⭐️ Understanding Visa, Mastercard, and other network reason codes
Overview of Reason Code Systems:
Each card network uses specific reason codes to categorize the basis for chargebacks. Understanding these codes is crucial for merchants to prepare appropriate evidence and implement preventive measures.
01. Visa Chargeback Reason Codes
10.1 - EMV Liability Shift Counterfeit Fraud:
- Description: Counterfeit card transaction where merchant didn't use EMV technology
- Common Evidence: EMV chip read receipt, authorization approval
- Prevention: Ensure all card-present terminals accept EMV chips
10.2 - EMV Liability Shift Non-Counterfeit Fraud:
- Description: Fraudulent transaction where EMV should have been used
- Common Evidence: Signature verification, EMV compliance documentation
- Prevention: Upgrade payment terminals to EMV-compliant systems
10.3 - Other Fraud - Card Present Environment:
- Description: Fraudulent card-present transaction not covered by other fraud codes
- Common Evidence: Signed receipt, ID verification records, security footage
- Prevention: Implement strict card verification procedures
10.4 - Other Fraud - Card Not Present Environment:
- Description: Online, phone, or mail order fraud
- Common Evidence: AVS/CVV match, customer verification records, IP analysis
- Consideration: Primary concern for e-commerce merchants on platform
11.1 - Card Recovery Bulletin:
- Description: Transaction on card listed in recovery bulletin
- Common Evidence: Authorization approval showing card not on bulletin at time of transaction
- Prevention: Verify current status during authorization
11.2 - Declined Authorization:
- Description: Transaction processed without proper authorization
- Common Evidence: Authorization approval code, terminal receipt
- Prevention: Always obtain authorization for all transactions
11.3 - No Authorization:
- Description: Transaction processed without any authorization attempt
- Common Evidence: Authorization approval documentation
- Prevention: Never process transactions without authorization
12.1 - Late Presentment:
- Description: Transaction not submitted for processing within required timeframe
- Common Evidence: Proof of timely submission within card network rules
- JustiFi Process: Automatic submission prevents this issue
12.2 - Incorrect Transaction Code:
- Description: Wrong transaction type used for processing
- Common Evidence: Correct transaction documentation
- JustiFi Process: Platform automatically assigns correct codes
02. Mastercard Chargeback Reason Codes
4807 - Warning Bulletin File:
- Description: Transaction on card in warning bulletin
- Common Evidence: Proof card not on bulletin during transaction
- Prevention: Check warning bulletins before processing
4808 - Authorization-Related Chargeback:
- Description: Authorization issues including expired, declined, or insufficient authorization
- Common Evidence: Valid authorization approval
- Prevention: Obtain proper authorization for all transactions
4812 - Account Number Not on File:
- Description: Card number not properly recorded or transmitted
- Common Evidence: Accurate transaction records showing correct card number
- Prevention: Verify card number accuracy during processing
4834 - Duplicate Processing:
- Description: Same transaction processed multiple times
- Common Evidence: Proof of single transaction or credit for duplicate
- Prevention: Implement duplicate transaction controls
4837 - No Cardholder Authorization:
- Description: Transaction processed without cardholder permission
- Common Evidence: Signed receipt, cardholder authorization documentation
- JustiFi Risk: Major concern for CNP transactions
4840 - Fraudulent Processing of Transactions:
- Description: Fraudulent transaction processing by merchant
- Common Evidence: Legitimate authorization and processing documentation
- Prevention: Maintain strict transaction processing standards
4841 - Cancelled Recurring Transaction:
- Description: Recurring billing continued after cancellation
- Common Evidence: Cancellation request and processing dates
- JustiFi Requirement: Critical for subscription-based merchants
4855 - Goods or Services Not Provided:
- Description: Customer didn't receive promised goods or services
- Common Evidence: Delivery confirmation, service completion proof
- Prevention: Maintain detailed delivery and service records
03. American Express Chargeback Codes
F10 - Missing Imprint:
- Description: Card imprint or electronic record missing
- Common Evidence: Card imprint or electronic transaction record
- Prevention: Ensure all transactions properly record card details
F14 - Missing Signature:
- Description: Cardholder signature missing from transaction
- Common Evidence: Signed receipt or authorization
- Prevention: Obtain signature for all card-present transactions
F24 - No Card Member Authorization:
- Description: Transaction processed without cardholder authorization
- Common Evidence: Proof of cardholder consent
- Prevention: Verify cardholder identity and authorization
F29 - Card Not Present:
- Description: CNP transaction without proper verification
- Common Evidence: AVS/CVV verification, customer authentication
- JustiFi Application: Relevant for online platform merchants