Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. But cardholders and merchants have different time limits. To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. P03 – Credit Processed as Charge. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. 103. Chargeback time limits vary depending on the reason for the dispute. Category. The network plans to reduce response times even further to just 20 days in the near future. The newer system is designed to. As expected, chargeback reason codes exemplified consumer sentiment. The merchant did not receive any returned merchandise. Other Fraud—Card Absent Environment. Chargeback Base Codes by Network - 2023 Guide. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. pdf - Free download as PDF File (. Now, compliance cases go through Visa Resolve Online (VROL). American Express chargeback reason code C42. Field name: reasonCode. 4 Fraud – Card-Absent Environment. US/Canada Chargeback reason code. A good chargeback return policy will, at a minimum, include. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. The way you manage chargebacks depends on your account setup. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. The transaction amount and authorization number (ARN. If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. The major card networks have unique reason code systems, and banks use separate tools. 2. The shorthand description is “Late Presentment. 3: Goods or services were not as described: C31: RM: 13. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. UA05 Fraud – Chip Counterfeit Transaction. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. 5 (1050) (Visa) Card-not-present fraud. Every time a merchant processes a transaction, they are supposed to send an. ). 9808 [email protected] are only a handful of common Visa chargeback reason codes. 1 chargeback: 1. Having a Lax Attitude Toward Industry Rules & Regulations. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Specify the invoice date and net due date that you want the system to assign to chargebacks. ”. Shopify has four status categories for chargebacks and inquiries: Open: No response has been sent yet and evidence can still be added. Visa chargeback reason codes. 3. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. 18167 US Highway 19 N Clearwater, FL 33764 877. 60 due to merchandise, fees, overhead, and other sources of loss. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. Using the same link provided above, contact PayPal to report the scam. American Express Chargebacks / Disputes. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Use this resource to prevent and fight chargebacks with greater accuracy . But friendly fraud is much more ambiguous. Fight; Prevent;. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. As we touched on earlier, chargebacks can happen due to technical errors. Paymentology will submit the chargeback using the appropriate chargeback reason code. UA02 Fraud – Card Not Present Transaction. According to Nilson, 56% of global card transactions were done on Visa in 2015. Chargeback amount is equal to or less than the exceeded limited /authorised amount. MasterCard: Reason Code 4859 Services not rendered. Depending on the reason code, chargeback disputes may have different time limits. Specify the default reason code to. Reason. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for. Most reason codes apply to any merchant, regardless of what’s being sold. Amex Dispute Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. The chargeback process can last from one month to six months. Investigate suspicious orders. Nothing immediately identifies a chargeback as being the result of first-party misuse. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. United States. Reason Code 03. Batch chargeback process. 00 in chargebacks. F31 –. This definitive guide comes that chargeback reason codes from jeder of of four majority card networks. In most cases, you will have 20-45 days in which to respond to a chargeback. American Express Chargebacks / Disputes. 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. The chargeback reason codes below explain why this happened. Step #2 | Report the Scam to PayPal. 3. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. At their core, false declines. Chargeback. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. 1. American Express chargeback reason code F24 falls under the “Fraud” category. If the order was genuinely not as described, then the cardholder has a case. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Chargeback reason codes. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. 10. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. You submitted the. 1 EMV Liability Shift 10. This ranges anywhere from roughly 60 to 90 days after purchase. While the updates have been published, they do not go into effect until Oct. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Once filed, the merchant generally has 20. 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. 10. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Different card networks have different reason code systems. P05 – Incorrect Charge Amount. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. At Visa they used to receive reason code 98. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. A reason code is an alphanumeric code that explains the reason behind the dispute. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. 02/10/16 Added Debit Chargeback Reason Codes. May 2011: 5. Written over Chargeback Gurus. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. These codes can help a merchant with an inquiry or chargeback reversal. 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. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Reason . Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. Receiving a damaged product. Check the chargeback reason code. Reason code 83 represents a chargeback categorized as. for chargeback reason code 4863 (Cardholder Does Not Recognize). Partners. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Download this sample Chargeback Rebuttal Letter. 2. Choose “chargeback and inquiry status” from the drop-down menu. The cardholder initiates contact with their bank or credit union to file a dispute. 10. the requested documentation, your account will be debited. Everyone has had the experience of buying. The CB Reason represents the default reason for marking the transaction as a chargeback, but this default value can be changed. Visa assesses the following fines, as specified in the table below, to a U. 105. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. The cardholder does not recognize your name on their statement. GraphQL Docs & Tools. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 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. Also, remember that the time frame for your response includes any processing required by the acquirer. F24: No Card Member Authorization. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Any time. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. FAQ: What remains Chargeback Representment? TIPS. US $10,000. A01 – Charge Amount Exceeds Authorization Amount. Here’s how. In most cases, the bank chooses a course of action based on information the cardholder provides. 4 Section . Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Visa Chargeback Reason Codes. 3: Goods or services were not received: C08: RG: 4855: 13. Added the following fields - Store ID, Credit Card Chargeback Reason Code. Reason Code. Braintree Support Articles. Accessed October 17, 2022. Type. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. 26% - the number of chargebacks that result from undelivered orders. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaUnfortunately, it is pretty challenging to prevent friendly fraud. See the list of reason codes below: Card Network. Most commonly the payer is a consumer. American Express is incentivized to keep their customers happy. 1 = EMV-Liability Shift counterfeit. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. Tips for an effective chargeback return policy. Chargeback /Dispute; Merchant Response. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Then look it up in our database. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. While Apple Cash transactions are ineligible for conventional disputes, you can dispute Apple Card transactions. The first step to fighting a chargeback, is to research the reason code which explains the reason for the chargeback and the required compelling evidence to dispute it. Mastercard has plans to follow suit. 2. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Visa. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. Solutions. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. The first two digits indicate what category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. France saw a drop of roughly 50% during the same period. Spot these types of chargebacks using the below reason codes. F24 Multiple Charges F25 No authorization for total amount of charge F26 Incorrect name on transactionP01 – Unassigned Card Number. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. It depends on the chargeback reason code associated with the dispute. About American Express chargeback reason codes. There are many reasons why a chargeback occurs, with over 100 reason codes listed across the major credit card brands. M01 Chargeback Authorization. The specific guarantee terms and reimbursement procedures will. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Make sure you are always aware of the latest rules and regulations, and update your policy accordingly. Each credit card network has its own list of reason codes banks must choose from. Additionally, Amex uses a fifth "Miscellaneous" category. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. 04/09/14 Discover: DC, U02. Retrieval: A request initiated by a customer for more information about a charge. pdf), Text File (. 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. 10301. Under “Transaction History,” tap the transaction you want to dispute, then tap “Report an Issue. Description. F24: Beginning Other Expense: 00000: 9200: F25: Ending Other Expense: 00000: 9699: F26: Beginning Tax Expense: 00000: 9700: F27: Ending Tax Expense: 00000: 9799: F28: Ending Profit and Loss Accounts:. Reason Code 04. If you don’t reply in time or with . A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. Assemble Your Evidence. Here are the two possible scenarios: 1. Reason codes are very crucial to assist. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Chargeback Reason Codes Visa. This scenario applies when the arbitration was raised by either the. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. Here are some chargeback reason codes by card type. Written by Chargeback Gurus. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. Step 1: Identify the Source. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). 60. 3. The most popular type of disputes of the chargeback category. As a merchant, you face the brunt of chargeback losses. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. F24: Multiple Charges: F25:Try Shopify free for 3 days, no credit card required. A02 – No Valid Authorization. A reason code is a numeric code that describes the cause behind a chargeback dispute. Written by Chargeback Gurus. Fraud. 10. The cardholder does not recognize the Merchant. Q. Receive the Chargeback. For example, your trading name on the receipt differs to that on their statement. Code Reason (for Visa) 10. There are two parts to this. Reason codes are important to help merchants address recurring. 2. Reason Code: Definition: 10. 5 billion lost in 2020. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This chargeback occurs when merchants do not adequately provide currency information. 4 spec (Section 8. Versions Affected: v5, v6. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)When the customer disputes a charge, the issuing bank then begins the chargeback process. Once filed, the merchant generally has 20 days to respond. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. 7: Defective goods and services: C32: RM: 13. Reason codes vary by card brand. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. Provide Explanation Give a clear overview of the documents you’re submitting, address the specific dispute reason, provide any changes made to the original purchase/agreement and explain the steps you’ve taken to resolve the dispute. FAQ: What is Chargeback. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. 2. Fraud. 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. Be sure you understand the cardholder’s claim. EXIDRL–IKVFDLIONCFKNQLOFC AMEX CODE A01Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. There are also specific return time frames, which can differ. F24: No Cardmember Authorization: F29: Card Not Present: F30: EMV Counterfeit: M01: Chargeback Authorization: P01:. 104. Fraud. The reason codes help merchants understand the reason for particular chargebacks and better tailor their responses to chargebacks. About Careers Contact. The Cardmember claims they did not participate in this Charge. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Reason Code 53: Not as Described or Defective Merchandise. Scenario 2. Chargeback reason code 11. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. There are multiple situations in which this can occur. • 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. Once filed, the merchant generally has 20 days to respond to the chargeback. 1 alpha followed by 2 numeric digits. For best results, your chargeback win rate should be as close to 100% as possible. If you leave this processing. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. 3. 10301. However, it is important to note that this reason code is based on the reason given by the customer to their bank. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. reason code information. She therefore, disputes the amount under the Reason Code F24: No Cardmember Authorization. 4 – Other Fraud, Card-Absent Environment; Mastercard 4837 – No Cardholder Authorization American Express F24 – No Cardmember Authorization; Discover UA02 – Fraud: Card Not Present Transaction American Express Chargebacks / Disputes. 5; Code #F24; Code #F29; Code #UA02; Code #7030; Code #4837 / #37; Transaction Not Recognized. Only an issuer can initiate the chargeback process. P22 – Non-Matching Card Number. 2 EMV Liability Shift. Mastercard Chargeback Reason Code 71: Disputed Amount. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. 1? Visa chargeback reason code 12. F24: No Card Member Authorization: None: Fraud: F29: Card Not Present: Airline Transaction: Fraud: F30: EMV Counterfeit: None: Fraud: F31: EMV Lost/Stolen/Non. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 3. Not remembering the original purchase. 5 Visa Fraud Monitoring Program. reason codes. Chargeback Reason Codes / American Express / F24 – No Cardmember Authorization Reason Code F24 Category Fraud DESCRIPTION Why did I receive this chargeback? The cardholder claims he or she has previously shopped with the merchant but didn’t participate in this particular purchase. Invalid Authorisation (ISO 4521) / Charge amount exceeds Authorisation amount (A01). Once you hear from. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. 4; Code #10. American Express Chargeback Reason Codes – Chargeback Expertz. F24 F29 F30 Charge Amount Exceeds Authorization Amount No Valid Authorization. The actual underlying cause of this chargeback is. What is Visa chargeback reason code 12. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. Processing recurring payments increases your susceptibility to chargebacks. ” This reason code is used when a cardholder claims that while they have previously shopped with the merchant, they did not authorize this particular transaction. 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. Fight;. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. US and Canada. You double and triple check your customer service records to see if the customer wrote in about the shipment (they haven’t), you check the tracking. Each card. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. 2=1020 etc. These codes can help a merchant with an inquiry or chargeback reversal. Reason Code 81: Fraud. Reason Code 12. For example, your trading name on the receipt differs to that on their statement. 4808 – Authorization-Related Chargeback – Multiple Authorization Requests. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity These reason codes are divided into three categories depending on the supposed cause of a chargeback: consumer disputes, processing error, or fraud. The following are some examples: Visa Reason Code 13. F24 - No Cardholder (Card Member) Authorization (All other countries 4534) Reason. 4: Other Fraud–Card-Absent Environment. Last updated: October 15, 2019 . Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program,” are excluded from program monitoring. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. 4. ECM monitors first presentment chargebacks regardless of reason code or transaction type. There are several reasons why many merchants turn a blind eye to suspected return fraud. Chargeback Reason Codes by Industry. When you receive a chargeback request, respond promptly with any relevant information or evidence that supports your case. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. 4846. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. 6. 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. A dispute often has a reason code associated with it. 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. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. 10. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Chargeback Report. In simple words, the chargeback reason code provides the reason why you are dealing with a chargeback. As we touched on earlier, chargebacks can happen due to technical errors. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Additionally, one clearing transaction.