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contesting initiated by Issuer (with a view of customer rights protection), resulting whereas payment amount is withdrawn from the merchant (by Acquirer) and returned to the cardholder.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

NameAPI nameDescription
1st Chargeback1st_chbThe customer queries a transaction with their card issuer by creating a chargeback.
2nd Chargeback2nd_chbThe issuer declines your defence and they open a pre-arbitration, which Solid will review.
ArbitrationarbitrationThe issuer/cardholder disputes the merchant’s second presentment, and the case goes to the issuer network (Visa, Mastercard, etc.) for arbitration.

Statuses

NameAPI nameDescription
In Progressin_progressSolid received the chargeback. The merchant should decide where to accept or to defend this chargeback.
Documents Sentdocument_sentSolid received the supporting documents and forwarded them to the scheme. It is no longer possible to change these documents.
ReversedreversedThe disputed amount was transferred to your account. The issuer is still reviewing the defence If they accept, this is the final status.
AcceptedacceptedThe disputed amount was transferred to the merchant's account. If you accept the dispute, or fail to send your defence documents, this is the final status.
Resolved resolvedThe dispute process are now resolved at the pre-dispute stage. Resolved disputes will not count against the dispute ratio.
Resolved reversalresolved_reversalResolved chargeback is cancelled

General flow

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

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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 CODEDIGITAL PRODUCT OR SERVICEPHYSICAL 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.
  1. Evidence such as photographs or emails to prove a link between the person receiving products and the cardholder
  2. 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
  3. 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.
  4. The date on which a physical product began its route to the shipping address
  5. 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

  1. The charge ID for the previous payment that appears to be a duplicate of the one that is disputed.
  2. An explanation of the difference between the disputed payment and the prior one that appears to be a duplicate.
  3. 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.
  4. Copy of invoice of two separate orders.
  1. The charge ID for the previous payment that appears to be a duplicate of the one that is disputed.
  2. An explanation of the difference between the disputed payment and the prior one that appears to be a duplicate.
  3. 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.
  4. Copy of invoice of two separate orders.
  5. 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 CodeGroupReasonDescription
10.1FraudEMV Liability Shift Counterfeit FraudThe cardholder is claiming that they did not authorize or participate in a transaction that you processed.
10.2FraudEMV Liability Shift Non-Counterfeit FraudThe cardholder is claiming that they did not authorize or participate in a transaction that you processed.
10.3FraudFraud – Card-Present EnvironmentThe cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.
10.4FraudFraud – Card-Absent EnvironmentThe cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
10.5FraudVisa Fraud Monitoring ProgramVisa 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.
11.1AuthorizationCard Recovery Bulletin or Exception FileThe transaction was below the merchant's floor limit and the merchant did not obtain authorization.
11.2AuthorizationDeclined AuthorizationAn Authorization Request received a Decline Response and the merchant completed the transaction.
11.3AuthorizationNo AuthorizationCorrect and valid authorization was not obtained by the merchant.
12.1Processing ErrorsLate PresentmentThe transaction was not sent to Visa within the timeframe required.
12.2Processing ErrorsIncorrect Transaction CodeA cardholder claims the converted amount of charge on an international transaction is incorrect.
12.3Processing ErrorsIncorrect CurrencyYou 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.
12.4Processing ErrorsIncorrect Account NumberYou 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.
12.5Processing ErrorsIncorrect AmountThe cardholder claims that the amount they agreed to pay differs from the amount charged.
12.6Processing ErrorsDuplicate Processing/ Paid By Other MeansThe 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.).
12.7Processing ErrorsInvalid DataAn authorization was obtained using invalid or incorrect data.
13.1Consumer DisputesMerchandise/ Services Not ReceivedThe 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)
13.2Consumer DisputesCancelled RecurringA recurring transaction was processed after it was cancelled or that the cardholder’s account was closed.
13.3Consumer DisputesNot as Described or Defective Merchandise/ ServicesThe cardholder claims the goods were not as described or disputes the quality of the merchandise or services.
13.4Consumer DisputesCounterfeit MerchandiseThe merchandise was identified as counterfeit by a third party.
13.5Consumer DisputesMisrepresentationThe cardholder’s bank received a notice from the cardholder claiming that the terms of the sale were misrepresented.
13.6Consumer DisputesCredit Not ProcessedThe cardholder’s bank received a notice from the cardholder claiming that they received Authorization,credit or voided transaction receipt that has not been processed.
13.7Consumer DisputesCancelled Merchandise/ ServicesThe 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.
13.8Consumer DisputesOriginal Credit Transaction Not AcceptedThe original credit was not accepted.
13.9Consumer DisputesNon-Receipt of Cash or Load Transaction Value 

MasterCard

Reason CodeGroupReasonDescription
4837FraudNo Cardholder AuthorizationThe cardholder states that neither he, she, nor anyone authorized by him or her engaged in the transaction.
4840FraudFraudulent Processing of TransactionsThe cardholder claims that a fraudulent purchase was made while the card was in the cardholder’s possession at the time of the transaction.
4849FraudQuestionable Merchant ActivityThe 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.
4863FraudCardholder Does Not Recognize—Potential FraudThe cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4870FraudChip Liability ShiftThe 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.
4871FraudChip/PIN Liability ShiftThe 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.
6321FraudThe cardholder does not recognizeThe cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4752AuthorizationA 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.
4807AuthorizationWarning Bulletin FileCorrect and valid authorization was not obtained by the merchant.
4808AuthorizationAuthorization-Related ChargebackCorrect and valid authorization was not obtained by the merchant.
4812AuthorizationAccount Number Not On FileAccount number does not correspond to the account numbers the issuer has on file for this cardholder.
4835AuthorizationCard Not Valid or ExpiredA transaction completed with an expired card.
4834Processing ErrorsPoint-of-Interaction ErrorThe cardholder claims that a single transaction was processed more than once.
4831Processing ErrorsTransaction Amount DiffersThe cardholder claims that the amount they agreed to pay differs from the amount charged.
4842Processing ErrorsLate PresentmentThe transaction was not sent to Mastercard within the timeframe required.
4846Processing ErrorsCorrect Transaction Currency Code Not ProvidedA cardholder claims the converted amount of charge on an international transaction is incorrect.
4999Processing ErrorsDomestic Chargeback Dispute (Europe Region Only) 
4850Processing ErrorsInstalmentBilling DisputeWhen an account is posted a debit in place of credit by mistake.
4517Consumer DisputesA dispute where the cardholder or issuer requests support documentation for an illegible/incomplete authorization. 
4540Consumer DisputesThe cardholder’s bank received a complaint from the cardholder indicating an unauthorized card-not-present transaction. 
4801Consumer DisputesA chargeback that occurs when a merchant does not respond to a retrieval request within the specified time frame for response. 
4802Consumer DisputesA chargeback when an illegible copy of a sales draft is supplied. 
4803Consumer DisputesRefers to a chargeback where an illegible or incomplete re-presentment is supplied from the merchant. 
4853Consumer DisputesCardholder DisputeThe cardholder contacted their issuer to dispute a purchase. This can be for a variety of reasons, such as non-receipt or damaged/defective merchandise.
4841Consumer DisputesCancelled Recurring or Digital Goods TransactionsA recurring transaction was processed after it was cancelled or that the cardholder’s account was closed.
4854Consumer DisputesCardholder 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.
4855Consumer DisputesGoods or Services Not ProvidedThe 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).
4859Consumer DisputesAddendum, No-show, or ATM Dispute 
4860Consumer DisputesCredit Not ProcessedThe cardholder claims that they have received a credit.
6305Consumer DisputesThe cardholder does not agree with the amount billedThe cardholder claims that the amount they agreed to pay differs from the amount charged.

Amex

Reason CodeGroupReasonDescription
4540FraudCard not present (fraud)The cardholder denies participation in a mail; telephone or internet-type transaction.
4763FraudFull recourseA cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4798FraudFraud Liability Shift – CounterfeitA cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4799FraudFraud Liability Shift – Lost / Stolen / Non-RecdA cardholder is claiming that they did not authorize or participate in a transaction that you processed.
F24FraudNo Card Member AuthorizationThe 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.
FR4FraudPlaced in Immediate Chargeback ProgramThe cardholder has disputed the charge and the merchant has been placed in the Immediate Chargeback Program.
FR6FraudPlaced in the Partial Immediate Chargeback ProgramThe cardholder has disputed the charge and the merchant has been placed in the Partial Immediate Chargeback Program.
A01AuthorizationIncorrect Transaction Amount PresentedCharges were incorrectly submitted by using an incorrect amount.
A02AuthorizationNo Valid AuthorizationCorrect and valid authorization was not obtained by the merchant.
A08AuthorizationAuthorization Approval ExpiredCorrect and valid authorization was not obtained by the merchant.
4507AuthorizationIncorrect Transaction Amount PresentedCharges were incorrectly submitted by using an incorrect amount.
4751AuthorizationExpired AuthorizationCorrect and valid authorization was not obtained by the merchant.
F22AuthorizationExpired/Not Yet valid cardA transaction completed with an expired card.
4512Processing ErrorsMultiple ProcessingA charge was incorrectly submitted more than once to the cardholder's account.
4521Processing ErrorsNo Valid AuthorizationCorrect and valid authorization was not obtained by the merchant.
4522Processing ErrorsAuthorization DeclinedAn Authorization Request received a Decline Response and the merchant completed the transaction.
4523Processing ErrorsUnassigned C/M Account NumberAccount number does not correspond to the account numbers the issuer has on file for this cardholder.
4525Processing ErrorsTransaction Amount ChangedThe cardholder claims that the amount they agreed to pay differs from the amount charged.
4530Processing ErrorsCurrency DiscrepancyThe cardholder was advised the charge is in a currency that differs from that which they originally agreed upon.
4536Processing ErrorsLate PresentmentA charge was submitted for payment outside the timeframe.
4752Processing ErrorsCredit/Debit Presentment ErrorWhen an account is posted a debit in place of credit by mistake.
4755Processing ErrorsNo Valid Approval CodeA Transaction where Authorization was required but not obtained.
4758Processing ErrorsExpired/Not Yet valid cardA transaction completed with an expired card.
P08Consumer DisputesDuplicate ChargeThe cardholder claims that a single transaction was processed more than once.
P23Consumer DisputesCurrency DiscrepancyA cardholder claims the converted amount of charge on an international transaction is incorrect.
4532Consumer DisputesRepair Damaged GoodsThe cardholder disputes the quality of the merchandise or services.
4544Consumer DisputesMerchandise Defective- Credit RequestedCardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked
4554Consumer DisputesDissatisfied CustomerThe cardholder claims that the goods or services that were purchased at your business have not been received.
4754Consumer DisputesCharge Origination UnknownThe cardholder alleges that a law or regulation was not followed.
C02Consumer DisputesCredit Not ProcessedCredit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.
C04Consumer DisputesGoods/Services Returned or RefusedThe cardholder claims that the goods or services that were purchased at your business have not been received or have been refused.
C05Consumer DisputesGoods/Services CanceledThe cardholder claims that the goods or services ordered were cancelled.
C08Consumer DisputesGoods/Services Not Received or Only Partially ReceivedThe cardholder claims that the goods or services that were purchased at your business have not been received.
C14Consumer DisputesPaid by Other MeansThe cardholder has provided American Express with proof of payment by another method.
C18Consumer Disputes“No Show” or CARDeposit CanceledThe cardholder claims to have cancelled a lodging reservation, or a credit for a CARDeposit charge was not received by the cardholder.
C28Consumer DisputesCancelled Recurring BillingCardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked.
C31Consumer DisputesGoods/Services Not As DescribedThe 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.
C32Consumer DisputesGoods/Services Damaged or DefectiveThe cardholder disputes the quality of the merchandise or services.

Discover

Reason CodeGroupReasonDescription
4752FraudDoes not RecognizeThe cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their credit card.
4866FraudFraud Chip Card Counterfeit TransactionA cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4867FraudFraud Chip Card and PIN TransactionA cardholder is claiming that they did not authorize or participate in a transaction that you processed.
7010FraudFraud Card Present TransactionA cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.
7030FraudFraud Card Not Present TransactionThe cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
4753AuthorizationInvalid Cardholder NumberAccount number does not correspond to the account numbers the issuer has on file for this cardholder.
4534Processing ErrorsProcessed TwiceThe cardholder claims that a single transaction was processed more than once.
4542Processing ErrorsCredit Not GivenThe transaction was not sent to Discover within the timeframe required.
4550Processing ErrorsDuplicate ChangesWhen an account received a debit in place of credit by mistake.
4586Processing ErrorsATM Duplicate ChangesThe cardholder claims that the amount they agreed to pay differs from the amount charged.
4865Processing ErrorsInvalid Card NumberThe cardholder claims that they paid for the merchandise or service by other means (i.e. cash, check, other cards, etc.).
4553Consumer DisputesCardholder Disputes Quality of Goods or ServicesThe cardholder claims that the goods or services that were purchased at your business have not been received.
4755Consumer DisputesNon-Receipt of Goods or ServicesThe cardholder disputes the quality of the merchandise or services.
4541Consumer DisputesRecurring PaymentCardholder claims that their account continues to be billed for recurring goods or services that they had previously cancelled or revoked.
8002Consumer DisputesCredit Not ProcessedCredit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.

UnionPay

Reason CodeGroupReasonDescription
4514FraudFraudulent Multiple TransactionsThe customer admits to participating in at least one transaction with the merchant, but disputes additional charges.
4562FraudCounterfeit CardThe cardholder is claiming that they did not authorize or participate in a transaction that you processed.
4802FraudHigh-Risk Merchant 
4803FraudProhibited Merchant 
4810FraudThe Cardholder denies the Transaction- Non-face-to-face TransactionThe cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).
4508AuthorizationExceeds Limited or Authorized Amount 
4522AuthorizationDeclined AuthorizationCorrect and valid authorization was not obtained by the merchant.
4528AuthorizationCancelled Pre-authorization 
4558AuthorizationVerification for Transaction Certificate (TC) Fails 
4502Processing ErrorsPurchase Not Completed 
4503Processing ErrorsDispute on Debit Adjustment 
4507Processing ErrorsCardholder Dispute - Transaction Amount DiffersThe cardholder claims that the amount they agreed to pay differs from the amount charged.
4512Processing ErrorsDuplicate ProcessingThe cardholder claims that a single transaction was processed more than once.
4544Processing ErrorsCancelled Transaction 
4806Processing ErrorsPaid by Other MeansThe cardholder claims that they paid for the merchandise or service by other means (i.e. cash, check, other cards, etc.).
4532Processing ErrorsRefund Not ProcessedCredit has not been applied to cardholders account for either: goods/services cancelled; an advance deposit/ payment or a no show reservation.
4501Consumer DisputesNon-Disbursement or Partial Disbursement of Cash at ATM 
4557Consumer DisputesThe transaction was settled but goods or services were not receivedThe 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)
4752Consumer DisputesFees Refund for Unsuccessful Balance Inquiry