A Detailed Description of MasterCard and Visa Chargeback Reason Codes
Each chargeback is accompanied by a reason code. These numeric codes differ by card network, but all theoretically serve the same purpose: to describe the motivation behind the transaction dispute.
Below is an in depth overview of reason codes for Visa and MasterCard along with their description and likely causes.
An Overview of Chargeback Reason Codes
While each card network has its own unique set of chargeback reason codes, the categories are very similar. By looking at the corresponding codes for Visa and MasterCard, merchants can begin identifying trends, weaknesses, and areas of improvement.
Visa | MasterCard | Title and Explanation | Causes |
---|---|---|---|
N/A | 4802 | Requested or required item illegible or missing |
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N/A | 4803 | Documentation received was invalid or incomplete |
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30 | 4855 | Services not provided or merchandise not received Merchandise or services were not received or not received by the agreed upon delivery date. |
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41 | 4841/4850 | Cancelled recurring transaction/Installment billing dispute A recurring transaction was processed after the cardholder requested termination, the account had been closed, the charge exceeded the predetermined amount, or the merchant failed to notify the cardholder of the upcoming charge. |
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53 | 4853 | Not as described or defective merchandise The merchandise was: damaged or defective upon its arrival, not the same as shown (online) or described (telephone), unsuitable for the intended purpose. |
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57 | 4840 | Fraudulent multiple transactions/Fraudulent processing of transactions The cardholder has made a purchase with the merchant in the past, but this particular transaction wasn’t authorized (the cardholder was in possession of the card at the time). **card-present transactions only |
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62 | 4870/4871 | Counterfeit transaction/Chip liability shift/Chip/PIN liability shift The cardholder did not participate in the transaction (a fraudster made a duplicate or counterfeit copy of the card). **card-present transactions only |
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71 | 4808 | Declined authorization/ Authorization-related chargeback A transaction was processed after the authorization was declined. **card-present transactions only |
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72 | 4808 | No authorization/ Authorization-related chargeback Authorization was not obtained or obtained using invalid/incorrect information. **card-present transactions only |
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73 | 4835 | Expired card A transaction was processed without authorization on an expired card. |
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74 | 4842 | Late presentment The merchant didn’t process the transaction in a timely fashion. |
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75 | 4863 | Transaction not recognized The cardholder doesn’t recognize or remember the transaction. |
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76 | 4846 | Incorrect currency or transaction code The merchant failed to provide adequate currency information or properly process a credit. |
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77 | 4808 | Non-matching account number/Authorization related chargeback The account number used does not match any on file. |
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80 | 4831 | Incorrect transaction amount or account number/Transaction amount differs The card was not charged for the correct amount. |
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81 | 4837 | Fraud (card-present)/No cardholder authorization The merchant processed a transaction without the cardholder’s consent or it was charged to a fictitious account. **card-present transactions only |
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82 | 4834 | Duplicate processing A single transaction was processed more than one time. **card-present transactions only |
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83 | 4837 | Fraud (card-not-present)/No cardholder authorization The cardholder did not authorize the transaction. |
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85 | 4860 | Credit not processed The merchant failed to credit the cardholder’s account after a return was made. |
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86 | 4831 | Paid by other means/ Transaction amount differs The cardholder paid for the transaction in question with cash, check or other card. **card-present transactions only |
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N/A | 4849 | Questionable merchant activity The merchant processed a transaction that was in violation of MasterCard rules. |
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N/A | 4854 | Cardholder dispute not elsewhere classified The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant. |
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Categorizing Reason Codes by the Three Main Causes of Chargebacks
For merchants, it is wise to categories chargebacks by their three main causes: merchant error, criminal fraud, and friendly fraud. Doing so helps make prevention and management more effective. Taking the complete list of reason codes and dividing them into these three categories is enlightening.