Build & Submit a Representment Case in 4 StepsChange of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. for chargeback reason code 4863 (Cardholder Does Not Recognize). Reason code explanations can be found on MasterCard's website. What is Mastercard chargeback reason code 4812? Mastercard chargeback reason code 4812 falls under the “Authorization” category. That doesn’t count sales involving debit and prepaid cards, which add nearly $2 billion more to the total. Chargebacks occur. 10. For example, a merchant would respond to a chargeback with a "transaction not authorized" reason code with proof that the cardholder authorized the transaction. There is a USD 25 limit for the First Chargeback (Reason Code 22). ”. pdf from ACC 103 at Stevens-Henager College. INTRODUCTION 1. Most cases stemming from point-of-interaction errors allow 90 calendar. 2 min read. Visa groups its various reason codes into several broad dispute categories. Changes to “no cardholder. The shorthand description is “Not as Described or Defective Merchandise. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Credit card fraud is rampant, surging after the massive shift to e-commerce that took place during the COVID-19 pandemic. . 0 is to make the chargeback process more efficient, transparent, and fair. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Reason code 37 is not allowed for AFD transactions with CAT Level 2. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. In the early 1990s, the biggest fraud challenge was the rapid rise of payment fraud via counterfeit transactions. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. All but two fall under Mastercard chargeback reason code 4853 (Cardholder Disputes): Reason Code 4808 Authorization-Related Chargeback An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. To test a dispute, generate a payment request with specific information from the test scenarios. As a merchant, you face the brunt of chargeback losses. UA06 Fraud – Chip and PIN Transaction. Required Authorization Not Obtained. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. The code can be used in multiple specific situations, many of which had their own individual codes at one time. This helps you keep your Mastercard chargeback rate low, which will reduce your operating costs and keep your processing rights secure. Mastercard chargeback collaboration period is between 24-72 hours. 4863: Cardholder does not recognize. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. . Based on the information provided, Paymentology will investigate the transaction being disputed. Fraud Reason Codes Current Reason Code New VCR Reason Code 62(2) 10. Code Description; 4801: Requested Transaction Information not Received: 4802: Requested/Required Information. Reason Code: Numeric: Code for the chargeback request (see below). Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Administrative returns (R02, R03, R04): 3%. Limiting value amounts may make your cards less enticing to fraudsters. Late Presentment Rules: Mastercard. chargeback meaning. American Express chargeback reason code C32 falls under the “Card Member Disputes” category. Representment Documentation. Card authorization refers to the actual notification received by a merchant. It can range from 60 to 120 days from the billing date. These schemes govern the chargeback process and each one has their own rules for when a customer can get a chargeback. 1, which covers duplicate processing errors, and 12. 4841 Canceled Recurring or Digital Goods Transactions. In short: capture is the point at which you get paid for a sale. Corresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. • For Visa Allocation reason codes (RC 10. In short: yes. R03 Insufficient Reply. 3. 6. Reason. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Appendix Laser Chargeback Reason Codes 23 13. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The Electronic Fund Transfer Act is a piece of US legislation that requires banks to provide certain information to customers regarding electronic fund transfers (EFTs). As more commerce shifts online, spikes in card-not-present fraud are occurring in lockstep. It allows an independent third party (card network) to review the case and make a. Of course, many banks offer “zero-liability” cards to cardholders, meaning the bank protects the cardholder from any loss. Paymentology will submit the chargeback using the appropriate chargeback reason code. 3 Necessary Documentation 21 11. Each chargeback is assigned a reason code that explains the justification for the chargeback. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Friendly fraud was actually the #1 fraud threat concerning merchants in 2021. An example of a chargeback is when a credit card holder contacts their bank to dispute a charge that was made on their account without their permission. . Once the new evidence is received and reviewed, the chargeback reason code may reflect information that the merchant left out or falsified. Documentation must be a direct result of cardholder communication. 4 Other Fraud – Card Absent Environment 93(1) 10. 2 Transaction Message Types 3 DISPUTES 3. This chargeback reason code was retired by Visa in April 2018. ”. In some cases it can be upwards of 540 days, though, depending on the reason. com shows that more than a. Timeline reduced for “point-of-interaction error” chargebacks; October 2018. In all regions except for France Domestic, this. This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and believes that the transaction was fraudulent. Step 2: Customer initiates the chargeback. 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. Clearing. Merchant must provide proof of authorization. com INTRODUCTION 1. Day 90 – 120 Cardholder can dispute transaction up until Day 90 for reason code 4808 on MasterCard (see Appendix for details), Day 60 for reason codes 4801 and 4802 (see Appendix for details). 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. A08 Authorization Approval Expired. 4812 Account Number Not On File. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Visa, Mastercard and Maestro each have their own set of reason codes for chargeback cases. 2 Declined Authorization. for chargeback reason code 4863 (Cardholder Does Not Recognize). 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. That’s 50% more time than what the major card networks allow. Chargebacks are a reality of running a small business, and a. 4849 – Questionable Merchant Activity – Mastercard Rule 3. 4. 3. Chapter 5: Mastercard Chargeback Reason Codes. Mastercard chargeback codes are broken up into many categories, but there are four that relate most to merchants: Authorization-related. For perspective, the next highest. Fraudulent activity: Fraudulent processing of transactions includes chargebacks that occur when the cardholder didn’t make the purchase. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. Check with the issuing banks to determine what time limits may apply to you. 11, 16. 4 MasterCard Reason Code 08 will be renamed to ‘Authorization-Related Chargeback’ Ch. Whatever the case, the merchant may have made a mistake or forgotten to. The program focuses on small ticket and digital goods merchant fraud transactions. Visa Chargeback Reason Codes. [noun]/cē • vē • vē • tö • kōd/. ”. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date. 65% + 10¢ Visa Rewards Signature: 2. ”. This applies to all Mastercard reason codes, except 4808, 4870, and 4871; these disputes will go to Arbitration directly if escalated. If a merchant does not submit the required pieces of compelling evidence, it is unlikely that the card brands will rule in the merchant’s favor. By default, payments should be auto-captured, but if this fails, you have the option to manually. . Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Prevent Chargeback Issuances. Chargebacks. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. As both a card network and an issuer, American Express takes it upon themselves to send. American Express chargeback reason code R13 falls under the “Inquiry/Miscellaneous” category. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. Credit card fraudsters have some new tricks up their sleeves. Use this guide as a resource to quickly identify a chargeback reason code from Mastercard. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Chargeback reason codes have changed. Chargeback reason codes. Here are some chargeback reason codes by card type. This reason code means that the cardholder is claiming that they did not authorize or participate in a card-not-present transaction, and therefore it must be fraudulent. ago. Time Limit in Calendar Days. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Mastercard Chargeback Reason Code 71: Disputed Amount. Invalid Reasons for a Dispute. Description of Change Where to Look • Increasing the CVM Limits in St. Mastercard chargeback reason codes. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. 11. These codes tell you why the transaction is disputed. A02 No Valid Authorization. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. 4866: Fraud Chip Card Counterfeit Transaction: A cardholder is claiming that they did not authorise or participate in a transaction that you processed. 2 Compliance Cases 4 CHARGEBACK CATEGORIES 4. Some acquirers, processors or PSPs may just provide the last two digits of the reason code in their data reporting, as that is all that is needed to distinguish between the reason codes and recognize the chargeback description. What are reason codes, and why are they important? How to use reason codes. 4, 37, F29, U02: Cancelled Recurring: 13. . Reason Code Description. The shorthand description is “Transaction Amount Differs. We’ll start with the bad news: Chargebacks increase by over 20% each year. Ready to Start Preventing. Chapters 1, 2 and 5 Chargeback reason codes identify the general reason behind a chargeback. Mastercard Chargeback Reason Code 70: Chip Liability Shift. July 26, 2023 10 min read As an e-commerce store owner, it's important to understand the concept of chargebacks and the role they play in your business. The small business’ guide to credit card chargeback codes. Reason Code 04. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. 15, 2021. UA01 Fraud – Card Present Transaction. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12:. Network Processing ® © What is Mastercard chargeback reason code 4837, no cardholder authorization, and how can you win it? Don’t waste time defending chargebacks, make your company more profitable by preventing them. Visa Reason Code 13. includes a Retrieval Request Reason Code providing additional information concerning the cause of the request and in some cases, the required documentation (see Table 2-1 and Table 2-2). 37: No Cardholder Authorization. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. It is associated with a chargeback reason code and it is specific per Card Scheme. Addition of pre-arbitration cycle; April 2020. How to test a dispute. The cardholder was a true victim of fraud (and rightfully) worked with their credit card issuer to get their money back, or the cardholder is trying to scheme their way out of paying by claiming they were a victim of fraud. While the updates have been published, they do not go into effect until Oct. 9), the acquirer has 24 days to respond to the dispute • For MasterCard, the acquirer has 45 days to respond to the disputeFirst Chargeback for Debit Mastercard and Europe Dual Acquirers Fee Collection for Debit Mastercard and Europe Dual Acquirers. Region Only) 4855 Goods or Services Not Provided. Reason. mastercard dispute form. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. These include: Visa Reason Code 13. A reason code is how banks categorize the reason for a chargeback. By taking the action advised by Mastercard’s logic, merchants and acquirers will be more likely to receive an authorization approval. The Importance of Discover Chargeback Prevention. 4853 – Cardholder Dispute – Credit Not Processed. Subscribe to newsletters. 3. M10 Vehicle Rental – Capital Damages. FR4 Immediate Chargeback Program. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and believes that the transaction was fraudulent. Prerequisites 1. Everyone has had the experience of buying. ” This code indicates the cardholder placed an authorized card-present transaction with a merchant but received one or more additional non-authorized transactions within the next fifteen minutes. Reason Code Reason Description; 4752: Does not Recognize: The cardholder claims that they do not recognize the transaction and states that they did not authorise the charge to their credit card. Regardless, merchants must respond to the given reason code. July 2011 Chargeback and Exception Processing Guide 3 The Chargeback Cycle. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. 0 Restructure and update document to include Visa Claims Resolution process. The Fair Credit Billing Act of 1974, or FCBA, is a federal law designed to protect consumers from unfair credit billing practices and build consumer confidence in then-new forms of credit in the process. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andThe Mastercard Chargeback Guide specifies that successful transactions using Identity Check are not eligible for a chargeback involving any of the following reason codes: 4837: No Cardholder Authorization. Documentation must be a direct result of cardholder communication. The shorthand description is “Warning Bulletin File. chargeback reason code 37. Create this form in 5 minutes!Some credit card companies also include a short phrase describing the code and chargeback. F01. No Cardholder Authorisation - the cardholder denies participating in or authorising the card-present/card. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of. Monitoring programs temporarily suspended; July – October 2019. The chargeback notification for the acquirer/merchant will contain the reason code and further information about the disputed transaction. 10. Mastercard chargeback reason codes. American Express and Discover don’t have as many brand-supported chargeback prevention tools as Mastercard and Visa. The tool works by checking the given address of a credit card against the address the bank has on file during a transaction. for chargeback reason code 4863 (Cardholder Does Not Recognize). For example, if their card was stolen or the magnetic stripe is copied and used without their knowledge. 4 (previously under reason code 53) applies when a cardholder can verify that the received merchandise was counterfeit. It’s even more frustrating if you don’t understand what the chargeback code means. During an economic recession, the average percentage of revenue lost to a fraudulent transaction increases by 39%. It indicated that the transaction amount wasn't what the cardholder agreed to. MasterCard chargeback reason code 4540. In fact, CNP fraud now accounts for a staggering 80% of all fraudulent transactions in the US. Visa chargeback reason code 75 falls under the “Consumer Disputes” category. Each reason code has its own regulations set by the relevant card scheme. Being familiar with these codes will help. Reason codes. Summary of Changes, 20 November 2017 This document reflects changes made since the last publication. 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. American Express chargeback reason code C42. 3. That’s a lot of money moving around… but how exactly does it happen?This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Rather than request a refund from the merchant who facilitated the purchase, cardholders can dispute a particular transaction by contacting their bank and requesting a chargeback. Learn more about Mastercard chargeback reason codes. Retail chargebacks occur when consumers dispute credit card transactions that were used to pay for retail goods. However, rules from Mastercard® and Visa® allow some chargebacks to be raised up to 540 days from the date of purchase. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Credit Card Dispute. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. EXIDRL–IKVFDLIONCFKNQLOFC AMEX CODE A01Visa chargebacks can be a major inconvenience for merchants. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. 1% + 10¢ Visa Business: 2. ”. [noun]/* fren • dlē • frôd • /. Reason codes are very crucial to assist. Code 4807 was used to cover various authorization-related. 4% decrease:. Reason Code Reason Description; 4752: Does not Recognize: The cardholder claims that they do not recognize the transaction and states that they did not authorise the charge to their credit card. Processing recurring payments increases your susceptibility to chargebacks. This guide is updated regularly to reflect the latest rules and. The arbitration process is typically used when the merchant and cardholder cannot agree about the disputed transaction. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration and Mastercard chargeback reason code 4853 falls under the “Cardholder Disputes” category. Chargebacks happen when a customer disputes a transaction and requests a refund. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. If you get a chargeback,. for chargeback reason code 4863 (Cardholder Does Not Recognize. Message. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Corresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. This is now an obsolete reason code, and issuers have been instructed to use code 4808 instead. Chargebacks are a problem that is growing worse across the board, and gas station. The shorthand description is “Missing Signature. 37. The most comprehensive guide to chargeback reason codes. It indicates that the merchant has not properly deposited the transaction amount within the card network’s acceptable time frame and a chargeback will be issued as a result. This list was generated 5/4/2022. To provide a successful chargeback representment case, Visa and other credit card companies allow (indeed, they urge) merchants to provide compelling evidence to support their case. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. 3 No Authorization. Chapter 2: Average chargeback rates. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. Either the acquiring or issuing bank could initiate the. Documentation must be a direct result of. After the issuing bank’s unsuccessful attempt to identify the transaction for the cardholder, the chargeback process begins. F02. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. 96%: 0. In some cases, the agency will have no recourse for disputing a chargeback initiated by MasterCard or Visa. AT Authorization Noncompliance. The small business’ guide to credit card chargeback codes. Chargebacks were originally initiated as a means of providing consumer protection from fraud. The chargeback can be for the total transaction amount or a lesser amount. Unauthorized returns (R05, R07, R10, R29, R51): 0. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. [1] Sift. Versions Affected: v5, v6. However, Visa is the largest card brand in both the United States and the world. Merchants will still have 45 days to respond to chargebacks and 30 days to respond to retrievals. The program focuses on small ticket and digital goods merchant fraud transactions. 4853 Cardholder Dispute. ” Mastercard has retired this reason code, but it was used when the cardholder claimed they never received a refund or credit the merchant promised them. 5, 53, C31, C32, RM. The first is true fraud, where someone used stolen credit card or account information to make a purchase. Average Chargeback Ratio: 0. The shorthand description is “Questionable Merchant Activity. Mastercard is one of the world’s most widely accepted forms of payment, with over 190 million merchants accepting the card globally. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Mastercard 37, 40, 63, 70, 71 120 calendar days from transaction processing dateMastercard will eliminate dispute Reason Code 63 “Cardholder Does Not Recognize”. About Mastercard chargeback reason codes Reason codes are alphanumeric codes that provide the justification for granting a chargeback. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. Merchants will no longer receive a credit when the First Chargeback Response is sent to the issuing bank for review; however, an adjustment will be. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. 4863: Cardholder not recognized. Updated Merchant Rights for these MasterCard Codes: 37, 63. The chargeback filing period for cardholders is usually 120 days. 196Our ultimate Discover merchant chargeback guide contains all Discover chargeback reason codes with an in-depth explanation. The claim the cardholder is making here is that they did not authorize the transaction and are alleging their card was used fraudulently or that the merchant pushed a transaction through without. 3 No Authorization. For example, if the agency fails to provide. Find out what your chargebacks mean. MasterCard has their own numeric reason code system they use. Find and apply for the Ink business. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Chargebacks can take up to 72 hours to reflect as processed by Mastercard. Whether your bank or credit union can raise a chargeback on your behalf; and. The chargeback filing period for cardholders is usually 120 days. 2, 41, C28, AP: Not as Described: 13. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64. Chargebacks cost the industry $39. Effective October 2019 - Both chargeback count and chargeback ratio must be met or exceeded in order to be flagged in one of these thresholds:A TC40 data claim occurs when a customer makes a fraud claim against a merchant. . This code is used when the cardholder claims that they returned merchandise, but the merchant did not provide them with a refund or replacement. 46%: 1. The following reason codes require compelling evidence: Fraudulent transaction (83) Fraud/card absent environment (1040) Merchandise/services not received (1310) Code 4807: Fraudulent Card-Present Transaction. Card Network Reason Code Detail; VCR Dispute Reason Code 10. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,Mastercard does not approve pre-arbitration cases unless the cardholder can provide further evidence to prove their claim. 4807 Warning Bulletin File. 03/09/11 Updated Issuer Required Documentation Required for VISA Codes: 53, 57, 62, 72, 80, 81, 85. The act serves as the legal basis for the chargeback process. UA05 Fraud – Chip Counterfeit Transaction. Added 2 bullets: Taiwan only and Mastercard Biometric Card to bullet list No Cardholder Authorization Added under CAT 2 Transactions MCC codes Updated bullet: Properly identified Mastercard. The EFTA was first enacted in 1978. Banks and credit unions give out credit and debit cards, but a card's payment system is operated by a card scheme such as Visa or Mastercard. MCC 5815 — Digital Goods: Media (Books, Movies, Digital. 2 Declined Authorization. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. . 100007: 400* INVALID_REQUEST: Message reason code invalid for this chargeback - AFD. 2% decrease: Georgia: 1. “It’s a lot tougher with. ”. Combine card acceptance rules compliance with the latest technology to shift fraud liability is the number one method to prevent. . These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Chargeback fees are not based on the cost of the initial transaction, and they’re imposed by the bank. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just experienced with Travel Insurance Resolution. This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. 1 to RC 13. for chargeback reason code 4863 (Cardholder Does Not Recognize). . UA01 Fraud – Card Present Transaction. ECM monitors first presentment chargebacks regardless of reason code or transaction type. chargeback reason codes REASON ODE ENCYCLOPEDIA sift. 5 Visa Fraud Monitoring Program. ”. Mastercard Chargeback Reason Codes Fraud 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transactions 4849 Questionable Merchant Activity 4863. Chargebacks911® offers the industry’s most comprehensive, end-to-end solution for chargebacks, regardless of dispute source. A credit card dispute (or chargeback) occurs when a cardholder registers a formal complaint against a merchant regarding a. At Visa they used to receive reason code 98. Nevertheless, you must respond to the chargeback based on the given code. This reason code is now obsolete, but was used to cover disputes related to recurring billings or digital goods.