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 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contesting initiated by Issuer (with a view of customer rights protection), resulting whereas payment amount is withdrawn from the merchant (by Acquirer) and returned to the cardholder.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.
|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.|
|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)|
After the chargeback was opened, it will move through the chargeback flow described in the diagram below.
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 firstname.lastname@example.org. 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|
|REASON CODE||DIGITAL PRODUCT OR SERVICE||PHYSICAL PRODUCTS|
Fraud - card-absent environment
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:
Merchandise/Service not provided
Duplicate processing/Paid by other means
Cancelled recurring transaction
You should consider accepting the dispute if:
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.
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
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:
Below you will find all the dispute reason codes divided by scheme/issuer and category with description provided.
Visa's Reason Codes follow a format of two digits, a period, and a third digit. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Consumer Disputes. The third digit indicates the specific reason within this category.
|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||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, another card, etc.).|
|12.7||Processing Errors||Invalid Data||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 canceled 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 canceled or 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 an Authorization, credit or voided transaction receipt that has not been processed.|
|13.7||Consumer Disputes||Canceled Merchandise/Services||The cardholder’s bank received a notice from the cardholder stating that they returned merchandise or canceled 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||Cardholder did not receive the full cash withdrawal at an ATM.|
Instead of having a different code for each individual reason like the other card networks, Mastercard uses a single code for all Authorization-Related Chargebacks, one for all Point of Interaction Error chargebacks, and one for all Cardholder Disputes chargebacks. Mastercard's reason codes are listed as four-digit numbers, with all initial chargebacks received by a merchant beginning with 48. For transactions processed through the Single Message System, the 48 is omitted, leaving only the two digits that indicate the reason code.
|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.|
|4807||Authorization||Warning Bulletin File||Correct and valid authorization was not obtained by the merchant.|
|4808||Authorization||Related Chargeback||Correct and valid authorization was not obtained by the merchant.|
|4808||Authorization||Required Authorization Not Obtained||The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing.|
|4808||Authorization||Expired Chargeback Protection Period||The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing.|
|4808||Authorization||Multiple Authorization Requests||A card-not-present transaction was declined by the issuer but later approved using Stand-In processing or X-Code.|
|4808||Authorization||Activated Terminal (CAT) 3 Device||Unauthorized transactions are processed at a cardholder-activated terminal (CAT).|
|4812||Authorization||Account Number Not On File||Account number does not correspond to the account numbers the issuer has on file for this cardholder.|
|4831||Processing Errors||Transaction Amount Differs||The cardholder claims that the amount they agreed to pay differs from the amount charged.|
|4834||Processing Errors||ATM Disputes||The cardholder charges that an inaccurate amount of cash was dispensed by an ATM, or that the ATM withdrawal had been debited to the account multiple times.|
|4834||Processing Errors||Point-of-Interaction Error||The cardholder claims that a single transaction was processed more than once.|
|4834||Processing Errors||Duplication/Paid by Other Means||The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times on the same card or to another payment method.|
|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.|
|4850||Processing Errors||Installment Billing Dispute||When an account is posted a debit in place of credit by mistake.|
|4999||Processing Errors||Domestic Chargeback Dispute (Europe Region Only)||A centrally acquired domestic transaction or a domestic transaction processed|
through the MasterCard Network, where a chargeback is available according to
the applicable domestic rule, but cannot be processed under a different message
|4841||Consumer Disputes||Canceled Recurring or Digital Goods Transactions||A recurring transaction was processed after it was canceled or the cardholder’s account was closed.|
|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.|
|4853||Consumer Disputes||Digital Goods $25 or less||The cardholder claims that card information used to create an account for digital purchases lacked necessary purchase controls, leading to unauthorized purchases.|
|4853||Consumer Disputes||Transaction Did Not Complete||Merchandise or services were not used by the purchaser, who believed the transaction was not actually processed.|
|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 canceled 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||The cardholder claims an additional, unauthorized charge was added after a valid transaction without their consent.|
|4860||Consumer Disputes||Credit Not Processed||The cardholder claims that they have received credit.|
American Express has a slightly longer list of Reason Codes than the other card networks. These Reason Codes consist of a letter followed by two numbers. The letter indicates the category the Reason Code falls into: A for Authorization, C for Consumer Dispute, F for Fraud, and P for Processing Errors.
The two codes that refer to the merchant's response (or lack thereof) to a request begin with R, and the code that indicates that the merchant authorized the chargeback begins with M. The two-digit number indicates the specific reason for the chargeback.
The Reason Code is used for North America, Canada, and the United States of America; there may be a different identifier for the rest of the world.
|F10||Fraud||Missing Imprint||Cardholder did not participate in a purchase and was not provided a copy of the card imprint (card-present environments only).|
|F14||Fraud||Missing Signature||The cardholder claims not to have been involved in a transaction that was processed (card-present environments only).|
All other countries 4534
|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.|
All other countries 4540
|Fraud||Card not present||The cardholder's bank received a complaint from the cardholder indicating an|
unauthorized card-not-present transaction.
All other countries 4798
|Fraud||EMV Counterfeit||The cardholder denies participation in the charge and a counterfeit chip card was used at a POS system where the transaction was not processed as a chip transaction because either: the POS system was not an enabled chip and PIN POS system, or the transaction was manually keyed. Note: Not applicable for contactless transactions and Digital Wallet payments.|
All other countries 4799
|Fraud||EMV Lost/Stolen/Non-Received||The cardholder denies participation in the charge and the chip card with PINcapabilities was lost/stolen/non-received and was used at a POS system where the transaction was not processed as a chip card transaction with PIN validation because either: the POS system is not an enabled chip-and-PIN POS system, or the transaction was manually keyed. Note: Not applicable to contactless transactions and Digital Wallet payments, and charges that qualify under the No Signature/No PIN Program.|
All other countries 4763
|Fraud||Fraud Full Recourse Program||The cardholder denies authorizing the charge and your business has been placed in the Fraud Full Recourse Program.|
|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||Charge amount exceeds authorization amount||The merchant has submitted a transaction that was of an amount greater than the|
|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.|
All other countries 4523
|Processing Errors||Unassigned Card Number||The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.|
All other countries 4752
|Processing Errors||Credit Processed as Charge||When an account is posted a debit in place of credit by mistake.|
All other countries 4752
|Processing Errors||Charge Processed as Credit||A merchant needed to charge an account, but instead processed it as a credit.|
All other countries 4507
|Processing Errors||Incorrect Charge Amount||The cardholder claims the charge amount the merchant submitted differs from the agreed amount.|
All other countries 4536
|Processing Errors||Late Submission||The charge was not submitted within the required timeframe.|
|P08||Processing Errors||Duplicate Charge||An individual charge was submitted more than once.|
|P22||Processing Errors||Non-Matching Card Number||The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder.|
|P23||Processing Errors||Currency Discrepancy||The merchant made one or more errors related to the transaction currency.|
|C02||Consumer Disputes||Credit Not Processed||Credit has not been applied to cardholders accounts for either: goods/services canceled; 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.|
All other countries 4554
|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.|
All other countries 4515
|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.|
All other countries 4544
|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.|
Unlike the other card networks, Discover's reason codes do not follow any particular pattern. Most are two-character codes, but there are some exceptions to this pattern. In particular, all reason codes in the fraud category begin with UA (for unauthorized) followed by a two-digit number. For many of these two-digit codes, you can see the meaning at a glance, e.g. NA for No Authorization or EX for Expired Card. Unfortunately, this is not the case everywhere. For example, the reason code for a changed amount is not AA, but AW. The reason code AA instead means Cardholder Does Not Recognize.
|UA01||Fraud||Card Present Environment||A fraudulent transaction was made using the actual credit card, according to the cardholder.|
|UA02||Fraud||Card Not Present Transaction||The cardholder claims that they did not approve or participate in a Card Not Present (CNP) transaction.|
|UA05||Fraud||Chip Counterfeit Transaction||The cardholder alleges that a counterfeit card was used to conduct a card sale or cash advance, and a Contact Chip Payment Device was issued.|
|UA06||Fraud||Chip and PIN Transaction||The cardholder alleges fraud relating to a Card Present chip card transaction, including a cash advance, involving a card account on which a PIN-preferring Contact Chip Payment Device was issued, the card was reported as lost or stolen at the time of the card sale or cash advance, and the card transaction was conducted at a POS Device that does not support chip card transactions with PIN preferring Contact Chip Payment Devices.|
|UA10||Fraud||Request Transaction Receipt (swiped card transactions)||Issuer requests documents for a transaction the cardholder claims was fraudulent (card-present.)|
|UA11||Fraud||Cardholder claims fraud (swiped transaction, no signature)||The cardholder claims this activity was fraudulent (card-present).|
|AT||Authorization||Authorization Noncompliance||The merchant did not obtain a valid Authorization Response, and the issuer cannot collect the card sale amount from the cardholder.|
|DA||Authorization||Declined Authorization||A declined transaction is presented for processing.|
|EX||Authorization||Expired Card||The cardholder challenges the validity of a transaction because the card had expired at the time.|
|NA||Authorization||No Authorization||The transaction was processed without authorization.|
|IN||Processing Errors||Invalid Card Number||The card number provided by the merchant is not valid.|
|LP||Processing Errors||Late Presentment||Sales data was submitted for the card sale later than the number of calendar days|
permitted for timely sales data submission. The card sale was also not for a
delayed delivery card sale.
|NC||Not Classified||The merchant's attempts to resolve the issue were unsuccessful; other reasons specific to the claim.||Any claims of invalid transactions which do not fall under any other classification.|
|EX||Expired||Expired Card||Any claims of invalid transactions which do not fall under any other classification.|
|05||Consumer Disputes||Good Faith Investigation||The merchant accepted responsibility in response to a Good Faith Investigation|
Ticket Retrieval Request.
|AA||Consumer Disputes||Does Not Recognize||The cardholder claims that their account was charged or credited for a card transaction (other than an ATM transaction) that they don't recognize.|
|AP||Consumer Disputes||Recurring Payments||The cardholder challenges the validity of recurring payments card sales after expiration or cancellation of the recurring payments plan agreement.|
|AW||Consumer Disputes||Altered Amount||The cardholder claims that the amount of a card transaction was altered without their consent or direction.|
|CD||Consumer Disputes||Credit Posted as Card Sale||The cardholder challenges the validity of a card transaction because the transaction should have resulted in a credit rather than a card sale or the transaction should have resulted in a card sale rather than a credit.|
|DP||Consumer Disputes||Duplicate Processing||The cardholder claims that a single card transaction was applied more than once to the account.|
|IC||Consumer Disputes||Illegible Sales Data||A requested sales receipt was provided, but was not legible.|
|NF||Consumer Disputes||Non-Receipt of Cash from ATM||The cardholder claims an ATM Cash Disbursement was charged to an account, but cash was not dispensed by the ATM.|
|PM||Consumer Disputes||Paid by Other Means||The cardholder claims their account was charged for a card sale where the transaction was conducted using another form of payment.|
|RG||Consumer Disputes||Non-Receipt of Goods, Services, or Cash||The cardholder challenges the validity of a transaction due to non-receipt of goods or services.|
|RM||Consumer Disputes||Cardholder Disputes Quality of Goods or Services||The cardholder claims the goods or services delivered by the merchant were not of the quality or condition agreed-upon.|
|RN2||Consumer Disputes||Credit Not Processed||The cardholder claims that an expected credit from the merchant was not received.|
|DC||Dispute Compliance||Dispute Compliance||The acquirer or merchant did not comply with the applicable Operating Regulations.|
|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.|
|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||Cardholder Dispute-Transaction Amount Differs.|
|4522||Authorization||Declined Authorization||Correct and valid authorization was not obtained by the merchant.|
|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||-|