These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. Check out the definitive guide to. Knowing these codes can help you dispute chargebacks more effectively. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. 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. Using the same link provided above, contact PayPal to report the scam. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. In most cases, the bank chooses a course of action based on information the cardholder provides. Additionally, one clearing transaction. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. 4 Other Fraud Card Absent. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. ) has its own reason code system, so sellers should carefully check the card used for the. FR4 Immediate Chargeback Program. 10. What are reason codes?. M10 Vehicle Rental – Capital Damages. Reason Code 53 re-presentments must be processed within 45 calendar days from the. Mastercard Chargeback Reason Codes. Of course, some of these inquiries will still inevitably progress to the chargeback phase. Visa Chargeback Reason Codes. 3 falls under the “Authorization” category. Merchant. reason codes. ”. Bank of America issues both Mastercard- and Visa-branded cards, so the exact requirements may vary depending on the Mastercard reason code or Visa reason code . Previously, Visa expected the disputing member to start the dispute by filing a pre-compliance chargeback under reason code 98 (now obsolete). The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). Responding to Mastercard Reason Code 4853 Chargebacks. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Complete Guide to Visa Compelling Evidence Update CE 3. However, Shopify has whittled down these 100+ reason. 3: Goods or services were not as described: C31: RM: 13. This reason code is used when the cardholder claims that their card was used fraudulently without their permission. Specify the invoice date and net due date to assign to chargebacks. Additionally, one clearing transaction. Try Shopify free for 3 days, no credit card required. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. 3 – No Authorization Dispute Code 11. Chargebacks are almost always initiated by customers, but businesses can request them as well (although this doesn’t happen often). Valid Values/Format: 22 - First Chargeback Handling Fee. United States; 18167 US Highway 19 N; Clearwater, FL 33764; 877. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. ” Currently, merchants can already prevent many 10. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. The most comprehensive guide to chargeback reason codes. If you're contesting a chargeback, you'll need solid evidence. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. All the major card networks use chargeback reason codes to convey the reason for a chargeback. The chargeback is ordered by the bank that issued the consumer's payment card. Batch chargeback process. Dec 6, 2021 — Betty's bank issued the chargeback for $9. If the transaction date listed in the clearing record is incorrect, provide documentation that proves authorization was obtained on the correct date. 2. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. Not remembering the original purchase. This provided a number of insights into the typical. The chargeback reason codes below explain why this happened. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. There is a USD 25 limit for the First Chargeback (Reason Code 22). A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. ”. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. 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. Friendly fraud. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. Your actions in response to such a chargeback will be determined by the particular circumstances, the most typical of which are described in the table below: If: Then: The transaction was cancelled and credit issued. Discover chargeback reason code 7030. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Let’s. In simple terms, VCR introduced five definitive. Also, just like American Express, Discover functions as both a card network and an. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. It is subject to change and may not include every currently known dispute reason code. Holders of merchant accounts at Wells Fargo will be charged $25 for each chargeback filed. In fact, the total costs of chargebacks exceed $30 billion per year, which is more than the revenue of many Fortune 500 companies, like McDonald’s and Netflix. 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. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Visa chargeback reason codes are used to categorize the reasons for a chargeback. Chapter 2 1. Collect Compelling Evidence. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. Check with the issuing banks to determine what time limits may apply to you. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. 1. Today, we at Chargebacks911 are proud to call ourselves the industry’s leading name in end-to-end chargeback management. The charge you submitted did not receive a valid authorization approval code for the amount of the. What is Visa Reason Code 13. Mastercard Chargeback Reason Code 73: Duplicate Transaction. The issuing bank will then pass on the chargeback to the merchant. Both EFM and ECM measure compliance at the MID level. Chargeback reason codes. 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. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, and recommendations are given for resubmitting the transaction and preventing similar chargebacks in the future. for chargeback reason code 4863 (Cardholder Does Not Recognize). 4853 – Cardholder Dispute – Credit Posted as a Purchase. When a transaction is declined, the specific code provides information about the reason for the decline. 1. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Chargeback reason codes are one piece of evidence you can use to make your case. ” This reason code indicates that the cardholder is disputing the credit card transaction because they provided payment via some other method, such as cash, check. Did not issue a credit, because it does not accept returns, but did not properly disclose its return policy. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. S. Fraud. Processing Errors 12. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. When one cardholder initiates a dispute with their issuing. . Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. The shorthand description is “Insufficient Reply. Example: 25. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. A number of factors contribute to a high chargeback ratio. But for illegitimate claims, the reason code doesn’t give the real reason for the dispute. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. 99. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Code 4807: Fraudulent Card-Present Transaction. By entering your email, you agree to receive marketing emails from Shopify. Terms and conditions. The issuer suffered a financial loss due to the exchange rate difference between the credit and the. 1. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. 00 EUR as a Withdrawal fee. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. 1. The chargeback system was designed as a last resort; only to be used in specific situations. Our family of fintech professionals includes more than 400 members across North America, Europe, and Asia. Discover uses unique codes to explain those reasons to merchants. UA02 Fraud – Card Not Present Transaction. Chargeback time limits vary depending on the reason for the dispute. 3 No Authorization Chargeback reason codes. Each card network maintains reason codes to cover all the disputes that qualify for. As expected, chargeback reason codes exemplified consumer sentiment. For more information on these and other updates, check out our complete chargeback reason. The chargeback transfers funds from the acquirer to the issuer. ”. Modified the matching 68 xG criteria for Refund transaction 04-09-2015 1. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. What is Visa chargeback reason code 12. The chargeback transfers funds from the acquirer to the issuer. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. The incorrect amount being charged. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Once you know why a chargeback happened, you can start building a case to address the claims that were. Any chargeback that is received without a reason code will be assigned a default code of 53. The main chargeback reasons look like this: Malicious fraud. 3? Visa chargeback reason code 11. Chargeback reason code. Pursuant to the Fair Credit Billing Act. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. It was originally just one facet of legacy reason code 81. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. The assigned chargeback reason code outlines why a customer submitted the dispute. Braintree Support Articles. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. 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. Most reason codes apply to any merchant, regardless of what’s being sold. 2? Visa chargeback reason code 12. 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. Step 2: Customer initiates the chargeback. Customer Dispute. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the. 2: No Authorization Legacy Code: 71. The good news is that most of these invalid claims are disputable by the merchant. 2. 6 –. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Across the four major credit card networks (i. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 1=1010,. 3. The 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. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. Visa chargeback reason code 12. Mastercard: Reason Code 4859 Service not rendered. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. 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. A TC40 data claim occurs when a customer makes a fraud claim against a merchant. According to Discover, cardholders officially have 120 days from the date of the transaction to initiate a chargeback, although the network may accept claims filed outside of that window on a case-by-case basis. “American Express Chargeback Reason Codes | Sift”. For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. Mastercard Chargeback Reason Code 70: Chip Liability Shift. The 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. According to the 2022 Chargeback Field Report, global costs associated with chargebacks will have skyrocketed in recent years. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. Today, Visa expects members to communicate through VROL and try to. You could also end up submitting the wrong evidence, which will cost you time, money, and standing with the bank. Transaction processing is a multi-step. Discover - RG Non-Receipt of Goods, Services, or Cash. Chargeback Reason Codes Reason code are the first key to understanding the root causes . Now, compliance cases go through Visa Resolve Online (VROL). Here’s how your store can prevent and deal with chargebacks. Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. 1. 4846 — Incorrect Currency Code. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Attachment A: Copy of the customer's transaction on xx/xx/xxxx using a credit card ending in XXXX. Together, we serve some 45,000. The customer is claiming that this purchase was not authorized. EMV Liability Shift Non-Counterfeit Fraud. Faxing and Mailing Agencies: What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. Reason Code 11. In that way, winning one dispute may help prevent the next chargeback to come after it. UniBul August 16, 2010 Credit Card Processing Blog 0 Comments. Try Shopify free for 3 days, no credit card required. 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. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. The shorthand description is “Paid by Other Means. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. 4853 Cardholder Dispute. The win rate for this particular reason code is extremely slim because they generally refer to fraud issues. American Express often sends inquiries to merchants, through their acquiring banks, to gather more information about a. Assemble Your Evidence. Visa. The actual underlying cause of this chargeback is. This is commonly caused by either true fraud or friendly fraud. France saw a drop of roughly 50% during the same period. Level 3/Phase 3: Second presentment, second chargeback, or pre-arbitration. Today, Visa expects members to communicate through VROL and try to resolve their. The most comprehensive guide to chargeback reason codes. It was originally one of several possible scenarios covered by legacy Visa reason code 83. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. This can provide important information to fight the dispute. 4 spec (Section 8. 08. Any chargeback that is received without a reason code will be assigned a default code of 53. Updated these Visa Chargeback Codes: 30, 62, 85. Ethoca alerts can prevent chargebacks before they hit your bank account. Late Presentment Rules: Mastercard. The third digit indicates the specific reason within that category. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Visa groups its various reason codes into several broad dispute categories. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. Chargeback reason code 10. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Merchants who believe they have received an invalid chargeback under reason code 13. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderCardholder Disputes. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include the reason code. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. About American Express chargeback reason codes. Lashonda Winston. The list of chargeback reason codes in this article is organized by card brand and type of dispute. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. While there are many chargeback reason codes, all chargebacks fall into one of three categories:On that note, below are some vendor missteps that could result in Visa reason code 13. Request for Information. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. However, they don’t address the reason why that chargeback was issued in the first place. Reason Codes Category 4: Processing Errors. It’s even more frustrating if you don’t understand what the chargeback code means. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. UA06 Fraud – Chip and PIN Transaction. By entering your email, you agree to receive marketing emails from Shopify. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. There are tricks you might use to circumvent an. R13 No Reply. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Chargebacks are a major threat to businesses big and small. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. A chargeback happens when a customer requests for a transaction to be reversed. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. The small business’ guide to credit card chargeback codes. If the reason for the dispute is valid and the cardholder would like to proceed, the bank will ask them questions to make sure they have all the relevant information about the transaction and the reason. September 2011: 5. All chargebacks start with a customer making a purchase in person, in an app, or online. Write customer-friendly policies. [noun]/* kə • stə • mər • di • spyo͞ot/. Overall returns (all codes): 15%. Once you receive this notification, you have 11 days to submit a response. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. The chargeback can be for the total transaction amount or a lesser amount. 3 – Incorrect Currency 12. It can range from 60 to 120 days from the billing date. e. MasterCard and. 4: “Other Fraud. In fact, 91. Notification of Fraud. Collaboration Processing Errors 1210. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Discover: Reason Code 4755 Non-receipts of goods or services. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. Some common Visa reason codes include: 10. Chargeback. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. 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. message. There are two parts to this. MasterCard: Reason Code 4859 Services not rendered. 6). If the order was genuinely not as described, then the cardholder has a case. 5 Appendi New Reason Code 1150 – Addition of New Reason 69 x C23 “Chip Card Counterfeit Code 1150 under Transaction” added International Chargeback Reason Codes 04-09-2015 1. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Duplicate Processing - 81Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Availability Date: October 24th, 2021. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. Reason Code. Chargeback reason codes are one piece of evidence you can use to make your case. 1 falls under the “Processing Errors” category. What is Visa chargeback reason code 11. We assign the dispute to you for review in your Customer Area > Risk > Disputes, or send you a webhook. A new 4 byte reason code will be used moving forward. The terms may be different, but the process remains fairly unchanged. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. Time and Labor. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. If the chargeback is upheld, the merchant must return the money to the customer, as well as pay an additional fee to the acquiring bank. Log in to access your account, view transactions, download reports, and more. The way you manage chargebacks depends on your account setup. Carefully analyze the reason provided by the cardholder for the chargeback. Maestro. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. . If your chargeback ratio is high [i. 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. 15, 2021. Chargeback. While there are many chargeback reason codes, all chargebacks fall into one of three categories: On that note, below are some vendor missteps that could result in Visa reason code 13. If you believe you have received an ACH return in error, you can contact your bank. Values are: Blank: Use the draft G/L date. 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. REQUEST A DEMO. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. 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. You must keep in mind, though: the reason code seldom gives the full story behind the chargeback. This will be referenced in the chargeback notice you received. UA02 Fraud – Card Not Present Transaction. 1 Quick Reference Lead. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. 634. Follow the Rules. 1: goods not received. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. . The shorthand description is “Incorrect Transaction Code. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:Visa recently shortened chargeback time limits from 45 days to 30. “Visa has 28 different reason codes. There are several types of chargeback reason codes that can be used, including the following: 1. Level 4/Phase 4: Arbitration. If the customer’s story matches. Code 13. 5, and all aspects of chargeback reason codes, with proprietary. The idea was to allow the merchants to dispute the chargeback process and help prevent certain chargeback frauds. The cardholder may be the customer or the someone who lent their card to a friend or relative. Discover: Reason Code 4755 Non-receipt of goods or services. 4. A reason code will be provided. 3. 1: Use the corresponding dates from the invoice. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. If the order was genuinely not as described, then the cardholder has a case. A reason code is how banks categorize the reason for a chargeback. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed.