2. Chargeback reason codes. US $10,000. 3. A chargeback can happen when a customer initiates a transaction dispute. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. com 14 If you are a new Stripe user and we have activated your access to Chargeback Protection, we may hold all dispute-related funds and fees until your business is approved. Select the value “open”. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. The new reason codes follow a format of two digits, a period, then a third digit. 0 initiative to update compelling evidence requirements for dispute reason code 10. The existing 22 chargeback reason codes will be replaced by new reason codes and grouped into 4 categories: 1. Reason codes are important to help merchants address recurring. 3 falls under the “Authorization” category. France saw a drop of roughly 50% during the same period. To obtain additional information, the issuing bank sends a retrieval request to the merchant’s bank. Chargeback Reason Code. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. Submitted: The response has been sent and the issuer is. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. Mastercard also considers some chargeback reason codes to be indisputable. Fight; Prevent;. Choose “chargeback and inquiry status” from the drop-down menu. 6). Chargeback reason codes. These chargebacks occur to resolve chargeback-related disputes between network members. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. 4846 — Incorrect Currency Code. 2. #9. 1 falls under the “Processing Errors” category. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. 0. The major card networks have unique reason code systems, and banks use separate tools. In most cases, the bank chooses a course of action based on information the cardholder provides. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Write customer-friendly policies. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. 1 Merchandise/ Services Not Received. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. This definitive guide include the chargeback base codes from each away and four more card networks. 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. This can be transaction receipts, proof of. Discover is a credit card network and an issuing bank—just like American Express. MasterCard - 4855 Goods or Services Not Provided. Merchants. The incorrect amount being charged. Scenario 2. It is important for the merchant to know about the American Express Chargeback. Prevented; Recover; Tools. 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. Click “filter orders”. 1 Card Recovery Bulletin or Exception File. Using the same link provided above, contact PayPal to report the scam. Customer Dispute. Not recognizing your billing descriptor on a statement. Either the acquiring or issuing bank could initiate the chargeback. 11. Different card networks have different reason code systems. 4? Visa chargeback reason code 12. It is important to identify and understand the root cause and take the necessary steps to dispute the chargeback. 4, 12. Description: Reason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. ”. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. Stage 1: First Chargeback. 2. The network plans to reduce response times even further to just 20 days in the near future. reason_description: string. This category of fraudulent chargeback is represented with the following reason codes: AMEX - C08 Goods/Services Not Received or Only Partially Received. FR4: Immediate Chargeback Program: American Express: Inquiry/Miscellaneous: FR6: Partial Immediate Chargeback Program: Discover: Fraud: UA01: Fraud – Card Present Transaction:Here are the two possible scenarios: 1. 65% with at least 75 total disputes. EMV Liability Shift Non-Counterfeit Fraud. 0 only applies to reason code 10. We’ll Handle the Chargebacks. The customer regrets their purchase. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. 5158. Reason Code. Never swipe a card back and forth or at an angle, as it may cause the reader to misread the stripe. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. A code that identifies the reason that the write-off occurred. Assemble Your Evidence. Unfortunately, it is pretty challenging to prevent friendly fraud. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. 800. The shorthand description is “Credit Not Processed. The terminal action codes are in Table 122 of the 4. Consider Deadlines. A chargeback happens when a customer requests for a transaction to be. The reason for the dispute was false or inaccurate. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. 105. FR4: Establishment on Immediate Chargeback Agreement, Discontinue Future Billings: FR5: Establishment on Immediate Chargeback Program, Disputed Charges Debited: FR6:There are many reasons why a chargeback occurs, with over 100 reason codes listed across the major credit card brands. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. 2 for Visa and Reason Code 4850 for Mastercard). However, they don’t address the reason why that chargeback was issued in the first place. Below is a list of Mastercard chargeback codes used in eCommerce. These codes are broken down into five different category. 1. 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. Paymentology will submit the chargeback using the appropriate chargeback reason code. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. But friendly fraud is much more ambiguous. 4. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. The Fintech Times. It also has a multiplier effect that extends damages well beyond the amount of the disputed charge in question. RDR will send an alert to the merchant, who can either initiate a refund to end the dispute or accept the chargeback. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. This information should be based on the Visa chargeback reason codes assigned to the case. Other Fraud—Card Present Environment. Receive the Chargeback. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. Additionally, Amex uses a fifth "Miscellaneous" category. Click on the Chargeback Reason Code drop-down menu, the user can change the. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U. The merchandise was as described or was not defective. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. If more information is needed, you’ll either receive an Inquiry or a Chargeback. Other Fraud—Card Absent Environment. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. In fact, the same thing could be said of other chargeback reason codes, too. for chargeback reason code 4863 (Cardholder Does Not Recognize). Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. Each time a consumer files a chargeback, the merchant is hit with a fee ranging from $20 to $100 per transaction. Goods / Services Damaged or Defective. . Try Shopify free for 3 days, no credit card required. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37Reason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. The win rate for this particular reason code is extremely slim because they generally refer to fraud issues. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. /HealthCare IIAS Auto-sub Data Retrieval Request 70 Int'l only Effective Change Date AMEX F24 FR4 FR5 M01 M04 M10 P01 P04 P05 R03 R13 Duplicate Billing Captial damages M19 Offset adjustment Non-Matching Account Number. MasterCard: Reason Code 4859 Services not rendered. Message. A chargeback is the potential outcome of a disputed credit or debit card transaction. Supporting Documents You could potentially reverse a Chargeback by providing the necessary supporting Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Complete Guide to Visa Compelling Evidence Update CE 3. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Visa Code # MasterCard Code # Reason. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. According to the 2022 Chargeback Field Report, global costs associated with chargebacks will have skyrocketed in recent years. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. This can happen to merchants in a high-risk credit card processing category. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. It's essential to respond within the. Overall returns (all codes): 15%. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. FR4 FR6 M01 M10 P01 P03 P04 P05 P07 P08 P22 P23 R03 R13 Select a code to see the details QUICK REFERENCE Time to respond: 20 days from date of chargeback. No Valid Authorization. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. France saw a drop of roughly 50% during the same period. EMV Liability Shift Non-Counterfeit Fraud. 196First, after a cardholder contacts the bank to inquire about a transaction, the bank uses VROL to pull detailed transaction information. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. • Removed reason code 4840 (Fraudulent Processing of Transactions) Chapter 1—General Information. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. txt) or read online for free. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. Articles; Chargeback Reason Codes;. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. As a merchant, your focus should be on finding and retaining customers--not chargebacks. The system does not accept Blank as a value, even if it is defined in the UDC table. Chargebacks: Your Guide to Reducing Hassle and Cost. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. 4 Funding Process. 41 4841 Cancelled Recurring Transaction 53 4853 Not as Described or Defective Merchandise 57 4840 Fraudulent Multiple Transactions 62 4870/4871 Counterfeit Transaction Being familiar with the potential chargeback reason codes gives recurringChargeback or chargeback dispute: A claim against a transaction initiated by a customer with their bank, resulting in a forced payment reversal. There are over 80 unique return codes, each representing a different return type. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Batch chargeback process. Though the credit card networks have a vast choice of codes, loopholes still happen. Step #2 | Report the Scam to PayPal. May 2011: 5. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. The cardholder may be the customer or the someone who lent their card to a friend or relative. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW. A08 Authorization Approval Expired. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Note: Fraud is generally the most common chargeback dispute reason. processed the transaction correctly. Contact us here or call us at 1. 04/09/14 Discover: DC, U02. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Unauthorized returns (R05, R07, R10, R29, R51): 0. 0 initiative to update compelling evidence requirements for dispute reason code 10. UA01 Fraud – Card Present Transaction. Now, compliance cases must be submitted through Visa Resolve Online (VROL). The reason codes are grouped into several broad. Chargeback. Description: Reason code for applying handling fee. Here’s how your store can prevent and deal with chargebacks. Chargeback . Additionally, Amex uses a fifth "Miscellaneous" category. The issuer investigates. Mastercard Chargeback Reason Code 71: Disputed Amount. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. The cardholder alleges they never received the products or services. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. The major card networks have unique reason code systems, and banks use separate tools. Discover Chargeback Reason Codes Explained. With that said, you still need to understand the reason codes with any chargebacks from Amex. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Most commonly the payer is a consumer. Respond to invalid disputes. 1 EMV Liability Shift Counterfeit Fraud 10. The better prepared you are, the more likely you are to. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 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. 10 Tips to Prevent Fashion Chargebacks. Region. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,• Rule changes for chargeback reason codes involving unjust enrichment associated with credits issued before or after a chargeback and/or after a second presentment. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. That’s 50% more time than what the major card networks allow. As a merchant, you face the brunt of chargeback losses. Info Us; In and. 4853 – Cardholder Dispute – Credit Posted as a Purchase. ”. Chargebacks. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. ” This reason code is used when a cardholder disputes a transaction, and the merchant is currently enrolled in the American Express. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. ’Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. If you don’t reply in time or with . Chargebacks are a major threat to businesses big and small. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Versions Affected: v5, v6. Field name: reasonCode. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. 11. Everyone has had the experience of buying. Amex Fraud Chargeback Reason Codes FR2 — Fraud Full Recourse Program. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective; American Express Reason Code C05 – Goods/Services Canceled; However, some reason codes are highly specific and apply only to a certain type of product, such as: Visa Reason Code 13. 4: Other Fraud–Card-Absent Environment. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. All chargebacks start with a customer making a purchase in person, in an app, or online. 0: Changed report name from Downloadable Dispute Report to Case Report. Chargebacks are a problem that is growing worse across the board, and gas station. FR4 — Immediate Chargeback Program. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Note that a chargeback is a forced bank reversal that always results in additional fees and penalties for sellers, regardless of the validity of the buyer’s claim. 4: . A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. C08 - Goods or Services Not Received or Only Partially Received F29 - Card Not Present How to Respond One of the following must be provided in your response: Evidence that. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. 1. EMV Liability Shift Counterfeit Fraud. This definitive guide comes that chargeback reason codes from jeder of of four majority card networks. STEP #7: Bank Review & Decisioning. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Not remembering the original purchase. The cardholder does not recognize your name on their statement. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Receiving a damaged product. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. These are all the known American Express chargeback codes. The best way to counter them is to know them deeply. MASTERCARD. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. A01. 3 applies when a cardholder claims a charge—made in a card-present environment—was. Reason Code North-America: Canada and United States of America; Reason Code:. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Or fill in the chargeback form because it seems easier than contacting the merchant directly. A new 4 byte reason code will be used moving forward. 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. This will be referenced in the chargeback notice you received. Otherwise, the bank may reject the transaction. 1 Quick Reference Lead. EMV Liability Shift Counterfeit Fraud. #9. This code collects all the. Fraud. 2. Reason. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 104. American Express. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. 1. 7: Defective goods and services: C32: RM: 13. Added the following fields - Store ID, Credit Card Chargeback Reason Code. 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. Discover. Use order validation and prevention alerts. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. most common reason codes for recurring merchants include: 7. Learning about each of the chargeback reason codes can help you dispute them. MasterCard does not have an equivalent reason code. Another downside is that chargebacks on annual subscriptions. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. Visa chargeback reason codes. Reason code Description; FR2: Fraud Full Recourse Program: FR4: Immediate Chargeback Program: FR6: Partial Immediate Chargeback Program: F10: Missing. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. Every chargeback comes with a reason code. FR4 Full Recourse FR5 Full Recourse M01 Acct Notice - processed Chargeback authorization M02 Acct Notice - processed your creditthe Chargeback. 0 represents the first rules change of its kind that specifically provides merchants with the opportunity to reverse the fraud status applied to a transaction associated by reason code 10. F01. This list was generated 5/4/2022. chargeback: The buyer filed a chargeback with the credit card issuer. 0. manual processing by uploading chargeback documents instantly. For example, your trading name on the receipt differs to that on their statement. Merchants who believe they have received an invalid chargeback under reason code 11. We also included the reason code descriptions and an indication of when the allowable time frame begins. 2 Declined Authorization. Expedited Dispute Resolution forms will not be allowed. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. SolutionsVisa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. Discover - RG Non-Receipt of Goods, Services, or Cash. Here are the two possible scenarios: 1. Documentation must be a direct result of cardholder communication. These are only a handful of common Visa chargeback reason codes. Each bank card network has its owner list of reason codes banks must prefer from. It covers topics such as chargeback rights, time frames, reason codes, arbitration and compliance. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. The third digit indicates the specific reason within that category. Name (*) Email (*)Chargeback. Reason Codes Category 4: Processing Errors. Visa Code # MasterCard Code # Reason. the requested documentation, your account will be debited. Reason Code 53 re-presentments must be. In the distribution industry,. Some credit card companies also include a short phrase describing the code and chargeback. 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. 3. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. FR4 FR6 M01 M10 P01 P03 P04 P05 P07 P08 P22 P23 R03 R13 Select a code to see the details QUICK REFERENCE Time to respond: 20 days from date of chargeback. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. ”. Your establishment is on an Immediate Chargeback agreement with American Express. 1: EMV Liability Shift Counterfeit Fraud: 10. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. For more information on these and other updates, check out our complete chargeback reason. 2. These fees are nonrefundable, even if the merchant ultimately beats the chargeback. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. September 2011: 5. Standard Threshold: Reaching a chargeback ratio of 0. Over the last three years, so-called friendly fraud has become the number-one source of fraud as reported by merchants are forced to deal with. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. Chargeback. Chargeback stands If you don’t reply in time or with the right documentation, the Chargeback will stand. Visa chargeback reason code 11. You’ll earn Membership Rewards points, which you can redeem for any transactions. Early Warning: Reaching a chargeback ratio of 0. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Reason. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. non_receipt: The buyer claims they didn't get the goods or services. How you respond is determined by the chargeback reason code: Embed This Graphic. The chargeback can be for the total transaction amount or a lesser amount. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. FR4:. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. A reason code is how banks categorize the reason for a chargeback. If the order was genuinely not as described, then the cardholder has a case. 11. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. You can see a reason code 11. What is Visa chargeback reason code 12. Visa ® has launched the CE 3. 2. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. Chargeback Reason Code. Take the time to note the following dispute reason codes for Visa. Reason Code 11. 4. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. paper processing and mailing costs. The chargeback process can last from one month to six months. Code.