51 - Insufficient Funds. . 4807 Warning Bulletin File. American Express Chargebacks / Disputes. What causes code 10. Visa has its own set of chargeback reason codes. 5% of all monthly transactions), then it signals one of two things: A chargeback occurs when a customer questions a credit card transaction and asks their bank to reverse it. Friendly fraud. With a chargeback, funds are held from businesses until payment card issuers decide what to do. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. The situation described by Visa chargeback reason code 13. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. Billing issues: Duplicate billing, incorrect amount billed, or promised refund never issued. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRRFraudulent activity chargeback reason codes include every type of credit card fraud, such as CNP transaction fraud, card-present fraud, and missing signature fraud. Chargebacks are also known as payment disputes. Chargeback Reason Codes. 4. Unfortunately, true fraud is not the only cause of. As both a card network and an issuer, Discover specifies 26 reason codes under the categories of. Merchants are hit twice when it comes to paying for chargebacks. Retrieval Request/ Copy request Reason Codes. Friendly fraud has been increasing by 41 percent every two years. Fraudulent transaction chargebacks happen when a cardholder does not recognize a charge on their card. Chargeback fraud occurs when cardholders dispute a transaction with the bank instead of contacting the merchant for a refund. By Randa Kriss. The owner of the credit card realizes it was stolen and reports the fraudulent. MasterCard: Reason Code 4859 Services not rendered. 1: EMV Liability Shift Counterfeit fraud; Visa Chargeback Code Condition 10. 40 C08 Goods/services not received. In addition, the definition of credit card chargeback fraud is not related to the behavior of the merchant but the customer. They help categorize cardholder disputes and determine next steps, and they vary by card network. Chargeback. The issuer assigns a reason code to the chargeback. Chargeback Reason. Eventually, the Uniform Commercial Code, or UCC, shapes the current chargeback. 9 was previously covered by legacy Visa reason code 90. This code applies when a cardholder reports that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at the time of purchase. The merchant accidentally charged the customer twice. If a customer asks to use another form of payment after the Mastercard transaction has been processed, credit from the original. It can have serious consequences for the perpetrator. Credit Card Dispute. Step 1: Require credit card security codes. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case. A credit card authorization code is an alphanumeric code, typically between 2-6 figures long, meant to indicate whether or not a credit card transaction has been approved. 6. The first is true fraud, where someone used stolen credit card or account information to make a purchase. Please note that each card network (MasterCard, VISA, American Express, etc. The following is an inside and out diagram of reason codes for Visa, MasterCard, Discover & Amex alongside their depiction. Discover Chargeback Reason Codes 41 . P03 — Credit Processed as Charge. There are several scenarios where a customer may reasonably expect a payment reversal. Chargeback Guide - Mastercard. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. These come in the form of two, three, and four-digit numbers. A chargeback is an action taken by a bank to reverse a payment and trigger a dispute resolution process. What it Means: When a customer demands a chargeback, that money isn’t drawn directly from the merchant’s account. Reason Card Type Reason Code Description Merchant Action Code This chargeback occurs when a customer does not recognize the transaction and is stating that they did not authorize the charge to their credit card. have experienced credit card fraud, and more than a third of all cardholders have been victimized by card fraud more than once. Chargeback reason codes are alphanumeric strings of digits created by the four card networks – Visa, Mastercard, American Express, and Discover – that help you. But you should also know that just because the cardholder indicated fraudulent activity as the reason code does not mean actual fraud took place. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. They can protect you from erroneous charges and credit card fraud, but also. Genuine mistakes happen. 8, which indicates a disputed transaction that the cardholder does not believe they should be responsible for receiving. A chargeback is the potential outcome of a disputed credit or debit card transaction. 0: 3DS2 is the technology behind automated fraud detection programs that compare over 100 data points to verify the buyer as the. Depending on the reason. 0, the data will be more accurate. To make matters worse, the consumer that had their card stolen will also call their credit card-issuing bank and hit you with the chargeback against the $2,000 charge. 10. Chargeback Fraud Is on the Rise. Generally, chargebacks occur between a merchant and a credit card issuing bank or a. What are reason codes?. How can merchants fight code 13. If not, check out our latest blog where we briefly discuss credit card chargeback laws. a) Code 75 (Cardholder Does Not. Visa Reason Code 12. [noun]/cē • vē • vē • tö • kōd/. Case number assigned to the chargeback. C08. 5% of all monthly transactions), then it signals one. A standard billing descriptor may include the merchant’s name. Unlike Visa and Mastercard, AmEx is the issuing. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The charge is reversed and goes back to your credit card. 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. Code. In broad terms, representment refers to the process of fighting a chargeback. (833) 622-7283 Contact Us. You'll learn about the major categories of chargeback reason codes: fraud, authorization errors, processing errors, customer disputes; You'll learn about the usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift);. A successful chargeback involves your bank (or credit union) applying to your credit card scheme (e. F22 Expired or Not Yet Valid Card F24* No Card Member Authorisation F29 Card Not Present Chargeback Code Type: Card Member Dispute C02 Credit (or Partial Credit) Not Processed C04. Here’s how they work. A chargeback on a credit card is when you try to get your money back for things like fraudulent transactions, unauthorized payments, or other credit card disputes where you got the short end of the stick. The shorthand description is “Declined Authorization. The most comprehensive guide to chargeback reason codes. Follow these links to learn more about the chargeback reason codes from each credit card company:. Fraud. Unauthorised: Card-Not-Present (CNP) transactions. 57 - Transaction Not Permitted to Cardholder. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. This can cover unintentional “friendly” fraud, as well as deliberate abuse of the chargeback process. Chargebacks are considered a scourge for consumer businesses across industries, leading to significant financial headaches for businesses. 3 Fraud – Card-Present Environment. A Bank Identification Number (BIN) is a four to six digit code contained within every credit and debit card number. That seems unfair, but it makes sense. Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time. A08 Authorization Approval Expired. Offer shipment and delivery tracking. This can happen if the merchant's name or description is not easily recognizable, or if the transaction amount is significantly different than the expected amount. Some credit card companies also include a short phrase describing the code and chargeback. Generally speaking, a chargeback cost will range from $15 to $50 depending on the payment processor. Each card company has its own chargeback reason codes. Reason codes vary by bank networks (card association), but fall into four general categories: 1. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. This chargeback may be reversed if you can supply an imprinted or swiped sales draft signed. 0 is to make the chargeback process more efficient, transparent, and fair. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Visa chargeback codes explained. Discover provides a dashboard called the Discover Network Dispute System. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. 1. 6. 4808 Authorization-Related Chargeback. Will fluctuate depending on the claim The cardholder may also initiate this chargeback up to 365 days from the ordering date for the credit card transaction, Debit Card Transactions and Prepaid Identity Known Card Transactions. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. In some cases it can be upwards of 540 days, though, depending on. Chargeback reason code 12. Step 1: First Chargeback. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. Requirements ©When you get one of these response codes, you’re going to have to ask the customer to provide a different payment method: 5 - Do Not Honor. If your company falls into a high-risk industry, it will be harder to find a credit card processor. Every credit card company has its own unique set of reason codes, which can get confusing for merchants. Plus, get valuable tips to prevent and fight chargebacks with greater accuracy. Debit Card vs. Please deal directly with the cardholder for reimbursement. MasterCard: Reason Code 4859 Services not rendered. Under U. purchase receipts, account statements, written communication or cancellation of a direct debit). The card issuer assigns it a chargeback reason code, a simple alphanumeric code to describe the reason for the chargeback. A chargeback (otherwise known as a dispute) is a way for your bank that issued your card to reclaim money from the retailer’s bank when you do not get the goods or services you paid for, including if the retailer or supplier has gone out of business. A retrieval request—sometimes called a “soft chargeback”—is a method of obtaining a copy of the paperwork to validate a transaction. The request is usually made when the cardholder is disputing a charge on their credit. This is generally because the cardholder is dissatisfied with only part of an order, and wants a refund just for that amount. There are dozens of reasons why cardholders and issuers dispute transactions. Let's take a closer look at Capital One chargebacks and how they might differ from those originating from other issuers. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Visa has collapsed the 22 available “reason codes” (codes that represent the cardholder’s reason for filing the chargeback) into four distinct categories: Fraud, Authorization, Processing Errors, and Consumer Disputes. While there are a lot of similarities between the two, debit cards and credit cards each offer different levels of fraud protection. • If the card is present at the time of sale, be sure to compare the credit or debit card account number on an electronically printed draft to the credit or debit card number embossed on the card. Credit cards were in use by the late 1960s, but they still hadn't gained the widespread acceptance banks were hoping for. The card networks know that most chargebacks represent negative customer experiences that can shake consumer confidence in the credit card payment system as a whole. ” Improving the chargeback system will be helpful to acquirers, not just merchants. As we can demonstrate, this transaction was for the legitimate purchase of [description of item] from our store [or online store] on [transaction date]. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. 1 EMV Liability Shift Counterfeit Fraud 81(3) 10. Introduction Purpose Chargeback Management Guidelines for Visa Merchants is a comprehensive manual for all businesses that accept Visa transactions. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Common reasons for disputes include:Visa Reason Code 13. Cardholder number (or credit card number) for the transaction. Download our rebuttal letter template and writing checklist today. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment volume, according to Payments Canada. Mercator Advisory Group predicts that the volume of chargeback frauds will increase to 33 million in 2022. Unfortunately, the chargeback process was not some financial version of Athena, springing fully formed from the head of the U. 4 chargebacks? Merchants can fight code 13. If a quick scan of your letter. Chargebacks are also known as "charge disputes" and reversals, and they can be filed for a variety of reasons, including unauthorized use of the credit card. 39 or refused C05 Goods/services canceled. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. Typically, customers can file a chargeback within 60 to 120 days from the date of purchase. Your comprehensive guide to chargeback reason codes, transaction modifiers, time limits, and compelling evidence for the four major card brands. You literally “re-present” the transaction to the bank and card network, along with evidence to support your claim. Chargebacks are not a legal right, but if you have paid on a Visa debit or credit card, you. Through it, authorized users can look up transaction and cardholder details, along with other data for each dispute. Common reason codes Mastercard. Card Not Present - 30 is an American Express Chargeback Reason Code that merchants may encounter when a customer disputes a transaction made without the physical presence of their credit card. We say the given reason because it may or may not reflect the true reason. This guide shares an overview of chargebacks, how the dispute process works, and how to prevent them in your online store. Discover provides a dashboard called the Discover Network Dispute System. “It’s a lot tougher with Mastercard because they only use four main codes. A disputed charge, or chargeback, describes the process that occurs once a cardholder refuses to accept responsibility for a charge on their credit or debit card. In broad terms, representment refers to the process of fighting a chargeback. Chargeback Guide - Mastercard. youtube. The full unfolding of the chargeback process ends when one of the parties escalates the dispute to arbitration by the credit card network, which has the final word on the chargeback, but not the greater question of the dispute itself. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This is the name of the business responsible for the charge; often a shortened, yet still recognizable version of the “doing business as” (or “DBA”) name. To put it simply, the credit card chargeback is simply the reversal of a transaction previously made by a customer to a vendor. Even if a merchant wins a chargeback dispute, the credit card processing company charges a nonrefundable fee ranging from $20 to $100 per chargeback. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Through it, authorized users can look up transaction and cardholder details, along with other data for each dispute. M01 Chargeback Authorization. A chargeback isn’t just a single event. See moreChargeback Codes by Card Networks Visa chargeback reason codes. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is. It’s a process, one that can be lengthy and convoluted for all parties involved. Chargeback is for debit AND credit cards and can be used on any amount – Section 75 only applies to credit cards and for certain amounts. Get $20 when you sign up for a free KOHO account with code HARDBACON and enjoy 3 months of KOHO Extra to unlock up to 4. According to Visa regulations, if the transaction is not deposited within the allotted time. federal Mail Fraud and Wire Fraud laws, fraudsters face the possibility of time in jail. If a criminal manages to defeat the technology and complete an online purchase, Mastercard will shift liability away from the merchant and onto the issuer. A chargeback occurs when a customer disputes a charge from your business on their credit or debit card. (833) 622-7283. There are chargeback reason codes that specifically relate to returns: “Credit Not Processed” and “Credit Not Received” refer to situations. When a company notifies you of a chargeback, a reason code is attached to the document. Step 1 – The customer initiates a chargeback dispute request over a transaction. This can happen if the merchant processed a credit card as a debit card, or processed a similar mix up. However, under certain circumstances, you may not be charged the Disputed Chargeback fee. However, you have to remember that any merchant accepting credit cards also runs the risk of Shopify chargebacks. The new reason codes follow a format of two digits, a period, then a third digit. After the chargeback has been filed, the card issuer posts a preliminary credit to the cardholder’s account. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. But sometimes, a chargeback can be fraudulent. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. Relevant customer communication, such as order confirmation email or Social Media message confirming satisfaction with the order. 2023-09-07. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. If a merchant runs into chargebacks throughout their business, everyone knows that it happens. The Federal Trade Commission (FTC) reports 4. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. com. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 800. Merchants are required. This guide shares an overview of chargebacks, how the dispute process works, and how to prevent them in your online store. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. Visa - 10. Just like chargeback reason codes, each credit card brand has its own system of interpreting the AVS code returned by the issuer. Generally, chargebacks occur between a merchant and a credit card issuing bank or a. Typically, customers can file a chargeback within 60 to 120 days from the. Without the card, fraudsters won’t know the code. Once the 16-digit virtual card number is generated, tap “accept. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. In the US alone, the top four major card networks generated $8. Dear [Credit Card Company or Bank Issuer], This is a rebuttal letter to contest chargeback [number] for [dollar amount]. For example, here are reason codes from each major credit card company: Visa: Reason Code 30 Services not provided or merchandise not received. 39 or refused. Without the card, fraudsters won’t know the code. The list of situations that may warrant a chargeback is broken down into designated “reason codes. A credit card chargeback occurs when a cardholder or the issuer (VISA, Mastercard,. MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. Updated Disputes/Chargeback Policy Coming April 2024You may have processed a debit instead of a credit, processed a credit instead of a reversal, or in some other way submitted a transaction that differed from the obtained authorization. The cardholder claimed they didn’t receive the goods or services or only partially received the order. The chargeback is ordered by the bank that issued the consumer's payment card. Sunday, November 23, 2014 If your business accepts credit or debit cards, you already know the unfortunate truth – chargebacks happen. Mastercard chargeback reason code 4807 – Warning Bulletin File is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. Added these Discover. . 1 chargeback: The merchant failed to ship the merchandise or provide the service as agreed. The American Express chargeback process begins with Amex issuing a chargeback, along with a reason code to explain the dispute to the merchant. Post Views: 841. BINs are placed at the beginning of the card number, after the first digit, which is called. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Take the time to note the following dispute reason codes for Visa. If you don’t send in the necessary information within the timelines allowed, you may be subject to a Chargeback with no further recourse. Additionally, Discover uses a fifth "No Classified" category. 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. ”. If you’ve received a credit card chargeback, Wave will contact you by email to notify you and provide details of your case, including the reason for the chargeback. 1002 - Cardholder disputes billed amount. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. It was originally one of several possible scenarios covered by legacy Visa reason code 83. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback stemming from a canceled recurring transaction. 51 Pleasant St # 1072, Malden, MA 02148 +1 (888) 901-8653. ”. July 2011 Chargeback and Exception Processing Guide 3 The Chargeback Cycle. Customer Service Department PO Box 981532. 4 chargebacks. 4812 Account Number Not On File. 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 04 | Chargeback Transmitted to Acquirer. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. They may investigate, reverse the chargebacks,. . Card. All received credit card disputes include a reason code. Find explanations for the major credit card issuers’ dispute reason codes in the Cardholder Dispute Reason Code Encyclopedia. Here are some of the most common chargeback culprits: 1) Fraudulent transactions. A Visa chargeback is a process by which a Visa cardholder disputes a transaction and requests a refund from the merchant through their issuing bank. Post Views: 1,028. What is a credit card chargeback? Chargebacks occur when a cardholder asks their bank to reverse a transaction. American Express chargeback codes. The “Cardholder Number” is the series of digits used to identify the cardholder, issuer and card brand. Statistics from Juniper Research estimate that online sellers will have lost $130 billion to online fraud between 2018 and 2023. It may also result when a sales transaction violates the rules established by the Payment Brands. Visa chargeback codes explained. Step 2 | Identify the Reason Code. 1, which covers duplicate processing errors, and 12. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a. 2 – EMV Liability Shift Non-Counterfeit Fraud. MCCs are assigned to merchants by credit card issuers. So, a merchant's specific credit and debit card chargeback rights often vary. Although they. 6. Learn More about Discover Chargeback Reason Code NC: Not ClassifiedA chargeback is a safety net designed for cardholder’s security. MasterCard:. Chargeback Accounting. This primarily depends on the chargeback codes related to the dispute. Write a chargeback rebuttal letter (with sample template) 8 Ways to Prevent Chargebacks. Chargeback is particularly useful where the cost of the goods or services is £100 or under as Section 75 doesn't apply. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 47 billion by 2023. It also you to upload evidence to fight a Discover chargeback. Visa Chargeback Reason Code 12. Visa Chargeback Reason Codes. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. A chargeback is the reversal of a transaction made using a credit card or debit card. 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. The bank files that disagreement on the cardholder’s behalf, overturning the sale, then claws the funds back from the merchant and. Every minute that a merchant spends focused on a credit card dispute is time not spent serving customers. Primary Menu. Codes 51 (insufficient funds) and 05 (do not honor) are especially common. It’s crucial that you recognize the common merchant errors that might trigger a reason code 13. Sift’s Visa chargeback reason code guide features every single Visa reason code, its description, expert insights, and real world examples. Consumers tend to use credit and debit cards interchangeably. The chargeback process has been around for decades. facebook. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. Any action(s) already completed by the acquirer. Top chargeback fraud statistics. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization. Merchants can sell in-person, online, over the phone, or out in the field. What causes code 10. 3-D Secure is a customer authentication protocol created for eCommerce. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. EMV has been a mostly global standard since 2004. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. 5158. Amex Processing Errors Chargeback Reason Codes P01 — Unassigned Card Number. Discover uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Chargeback prevention strategies vary based on the reason for the. The Visa chargeback process is broken into phases. 1: EMV Liability Shift Counterfeit Fraud: 10. Chargeback is for debit AND credit cards and can be used on any amount – Section 75 only applies to credit cards and for certain amounts. Chargeback Reason. With each chargeback, the customer’s bank specifies a reason code. Chargeback Codes (continued) C04 Goods/services returned. For example, authorization code 10 indicates. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. We break it down by card network, reason code, and more. 4853 – Cardholder Dispute – Goods or Services Not Provided. The only resource you need to become an expert on chargebacks, customer disputes, and friendly fraud. Unchecked fraud can easily put a merchant out of business!A chargeback with reason code 4853 may refer to disputes where the customer claims that a charge on their account is invalid. 2. and Lisa Anthony. compliance process depending on whether a chargeback right exists. CVV2. cardholder claims that they do not recognize the transaction and states that they did not authorise the charge to their credit card. Visa Chargeback Code Condition 10. The Warning Bulletin—also known as the “hot card list” or “restricted card list”—is meant to help prevent credit card fraud. This tool is designed to aid in dispute resolution. If a transaction has been declined, the authorization code will provide further details. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. Pros: $0 monthly fee. While that list is too long to cover here, we wanted to address the most commonly abused reasons for a credit card chargeback dispute and how to fight chargebacks. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number.