The transaction was recurring and the cardholder failed to meet the cancellation terms of the. However, the 30 day waiting period can be waived if you’ve. FR4 Immediate Chargeback Program. Europe Region Operations Bulletin No. ”. . This scenario applies when the arbitration was raised by either the. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. Example: If there is a known or suspected fraudulent transaction, the merchant can refund the money, or if there should have been a refund due to operational error, they can issue a refund to prevent a chargeback from occurring. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. 11/03/15 Updated these MasterCard. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 25%: 0. Always ask for authorization regardless of the transaction amount. For example, Mastercard has a code which indicates a ‘consumer dispute. Reason Code: Numeric: Code for the chargeback request (see below). 03%: AP: 21: 1. 1: Use the corresponding dates from the invoice. Reason Code Directory. 2 - Incorrect Transaction Code. All 1. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. Here’s how your store can prevent and deal with chargebacks. There are 151 chargeback reason codes across the four major card networks. 100- 140 standards- , and will be removed in future releases. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. This chargeback occurs when merchants do not adequately provide currency information. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). 1002 - Cardholder disputes billed amount. ”. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. Each card network maintains reason codes to cover all the disputes that qualify for. The reason code will give you an idea why the payment is disputed. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. 34 3. Here’s how your store can prevent and deal with chargebacks. It is associated with a chargeback reason code, and it is specific per Card Scheme. The U. Follow the Rules. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. a bank, credit union, etc. For example, Mastercard has a code which indicates a ‘consumer dispute. 3 No Authorization. Accessed October 31, 2022. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. 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. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. United States. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. You can see the reason code for the dispute in the Dispute page. 2 chargebacks are frequently caused by customers forgetting to cancel a subscription before the next billing and then going to their bank to try to get their money back. Mastercard Chargeback Reason Code 73: Duplicate Transaction. 5%. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. Reference these when rebutting cardholder disputes at your small business. These codes are broken down into five different category. The right to dispute a transaction is a federal law in. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. A chargeback happens when a customer requests for a transaction to be reversed. By entering your email, you agree to receive marketing emails from Shopify. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. The main chargeback reasons look like this: Malicious fraud. UA02 Fraud – Card Not Present Transaction. Unauthorized returns (R05, R07, R10, R29, R51): 0. Reason Codes Category 1: Authorization. 1001 - Cardholder does not recognize the transaction. 3 Changed Discover Reason Codes to match what is shown in the UI. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Get your complete. Chargeback Reason Codes by Industry. Each American Express reason code consists of one or more letters, indicating the category, and a number that identifies the. Each bank card network has its owner list of reason codes banks must prefer from. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. Now, compliance cases go through Visa Resolve Online (VROL). At Visa they used to receive reason code 98. A chargeback happens when a customer requests for a transaction to be. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. In some circumstances, Mastercard allow consumers to reverse a credit card transaction by filing a chargeback. Across open networks and include account numbers sent over email, instant messaging, text, or chat. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. ”. M01 Chargeback Authorization. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Notification of Fraud. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. The newer system is designed to. Check the chargeback reason code. This provided a number of insights into the typical. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. Reason codes are important to help merchants address recurring. All ACH return reason codes consist of the letter “R” followed by two. com Europe. 46 Reason Code 74: Late Presentment. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. 3: Goods or services were not as described: C31: RM: 13. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. National Payments Corporation of India Confidential Page 6 of 164. . Reason codes. Reason Code. 1: Use the corresponding dates from the invoice. 3), the acquirer has 18 days to respond to the dispute • For Visa Collaboration reason codes (RC 12. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Complicating things further, friendly fraud doesn’t provide you with any red flags. Try Shopify free for 3 days, no credit card required. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing Below is a simple set of instructions, based on different situations: If the transaction was verified using SCA ( 3D Secure ): provide this proof. Invalid Reasons for a Dispute What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. Reason codes are created by the major. 0 rule changes take effect April 15,. Payment Transaction Response Codes. In this scam, a scammer sends a message to their victim. 1, 5 January 2016. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. 4853 – Cardholder Dispute – Credit Posted as a Purchase. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. By entering your email, you agree to receive marketing emails from Shopify. The shorthand description is “Late Presentment. Attachment A: Copy of the customer's transaction on xx/xx/xxxx using a credit card ending in XXXX. Protect cardholder data. Any chargeback that is received without a reason code will be assigned a default code of 53. R. 1 American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. 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. . On that note, below are some vendor missteps that could result in Visa reason code 13. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Reason codes vary by card brand. ” This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. ”. Code. These codes are currently defined within the ANSI X9. For instance, if the chargeback reason code alleges that merchandise was not delivered, you should provide tracking and delivery notifications, evidence that the customer lives or works at the product’s destination, or other proof that the customer received the product. This may be done by either the merchant or the issuing bank. 2=1020 etc. 60 due to merchandise, fees, overhead, and other sources of loss. WEX began issuing chip cards in Q4, 2020. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. 1. 4: Other Fraud–Card-Absent Environment. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. 7: Defective goods and services: C32: RM: 13. EMV has been a mostly global standard since 2004. Multiple Authorization Requests. Merchants who believe they have received an invalid chargeback under reason code 13. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Mastercard chargeback reason code 4831 falls under the “Point-of-Interaction Error” category. If the order was genuinely not as described, then the cardholder has a case. Choosing what compelling evidence to submit. The list of chargeback reason codes in this article is organized by card brand and type of dispute. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Below is a full list of reason codes that require compelling evidence: 37; 83; 1040; 1310; 7030; C08; F29; UA02; Empty reason codes; If a dispute has any other reason code, there are no specific evidence requirements, and the evidence does not need to be categorized. 06%: 1. The cardholder claims they were charged multiple times for a single transaction. Each American Express reason code consists of one or more letters, indicating the category, and a number that identifies the. . Here are some chargeback reason codes by card type. Description of Change Where to Look • Require cardholder letter, email or Expedited Dispute Form in first chargebacks for Cardholder Disputes reason codes involvingOnce you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. But if your chargebacks Win Rate is above that percentage, then ensure that your Return on Investment (ROI) index is over 50%. 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. Also, just like American Express, Discover functions as both a card network and an. A reason code or a chargeback reason code is a string of symbols (numbers and letters). The transaction was recurring and the cardholder failed to meet the cancellation terms of the. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. (Reason Code 4850) > Arbitration Case Filing-For Chargebacks Initiated On or Before 16 April 2020. The merchandise was as described or was not defective. The separation of the Return ReasonAs both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. 26: Outcome: Type: String; Unique: No; Blanks: Yes; Max. Visa has recently announced changes to its chargeback rules. Jan 2020_Chargeback Reason Code. All ACH return reason codes consist of the letter “R” followed by two. A chargeback is the potential outcome of a disputed credit or debit card transaction. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. Chargeback reason codes. Chargebacks—Maestro POS Transactions—added information to the section, Proper Use of Intra-European Message Reason Code 4808, about theThe standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Discover chargeback reason code 7030. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Specify the invoice date and net due date to assign to chargebacks. . “American Express Chargeback Reason Codes | Sift”. Technical. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. 26% - the number of chargebacks that result from undelivered orders. Terms and conditions. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. This code helps you identify the exact cause of the dispute. The claim often, but not always, involves automated teller machines (ATMs). If you did not receive the email, open Mave, Wave’s automated chatbot, and. Some reason codes indicate a high likelihood of fraud, and instruct you to hold on to the card and contact the bank: 4 - Pick Up Card; 7 - Pick Up Card, Special Conditions; 33 - Expired Card – Pick Up; 34 - Suspected Fraud – Pick Up; 35 - Contact Acquirer – Pick Up; 36 - Restricted Card – Pick Up; 37 - Call Acquirer Security – Pick UpCardholder Disputes. A chargeback with reason code 4834 may refer to disputes in which the cardholder participated in an ATM cash withdrawal, but claims to have not received part—or all—of. The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. Chargeback. . As we touched on earlier, chargebacks can happen due to technical errors. You should code appropriately to handle all codes applicable to the transactions you use. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 4 applies to eCommerce, whereas code 10. Reason Code. Identifying the chargeback reason code or the proofs required to fight it is the first step in chargeback representment, press analyzing your. Merchants can find a. Select a tab to see the possible. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 2. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. Values are: Blank: Use the draft G/L date. There are a number of chargeback request codes that need to be submitted with each chargeback request. While the format of chargeback reason codes. 0. 1. Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. You can learn more about each one by visiting the Mastercard Chargeback Guide. ). If the merchant has a signature showing that the order was delivered, or evidence that the. As both a card network and an issuer, American Express specifies 34 reason codes under the categories of Fraud, Authorization, Processing Errors, Card Member Disputes, and Inquiry/Miscellaneous. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. 4860 Credit Not Processed. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. 3 applies when a cardholder claims a charge—made in a card-present environment—was. 00. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. message. 3? Visa chargeback reason code 11. MasterCard: Reason Code 4859 Services not rendered. 6 General update and rebranding. ”. 06%: 1. Take the time to note the following dispute reason codes for Visa. Provide exemplary customer service. 3. Step 1: Identify the Source. Chargeback reason code 13. Receiving a damaged product. MASTERCARD Reason Code Description. 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. Merchants who believe they have received an invalid chargeback under reason code C05 may are able to represent the transaction the reverse the chargeback with the right compelling evidence. Discover uses unique codes to explain those reasons to merchants. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Suspected fraud is a common reason, as is insufficient funds in the cardholder’s account. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F29, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. Some payment service providers like PayPal and Stripe have their own reason codes as well. These chargebacks occur to resolve chargeback-related disputes between network members. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Protect stored cardholder data. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. . Create this form in 5 minutes! Use professional pre-built templates to fill in and sign documents online faster. 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 transaction. mastercard dispute form. As a merchant, your focus should be on finding and retaining customers--not chargebacks. Values are: Blank: Use the receipt G/L date. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. 1 to RC 13. Acquirer Use of Message Reason Code 7623. However, they don’t address the reason why that chargeback was issued in the first place. Explaining Mastercard Reason Code 4859 - No Show/Addendum/ATM Dispute. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) You can see a reason code 11. Chargeback time frames - A specific period during which a chargeback can be raised. Updated Disputes/Chargeback Policy Coming April 2024If your chargeback Win Rate is under 25%, it makes no sense to represent. Prevent Chargebacks & Reduce Payment Processing Risk. The cardholder may be the customer or the someone who lent their card to a friend or relative. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. 1 Quick Reference Lead. Updated these Discover Chargeback Codes: U05, U06. Either the acquiring or issuing bank could initiate the chargeback. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. FR2 Fraud Full Recourse Program. In fact, the same thing could be said of other chargeback reason codes, too. A reason code is how banks categorize the reason for a chargeback. FR6 Partial Immediate Chargeback Program. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Reason Code 72: No Authorization. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. The Late Presentment chargeback rights and language will be moved from chargeback reason code 4834 (Point of Interaction Errors) to reason code 4808 (Authorization-related Chargebacks). Fraud (10)& Authorization (11)“Our broad international experience with the banking industry, our familiarity with each and every credit card network’s unique chargeback guidelines, our proprietary databases, and our deployment of state-of-the-art technology for tracing cryptocurrency are the strategic advantages that allow MyChargeBack to build the strongest possible case. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Time and Labor. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. The shorthand description is “Correct Transaction Currency Code Not Provided. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. Mastercard chargeback reason code 4999 falls under the “Point-of-Interaction Error” category. Responding to Mastercard Reason Code 4853 Chargebacks. Use clear and consistent billing descriptors. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. Below is a list of Mastercard chargeback codes used in eCommerce. What is Visa Reason Code 11. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Specify the default reason code to. The shorthand description is “No Authorization. ”. You’ll put that reason code, the transaction amount and authorization number, and state that the. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Each card issuer follows their own. ”. Codes are not often shared between issuers which means it can be difficult to remember the details of each. You must contact your Relationship Manager for information about the. What is Visa chargeback reason code 12. . UA05 Fraud – Chip Counterfeit Transaction. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Remember that you generally have one chance to issue a chargeback so you. According to Nilson, 56% of global card transactions were done on Visa in 2015. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Chargeback reason code 13. If using any other currency than this, it should be equivalent to the specified amount. Chargeback Code Authorization Errors; A01: Charge Amount Exceeds Authorization Amount: A02: No Valid Authorization: A08: Authorization Approval Expired: Chargeback Code: Type: Fraud: F10* Missing Imprint: F14* Missing Signature: F22: Expired or Not Yet Valid Card: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. Invalid Reasons for a DisputeThe reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. . Chargeback Reason Code. If using any other currency than this, it should be equivalent to the specified amount. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Chargeback Code Authorization Errors; A01: Charge Amount Exceeds Authorization Amount: A02: No Valid Authorization: A08: Authorization Approval Expired:. Analyze your chargeback data. You electronically sent the same transaction capture batch to your card processor more than once. For example, a shopper bought some goods and paid for these on the 14th of October 2017: this is the date that appears as the Disputed date. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. The following chargeback reason codes are related to EMV: Visa: 10. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. The customer regrets their purchase. But friendly fraud is much more ambiguous. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Not recognizing your billing descriptor on a statement. Feel free to submit topic suggestions, questions or requests for advice to:. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. The shorthand description is “Goods/Services Not as Described. • Rule changes for chargeback reason codes involving unjust enrichment associated with credits issued before or after a chargeback and/or after a second presentment. 9808 info@chargebacks911. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. 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. This Chargeback Reason Code has to do with all. Vantage HouseUse fallback options—like manually entering transaction data—as a last resort. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your. This chargeback occurs when merchants do not adequately provide currency information. Only an issuer can initiate the chargeback process. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. 33%: Moreover, region-specific laws can also impact chargeback rates. Below are some examples of more common reason codes. Both EFM and ECM measure compliance at the MID level. Chargeback reason code 12. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. In all, there are four major categories of Chargeback Reason Codes. reason code information. This reason code is used when the cardholder claims that a transaction charged to their account was actually supposed to be a credit. Nearly 1 in 4 online businesses have a chargeback rate that exceeds 1%, while 80% of merchants report a chargeback rate above 0. 4. 2. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. The transaction was refunded prior to the initiation of the chargeback: provide proof of refund.