Chargeback Management

Chargeback or Dispute is the general term for actions that are performed by a user to cancel the transaction without interacting with the merchant.

Chargeback Flow

Chargeback is a procedure of transaction contesting initiated by Issuer (with a view of customer rights protection), resulting whereas payment amount is withdrawn from the merchant (by Acquirer) and returned to the cardholder. For each chargeback processing respective fee applicable. Regarding fee please kindly refer this issue to your account manager. It's important for you to monitor and respond to these disputes as quickly as possible.

Each chargeback in Solid Products is described by type and status.

Type

Name	API name	Description
1st Chargeback	1st_chb	The customer queries a transaction with their card issuer by creating a chargeback.
2nd Chargeback	2nd_chb	The issuer declines your defence and they open a pre-arbitration, which Solid will review.
Arbitration	arbitration	The issuer/cardholder disputes the merchant’s second presentment, and the case goes to the issuer network (Visa, Mastercard, etc.) for arbitration.

Statuses

Name	API name	Description
In Progress	in_progress	Solid received the Chargeback. The merchant should decide whether to accept or to defend this Chargeback.
Documents Sent	document_sent	Solid received the supporting documents and forwarded them to the card scheme. It is no longer possible to change these documents.
Reversed	reversed	Successfully challenged Chargeback. We transferred the disputed amount to the merchant's account. The card issuer is still reviewing the defence. If they accept, this is the final status, you won.
Accepted	accepted	If you accept the dispute or fail or choose not to send your defence documents, this is the final status. We transferred the disputed amount to the requester's account.
Resolved	resolved	The dispute process is now resolved at the pre-dispute stage via the automatic refund by Proactive Dispute Resolution functionality. Resolved disputes will not count against the dispute ratio. (RDR status)
Resolved reversal	resolved_reversal	Resolved chargeback is cancelled. (RDR status)

General flow

After the chargeback was opened, it will move through the chargeback flow described in the diagram below.

/media/40/download/CHB%20Flow.png?v=1&inline=0

Defend or Accept chargebacks

You can defend yourself against the disputes where you have evidence that the transaction is valid, or the transaction amount is high. If you defend the chargeback, the dispute will move through the entire flow.

If you want to dispute the chargeback you should send documents with the compelling evidence to support@solidgate.com. If you do not provide evidence until the chargeback deadline, the dispute will be automatically accepted. Requirements for docs are stated below.

REQUIREMENTS FOR THE PREPARATION OF DOCUMENTS FOR DISPUTE:

EXAMPLE

The total quantity of pages within one case is no more than 19 pages.
The format of all pages within one case should be either “portrait” format only or “landscape” format only.
All pages should be A4 size, other sizes do not acceptable.
Acceptable file format — DOCX.
For most chargeback/pre-arbitration/retrieval request decision provision – 7 days! After shown time frame chargebacks and pre-arbitrations will be accepted (lost).
You could use the example of the document attached to create your evidence.

Compelling evidence

*Please provide as much information as possible about the user below the text (screenshots of the agreements, customer's documents, proofs of using the product)

REASON CODE	DIGITAL PRODUCT OR SERVICE	PHYSICAL PRODUCTS
Fraud - card-absent environment Visa: 10.4 MasterCard: 4837 AMEX: F29 Discover: UA02	Description, date, and time of the products or services successfully downloaded. The evidence must also contain at least two of the following pieces of information: Customer's IP address and their device's geographical location at the time of purchase Device ID and name of the device Customer name and email address linked to their customer profile Evidence that the customer logged into their account for your business before the transaction date Evidence that your website or app was accessed by the cardholder for purchase or services on or after the transaction date Evidence that the same device and card used in the disputed payment was used in a previous payment that was not disputed Description of the digital goods and the date and time they were purchased and downloaded. Record of previous non-disputed payments.	Evidence such as photographs or emails to prove a link between the person receiving products and the cardholder If the products are collected from a physical location, you must provide: Cardholder signature on the pickup form A copy of identification presented by the cardholder Details of identification presented by the cardholder The address to which a physical product was shipped. The shipping address should match a billing address verified with AVS. You must also provide documentation as proof that a product was shipped to the cardholder at the same address the cardholder provided to you. The date on which a physical product began its route to the shipping address Courier's GPS location proving that product has been delivered
Merchandise/Service not provided Visa: 13.1 MasterCard: 4855 AMEX: F29 Discover: UA02
Duplicate processing/Paid by other means Visa: 12.6 MasterCard: 4834 AMEX: P08 Discover: DP	The charge ID for the previous payment that appears to be a duplicate of the one that is disputed. An explanation of the difference between the disputed payment and the prior one that appears to be a duplicate. Documentation for the prior payment that can uniquely identify it, such as a separate receipt. This document should be paired with a similar document from the disputed payment that proves the two are separate. Copy of invoice of two separate orders.	The charge ID for the previous payment that appears to be a duplicate of the one that is disputed. An explanation of the difference between the disputed payment and the prior one that appears to be a duplicate. Documentation for the prior payment that can uniquely identify it, such as a separate receipt. This document should be paired with a similar document from the disputed payment that proves the two are separate. Copy of invoice of two separate orders. A shipping label or receipt for the disputed payment.
Cancelled recurring transaction Visa: 13.2 MasterCard: 4841 AMEX: C28 Discover: AP	Any server or activity logs showing proof that the cardholder accessed or downloaded the purchased digital product. This information should include IP addresses, corresponding timestamps, and any detailed recorded activity. Your subscription cancellation policy, as shown to the customer. An explanation of how and when the customer was shown your cancellation policy prior to purchase. A notification sent to the customer of renewal or continuation of the subscription. Proof that notice of upcoming billing was sent to cardholder 10 days before transaction. Proof that the services were used between the billing date and the cancellation date. The Cardholder requested a cancellation for a different date and services were provided until this date.	Your subscription cancellation policy, as shown to the customer. An explanation of how and when the customer was shown your cancellation policy prior to purchase. A notification sent to the customer of renewal or continuation of the subscription, or an acknowledgment from the customer of their continued use of the product or service after the date they claim they canceled the subscription. Proof that notice of upcoming billing was sent to cardholder 10 days before transaction. Proof that the cardholder did not return the merchandise.

You should consider accepting the dispute if:

You do not possess the information needed to remedy the chargeback reason code.
The transaction amount is not high enough to spend resources on compelling evidence.
The transaction amount does not outweigh the risk of losing the chargeback fee for the second booked chargeback.
The transaction is known to be fraudulent.
The shopper has returned the goods, or you have failed to deliver the goods.

Rapid Dispute Resolution (RDR) Alerts

This VISA Verifi product allows resolving disputers by automatic refunds. This solution prevents chargeback at the pre-dispute stage at the VISA VROL system.

Resolved disputes will not count against the dispute ratio.

This new type of alert uses Chargeback API.

Chargeback statuses:

resolved - The dispute process is now resolved at the pre-dispute stage. Resolved disputes will not count against the dispute ratio.

resolved_reversal - Resolved chargeback is cancelled

Auto-Representment

Solid will automatically initiate the dispute process for applicable chargebacks with no action needed on your part, but we don't guarantee a successful return of the money.

These chargebacks include:

Already refunded transactions, where the refund occurred before the chargeback date.
Transactions which were proceeded with a liability shift.
Chargeback which was processed using Google Pay payments.
The 16th fraudulent chargeback on the same card for Mastercard.
Chargebacks with the technical errors that invalidate them (duplicate chargeback for one order, chargeback outside the applicable timeframe).

Chargeback Reasons

Below you will find all the dispute reason codes divided by scheme/issuer and category with description provided.

Visa

Reason Code	Group	Reason	Description
10.1	Fraud	EMV Liability Shift Counterfeit Fraud	The cardholder is claiming that they did not authorize or participate in a transaction that you processed.
10.2	Fraud	EMV Liability Shift Non-Counterfeit Fraud	The cardholder is claiming that they did not authorize or participate in a transaction that you processed.
10.3	Fraud	Fraud – Card-Present Environment	The cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.
10.4	Fraud	Fraud – Card-Absent Environment	The cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
10.5	Fraud	Visa Fraud Monitoring Program	Visa notified the cardholder’s bank that the Visa Fraud Monitoring Program (VFMP) identified the transaction and the cardholder’s bank has not successfully disputed the transaction under another dispute condition.
11.1	Authorization	Card Recovery Bulletin or Exception File	The transaction was below the merchant's floor limit and the merchant did not obtain authorization.
11.2	Authorization	Declined Authorization	An Authorization Request received a Decline Response and the merchant completed the transaction.
11.3	Authorization	No Authorization	Correct and valid authorization was not obtained by the merchant.
12.1	Processing Errors	Late Presentment	The transaction was not sent to Visa within the timeframe required.
12.2	Processing Errors	Incorrect Transaction Code	A cardholder claims the converted amount of charge on an international transaction is incorrect.
12.3	Processing Errors	Incorrect Currency	You sent a transaction that was processed with an incorrect currency code. Often the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.
12.4	Processing Errors	Incorrect Account Number	You either processed the transaction to an incorrect account number or did not authorize the transaction and it was processed to an account number not on the issuer’s master file.
12.5	Processing Errors	Incorrect Amount	The cardholder claims that the amount they agreed to pay differs from the amount charged.
12.6	Processing Errors	Duplicate Processing/ Paid By Other Means	The cardholder claims that a single transaction was processed more than once or the cardholder claims that they paid for the merchandise or service by other means (i.e. cash, check, other card, etc.).
12.7	Processing Errors	Invalid Data	An authorization was obtained using invalid or incorrect data.
13.1	Consumer Disputes	Merchandise/ Services Not Received	The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up)
13.2	Consumer Disputes	Cancelled Recurring	A recurring transaction was processed after it was cancelled or that the cardholder’s account was closed.
13.3	Consumer Disputes	Not as Described or Defective Merchandise/ Services	The cardholder claims the goods were not as described or disputes the quality of the merchandise or services.
13.4	Consumer Disputes	Counterfeit Merchandise	The merchandise was identified as counterfeit by a third party.
13.5	Consumer Disputes	Misrepresentation	The cardholder’s bank received a notice from the cardholder claiming that the terms of the sale were misrepresented.
13.6	Consumer Disputes	Credit Not Processed	The cardholder’s bank received a notice from the cardholder claiming that they received Authorization,credit or voided transaction receipt that has not been processed.
13.7	Consumer Disputes	Cancelled Merchandise/ Services	The cardholder’s bank received a notice from the cardholder stating that they returned merchandise or cancelled services, but the credit has not appeared on the cardholder’s Visa statement.
13.8	Consumer Disputes	Original Credit Transaction Not Accepted	The original credit was not accepted.
13.9	Consumer Disputes	Non-Receipt of Cash or Load Transaction Value

MasterCard

Reason Code	Group	Reason	Description
4837	Fraud	No Cardholder Authorization	The cardholder states that neither he, she, nor anyone authorized by him or her engaged in the transaction.
4840	Fraud	Fraudulent Processing of Transactions	The cardholder claims that a fraudulent purchase was made while the card was in the cardholder’s possession at the time of the transaction.
4849	Fraud	Questionable Merchant Activity	The acquirer processed a transaction for a merchant that later was listed in a MasterCard Global Security Bulletin for violating GMAP, QMAP, or reported to SAFE.
4863	Fraud	Cardholder Does Not Recognize—Potential Fraud	The cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4870	Fraud	Chip Liability Shift	The cardholder claims they were in possession of a valid card on the date of the transaction or they did not authorize or participate in the transaction.
4871	Fraud	Chip/PIN Liability Shift	The cardholder claims they were in possession of a valid card on the date of the transaction or they did not authorize or participate in the transaction.
6321	Fraud	The cardholder does not recognize	The cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4752	Authorization	A chargeback where the cardholder’s bank received a transaction for which authorization had been declined.	The cardholder’s bank receives a transaction that the cardholder has already not authorized.
4807	Authorization	Warning Bulletin File	Correct and valid authorization was not obtained by the merchant.
4808	Authorization	Authorization-Related Chargeback	Correct and valid authorization was not obtained by the merchant.
4812	Authorization	Account Number Not On File	Account number does not correspond to the account numbers the issuer has on file for this cardholder.
4835	Authorization	Card Not Valid or Expired	A transaction completed with an expired card.
4834	Processing Errors	Point-of-Interaction Error	The cardholder claims that a single transaction was processed more than once.
4831	Processing Errors	Transaction Amount Differs	The cardholder claims that the amount they agreed to pay differs from the amount charged.
4842	Processing Errors	Late Presentment	The transaction was not sent to Mastercard within the timeframe required.
4846	Processing Errors	Correct Transaction Currency Code Not Provided	A cardholder claims the converted amount of charge on an international transaction is incorrect.
4999	Processing Errors	Domestic Chargeback Dispute (Europe Region Only)
4850	Processing Errors	InstalmentBilling Dispute	When an account is posted a debit in place of credit by mistake.
4517	Consumer Disputes	A dispute where the cardholder or issuer requests support documentation for an illegible/incomplete authorization.
4540	Consumer Disputes	The cardholder’s bank received a complaint from the cardholder indicating an unauthorized card-not-present transaction.
4801	Consumer Disputes	A chargeback that occurs when a merchant does not respond to a retrieval request within the specified time frame for response.
4802	Consumer Disputes	A chargeback when an illegible copy of a sales draft is supplied.
4803	Consumer Disputes	Refers to a chargeback where an illegible or incomplete re-presentment is supplied from the merchant.
4853	Consumer Disputes	Cardholder Dispute	The cardholder contacted their issuer to dispute a purchase. This can be for a variety of reasons, such as non-receipt or damaged/defective merchandise.
4841	Consumer Disputes	Cancelled Recurring or Digital Goods Transactions	A recurring transaction was processed after it was cancelled or that the cardholder’s account was closed.
4854	Consumer Disputes	Cardholder Dispute—Not Elsewhere Classified (U.S. Region Only)	The cardholder claims they are unhappy with the goods or services provided and that they have been unable to resolve the situation with the merchant.
4855	Consumer Disputes	Goods or Services Not Provided	The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up).
4859	Consumer Disputes	Addendum, No-show, or ATM Dispute
4860	Consumer Disputes	Credit Not Processed	The cardholder claims that they have received a credit.
6305	Consumer Disputes	The cardholder does not agree with the amount billed	The cardholder claims that the amount they agreed to pay differs from the amount charged.

Amex

Reason Code	Group	Reason	Description
4540	Fraud	Card not present (fraud)	The cardholder denies participation in a mail; telephone or internet-type transaction.
4763	Fraud	Full recourse	A cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4798	Fraud	Fraud Liability Shift – Counterfeit	A cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4799	Fraud	Fraud Liability Shift – Lost / Stolen / Non-Recd	A cardholder is claiming that they did not authorize or participate in a transaction that you processed.
F24	Fraud	No Card Member Authorization	The cardholder denies participation in the charge submitted by the merchant and the merchant has failed to provide proof that the cardholder participated in the charge.
FR4	Fraud	Placed in Immediate Chargeback Program	The cardholder has disputed the charge and the merchant has been placed in the Immediate Chargeback Program.
FR6	Fraud	Placed in the Partial Immediate Chargeback Program	The cardholder has disputed the charge and the merchant has been placed in the Partial Immediate Chargeback Program.
A01	Authorization	Incorrect Transaction Amount Presented	Charges were incorrectly submitted by using an incorrect amount.
A02	Authorization	No Valid Authorization	Correct and valid authorization was not obtained by the merchant.
A08	Authorization	Authorization Approval Expired	Correct and valid authorization was not obtained by the merchant.
4507	Authorization	Incorrect Transaction Amount Presented	Charges were incorrectly submitted by using an incorrect amount.
4751	Authorization	Expired Authorization	Correct and valid authorization was not obtained by the merchant.
F22	Authorization	Expired/Not Yet valid card	A transaction completed with an expired card.
4512	Processing Errors	Multiple Processing	A charge was incorrectly submitted more than once to the cardholder's account.
4521	Processing Errors	No Valid Authorization	Correct and valid authorization was not obtained by the merchant.
4522	Processing Errors	Authorization Declined	An Authorization Request received a Decline Response and the merchant completed the transaction.
4523	Processing Errors	Unassigned C/M Account Number	Account number does not correspond to the account numbers the issuer has on file for this cardholder.
4525	Processing Errors	Transaction Amount Changed	The cardholder claims that the amount they agreed to pay differs from the amount charged.
4530	Processing Errors	Currency Discrepancy	The cardholder was advised the charge is in a currency that differs from that which they originally agreed upon.
4536	Processing Errors	Late Presentment	A charge was submitted for payment outside the timeframe.
4752	Processing Errors	Credit/Debit Presentment Error	When an account is posted a debit in place of credit by mistake.
4755	Processing Errors	No Valid Approval Code	A Transaction where Authorization was required but not obtained.
4758	Processing Errors	Expired/Not Yet valid card	A transaction completed with an expired card.
P08	Consumer Disputes	Duplicate Charge	The cardholder claims that a single transaction was processed more than once.
P23	Consumer Disputes	Currency Discrepancy	A cardholder claims the converted amount of charge on an international transaction is incorrect.
4532	Consumer Disputes	Repair Damaged Goods	The cardholder disputes the quality of the merchandise or services.
4544	Consumer Disputes	Merchandise Defective- Credit Requested	Cardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked
4554	Consumer Disputes	Dissatisfied Customer	The cardholder claims that the goods or services that were purchased at your business have not been received.
4754	Consumer Disputes	Charge Origination Unknown	The cardholder alleges that a law or regulation was not followed.
C02	Consumer Disputes	Credit Not Processed	Credit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.
C04	Consumer Disputes	Goods/Services Returned or Refused	The cardholder claims that the goods or services that were purchased at your business have not been received or have been refused.
C05	Consumer Disputes	Goods/Services Canceled	The cardholder claims that the goods or services ordered were cancelled.
C08	Consumer Disputes	Goods/Services Not Received or Only Partially Received	The cardholder claims that the goods or services that were purchased at your business have not been received.
C14	Consumer Disputes	Paid by Other Means	The cardholder has provided American Express with proof of payment by another method.
C18	Consumer Disputes	“No Show” or CARDeposit Canceled	The cardholder claims to have cancelled a lodging reservation, or a credit for a CARDeposit charge was not received by the cardholder.
C28	Consumer Disputes	Cancelled Recurring Billing	Cardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked.
C31	Consumer Disputes	Goods/Services Not As Described	The goods or services received from your business were either not as described by your business or the price should be lower than that claimed by your business.
C32	Consumer Disputes	Goods/Services Damaged or Defective	The cardholder disputes the quality of the merchandise or services.

Discover

Reason Code	Group	Reason	Description
4752	Fraud	Does not Recognize	The cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4866	Fraud	Fraud Chip Card Counterfeit Transaction	A cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4867	Fraud	Fraud Chip Card and PIN Transaction	A cardholder is claiming that they did not authorize or participate in a transaction that you processed.
7010	Fraud	Fraud Card Present Transaction	A cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.
7030	Fraud	Fraud Card Not Present Transaction	The cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
4753	Authorization	Invalid Cardholder Number	Account number does not correspond to the account numbers the issuer has on file for this cardholder.
4534	Processing Errors	Processed Twice	The cardholder claims that a single transaction was processed more than once.
4542	Processing Errors	Credit Not Given	The transaction was not sent to Discover within the timeframe required.
4550	Processing Errors	Duplicate Changes	When an account received a debit in place of credit by mistake.
4586	Processing Errors	ATM Duplicate Changes	The cardholder claims that the amount they agreed to pay differs from the amount charged.
4865	Processing Errors	Invalid Card Number	The cardholder claims that they paid for the merchandise or service by other means (i.e. cash, check, other cards, etc.).
4553	Consumer Disputes	Cardholder Disputes Quality of Goods or Services	The cardholder claims that the goods or services that were purchased at your business have not been received.
4755	Consumer Disputes	Non-Receipt of Goods or Services	The cardholder disputes the quality of the merchandise or services.
4541	Consumer Disputes	Recurring Payment	Cardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked.
8002	Consumer Disputes	Credit Not Processed	Credit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.

UnionPay

Reason Code	Group	Reason	Description
4514	Fraud	Fraudulent Multiple Transactions	The customer admits to participating in at least one transaction with the merchant, but disputes additional charges.
4562	Fraud	Counterfeit Card	The cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4802	Fraud	High-Risk Merchant
4803	Fraud	Prohibited Merchant
4810	Fraud	The Cardholder denies the Transaction- Non-face-to-face Transaction	The cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
4508	Authorization	Exceeds Limited or Authorized Amount
4522	Authorization	Declined Authorization	Correct and valid authorization was not obtained by the merchant.
4528	Authorization	Cancelled Pre-authorization
4558	Authorization	Verification for Transaction Certificate (TC) Fails
4502	Processing Errors	Purchase Not Completed
4503	Processing Errors	Dispute on Debit Adjustment
4507	Processing Errors	Cardholder Dispute - Transaction Amount Differs	The cardholder claims that the amount they agreed to pay differs from the amount charged.
4512	Processing Errors	Duplicate Processing	The cardholder claims that a single transaction was processed more than once.
4544	Processing Errors	Cancelled Transaction
4806	Processing Errors	Paid by Other Means	The cardholder claims that they paid for the merchandise or service by other means (i.e. cash, check, other cards, etc.).
4532	Processing Errors	Refund Not Processed	Credit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.
4501	Consumer Disputes	Non-Disbursement or Partial Disbursement of Cash at ATM
4557	Consumer Disputes	The transaction was settled but goods or services were not received	The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up)
4752	Consumer Disputes	Fees Refund for Unsuccessful Balance Inquiry