Reason. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Sobald wir eine Chargeback-Meldung erhalten, leiten wir diese unmittelbar an Sie weiter. Expedited Dispute Resolution forms will not be allowed. </sub> Detailed Chargebacks Reason Codes List for Mastercard. Check the chargeback reason code. Reason Code. Chargeback Rate (fraud Reason code only) Fraud Chargeback Amount 3DS Mastercard payment; Excessive: Minimum of 1,000 e-commerce Mastercard payments: 0. Note : For message reason code 4863 (Cardholder Does Not Recognize—Potential Fraud),. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders. The program focuses on small ticket and digital goods merchant fraud transactions. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Unrecognized chargebacks are like fraudulent chargebacks: the cardholder doesn’t recognize a transaction on his/her statement. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. Visa – 10. The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. 4863: Cardholder Does Not Recognize—Potential Fraud: 4859: Addendum, No-show, or ATM Dispute: 4840: Fraudulent Processing of. To better be prepared for what the future might bring, we try to predict how hacking tools might evolve. Phase 3. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Summary of Changes, 13 December 2018A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. 13 Example 13—Message Reason Code 4863—Cardholder Does Not Recognize2. Chargebacks with code 4836 were easy to file and hard to contest, meaning the code was commonly misused by cardholders and issuers. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Expedited Dispute Resolution forms will not be allowed. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Chargeback. 6). 1. By entering your email, you agree to receive marketing emails from Shopify. Removed Revolution Card section and retired reason codes. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. Cardholder Dispute - Not Elsewhere Classified (U. The network hasn't wholly disallowed. 4. [noun]/* kə • stə • mər • di • spyo͞ot/. section into chargeback reason code 4808 (Authorization-related Chargeback) as announced in the Global Operations Bulletin No. Cancelled Recurring Transaction. Summary of Changes, 13 December 2018 ©1988–2018 Mastercard. The time limit for issuers to instigate a first chargeback are calculated based off the Central Site Business Date (the processing date of the first presentment) and are usually 60, 90, or 120 days in duration. Fraud-related Chargebacks • FNS Counter Exceeds 25 Fraud-Related Chargebacks. Point of Interactions Errors. 1, 5 January 2016. section into chargeback reason code 4808 (Authorization-related Chargeback) as announced in the Global Operations Bulletin No. Read on for the complete guide to dealing with chargebacks. Arbitration Chargeback/1442 Message - MasterCard. Here's a list of all the current Visa reason codes: Chargeback Code: Description: Fraud : 10. 120 calendar days after the service was cancelled or the goods were returned; 120 days after credit documentation is issued (day zero is the date published on the document, the date of the merchant’s. She tries to reach to the merchant but is unable to due to lack of descriptor, so she decides to put a dispute on the account under the Reason Code 4863: Cardholder doesn’t Recognize- Potential Fraud. Chargeback time frames - A specific period during which a chargeback can be raised. 3. Knowing these codes can help you dispute chargebacks more effectively. What is a chargeback. For more details feel free to contact Chargeback Expertz at +1 855-465-4723and get. 4808: Authorization related Chargeback: 4834: Point. Discover Chargeback CodesAccording to Aite, it’s expected that the cost to intake, manage and provide settlements on disputes will increase to 67% by 2023, reaching $177. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Others require banks to wait for a certain period before they can issue a chargeback. please provide MPI log. 15, 2021. Dispute Code. Mastercard requires cardholder letter or email as supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). 5. Code Reason (for Visa) 10. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Date – Date the chargeback or reversal was processed to your bank account. Having heard from her, the bank decides to put a chargeback on the merchant under the Reason Code 4863: Cardholder doesn’t Recognize- Potential Fraud. Reason Code. Reason code 4837: Fraud related chargeback or no cardholder authorization. Ethoca Eliminator is integrated into the Mastercom system. There are two parts to this. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Reason code 4837: Fraud related chargeback or no cardholder authorization. S Region only) 4863: Cardholder Does Not Recognize - Potential Fraud (this reason code will be retired as a part of the 20. Chargeback Reason Codes Page 2 of 5. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Fraud. Each card issuer follows their own standards for defining reason type, code and its format. 4871 – Chip/PIN Liability Shift – Lost/Stolen/Never Received Issue (NRI) Fraud . Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback count is two or greater. Sometimes, customers get wrongly debited due to manual data entry errors by the merchant’s team. Request authorisation not obtained. 6 Reason Code 4855 UK—Goods or Services Not Provided, removed GBP 10 minimum value Summary of Changes ©2011–2015. Chargeback Reason Codes by Scheme. By default, payments should be auto-captured, but if this fails, you have the option to manually. 4 4837 4863. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. 6. Visa recently shortened chargeback time limits from 45 days to 30. Summary of Changes, 13 December 2018section into chargeback reason code 4808 (Authorization-related Chargeback) as announced in the Global Operations Bulletin No. Consumer Disputes Fraud Categories [D1]– Chargeback reason codes can, for the most part, be divided into four unofficial categories: Fraud, Authorization,. 1. Chargeback-Verfahren. a monthly basis regardless of reason code and transaction type. MasterCard reason code 4863, and Discover reason. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. A chargeback is a transaction that is disputed by a cardholder or issuer. Once filed, the merchant generally has 20. EN. Visa Chargeback Codes: 30: Services not provided or Merchandise not received : 41: Cancelled recurring transaction : 53:. Merchants will still have 45 days to respond to chargebacks and 30 days to respond to retrievals. TIME LIMIT How long can the issuer wait to file a. 4: “Other Fraud. The time limit for issuers to instigate a first chargeback are calculated based off the Central Site Business Date (the processing date of the first presentment) and are usually 60, 90, or 120 days in duration. com. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. 3D Secure can reduce certain fraud chargebacks and “friendly fraud” such as: 4837—No Cardholder Authorization 4849—Questionable Merchant Activity 4863—Cardholder Does Not Recognize—Potential Fraud NOTE: 3D Secure alone will not eliminate all. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. MasterCard and Visa will rule in favor of the. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. Chargeback codes Chargeback codes Last updated: August 16, 2023 Below you'll find a list of chargeback codes along with an explanation of what each one. 0: Updated report version from 1. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. (See below) You update the When rule accordingly. For reason code 4863 (Cardholder Does Not Recognize), supporting documentation like a letter or email from the cardholder is required. Below is a list of Mastercard chargeback codes used in eCommerce. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. Expedited Dispute Resolution forms will not be allowed. This chargeback will include a description that provides additional information: Digital Goods $25 or Less. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. 4863: Cardholder Does Not Recognize - Potential Fraud: 4870: Chip Liability Shift: 4871:For more information, see Currency codes. Reason Code 4863 - Cardholder Does Not Recognize/Potential Fraud. This means providing evidence that will undermine the cardholder’s claim. 5%: Net fraud volume is greater than 50,000 USD: 10% of total Mastercard payment count (non-regulated countries) 50% of total Mastercard payment count (regulated countries) Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. The rules which will take effect in April 2023 are meant to reduce the volume of friendly fraud occurring over the card network. The terms may be different, but the process remains fairly unchanged. Overview. A chargeback is the potential outcome of a disputed credit or debit card transaction. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Each card network maintains reason codes to cover all the disputes that qualify for. Chargeback Guide • 13 December 2018 2 Mastercard chargeback reason code 4863 falls under the “Fraud” category. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. Documentation must be a direct result of cardholder communication. 5. Nothing immediately identifies a chargeback as being the result of first-party misuse. These numeric codes are varied by card network but serve. Mastercard is reducing the chargeback filing time frame specifically for issuers from 120 to 90 days, in cases involving Mastercard chargeback reason code 4834 (Point of Interaction Error). 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Download PDF . Like (0) Hello, For MasterCard disputes (not on MasterCom yet) we. 4863: Cardholder does not recognize - potential fraud (US Only) 4870: Chip Liability Shift: 4871: Chip/PIN Liability Shift:section into chargeback reason code 4808 (Authorization-related Chargeback) as announced in the Global Operations Bulletin No. One of the most common Chargeback reason codes is caused when the goods or servicesare not received by the customer. But in reality, chargeback reason codes aren’t always as insightful as they appear to be. 4: 4863 Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. section into chargeback reason code 4808 (Authorization-related Chargeback) as announced in the Global Operations Bulletin No. Expedited Dispute Resolution forms will not be allowed. As we touched on earlier, chargebacks can happen due to technical errors. However, just because a chargeback is coded with a fraud or no authorization reason code does not mean true fraud has. Transaction unauthorized make up 30% of all chargeback reason codes. Solutions available. UA02 Fraud – Card Not Present Transaction. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. 12, 1 December 2015, Authorization-related Chargeback Sections Combined. Any chargeback that is received without a reason code will be assigned a default code of 53. The implication is that the merchant is at fault. Read the Chargeback Advice letter carefully. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. Code: Category: Description: 10. 2. The third digit indicates the specific reason within that category. The Update dispute status endpoint generates this event. Invalid Reasons for a DisputeM10 Vehicle Rental – Capital Damages. Merchants can find a. Additionally, only certain chargeback reason codes are covered: Reason Code 4837 - No Cardholder Authorization. Expedited Dispute Resolution forms will not be allowed. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Trust & Safety University; Library. Mastercard chargeback reason code 4853 falls under the “Cardholder Disputes” category. Visa anticipates that changes to the required up-front information will help eliminate the back-and-forth between merchant, acquirer, and issuer, intending to result in a quicker chargeback resolution time for our merchants. Improve chargeback-resolution time. Reason Code 04. Every chargeback is filed with a reason code that identifies the given reason for the dispute. Mastercard Reason codes fall under four categories. reason: Provide more context on the chargeback. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). 6. MDR removed some reason codes completely, including code 4863 – Cardholder Does Not Recognize. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Terms and conditions. Cardholder-Activated Terminal (CAT) 3 Device. R03 Insufficient Reply. Reason code 4863: Potential fraud, the cardholder does not recognize the transaction. Also, just like American Express, Discover functions as both a card network and an. 4 Fraud – Card-Absent Environment. As such, it is limited to merchants in the following merchant category codes (MCCs): MCC 5735 — Record Stores. Also, remember that the time frame for your response includes any processing required by the acquirer. Regards, Arun Kumar. MasterCard chargeback reason codes are a set of four digits beginning with the 48xx. 5. 1 chargeback: 1. The most comprehensive guide to chargeback reason codes. Review your credit card processor’s policies to understand its chargeback dispute process. On that note, below are some vendor missteps that could result in Visa reason code 13. 4807 – Warning Bulletin File. Always submit an authorization request, no matter the transaction amount. The full removal of the functionality is planned for April The idea is that merchants and issuers can 2021. Summary of. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. Description of Change Where to Look Incorporated the changes annoView Chargeback Reason Codes eBook. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. message. Documentation must be a direct result of cardholder communication. The most comprehensive guide to chargeback reason codes. Reason code 4808 (Authorization-related Chargebacks) addresses disputes involving the timeliness of the presentment in relationship to the authorization. The shorthand description is “Cardholder Does Not Recognize—Potential Fraud. Sobald wir eine Chargeback-Meldung erhalten, leiten wir diese unmittelbar an Sie weiter. This may be done by either the merchant or the issuing bank. For more information, see Currency codes. Level 2/Phase 2: Chargeback. This provided a number of insights into the typical. Ready to Start Preventing. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Values are: Blank: Use the receipt G/L date. Paymentology will submit the chargeback using the appropriate chargeback reason code. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. 4863 – Cardholder Does Not Recognize—Potential Fraud; 4870 – Chip Liability Shift; 4871 –. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. 4863. The MasterCard SecureCode global liability shift prevents Issuers from initiating chargebacks based on reason code 4837 and 4863 when: enrolled. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. 4863: Request for Information: Cardholder does not recognize - Possible Fraud: 4903: Other: Documentation received was invalid/incomplete: 4905:About American Express chargeback reason codes. Pages 100+ Identified Q&As 7. Batch chargeback process. List of reason codes supported by Pega Smart Dispute for Issuers in MCOM are as following:. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. There are also specific return time frames, which can differ. ”. without a reason code will be assigned a default code of 1. 4863: Cardholder does not recognize – Potential Fraud. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. For example, the merchant bills the cardholder in installments. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 2. Summary of Changes, 13 December 2018for chargeback reason code 4863 (Cardholder Does Not Recognize). Specify the default reason code to. Hi Evan, I believe the reason that UCAF transactions are proceeding to RC 4863 is because of this When rule in the RCA path. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. Include the scheme specific reason code, for example 4863 for `Cardholder does not recognize - Potential Fraud`. 4853 Cardholder Dispute. 4:. 6. 4855 Non-receipt of merchandise. Transaction unauthorized make up 30% of all chargeback reason codes. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. 4863 - Cardholder Does Not Recognize-Potential Fraud. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. The chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. The cardholder denies participating in the transaction you processed. Description: Updated Chargeback Reason Code. for chargeback reason code 4863 (Cardholder Does Not Recognize). Code 4807: Fraudulent Card-Present Transaction. Reason. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. As per the Chargeback Guide, the UCAF indicators must be the values from 211 to 915. Specify the invoice date and net due date to assign to chargebacks. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not. Let’s say you got a Visa chargeback with reason code 13. 2022 Visa Chargeback Reason Codes. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. Dispute Category. com on 5/26/2016. An issuer must not submit a chargeback using this message reason code for any of from FRAUD 101 at Dr. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. By entering your email, you agree to receive marketing emails from Shopify. AMERICAN EXPRESS; CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. reason code information. Updated these Visa Chargeback Codes: 30, 62, 85. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. But in reality, there won’t be a major impact for merchants. So the company has more incentive to side with customer during cardholder disputes. 4870: Chip liability shift. Here’s how reason codes make it easy for you to check the status of your disputes or chargebacks: Mastercard Chargeback Reason Codes Demystified. 02/10/16 Added Debit Chargeback Reason Codes. 4807 – Warning Bulletin File. for chargeback reason code 4863 (Cardholder Does Not Recognize). The following table lists the Visa chargeback reason codes and their descriptions. Chargeback-Verfahren. 3. Listed as American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040, customers file fraudulent chargebacks when they believe fraud has occurred. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring. 1: Fraud (10) EMV Liability Shift Counterfeit Fraud: 10. Products. 0. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 4: 4863 related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. 4802: Requested/Required Information Illegible or Missing. 2:. 02/10/16 Added Debit Chargeback Reason Codes. ACS Number – The automated case number (ACS) assigned to the chargeback/reversal. DESCRIPTION Why did I receive this chargeback? The cardholder claims not to recognize a card-not-present transaction. Midigator has created a database of reason codes. This is a list of possible reasons that might result in a chargeback ( reason code CBN ): MC 4801 Requested Transaction Data Not Received. Reason codes are important to help merchants address recurring. R13 No Reply. 5. Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. These may impact the dispute time limits. or order no. When a fraudster places a transaction using stolen payment credentials, it may result in a true fraud chargeback under this reason code. 10. These are only a handful of common Visa chargeback reason codes. Chargebacks can be a costly part of accepting card payments and entail administrative. This reason code has been retired. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. An issuer must not submit a chargeback using this. Every chargeback is filed with a reason code that identifies the given reason for the dispute. The cardholder denies participating in the transaction you processed. The Visa Digital Goods Merchant Fraud Monitoring Program is effective as of April 1, 2023. The test payment should be authorized and then captured within 5 minutes. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Phase 3. To dispute this type of chargeback, you need to provide the following: Evidence that:. Merchants will still have 45 days to respond to chargebacks and 30 days to respond to retrievals. Expedited Dispute Resolution forms will not be allowed. These codes fit into four categories:. MasterCard time limits vary depending on the applicable reason code. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. When any Chargeback occurs, that will be identified by the specific code. Cyber-criminals have benefited from on-line banking (OB), regardless of the extensive research on financial cyber-security. Offer shipment and delivery tracking. Lack of proper chargeback reason codes. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 12, 1 December 2015, Authorization-related Chargeback Sections Combined. for chargeback reason code 4863 (Cardholder Does Not Recognize). A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. 4863 (63) (MasterCard) Cardholder does not recognize: Fraudulent (Stripe/Shopify Payments) Card-not-present fraudThere are set rules in place for Discover to streamline transaction disputes and chargeback disputes: Customers have 120 days to dispute a transaction. Only chargebacks with the following reason codes are eligible for Chargeback Protection: Reason Code: Definition: 10. 5. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). Mastercard /. For example, some reason codes offer cardholders over a year to file. Get your complete guide to Discover reason codes, including all the detailed information, chargeback time limits, and other important information you need. 4863 Cardholder does not recognize - potential fraud (US Only) 4870 Chip Liability Shift; 4871 Chip/PIN Liability Shift;for chargeback reason code 4863 (Cardholder Does Not Recognize). Description of Change Where to Look Incorporated the changes annoA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Fraud 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transactions 4849 Questionable Merchant Activity 4863 Cardholder Does Not Recognize—Potential Fraud. Cancelled Recurring Transaction. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. M49 Vehicle Rental – Theft or Loss of Use. The chargeback transfers funds from the acquirer to the issuer. Documentation must be a direct result of cardholder communication. Visa is planning to shake up the chargeback process with new compelling evidence rules for fraud disputes with Reason Code 10. FR2 Fraud Full Recourse Program. How do you use reason codes? A chargeback often has a reason code associated with it. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Additionally, one clearing transaction. for chargeback reason code 4863 (Cardholder Does Not Recognize). Reason Code. 12, 1 December 2015, Authorization-related Chargeback Sections Combined.