the travel agency or tour operator is no longer in business.
  • Travel/Entertainment Services Not Provided- The purchased goods or services were not received due to merchant cancelation; the merchant is unable or unwilling to honor the voucher in violation of the voucher terms and conditions. Applicable for MCCs 3000 through 3350, 4511 (airlines); 3351 through 3500, 7512 (car rental), 3501 through 3999, 7011 (hotels), 4411 (cruise lines), 7519 (vehicle rental), 6513 (real estate rental), 7922 (ticket agencies), 4722 (travel agencies).
  • A travel service has not, or will not, be provided, and the merchant is seeking protection from creditors, insolvent, bankrupt or in liquidation.
  • The disputed transaction failed to complete or cardholder did not use the goods or services.

Supporting Documentation:

The Merchant provides information, which shows that the merchandise was delivered to the CH (for example, delivery receipt or detailed invoice), or an explanation to CH’s statement or a signed document by the CH removing the merchant’s responsibility for delivery.

4859 – Addendum, No-show, or ATM Dispute

Description:

  • Dispute of a separate transaction that occurs after a valid transaction involving the same merchant and the same cardholder.
  • The cardholder contacted the issuer to dispute a “no-show” hotel charge from a merchant that participates in the Mastercard Guaranteed Reservations Service and billed the cardholder.
  • The cardholder contacted the issuer alleging one of the following:
    • Some or all of the funds debited from the cardholder’s account as the result of an ATM withdrawal were not dispensed.
    • The cardholder’s account has been debited more than once for the same transaction.

Supporting Documentation:

  • Documentation that verifies the disbursement of funds; for example, the acquirer provides an audit tape showing that the ATM dispensed the requested amount.
  • The acquirer can provide a copy of a signed and imprinted sales form verifying that the transaction was not a “no-show” charge.
  • The merchant or acquirer states that the merchant has a formal Guaranteed Reservation Program and that there is no record of cardholder cancelation when the cardholder canceled the reservation and cannot provide a cancelation number.
  • The acquirer can request that the issuer show proof that the cardholder contacted the hotel canceling the reservation.
  • The acquirer can provide documentation substantiating that the cardholder was advised before the date of the reservation that he would be billed a “no-show” fee if the reservation was not canceled before 18:00 (merchant’s local time) on the date of the reservation.
  • For disputes involving the rate of the “no-show” fee, the acquirer can provide documentation substantiating that the cardholder was notified of the rate before the date of the reservation.

4860 – Credit Not Processed

Description:

  • The merchant agreed to provide a refund and failed to process that refund; or the merchant failed to disclose its refund policy at the time of the transaction and is unwilling to accept a return or cancelation of goods or services; or did not process the refund for the whole amount.
  • The merchant agreed to provide a refund and failed to process that refund; or the merchant failed to disclose its refund policy at the time of the transaction and is unwilling to accept a return or cancelation of goods or services; or did not process the refund for the whole amount. Applicable for MCCs 3000 through 3350, 4511 (airlines); 3351 through 3500, 7512 (car rental), 3501 through 3999, 7011 (hotels), 4411 (cruise lines), 7519 (vehicle rental), 6513 (real estate rental), 7922 (ticket agencies), 4722 (travel agencies).
  • The cardholder contacted the issuer claiming that the cardholder canceled the timeshare or similar provision of services within the Mastercard time frame, regardless of the contractual terms.
  • The cardholder contacted the issuer claiming that the cardholder account has been inaccurately posted with a debit instead of a credit.

Supporting Documentation:

The Acquirer provides proof that the credit has been processed. The Merchant has not received the merchandise in return. The Merchant must accept the return of merchandise or cancelation of services unless prior disclosure of the cancelation policy was provided at the time of transaction, e.g. the Merchant’s refund policy is printed on the sales slip for invoice (example, “in store Credit Only: of “Final sale”).

Evidence should include one of the following:

  • Details of the Credit Transaction
  • When the credit was processed by other means: The date of the credit transaction and compelling evidence showing the credit was processed. Examples include, but are not limited to: bank transfer, store credit, check, cash, prepaid card.

4999 – Domestic Chargeback Dispute (Europe region only)

Description:

The issuer may not use this reason code when the transaction was a Mastercard Commercial Payments Account transaction. A Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First Presentment/1240 message.

In addition, the following representment options are available for chargebacks related to cardholder disputes:

  • PAN Mismatch: The Primary Account Number (PAN) in chargeback supporting documentation differs from the PAN included by the acquirer in the clearing record.
  • General Second Presentment: The Merchant can provide evidence in response to the Cardholder’s claims. When the Second Presentment is in response to a Chargeback for an Addendum Dispute the acquirer must provide proof the transaction was completed as described in the Transaction Processing Rules, section 3.12 Charges for Loss, Theft, or Damage. When the Second Presentment is in response to a Chargeback for Credit Not Processed, the acquirer must provide documentation that proper disclosure was made in accordance with the Transaction Processing Rules, section 3.11 Specific Terms of a Transaction.
  • Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only: The Merchant can provide evidence in response to the cardholder’s
    claims. It should include one of the following:
    • Proof that the cardholder (or traveler) received reimbursement from the merchant, a bonding authority or similar scheme according to local law.
    • The merchant’s explanation and documentation showing that the travel services paid for will be provided or were available to the cardholder (or traveler).
    • The merchant’s explanation and documentation, specifically documenting that the travel services are covered by a bonding authority or similar scheme according to local law and that the cardholder (or traveler) has recourse to collect reimbursement. Instructions on how to request reimbursement must be provided. A statement that a bonding authority or similar scheme exists is not sufficient by itself. This remedy is not applicable to Swedish domestic transactions.
  • Digital Goods Purchase of USD 25 or Less: The Merchant can substantiate that they offered at least the following minimum purchase controls at the time of the transaction or transactions:
    • The option, enabled as a default setting, for the cardholder to disable all digital goods purchases;
    • The time period during which a digital goods purchase can be made on the cardholder’s account with the merchant (the “account open” period) must not exceed 15 minutes from the time at which the cardholder enters account authentication credentials; and
    • Allowing the cardholder to confirm or to cancel the clearly displayed total transaction amount of each pending digital goods purchase before completion of the transaction. Documentation should support that the chargeback is remedied or invalid (for example, website screen images).
  • Credit Previously Issued: The merchant issued a credit to the cardholder’s account. Evidence should include one of the following:
    • Details of the Credit Transaction
    • When the credit was processed by other means: The date of the credit transaction and compelling evidence showing the credit was processed. Examples include, but are not limited to: bank transfer, store credit, check, cash, prepaid card.
  • Other representment options:
    • The combination of Primary Account Number and Acquirer Reference Data contained in the chargeback record does not match the information contained in the first presentment record;
    • Duplicate Chargeback: The issuer processed a first chargeback for the same transaction more than once. Mastercard recommends that the Merchant provides the processing date and chargeback reference number of the original chargeback with its second presentment;
    • The issuer’s first chargeback is processed past the time frame specified for the chargeback;
    • Invalid Chargeback: The first chargeback does not meet the prerequisites for the message reason code;
    • Non-receipt of the required documentation for more than 8 calendar days;
    • Documentation received was illegible;
    • Supporting documentation does not correspond to the transaction being charged back (for example, the documentation concerns a different transaction) or is incomplete.

AMEX

CHARGEBACK REASON CODES

Chargeback CategoryChargeback Reason CodeReason Description
FRAUD4527Missing imprint
4534Multiple ROCs
4540Card not present
4755No valid authorization
4763Fraud full recourse
4798Fraud liability shift – counterfeit
4799Fraud liability shift – lost/ stolen
AUTHORIZATION4521Invalid authorization
PROCESSING ERRORS4507Incorrect transaction amount or primary account number presented
4512Multiple processing
4523Unassigned Cardholder account number
4530Currency discrepancy
4536Late presentment
4752Credit/debit presentment error
CONSUMER DISPUTES4513Credit not presented
4515Paid through other means
4544Cancellation of recurring goods/services
4553Not as described
4554Goods/ services ordered but not received
4750Car rental charge non-qualified/unsubstantiated
4754Local regulatory/legal dispute
FAILURE TO RESPOND TO RETRIEVAL REQUEST4516No reply to disputes enquiry letter
4517Insufficient or unclear reply to disputes enquiry letter
RETRIEVAL6003Chargeback documentation
6006Legal Request or Fraud Analysis
6008Cardholder Requests Copy of Record of Charge (ROC)
6013Repeat Documentation Request
6014Cardholder does not recognize Transaction or Transaction Amount
6016Cardholder needs for personal records

DISPUTE REQUIRED DOCUMENTATION

FRAUD

4527 Missing Imprint

Description:

The Cardholder denies participation in a Transaction in which the Merchant fails to obtain a physical or electronic Imprint of the Card.

Supporting Documentation:

  • Proof that a correcting credit has already been processed
  • Proof the Card was present at the time of the charge by providing an imprinted receipt or showing capture of the magnetic stripe.

The following Transactions are excluded from processing under this Chargeback Code:

  • Authorized Transactions where the full magnetic stripe was sent to the Issuer with the Authorization Request.
  • Mail/Telephone/Internet.
  • Chip Card Transactions where a Transaction Certificate is provided in the First Presentment.
  • Digital Wallet Program Transactions.
  • Merchant-Presented Quick Response (MPQR) Transactions.
  • Transactions to fund a Stored Value Digital Facility (SVDF).
  • Transactions using a flat-printed Card.

EXAMPLE:

  • Date/amount of credit and reason (if not issuing full amount)
  • A copy of the imprinted receipt or showing capture of the magnetic stripe.

4534 Multiple ROCs

Description:

The Cardholder denies participation in one or more suspect Transactions at the same Merchant where the Cardholder had previously used his/her Card.

Supporting Documentation:

  • Proof that a correcting credit, which directly offsets the disputed Transaction, has already been processed
  • Fully itemized documents that link the Cardholder to each charge processed and prove that all transactions are valid.

EXAMPLE:

  • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice that links each good/service to each charge.

4540 Card Not Present

Description:

The Cardholder denies participation in a Mail/Telephone/Internet Transaction, which may or may not have been Authorized by the Issuer.

Supporting Documentation:

  • Proof that a correcting credit has already been processed.
  • Evidence that the Cardholder did engage in the transaction.
  • Proof that the goods were sent to Cardholder’s billing address and that Cardholder or an authorized representative signed a carrier delivery receipt for goods.

EXAMPLE:

  • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice/receipt that directly links Cardholder to the order
  • An invoice and delivery receipt signed by the Cardholder or their Authorized representative

In addition, the following documentation is considered Compelling evidence proving that the Cardholder engaged in the transaction:

  • For Transactions involving the shipment of Goods or Services, proof that the Transaction contains a shipping address that matches a previously used shipping address from an undisputed Transaction.
  • For airline or passenger transportation Transactions, one (1) of the following:
    • Evidence the Cardholder participated in the flight or transportation (e.g., scanned boarding pass or passenger manifest).
    • Credits of frequent-flier miles or loyalty point program for the flight or travel in question, showing a direct connection to the Cardholder.
    • Proof of receipt of the flight or transportation ticket at the Cardholder’s billing address.
    • Proof that the Transaction contains the designated passenger name that matches a previously used passenger name from an undisputed Transaction.
  • For E-commerce Transactions involving the sale of Digital Goods or Services, provide all of the following:
    • Cardholder name linked to the account with the Merchant.
    • Description of the Goods or Services, and the date/time they were purchased and downloaded, accessed by, or provided to the Cardholder.
    • Proof that the device and Card used for the disputed Transaction was used in a previous, undisputed Transaction. In addition, provide the following information that is currently linked to the Cardholder account with the Merchant:
      • Device ID
      • IP address and geographical location
      • Device name (if available)

In addition, provide three (3) or more of the following:

    • Proof that the Merchant validated the Card and the Cardholder prior to or at the time of purchase (e.g., AAV (Automated Address Verification) verification response of “Y” or PCSC (Printed Card Security Code) verification response of “Y”).
    • Proof that the customer’s account with the Merchant was accessed by the customer and successfully verified by the Merchant on or before the Transaction date.
    • Proof that the Cardholder password or CDCVM was captured by the Merchant in order to complete the Transaction.
    • Cardholder phone number and/or email address linked to the customer profile held by the Merchant.
  • For Recurring Billing Transactions, all of the following must be provided:
    • Proof of a legally binding contract held between the Merchant and the Cardholder.
    • Proof the Cardholder accessed the Merchant’s website or application to establish Services on or before the Transaction date.
    • Proof the Cardholder received the Goods or Services.
    • Proof of a previous Transaction that was not disputed.
  • For Transactions involving the sale of website search and/or advertising Services to promote consumer products or Services, all of the following must be provided:
    • Proof of a legally binding contract held between the Merchant and the Cardholder.
    • Details of the initial ad-service setup, including at least two (2) of the following items:
      • Purchaser’s IP address and geographical location at the date and time of the initial ad-service setup
      • Email address of purchaser
      • Company name or purchaser name
    • Proof the Cardholder has accessed the Merchant’s website to establish Services on or before the Transaction date.
    • Proof that the device and Card used for the disputed Transaction was used in a previous, undisputed Transaction. In addition, provide the following information that are currently linked to the Cardholder account with the Merchant:
      • Device ID
      • IP address and geographical location
      • Device name (if available)
    • Proof that the Cardholder received the Goods or Services.
    • Description of the Goods or Services and the date they were provided.

    • 4755 No Valid Authorization

    Description:

    The Cardholder denies participation in a Transaction where Authorization was required but not obtained.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that a single authorization for the full amount of the transaction was obtained on the transaction date.

    EXAMPLE:

      • Date/amount of credit and reason (if not issuing the full amount)
      • A valid authorization code obtained prior to the submission of the charge for the full transaction amount.

    4763 Fraud Full Recourse

    Description:

    The Cardholder denies participation in the Transaction and the Merchant is listed on the High-Risk Merchant list due to violation under the Amex Full Fraud Recourse Program or other derogatory reasons.

    The Fraud Full Recourse Chargeback allows Issuers the right to transfer liability of all fraud types, including counterfeit Cards, to the Acquirer for any Merchant subject to this Chargeback.

    AMEX may, in its sole discretion, remove eligibility for Excluded Transactions for an industry or a specific Merchant that represents elevated risk to the Network.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that transaction falls in list of exempted transactions.

    EXAMPLE:

    • SafeKey transactions are exempted
    • And so are the AEIPS compliant chip and PIN transactions.

    4798 Fraud Liability Shift – Counterfeit

    Description:

    The Cardholder denies participation, and the Transaction is classified by the Issuer as counterfeit or skimmed fraud, and the Transaction was processed on a Card Account that was issued with a chip/PIN Card, and the Transaction was performed using a lower level technology than the Card. (i.e., Magnetic Stripe or key-entered).

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that the Issuer Authorized the Transaction as a magnetic stripe-read when the Service Code was not a Chip Card-assigned Service Code.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Proof of chip and PIN verification OR an authorization code (non-chip and PIN card).

    4799 Fraud Liability Shift – Lost/Stolen/Non-received

    Description:

    Transactions conducted with a chip and PIN Card at a POS device that is unable to process a chip and PIN Transaction.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof a valid transaction was authorized.
    • Proof that the Issuer Authorized the Transaction as a magnetic stripe-read when the Service Code was not a Chip Card-assigned Service Code.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Proof of chip and PIN verification OR an authorization code (non-chip and PIN card).
    AUTHORIZATION

    4521 Invalid Authorization

    Description:

    A charge was submitted for payment where either the approval code had expired (valid for 7 calendar days); the authorization was declined or a single authorization for the total charge amount was not obtained.

    Supporting Documentation:

    • Proof that a correcting credit, which directly offsets the disputed Transaction, has already been processed.
    • Proof that a single authorization for the full amount of the transaction was obtained on the transaction date and submitted in less than 7 days after obtaining authorization.
    • Proof that Authorization was obtained in accordance with requirements for estimated Charge amounts (in most cases a variance up to 15% is allowed; 20% for restaurants, taxis); . Only the Authorized amount plus the allowable percentage can be submitted as a Second Presentment.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing full amount)
    • A valid authorization code obtained prior to the submission of the charge for the full transaction amount.
    PROCESSING ERRORS

    4507 Incorrect Transaction Amount or Primary Account Number Presented

    Description:

    Cardholder advised charges were incorrectly submitted by either being altered after signed for by them or submitted using an incorrect Card number or charge amount. The amount to be charged back is limited to the difference between the correct amount and the incorrect Presentment amount.

    Supporting Documentation:

    • Proof that a correcting credit transaction, which directly offsets the disputed Transaction, has already been processed.
    • Proof that the transaction amount is correct or that the amount had not been altered.
    • Itemized support for the altered amount and that it was approved by the Cardholder.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized receipt/invoice for the full amount of the charge
    • Statement proving Cardholder agreed to this amount
    • A copy of the imprinted slip, which confirms the PAN

    4512 Multiple Processing

    Description:

    A charge was incorrectly submitted more than once to Cardholder’s account.

    Supporting Documentation:

    • Proof that a correcting credit transaction, which directly offsets the disputed Transaction, has already been processed
    • Fully itemized documents that links the Cardholder to each charge processed and prove that all transactions are valid
    • Proof that the Transaction falls into one (1) of the excluded Transaction types (e.g., copy of airline tickets, scanned boarding passes, or passenger manifest(s), etc.)

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized invoice that links each good/service to each charge

    4523 Unassigned Cardholder Account Number

    Description:

    Card number provided was not valid and American Express was not able to assign the charge to the correct account.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed
    • Evidence a Card carrying the disputed account number was used at Point of Sale terminal with a copy of the imprinted slip or a copy of the receipt that read the account number from the magnetic strip or chip.
    • Evidence that the disputed transactions falls in one of the below categories:
      • Transactions in which an Authorization has been obtained from the Issuer, the Issuer’s agent or during Stand-In; or
      • Chip Card Transactions where a Transaction Certificate provided in the First Presentment bears the same Card number.
      • Merchant-Presented Quick Response (MPQR) Transactions.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • A copy of imprinted slip or receipt showing the account number from the magnetic stripe.

    4530 Currency Discrepancy

    Description:

    Cardholder advised the charge is in a currency that differs from that which they originally agreed upon.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed
    • Proof the Cardholder agreed to be charged in the currency.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Receipt stating the currency the Cardholder agreed to at time of sale.

    4536 Late Presentment

    Description:

    Presentment was not submitted within the required time frame (7 days).

    Supporting Documentation:

    • Proof that a correcting credit has already been processed
    • Proof the transaction was submitted within the required time frame.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Documents showing the charge was submitted within valid time frames.

    4752 Credit/Debit Presentment Error

    Description:

    Credit Transaction sent as debit, or debit Transaction sent as Credit.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that the transaction was correctly processed.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized invoice detailing charge amount submitted.
    CONSUMER DISPUTES

    4513 Credit Not Presented

    Description:

    Cardholder advised a credit has not been applied to their account for either goods/services canceled, an advance deposit/payment, or a no-show reservation.

    Supporting Documentation:

    • Proof that a correcting credit Transaction, which directly offsets the disputed Transaction, has already been processed.
    • Proof that instead of the Credit the merchant provided substitute Goods or Services that were accepted by the Cardholder.
    • That the merchant provided its cancelation/return policy to the Cardholder at the time of the purchase, and that the Cardholder did not comply with that policy.
    • Copy of signed support; itemization and proof that the refutes the Cardholder’s claim or proof that their evidence is incorrect or inaccurate.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing full amount)
    • Itemized invoice linking the order to the Cardholder and copy of the cancelation Policy highlighting non-compliance and why no credit is due
    • Proof refuting Cardholder’s claim that Goods were returned, when such return was due
    • Proof that otherwise supports the validity of the No Show Reservation or Advance Deposit claim

    4515 Paid through Other Means

    Description:

    Cardholder advised a payment for the disputed charge was made by other means.

    Supporting Documentation:

    • Proof that a correcting credit transaction, which directly offsets the disputed Transaction, has already been processed.
    • Proof that the Cardholder’s payment was not related to the disputed transaction.
    • Proof and explanation certifying in detail how the alternative for of payment is not valid or that the merchant did not receive payment by other means for the same goods or services.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing full amount)
    • Fully itemized invoice/receipt that links the payment to another charge

    4544 Cancelation of Recurring Goods/Services

    Description:

    Cardholder advised that their Card account continues to be billed for recurring goods or services that the Cardholder had previously canceled or revoked.

    Supporting Documentation:

    • Proof that a correcting credit, which directly offsets the disputed Transaction, has already been processed.
    • Copy of signed support/itemization and proof that refutes Cardholder’s claim.
    • Proof that the Cardholder has not canceled and continues to use the Service or receive the Goods, and a copy of the Recurring Billing cancelation process and cancelation policy.

    The following Transactions are excluded from processing under this ISO Code:

    • Any Transaction other than Recurring Billing Charges for Goods or Services, including Deferred Billing Charges.
    • Card Present Transactions.
    • Merchant-Presented Quick Response (MPQR) Transactions.
    • Installment Payment Provider Transactions.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized invoice linking the order to the Cardholder and a copy of the cancelation policy explaining why credit is not due.

    4553 Not as Described or Defective Merchandise

    Description:

    The Cardholder received Goods or Services that are different than the written description provided by the Merchant at the time of the purchase, or the Cardholder received damaged Merchandise or defective Merchandise or Services.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that the goods or services were as originally described or documentation that refutes the Cardholder’s claim.
    • Copy of signed support: detailed itemization of transaction, return/refund policy and authentication or written appraisal or goods (where possible).
    • Show that the Cardholder agreed to accept the Goods or Services “as is.”
    • Proof refuting Cardholder’s claim that Goods were returned to the Merchant, that the Services were canceled, or that the Cardholder did not attempt to resolve the issue with the Merchant.
    • If returned, state how the Cardholder did not comply with Merchant’s clearly documented cancelation, return policy or applicable law and regulations.
    • Show that an attempt was made by the Merchant to repair or replace damaged or defective Goods or to provide replacement Services.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized invoice, product information or marketing information that describes the product/service and the costs
    • Terms and conditions of sale and authenticated value of goods/service
    • Proof that the Goods or Services matched what was described at the time of purchase (e.g., emails, certificate of authenticity, photographs)

    4554 Goods/Services Ordered but Not Received

    Description:

    Cardholder has advised us that the goods or services that were purchased have not been received.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that the goods/services were received in their entirety by the Cardholder or their authorized representative.
    • Proof refuting that the services were canceled OR the goods were returned to the Merchant’s business OR seized/held by customs.
    • For airline transaction disputes, acquirer may demonstrate that Cardholder was engaged in the transaction.
    • Proof that the Goods or Services were delivered to the address specified by the Cardholder.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • An invoice, signed delivery receipt or proof of use
    • An invoice and delivery receipt signed by the Cardholder or an authorized representative.
    • Documents from customs authorities indicating they currently hold them
    • Copy of boarding pass, credit of frequent flier miles for flight in question.

    The following documentation will be considered compelling evidence of delivery:

    • For Transactions involving the shipment of Goods or Services, evidence to prove that there is a link between the Person who received the Goods or Services and the Cardholder (e.g., photographs, emails).
    • For airline or passenger transportation Transactions, one (1) of the following:
      • Evidence the Cardholder participated in the flight or transportation (e.g., scanned boarding pass or passenger manifest)
      • Credits of frequent-flier miles or loyalty point program for the flight or travel in question, showing a direct connection to the Cardholder
      • Proof the flight in question was available during airline bankruptcy proceedings
      • Additional Transactions related to the original Transaction, such as seat upgrades, baggage payment, or purchases made on board the aircraft or transportation vehicle
      • Itemized invoice for associated charges
    • For E-commerce Transactions representing the sale of Digital Goods or Services downloaded, accessed by or provided to the Cardholder, one (1) of the following must be provided:
      • Proof that the Cardholder’s IP address at the time of the purchase matches the IP address where the Digital Goods were downloaded
      • Proof the Cardholder’s email address provided at the time of the purchase matches the email address used to deliver the Digital Goods
      • Proof that the S/E’s website was accessed by the Cardholder for Digital Services after the Transaction date
    • For Card Not Present Transactions where the Goods are picked up at the S/E Location, the Acquirer must provide the Cardholder or authorized third-party signature on the pick-up form as well as additional proof to demonstrate that the identity of the Cardholder or authorized third party was verified at the time of pick-up.

    4750 Car Rental Charge Non-qualified/Unsubstantiated

    Description:

    Cardholder has advised us that the transaction includes a charge for damage, theft, loss, or related fees for the rental vehicle that were not agreed upon at the time the vehicle was returned.

    Supporting Documentation:

    • Proof that a correcting credit has already been Processed.
    • In instances where the Cardholder claims the Transaction amount exceeded the estimated amount by more than 15%, proof that the Charge submitted was within the specific estimate of the capital damages agreed to by the Cardholder, plus 15%.
    • Signed copy of the rental agreement including terms and conditions, cancelation/refund policy and rate schedule
    • Damage report; itemized repair bill and signed acknowledgment of responsibility agreeing to charges after damage. In instances where the Cardholder claims they purchased the car rental merchant’s collision, loss, or theft insurance – Proof refuting Cardholder’s claim of such insurance (i.e., rental agreement evidencing Cardholder’s waiver of insurance or Documentation that shows the Cardholder purchased insurance that was not sufficient to pay for the capital damages).

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Signed rental agreement with terms and conditions and cancelation policy
    • Damage report and signed acknowledgment of responsibility.

    4754 Local Regulatory/Legal Dispute

    Description:

    Disputes raised by Cardholder under rights provided by law and where no other Chargeback rights apply.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed
    • Supporting Documentation demonstrating that the alleged law/regulation does not exist (e.g. was repealed or expired), the Cardholder is not covered by it, it does not apply to the facts of the Cardholder’s dispute, or it does not establish an obligation of the Merchant.

    EXAMPLE:

      • Date/amount of credit and reason (if not issuing the full amount)
      • Documentation of the laws or regulations applicable to Merchant’s business that refute the Cardholder’s claim.
    FAILURE TO RESPOND TO RETRIEVAL REQUEST

    4516 No Reply to Disputes Enquiry Letter

    Description:

    American Express requested documents to support a dispute that a Cardholder has raised but did not receive a reply from the Merchant. As a general rule, if the Merchant did not provide the correctly requested Documentation with a Fulfillment, a Second Presentment right will not be available. There is an option to present the below evidence.

    Supporting Documentation:

    • Proof that a correcting credit has already been processed.
    • Proof that the Chargeback is a result of an invalid Retrieval Request.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing full amount)
    • Correct, relevant information, where the Issuer has requested invalid information

    4517 Insufficient or Unclear Reply to Disputes Enquiry Letter

    Description:

    The Merchant provided illegible or incomplete Documentation, or or didn’t link the charge to the Cardholder .

    Supporting Documentation:

    • Proof that a correcting credit transaction, which directly offsets the disputed Transaction, has already been processed.
    • Proof that required documentation was sent within the specified time frames and was legible, complete and correct.
    • Proof that the Chargeback is a result of an invalid Retrieval Request.
    • Documentation that either:
      • Refutes the issuer’s declaration regarding the necessity of the Documentation to support a Cardholder inquiry, substantiate a Chargeback, or support a legal or fraud investigation, or
      • Provides the documentation stated in the issuer’s declaration.

    EXAMPLE:

    • Date/amount of credit and reason (if not issuing the full amount)
    • Itemized invoice/receipt that directly links the Cardholder to the charge
    • A successfully completed fax transmission report.
    RETRIEVAL

    6003 Chargeback Documentation

    Description:

    Issuer is requesting Documentation to validate that the Transaction qualifies for a First Chargeback

    Supporting Documentation:

    • Clearly signed (except for PIN transactions) and itemized receipt or invoice that supports the transaction
    • Proof that the Cardholder member agreed to transaction/made the booking or reservation and received confirmation
    • Website name/URL/product description/IP address/cancelation policy
    • Signed proof of shipment and delivery with the delivery address and date.
    • Shipping date and shipping address must be provided when the intended Chargeback reason code is “4554 – Goods and Services Not Received”.
    • Shipping date must be provided when the intended Chargeback reason code is “4513 – Credit Not Presented” and the Goods or Services were canceled or returned.

    EXAMPLE:

    • Signed receipt and itemized invoice
    • Itemized invoice linking the order to the Cardholder and the booking
    • Confirmation/cancelation policy
    • Signed proof of delivery receipt

    6006 – Cardholder Claims Fraud

    Description:

    Issuer is requesting Documentation in support of a fraud investigation or as a result of a legal request.

    Supporting Documentation:

    • Clearly signed (except for PIN transactions) and itemized receipt or invoice that supports the transaction
    • Proof that the Cardholder agreed to transaction/made the booking or reservation and received confirmation
    • Website name/URL/product description/IP address/cancelation policy
    • Signed proof of shipment and delivery with the delivery address and date

    EXAMPLE:

      • Signed receipt and itemized invoice
      • Itemized invoice linking the order to the Cardholder and the booking confirmation/cancelation policy
      • Signed proof of delivery receipt

    6008 Cardholder Requests Copy Bearing Signature

    Description:

    Issuer is requesting Documentation on behalf of the Cardholder. Cardholder is requesting a copy of the ROC.

    Supporting Documentation:

    • Clearly signed (except for PIN transactions) and itemized receipt or invoice.
    • Signed proof of shipment and/or delivery with the delivery address and date.
    • Signed membership contract indicating the expiration date and renewal policy.

    EXAMPLE:

    • Signed receipt and Itemized invoice
    • Signed proof of delivery receipt
    • Signed contract and policy details

    6013 Documentation Previously Sent is Illegible/Incomplete

    Description:

    Issuer submitted previous a Retrieval Request and is repeating the original request for Documentation. Retrieval Request Notification Reason Code 6013 may be used only if a prior Retrieval Request was done and Document Type is required.

    Supporting Documentation:

    Please re-send clearer documentation in its entirety to satisfy the requirements of the dispute.

    6014 Unrecognized Transaction

    Description:

    Issuer is requesting Documentation on behalf of the Cardholder. The Cardholder does not recognize the Transaction or Transaction amount and is requesting Documentation to validate his/her authorization of the Transaction.

    Supporting Documentation:

    • Clearly signed (except for PIN transactions).
    • Itemized receipt or invoice that supports the transaction.
    • Proof that the Cardholder agreed to transaction/made the booking or reservation and received confirmation.
    • Website name/URL/product description/IP address/cancelation policy.
    • Signed proof of shipment and delivery with the delivery address and date.

    EXAMPLE:

    • Signed receipt and Itemized invoice
    • Itemized invoice linking the order to the Cardholder and the booking confirmation/cancelation policy
    • Signed proof of delivery receipt

    6016 Personal Information

    Description:

    Issuer is requesting Documentation on behalf of the Cardholder. The Cardholder is not disputing the Transaction, but needs Documentation for his/her records.

    Supporting Documentation:

    • Clearly signed (except for PIN transactions) and itemized receipt or invoice.
    • Signed proof of shipment and/or delivery with the delivery address and date.
    • Signed membership contract indicating the expiration date and renewal policy.

    EXAMPLE:

    • Signed receipt and Itemized invoice
    • Signed proof of delivery receipt
    • Signed contract and policy details

    Diners/Discover

    CHARGEBACK REASON CODES

    The Chargeback Reasons are organized into four categories:

    • Authorization related
    • Processing errors
    • Fraud related
    • Cardholder disputes
    Chargeback CategoryChargeback Reason CodeDescription
    AUTHORIZATIONA02Authorization Processing Errors
    A06Unissued Account Number
    PROCESSING ERRORSB24Late Presentation
    B25Duplicate Charge
    B26Alternate Settlement Currency Incorrect Exchange Rates
    B27Incorrect Currency
    FRAUDC41Fraud – Card Present Transaction
    C42Fraud – Card Not Present Transaction
    C46Multiple Charges at Merchant Fraudulent Transaction
    C50Suspect Merchant – No Response to the Suspected Fraudulent
    C51Suspect Merchant – Terminated Merchant
    C53Fraud – Chip Card Counterfeit Transaction
    C54Fraud – Lost or Stolen Chip and PIN Card Transaction
    CARDHOLDER DISPUTESD61Altered Amount
    D62Non-receipt of Goods or Services
    D65Incorrect Transaction Type
    D66Credit Not Processed
    D67Cardholder Paid by Other Means
    D69Cancelled Recurring Transaction
    D70Cardholder Does Not Recognize
    D71Non-receipt of Cash (ATM)

    DISPUTE REQUIRED DOCUMENTATION

    AUTHORIZATION

    A02: Authorization Processing Errors

    Supporting Documentation:

    • If the Issuer authorized the charge directly – A copy of the documentation from the Issuer authorizing the charge.
    • If the Chip Card authorized the charge – A copy of the documentation from the Chip Card authorizing the charge.
    • When the charge was approved in Xpress Stand-in Authorization Processing or during Acquirer Authorization Stand-in Processing – Copy of the transaction log showing the evidence of approval.

    A06: Unissued Account Number

    Supporting Documentation:

    • Where the Issuer authorized the charge directly – A copy of the documentation from the Issuer authorizing the charge.
    • Where the Chip Card authorized the charge – A copy of the documentation from the Chip Card authorizing the charge.
    PROCESSING ERRORS

    B24: Late Presentation

    Supporting Documentation:

    • A copy of the charge form showing that the transaction date was within the required presentment time limit of the Recap.

    B25: Duplicate Charge

    Supporting Documentation:

    • Proof that the charges were for separate transactions. For example:
      • Two (2) or more charge forms.
      • Two (2) or more proofs of delivery.

    B26: Alternate Settlement Currency Incorrect Exchange Rates

    Supporting Documentation:

    • Proof that the transaction date was within 30 days of the Processing Date, for example, a copy of the Charge Form.

    B27: Incorrect Currency

    Supporting Documentation:

    • The copy of the charge indicating the Interchange currency.
    FRAUD

    C41: Fraud – Card Present Transaction

    Supporting Documentation:

    • Proof that the magnetic stripe was read.
    • If the Re-presentment is because the Issuer approved the Authorization Request containing the CVV2, submit a copy of the Xpress authorizations log showing one of the following:
      • The CVV2 value was provided in the Authorization request and was approved by the Issuer without a CVV2 response.
      • The CVV2 value was provided in the Authorization request and was approved by the Issuer with a CVV2 incorrect response.
    • For Chip Card transactions, the D-PAS Transaction Certificate from the clearing file.
    • For a Card Present Sale equal to or less than $50 or equivalent local currency, where PIN entry or another Consumer Device Card Verification Method (CDCVM) is not required, Transaction documentation or other evidence of the amount of the Card Sale and that an approved Authorization Response was provided.
    • For a Card Present Contactless Card Sale or Credit that is equal to or less the allowable amount where PIN entry or CDCVM is not required with the Authorization Request, Transaction documentation or other evidence of the amount of the Card Sale and that an approved Authorization Response was provided.
    • A valid, legible Transaction Receipt for a Keyed Card Transaction

    C42: Fraud – Card Not Present Transaction

    Supporting Documentation:

    • Evidence of valid card present transaction
    • If a Secure Electronic Commerce or Non-authenticated Security Transaction has an Electronic Commerce Indicator value “5” or “6,” proof that Issuer responded to the Authentication Request with a Protect Buy Authentication and Authentication Identifier (if applicable)
    • Original or a copy of proof of delivery, or
    • If the Issuer approved the authorization request containing the CVV2, and the Issuer failed to perform the CVV2 validation, a copy of the authorization log.

    Provide compelling evidence, such as:

    • Receipt, work order, or other document signed by the Cardholder, substantiating that the Cardholder received the goods or services.
    • Cardholder confirmation of registration to receive electronic delivery of goods or services.
    • Cardholder’s email or IP address, date and time of download, description of goods downloaded, or log documenting that the Merchant’s website was utilized after the transaction date.
    • Letters, emails, photographs, faxes, or other written correspondence exchanged between the Merchant and the Cardholder.
    • Any additional information, such as: “Ship to” Cardholder billing address (if applicable).
    • Proof of Delivery or evidence that the goods or services were delivered as directed by the Cardholder.

    C46: Multiple Charges at Merchant Fraudulent Transaction

    The Cardholder acknowledges participating in at least one transaction, but denies participating in one or more other charges at the same Merchant. Charges must be authorized within five minutes of each other.

    Supporting Documentation:

    • No documents required.

    C50: Suspect Merchant – No Response to the Suspected Fraudulent

    Merchant Report

    Supporting Documentation:

    • Suspected Merchant’s Response addressing Issuer’s claim. Details about issuer’s claim will be provided by the Dispute management team. In case the Merchant is not identified as a Suspected Fraudulent Merchant or a Global Fraud Database Identified Merchant, a text message making that claim.

    C51: Suspect Merchant – Terminated Merchant

    Supporting Documentation:

    Evidence of a credit transaction

    C53: Fraud – Chip Card Counterfeit Transaction

    Supporting Documentation (any of the following):

    • The POS device is enabled to support DCI Chip Card transactions A magnetic stripe-read transaction. occurred and was properly identified as the result of fallback in the Authorization.
    • The transaction was a Card Not Present Transaction.
    • The Authorization Request contained a service code value other than 2xx or 6xx.

    C54: Fraud– Lost or Stolen Chip and PIN Card Transaction

    Supporting Documentation (any of the following):

    • A valid Chip Card transaction occurred with PIN.
    • A magnetic stripe-read or key-entered transaction occurred and was properly identified as the result of fallback in the Authorization.
    • The transaction was a Card Not Present Transaction
    • The Authorization Request contained a service code value other than 2xx or 6xx
    CARDHOLDER DISPUTES

    D61: Altered Amount

    Supporting Documentation (any of the following):

    • Transaction Receipt or other record to prove that Transaction Amount was correct.
    • Documents to prove one of the following:
      • Transaction Receipt was not altered
      • Cardholder agreed to the altered amount. In the case of additional charges from hotels, motels, or car rental establishments incurred within not more than twenty-four (24) hours prior to the departure by the Cardholder, an original or copy of documentation provided by the Merchant that can substantiate such additional charges as knowingly incurred by the Cardholder. Traffic fines on a rental car that are incurred during the rental period are exempt from the twenty-four (24) hour requirement.
      • In the case of charges incurred through Express Check-out services, the original, or a copy of a Merchant document signed by the Cardholder showing acceptance of the service to be paid by this Diners Club Card shall be deemed sufficient proof that the charge was incurred by the Cardholder.

    D62: Non-receipt of Goods or Services

    Supporting Documentation:

    • Letters, emails, photographs, faxes, or other written correspondence exchanged between the Merchant and the Cardholder.
    • Receipt, work order, or another document signed by the Cardholder, substantiating that the Cardholder received the goods or services.
    • For Site to Store Card Not Present Transactions, Merchant may provide the Cardholder signature on the pick-up form or copy of Cardholder identification.
    • Merchant obtained Proof of Delivery or evidence that the goods or services were delivered as directed by the Cardholder.
    • Any of the following for a Card Not Present transaction:
      • Cardholder confirmation of registration to receive electronic delivery of goods or services.
      • Cardholder’s email or IP address, date and time of download, description of goods downloaded, or log documentation showing the Merchant’s website was utilized after the transaction date.
    • Proof of Delivery or evidence that the goods or services were delivered as directed by the Cardholder.

    D65: Incorrect Transaction Type

    Supporting Documentation

    • Information and evidence that the transaction was processed correctly.
    • Evidence of Credit transaction.

    D66: Credit Not Processed

    Supporting Documentation

    • Evidence that the credit was processed correctly;
    • No cancelation number or other documentation is provided; or
    • When the Merchant provided documentation showing the Cardholder’s claim to be invalid.

    D67: Cardholder Paid by Other Means

    Supporting Documentation:

    • Document signed by the Cardholder supporting the charge.

    D69: Canceled Recurring Transaction

    Supporting Documentation:

    • Contract showing the obligation of the Cardholder.

    D70: Cardholder Does Not Recognize

    Supporting Documentation:

    • Copy of transaction receipt or other document with additional information or transaction data that was not required on the sales data file.
    • Transaction documentation signed by the Cardholder indicating that the Cardholder agreed to the Charge.
    • Evidence that the Cardholder received the services and the Charge was completed in accordance with the Agreement and the IOM.
    • For a Card Present Card Sale or Credit that is equal to or less than 50 USD (or equivalent local currency), except for Contactless Card Sales and Credits, where PIN entry or CDCVM is not required with the Authorization Request, Transaction documentation or other evidence of the amount of the Card Sale or Credit and that an approved Authorization Response was provided for the Card Sale or Credit.
    • For a Card Present Contactless Card Sale or Credit that is equal to or less the allowable amount where PIN entry or CDCVM is not required with the Authorization Request, Transaction documentation or other evidence of the amount of the Card Sale or Credit and that an approved Authorization Response was provided for the Card Sale or Credit.

    D71: Non-receipt of Cash (ATM)

    Supporting Documentation:

    • Copy of Transaction record to prove disbursed cash amount. The transaction log must at least include the following information: Card Number, transaction date, transaction time, ATM location, code indicating that the disputed amount was dispensed.
    Last update iconLast modified October 2024