Chargeback Reason Codes Associated with Merchant Error
Most merchants assume they are innocent when it comes to chargebacks. In reality, a merchant’s faulty involvement in the transaction process can lead to a significant amount of chargebacks. In fact, there are more reason codes associated with merchant error than any other cause.
The good news is, the majority of these chargebacks are preventable. The merchant who is willing to exert a little extra effort and follow business best practices will reduce chargeback-induced profit losses.
Not all of the following reason codes are caused by merchant error; however, a merchant’s involvement is usually a determining factor.
Visa | MasterCard | Title and Explanation | Causes |
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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. |
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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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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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