How do I resolve a card chargeback?

If you receive a notification that a chargeback was made, this means that the transaction was reversed by the cardholder (the consumer). We’ve listed the most common reason codes below.

 

Chargeback procedure

When we receive a chargeback report, we will immediately forward it to you through email. You will be given several days to file an objection with the right documentation. We’ll forward your documents to the bank for review. It can take up to 45 days for the bank to make a decision.

If the objection is rejected by the bank, we’ll have to reverse the payment and deduct a chargeback fee from your account.

 

What documents do you need to provide?

  • The invoice
  • Track and trace link
  • Delivery receipt with the customer's signature
  • Return policy
  • Any communication between you and the customer

 

Visa chargeback codes

Fraud

Reason code Explanation
10.1 - EMV Liability Shift Counterfeit Fraud The cardholder claims the transaction you processed was authorised without their knowledge.
10.2 - EMV Liability Shift Non-Counterfeit Fraud The cardholder claims the transaction you processed was fraudulent because of your EMV terminal.
10.3 - Other Fraud: Card-Present Environment/Condition The cardholder claims that a fraudulent transaction was made in person with the physical card.
10.4 - Fraudulent Transaction – Card Absent Environment The cardholder claims that a fraudulent transaction was made without the physical card involved.
10.5 - Visa Fraud Monitoring Program Visa flagged the transaction under the Fraud Monitoring Program, and the issuer has not filed a chargeback under another reason code.

Authorisation

Reason code Explanation
11.1 - Card Recovery Bulletin The transaction was below your credit floor limit and was not authorised.
11.2 - Declined Authorization An Authorization Request was declined, but the transaction was still processed.
11.3 - No Authorization The transaction was processed without an attempt at authorisation, or authorisation was requested after the fact or for a different amount.

Processing Errors

Reason code Explanation
12.1 - Late Presentment The transaction wasn’t sent to Visa within the time limit.
12.2 - Incorrect Transaction Code The wrong transaction code was used. The transaction that was processed was different from the obtained authorisation.
12.3 - Incorrect Currency The transaction currency is different from the currency transmitted through Visa. Usually, the cardholder wasn’t made aware of or didn’t agree to Dynamic Currency Conversion (DCC).
12.4 - Incorrect Account Number The transaction you processed was to an incorrect account number that didn’t match the account number in the authorisation.
12.5 - Incorrect Amount The cardholder claims that the amount charged is different from the amount they agreed to pay.
12.6 - Duplicate Processing/Paid by Other Means A single transaction was processed more than once or the cardholder claims that they paid for the order with another method.
12.7 - Invalid Data The authorisation was obtained using invalid or incorrect data.

Customer Disputes

Reason code Explanation
13.1 - Merchandise/Services Not Received The cardholder claims that they haven’t received their order or that they cancelled the order because the order wasn’t delivered by the expected date.
13.2 - Cancelled Recurring Transaction The cardholder claims that the charge was made after they cancelled a recurring transaction.
13.3 - Not as Described or Defective Merchandise/Services The cardholder claims that the goods they received are defective or not as described.
13.4 - Counterfeit Merchandise The product was identified as counterfeit by a third party.
13.5 - Misrepresentation The cardholder claims the terms of sale were misrepresented and alleges false advertising.
13.6 - Credit Not Processed The cardholder claims they received a credit that was never processed.
13.7 - Cancelled Merchandise/Services The cardholder claims they were charged for an order that was cancelled.
13.8 - Original Credit Transaction Not Accepted The original credit wasn’t accepted.

 

Mastercard chargeback codes

Fraud

Reason code Explanation
4837 - No Cardholder Authorization The cardholder claims the transaction you processed was authorised without their knowledge.
4840 - Fraudulent Processing of Transactions The cardholder claims that the transaction was fraudulent and made while the card was in the cardholder’s possession.
4849 - Questionable merchant activity The transaction violates Mastercard’s rules or was listed in a Mastercard Global Security Bulletin.
4863 - Cardholder does not recognize – Potential Fraud The cardholder claims that they don’t recognise and didn’t authorise the transaction.
4870 - Chip Liability Shift The cardholder claims they didn’t authorise or participate in the transaction even though they were in possession of a valid card at the time.
4871 - Chip/PIN Liability Shift The cardholder claims they weren’t in possession of a valid card at the time and didn’t authorise or participate in the transaction.
4999 - Domestic Chargeback Dispute (Europe region only) The issuer may use this reason code when a dispute is possible under domestic rules, but doesn’t meet another chargeback categorisation.

Authorisation

Reason code Explanation
4835 - Card Not Valid or Expired The transaction was made with an expired card.
4807 - Warning Bulletin File The transaction couldn’t be authorised.
4808 - Requested /Required Authorization not obtained The transaction couldn’t be authorised.
4812 - Account Number Not on File The transaction was made with an account number that doesn’t match the cardholder’s account number on file.

Processing errors

Reason code Explanation
4834 - Point of Interaction Error There are multiple explanations for this reason code:
  • The cardholder paid twice for the same transaction using different payment methods.
  • The cardholder’s account was debited more than once for the same transaction.
  • The transaction amount was incorrect or unreasonable.
  • The transaction wasn’t sent to Mastercard within the time limit.
  • Incorrect transaction currency code was provided.

Customer Disputes

Reason code Explanation
4853 - Cardholder Dispute There are multiple explanations for this reason code:
  • The cardholder claims that they haven’t received their order or service.
  • The cardholder claims that they cancelled the order because the order wasn’t delivered by the expected date.
  • The cardholder claims that the charge was made after they cancelled a recurring transaction.
  • The cardholder claims that the goods they received are defective or not as described.
  • The cardholder claims they received a credit that was never processed.
  • The product was identified as counterfeit by a third party.

 

Read more

 

Can't find what you're looking for?

Please contact Support for help.