Europe Region Operations Bulletin No. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. . On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. Code 4808 refers to authorization-related chargebacks. UA01 Fraud – Card Present Transaction. 1 - Card Recovery Bulletin: The transaction was below your credit floor limit and was not authorised. 518 Invalid Chargeback. 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. 4846. Also, remember that the time frame for your response includes any processing required by the acquirer. 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. 541 Proper Use for Issuer’s First Chargeback. 3. English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar Bahasa Indonesia Türkçe Suomi Latvian Lithuanian česk. 1/2/2020. 0 only applies to reason code 10. You’ll put that reason code, the transaction amount and authorization number, and state that the. EN. . English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar Bahasa Indonesia Türkçe Suomi Latvian Lithuanian česk. 16October2015 ChargebackGuide Chapter 3—Message Reason Codes. How to Prevent Visa Chargeback Reason code 53 - Visa Chargeback Reason code 53 is based on claims from card owners that the merchandise was defective, or not same as on the online store. Chargeback Guide 4 May 2021 TB Contents Contents Summary of Changes, 4 May 2021. 4807 – Warning Bulletin File. At Visa they used to receive reason code 98. Europe Region Operations Bulletin No. Chargeback Reason Codes / Mastercard / 4870 – Chip Liability Shift Dispute Code 4870 Category Fraud Message System Dual Message System DESCRIPTION Why did I. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Chargeback Reason Codes by Industry. Description. 6 Reason Code 4855 UK—Goods or Services Not Provided, removed GBP 10 minimum value Summary of Changes ©2011–2015. Replaced Chapter 1, Processing Procedures— MasterCard Dual Message System. Read on for the complete guide to dealing with chargebacks. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Update Supporting Documents bullet list Single Message System Chargebacks > Chargeback Reason Codes > Cash Dispute -ATM Only. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity Incorporated the changes announced in “AN 1550—Announcing the Retirement of SAFE Online and Introducing the Fraud and Loss Database”, that includes: Update paragraph three Chargebacks—Maestro POS Transactions > Message Reason Codes for Interregional Transactions > Interregional Message Reason Code 4870—Chip Liability Shift > Proper. . The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. . 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. 3. The client can send Paymentology a list of disputes, using a predefined batch chargeback submission template that has been requested to chargeback. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. The 4837 reason code allowed acquirers to provide alternate information when the originally-submitted payment information was incorrect. Removed 6. This extra step can be frustrating for Card Members and lead to lost sales. The Reason Code is a number that represents the reason for an action in the chargeback process. Each card issuer follows their own standards for defining reason type, code and its format. 4: 4863 Code 4837 chargebacks are most often caused by either a fraudster making a purchase with stolen payment credentials or a cardholder failing to recognize a legitimate charge. Authorization. The major card networks have unique reason code systems, and banks use separate tools. ”. First Chargeback failed: Reason Code 4870 not allowed for Chip to Chip Transactions under CLS: 100001: 400: INVALID_REQUEST: First Chargeback failed:. And many U. Verify case lands on to the Review Inbound Chargeback screen. There are also specific return time frames, which can differ. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. 2. Reason Code. In other words, if you dispute the chargeback, the case may proceed directly to arbitration. Here’s how your store can prevent and deal with chargebacks. This cipher is chosen by examining the list of reason codes established due the card network for the payment card in question furthermore selecting the one that best matches the reason which cardholder gave for the conflicts. The tickets were held at the box office, and no signature, swipe or imprint. Reason codes are important to help merchants address recurring. Be sure to communicate with the customer and their bank professionally and courteously. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Paymentology will submit the chargeback using the appropriate chargeback reason code . Chargeback Guide 30 October 2014 . These reason codes are divided into three categories depending on the supposed cause of a chargeback: consumer disputes, processing error, or fraud. The network hasn't wholly disallowed some old codes. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. 4. 4870. . Second presentment: The following cycle of chargeback resolution occurs when the acquirer refutes the issuer’s first chargeback. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. Chargebacks—Maestro POS Transactions—added information to the section, Proper Use of Intra-European Message Reason Code 4808, about the Cardholder Does Not Recognize - Potential Fraud (this reason code will be retired as a part of the 20. 1: Use the corresponding dates from the invoice. or order no. List and additional information about all reason codes by card brand. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Request required authorisation not obtained. 4870. 4870 Chip Liability Shift; 4871 Chip/PIN Liability Shift; 4999 Domestic Chargeback Dispute (Europe Region Only. MasterCard: Reason Code 4859 Services not rendered. Chargeback Reason Codes, Chip Liability Shift Chargebacks—Mastercard Europe ATM Transactions (Mastercard, Maestro, and Cirrus), Message Reason Codes, Message. Reason code 83 represents a chargeback categorized as. Built with a single, intuitive console, Sift’s end-to-end solution eliminates the need for disconnected tools, single-purpose software, and incomplete insights that drain operational resources. MasterCard time limits vary depending on the applicable reason code. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. Mastercard has plans to follow suit. While chargebacks happen for a variety of reasons , the most common reason is that a customer no longer wants the service or product sold to them. . . Operation CHIP POS Late submission . Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Chargeback reason codes Jérôme Alimondo Cohen /token 30 March 2023 13:46; National Visa, national and international MasterCard. 26% - the number of chargebacks that result from undelivered orders. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. If the order was genuinely not as described, then the cardholder has a case. There are dozens of reasons why cardholders and issuers dispute transactions. 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. 4837 — No Cardholder Authorization. 2 Compliance CasesCustomer Dispute. Click on “report a problem” and select the transaction in question. . 4870: Chip Liability Shift: Fraud: 4871: Chip/PIN Liability Shift: Fraud: 4807: Warning Bulletin File: Authorization: 4808: Authorization. The Complete Chargeback Reason Codes List. The first liability shift went into effect in October 2015 and covered almost all card-present transactions except for those that take place at ATMs and gas pumps. Chargeback prevention alerts require you to monitor and respond to notifications within a short time frame, usually 24 to 72 hours. It is a valuable resource for anyone involved in the payments industry. Visa chargeback reason codes. Chargeback Guide - MasterCard Guide. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue (NRI) 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. These time limits are established to ensure prompt resolution of disputes and prevent unnecessary delays. Attentive, accommodating, 24/7 customer service can work wonders to help you avoid chargebacks from disgruntled customers. Visa recently shortened chargeback time limits from 45 days to 30. 04/09/14 Discover: DC, U02. In this case, the customer files for the pre-compliance chargeback (aka reason code 98). For example, 10. Documentation must be a direct result of cardholder communication. 2. Fraud 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transactions 4849 Questionable Merchant Activity 4863 Cardholder Does Not Recognize—Potential Fraud. How you respond is determined by the chargeback reason code: Embed This Graphic. Get definitive guide includes the chargeback reason codes from all of the to majority card networks. School Collège April-Fortier; Course Title BIO 101; Uploaded By ProfNewt2605. Let’s say you got a Visa chargeback with reason code 13. Each transaction or deal has a unique receipt no. “Visa has 28 different reason codes. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. But, it could be up to 540 days, in some situations. Specify the invoice date and net due date that you want the system to assign to chargebacks. ” Currently, merchants can already prevent many 10. All chargebacks start with a customer making a purchase in person, in an app, or online. If you do choose to dispute these chargebacks, you are putting yourself at risk of incurring additional fees: Reason code. Sift’s MasterCard chargeback reason code guide features every single MasterCard reason code, its description, expert insights, and real world examples. Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback count is two or greater. 1 Minimum Chargeback Amount; subsequent sections are renumbered In 6. Understanding reason codes and associated representment requirements is. The incorrect amount being charged. 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. Some Mastercard reason codes (4808, 4870, 4871, and 4834) allow issuers to skip pre-arbitration and proceed immediately to arbitration. As things. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. This may be done by either the merchant or the issuing bank. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37Chargeback Guide (PDF) - MasterCard. 4812: Account Number. Visa Chargeback Reason Code 10. 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 chargeback. Cardholder-Activated Terminal (CAT) 3 Device. Information on proper voice authorization procedures may be needed for ‘referral’ responses. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. In the Mastercard chargeback process, an issuer can escalate a dispute and file a Pre-Arbitration case. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. processed the transaction correctly. 328 Interregional Message Reason Code 4870—Chip Liability Shift. Dispute Category. The changes in this fourth phase do not apply to the following reason codes: 4870 – Chip Liability Shift. The network plans to reduce response times even further to just 20 days in the near future. min . Each chargeback claim is given a reason code, which helps explain to merchants the reason for the dispute. That's why we've created this guide, which goes over what reason codes are and how they help fight chargebacks and includes up-to-date lists of the reason codes for all the major US card networks. 4860 Credit Not Processed. MasterCard time limits vary depending on the applicable reason code. . UA06 Fraud – Chip and PIN Transaction. The chargeback can be for the total transaction amount or a lesser amount. As chargeback time limits get shorter and shorter, automated technology will become more and more valuable. Each bank card network has its owner list of reason codes banks must prefer from. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. 4870: Chip Liability Shift: 4871: Chip/PIN Liability Shift: 4999: Domestic Chargeback Dispute (Europe Region Only) Merchant Accounts;In most cases, you will have 20-45 days in which to respond to a chargeback. Arbitration is the final. Chargeback reason codes; Chargeback Reason Codes. Chargeback Guide (PDF) - MasterCard. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. In this article, we'll cover some of the major changes that Mastercard has made to chargebacks in recent years, starting with several. Total views 100+ Dr. . 5: 4870: Card not present at the time of transaction: F29: UA06: 10. In that way, winning one dispute may help prevent the next chargeback to come after it. 1 — EMV Liability Shift Counterfeit Fraud; Visa Chargeback Reason Code 10. Auto Write Off. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. When a fraudster places a transaction using stolen payment credentials, it may result in a true fraud chargeback under this reason code. Chargeback The issuer may initiate a chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Single Message System Chargebacks or Dual Message System Chargebacks chapters. English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar Bahasa Indonesia Türkçe Suomi Latvian Lithuanian česk. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Date Option. Eligible Chargeback Reason Codes . The cardholder claims the purchase was unauthorized. 4870: Chip Liability Shift: 4871: Chip & PIN Liability Shift: 4905: Invalid Acquirer Reference Data on Second Presentment: Retrieval Request Reason Codes; 6305:The last phase in the MDRI rollout changes the rules for three specific reason codes: 4837 – Fraud (excluding 4870 – Chip Liability Shift and 4871 – Chip/Pin liability shift chargebacks) 4853 – Cardholder Disputer. Each chargeback reason code has specific rules and documentation requirements. The Mastercard chargeback flow: Optional: Request for Information (Deprecated) Information Supplied 4846 — Incorrect Currency Code. 4870 - Chip Liability Shift:Visa Chargeback reason Code 83: Card Absent Environment Chargeback - A Merchant Guide. These numeric codes are varied by card network but serve the same purpose. 2: EMV Liability Shift Non-counterfeit Fraud: 10. Visa Chargeback Reason Code 10. . 5: 4870: Card not present at the time of transaction: F29: UA06: 10. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. 1 Quick Reference Lead. Visa flagged the transaction under the Fraud Monitoring Program, and the issuer has not filed a chargeback under another reason code. Reason Code. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 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. This list was generated 5/4/2022. 4870 – Chip Liability Shift. It can range from 60 to 120 days from the billing date. Top chargeback reason codes Mastercard reason code. Terms and conditions. txt) or read online for free. A smarter, simpler way to stop fraud. 4870: EMV Chips Liability Shift 4871: EMV Chip/PIN Liability Shift:. This will be referenced in the chargeback notice you received. 4: “Other Fraud. 4808. 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. Reason code: Explanation: 11. Message reason code 4863 first chargebacks will be included in the FNS count once the FNS fraud chargeback count is. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. FR2 Fraud Full Recourse Program. 96 . 4870. Check the chargeback reason code. ThechargebackReason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. Chargeback Guide - Mastercard · 2020. That said, looking up purchases using this number can make it easier to provide info following an. Although each card network has its own chargeback reason codes, their end goal is the same: Clearly describe why a customer is disputing a transaction. R13 No Reply. MasterCard’s Corporate Purchasing Department Account Program does not have rights for the following message reason codes: 4835 — Card Not Valid or Expired. . 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. The cardholder claimed to not have participated in or authorized a transaction. Each transaction or deal has a unique receipt no. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)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. Summary of Changes, 1 August 2017 This document reflects changes made since the November 2016 publication. 4807 – Warning Bulletin File. Code. The chargeback filing period for cardholders is usually 120 days. 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. 13. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. The Mastercard chargeback reason codes were condensed down in 2016, like the processed that Visa just underwent with Visa Claims Resolving. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. What is a chargeback. The shorthand description is “Chip Liability Shift. Your chargeback response must include at least one of the following items: Proof the transaction was authorized and the valid card was not an EMV chip card. 10. But, merchants should be aware that, eventually, everyone will be required to use the new designations. . Carefully analyze the reason provided by the cardholder for the chargeback. English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar Bahasa Indonesia Türkçe Suomi Latvian Lithuanian česk. 4880 . The merchant should see each Chargeback as learning experience. . MasterCard Reason Code 4870: Chip Liability Shift Chargeback - A Merchant. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Reason codes are just what they sound like, an identification code used to categorize why a transaction is being refuted by the card holder. 3 Fraud – Card-Present Environment. Invalid Reasons for a DisputeM10 Vehicle Rental – Capital Damages. 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. During this process, the representative of the institution examines the reasons’ list. ”. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Issuers can only submit a chargeback on. The list of chargeback reason codes in this article. Try Shopify free for 3 days, no credit card required. 4802: Requested/Required Information Illegible or Missing. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Responding to a chargeback request. MasterCard offers longer response from merchants, with up to 45 days to respond. Mastercard chargeback reason code 4871 is one of the numeric labels assigned by banks to customer disputes, indicating the given reason for the claim. 120 calendar days after the service was cancelled or the goods were returned; 120 days after credit documentation is issued (day zero is the date published on the document, the date of the merchant’s letter, or the date the issuer. 2. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift How can I actively prevent fraudulent chargebacks? Depending on your workflow or third-party integration use, it may curb chargeback risk to have your guest present payment upon pickup so that it can be processed by the more secure EMV chip. Description. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Most cases stemming from point-of-interaction errors allow 90 calendar days to file. Summary of Changes, 2 November 2017Chargeback Reason Codes, Chip Liability Shift Chargebacks—Mastercard Europe ATM Transactions (Mastercard, Maestro, and Cirrus), Message Reason Codes, Message Reason Code 4870—Chip Liability Shift Summary of Changes, 20 November 2017Each chargeback received a numeric code which is known as the “reason code”. . those with reason code 4871 (Chip Liability Shift Lost/Stolen/Never Received Issue). 4808: Requested/Required Authorization Not Obtained. American Express is incentivized to keep their customers happy. Chargebacks—Maestro POS Transactions—added information to the section, Proper Use of Intra-European Message Reason Code 4808, about the4870: Chip Liability Shift: 4871: Chip/PIN Liability Shift - Lost/Stolen/Never Received Issue 4808: Authorization related Chargeback: 4834: Point of Interaction Error: 4853: Cardholder Dispute: 4850: Installment Billing Dispute: List of reason codes supported by Pega Smart Dispute for Issuers in Maestro are as following: Reason codes in Maestro. . By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. 1, 5 January 2016. com on 5/26/2016. 4870: Chip Liability Shift:. Message. EN. Please note that the most common Chargeback reason code for Allocation disputes is 10. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. 2=1020 etc. Understand the reason for the chargeback. Though the credit card networks have a vast choice of codes, loopholes still happen. . 02/10/16 Added Debit Chargeback Reason Codes. 4 Other Fraud Card Absent. 4 Proper Use for Issuer’s First Chargeback, changing “optimally” to “as applicable”1. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. The issuer submitted more than 25 chargebacks in aggregate involving the same account (as defined above) for message reason codes 4837, 4870, or 4871. Issuers can only submit a chargeback on. . The shorthand description is “Authorization-Related Chargeback. Mastercard chargeback codes fall in to four categories:. Chargeback Reason Code. 4870: Chip Liability Shift : 4871: Chip/PIN Liability Shift: 4807: Warning Bulletin Files: 4808: Authorization-Related Chargeback: 4812: Account Number Not On File:Codes: Chargeback Reason: 4801: Requested transaction data is not received: 4802: Required information is illegal or missing: 4808: Required authorization not obtained: 4831: Transaction amount is different: 4834: Duplicate order process:. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Fraud (excluding chip 4870/70 and. To apply for the Chargeback, the issuer must submit the First Chargeback or 1442 Message with the application Reason Code. pdf; of 571 /571. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. Chargeback Guide (PDF) - MasterCard. 10. 4863 Cardholder does not recognise. Time Limit. Don’t assume representment is off limits just because the chargeback has a certain reason code. Pursuant to the Fair Credit Billing Act. 4:. A chargeback is a transaction that is disputed by a cardholder or issuer. Offer shipment and delivery tracking. pdf. Reason code: Explanation: 11. When any Chargeback occurs, that will be identified by the specific code. 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. The reason code. In 2021, the last parts of the EMV liability shift finally rolled out, removing the exception for self-service fuel pumps that had been in place since the beginning of the shift. 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. message. A reason code is how banks categorize the reason for a chargeback. Message Reason Codes, Message Reason Code 4870—Chip Liability Shift. Once you know why a chargeback happened, you can start building a case to address the claims that were. Here’s how. . · 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that included removing certain restrictions from chargebackText of Chargeback Guide. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks.