Oftentimes, the reason code assignment is based on limited knowledge and insight. 3 falls under the “Authorization” category. Chargeback Reason Codes Visa. The shorthand description is “Transaction Not Recognized. Prevented; Recover; Tools. The major card networks have unique reason code systems, and banks use separate tools. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Every time a merchant processes a transaction, they are supposed to send an. Eligible Chargeback Reason Codes . 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. It is subject to change and may not include every currently known dispute reason code. A “No Authorization” code chargeback can also be the. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for. Here’s how. Accessed October 31, 2022. Solutions. A chargeback happens when a customer requests for a transaction to be reversed. 3: Goods or services were not received: C08: RG: 4855: 13. Visa chargeback reason code 75 is filed as an honest mistake. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. Later in the week, George checks his account to find out an unknown transaction to an online accessory merchant. Additionally, Amex uses a fifth "Miscellaneous" category. Retrieval: A request initiated by a customer for more information about a charge. Amex Fraud Chargeback Reason Codes FR2 — Fraud Full Recourse Program. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Blog and Articles; Success Stories; Chargeback Reason Codes; BIN Look-up; eGuides the Reports; Webinars; Knowledgebase; Online; Partners. 15, 2021. In short: yes. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. 4. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. According to Nilson, 56% of global card transactions were done on Visa in 2015. Versions Affected: v5, v6. Card Member Dispute. If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. When one cardholder initiates a dispute with their issuing bank, a. With that said, you still need to understand the reason codes with any chargebacks from Amex. The charge was flagged by the Amex Fraud Full Recourse Program. 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. Expedited Dispute Resolution forms will not be allowed. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. 3: Goods or services were not as described: C31: RM: 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. 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. The Cardmember claims they did not participate in this Charge. 9808 [email protected] are only a handful of common Visa chargeback reason codes. The new reason codes follow a format of two digits, a period, then a third digit. F24 - No Cardholder (Card Member) Authorization (All other countries 4534) Reason. The shorthand description is “No Card Member Authorization. This chargeback reason code was retired by Visa in April 2018. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. Once filed, the merchant generally has 20. Body exampleReturn fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Other Fraud—Card Absent Environment. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. F24 – No Cardmember Authorization. Chargeback reason code. 2. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. M10 Vehicle Rental – Capital Damages. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. many chargeback reason codes that exist today. 5. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Chargeback or chargeback dispute: A claim against a transaction initiated by a customer with their bank, resulting in a forced payment reversal. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Visa has recently announced changes to its chargeback rules. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. Removed these Discover Chargeback Codes: AL, CA, IC, IS, NC, SV, U03, UNR. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 RequestedRequired information illegible or missing. 10201. 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. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. Not recognizing your billing descriptor on a statement. e above 0. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. A reason code is a numeric code that describes the cause behind a chargeback dispute. 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. Visa, MasterCard, and American Express all list compelling evidence by reason code. 2. 3. By entering your email, you agree to receive marketing emails from Shopify. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. 1 – EMV Liability Shift 10. Code. American Express Chargebacks / Disputes. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. For example, 10. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Clerical Reason Code. F24: No Card Member Authorization. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Knowledge of such codes can help businesses file a chargeback dispute successfully. However, Visa is the largest card brand in both the United States and the world. Chargeback Reason Key by Network - 2023 Guide. American Express is incentivized to keep their customers happy. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. M49 Vehicle Rental – Theft or Loss of Use. Field name: reasonCode. Responding to a chargeback request. Merchants can find a. Write a chargeback rebuttal letter (with sample template) 8 Ways to Prevent Chargebacks. Step #2 | Report the Scam to PayPal. 2. Once filed, the merchant generally has 20 days to respond to the chargeback. Then, prepare compelling evidence which may include process for consumer identification, emails or phone calls about the order, POD - tracking numbers that confirm delivery, etc. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. ”. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Only chargebacks with the following reason codes are eligible for Chargeback Protection: Reason Code. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. P05 – Incorrect Charge Amount. The newer system is designed to. Try Shopify free for 3 days, no credit card required. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. But cardholders and merchants have different time limits. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. Chargebacks are a problem that is growing worse across the board, and gas station. Other Ineligible Transactions Under Reason Code 62, Condition 2 . Fight; Prevent; Recover; Predict; Success Story; Resources. UA02 Fraud – Card Not Present Transaction. 3. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. 2. Fraud. About Careers Contact. 1. 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. 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. Check the chargeback reason code. 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 also overhauled its system of chargeback reason codes. Use this resource to prevent and fight chargebacks with greater accuracy . “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. If a no-authorization claim is based on merchant activity, there are steps the merchant should take to avoid a recurrence. Use this guide as a quick resource for Visa chargeback reasons at a. The cardholder does not recognize the Merchant. Regardless, merchants must respond to the given reason code. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. 4. Reason Code 53: Not as Described or Defective Merchandise. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. 0: Changed report name from Downloadable Dispute Report to Case Report. F30 – EMV Counterfeit. The chargeback reason code. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. France saw a drop of roughly 50% during the same period. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. UA05 Fraud – Chip Counterfeit Transaction. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. Protect stored cardholder data. The sales receipt and/or date and amount of the authorization if other than the transaction date. Duplicate transaction. Once filed, the merchant generally has 20 days to respond to the chargeback. P04 – Charge Processed as Credit. The transaction amount and authorization number (ARN. 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. 1 Quick Reference Lead. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. 4: Other Fraud–Card-Absent Environment. 3. ” This reason code is used when a cardholder claims that while they have previously shopped with the merchant, they did. Be sure to communicate with the customer and their bank professionally and courteously. Products. 1 Authorisation . 4 (1040) (Visa) Card-not-present fraud. Visa chargeback reason code 72 falls under the “Authorization” category. Reference these when rebutting cardholder disputes at your small business. 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. Let’s say you got a Visa chargeback with reason code 13. These codes are broken down into five different category. The terminal action codes are in Table 122 of the 4. FR2 Fraud Full Recourse Program. 4 spec (Section 8. American Express chargeback reason code F24 falls under the “Fraud” category. Overview. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. Authorization Reason Codes. 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. reason codes. 1 = EMV-Liability Shift counterfeit. Scenario 1 — upfront chargeback. Below is a list of Mastercard chargeback codes used in eCommerce. Dispute Category. This reason code means that the cardholder claims that they were billed for lodging services that they had already canceled. 1 = EMV-Liability Shift counterfeit. 5 billion lost in 2020. Everyone has had the experience of buying. P22 – Non-Matching Card Number. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. 10. 3? Visa chargeback reason code 13. Example: 25. 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. 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 reason codes and categories specified below. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. Here are some chargeback reason codes by card type. There are several types of chargeback reason codes that can be used, including the following: 1. It is important for the merchant to know about the American Express Chargeback. American Express Chargebacks / Disputes. EXIDRL–IKVFDLIONCFKNQLOFC AMEX CODE A01Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. R13 No Reply. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. While there are many chargeback reason codes, all chargebacks fall into one of three categories:What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. F24. 2=1020 etc. The most common fraud-related reason codes are: Visa 10. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. Reason codes are created by the major. Description. chargeback reason codes REASON ODE ENCYCLOPEDIA sift. compliance process depending on whether a chargeback right exists. 3. F24: No Cardmember Authorization: F29: Card Not Present:. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. underlying your chargeback. 11/03/15 Updated these MasterCard. Additionally, Amex uses a fifth "Miscellaneous" category. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. The cardholder does not recognize your name on their statement. ”. Stop order fulfillment so cost of goods isn’t lost. Either the acquiring or issuing bank could initiate the chargeback. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. The chargeback reason codes below explain why this happened. For more information on these and other updates, check out our complete chargeback reason. The network hasn't wholly disallowed some old codes. This chargeback occurs when merchants do not adequately provide currency information. the requested documentation, your account will be debited. Managing Reason Code 57 chargebacks. Try Shopify free for 3 days, no credit card required. CARDeposit is a long-running American Express program. While the updates have been published, they do not go into effect until Oct. Check with the issuing banks to determine what time limits may apply to you. ). In fact, 91. All amounts that Client is entitled to receive under the Chargeback Protection Policy shall be provided in the form of a credit to your account. 105. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The chargeback process can last from one month to six months. Chargeback reason codes. Here are the two possible scenarios: 1. She therefore, disputes the amount under the Reason Code F29: Card Not Present. The third digit indicates the specific reason within this category. Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. F29 – Card Not Present. A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. Once filed, the merchant generally has 20. 102. Mastercard chargeback reason code 4853 falls under the “Cardholder Disputes” category. When you receive a chargeback request, respond promptly with any relevant information or evidence that supports your case. 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. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. In the case of friendly fraud, that reason could be completely invalid and. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. By entering your email, you agree to receive marketing emails from Shopify. This is commonly caused by either true fraud or friendly fraud. 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. According to data published by ThreatMetrix, nearly 20% of all attempted transactions in the travel industry are identified as fraud attacks: Every travel vertical stands to lose revenue due to online. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Read the Chargeback Advice letter carefully. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. Improve the customer experience by resolving issues quickly. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and. By entering your email, you agree to receive marketing emails from Shopify. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 372 address the specific dispute reason with the documents you send. PCI DSS v3. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from card Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. Having a Lax Attitude Toward Industry Rules & Regulations. It is mandatory to send this field if you async status update is chargeback. 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. These can be classified into three types of chargebacks. 4. And, each code has unique compelling evidence requirements if you choose to fight. Additionally, Amex uses a fifth "Miscellaneous" category. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. for chargeback reason code 4863 (Cardholder Does Not Recognize). Click the Update Chargeback link to edit the chargeback details. The way you manage chargebacks depends on your account setup. Also, just like American Express, Discover functions as both a card network and an. Chargeback reason codes are codes used to categorize the reason for the dispute. What is Visa chargeback reason code 13. These codes can help a merchant with an inquiry or chargeback reversal. Most chargebacks occur due to merchant error, true fraud and friendly fraud. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. 4 Ways to Fight Chargebacks: Gather compelling evidence. F25: The charges submitted did not receive an authorization approval code for the total amount of the charge. [noun]/* chahrj • bak • rə • pôrt/. P04 – Charge Processed as Credit. The situation is only growing worse; according to the 2022 Chargeback Field Report, six out of every ten chargebacks issued in North America in 2023 will be the result of friendly fraud. Reason code encyclopedia Your comprehensive guide to reason codes, modifiers, time limits, and compelling evidence. 3 DUE DATE Goods / Services Damaged or Defective. Reason Code 04. The system does not accept blank as a value, even if it is defined in the user defined code table. 101. Written over Chargeback Gurus. Spot these types of chargebacks using. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Dispute. Tips for an effective chargeback return policy. Updated Disputes/Chargeback Policy Coming April 2024The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Click “add filter”. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Open Chargeback Amount by Reason Code: Sums the Open Amount (AAP) for all records retrieved by business unit and reason code. 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. . Chargeback Reason Codes / American Express / F24 – No Cardmember Authorization Reason Code F24 Category Fraud DESCRIPTION Why did I receive this chargeback?. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. Select the value “open”. 105. The cardholder claims they were charged multiple times for a single transaction. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Step 1: The cardholder disputes a charge. If the order was genuinely not as described, then the cardholder has a case. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). The shorthand description is “No Card Member Authorization. A reason code is an alphanumeric code that explains the reason behind the dispute. Chargeback Reason Codes / American Express / F24 – No Cardmember Authorization Reason Code F24 Category Fraud DESCRIPTION Why did I receive this chargeback? The cardholder claims he or she has previously shopped with the merchant but didn’t participate in this particular purchase. The business has the chance to refute the chargeback. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Get definitive guide includes the chargeback reason codes from all of the to majority card networks. As we touched on earlier, chargebacks can happen due to technical errors. The reason codes are grouped into several broad. Friendly fraud was actually the #1 fraud threat concerning merchants in 2021. The cardholder may be the customer or the someone who lent their card to a friend or relative. Not remembering the original purchase. Fraud. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Reason Code. Download this sample Chargeback Rebuttal Letter. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableWhich fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. A reference for dispute reason codes, divided by dispute event category. Additionally, Amex uses a fifth "Miscellaneous" category. reason code information. If the available information indicates that the customer dispute is a valid one, American Express will automatically debit your merchant account for the amount of the disputed transaction and will send you a chargeback notification for you to review. Added the following fields - Store ID, Credit Card Chargeback Reason Code. 1 chargeback: 1. Written by Chargeback Gurus. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 4846 — Incorrect Currency Code. The reason code. The most significant category of reason codes is. Discover. WEX began issuing chip cards in Q4, 2020. 4808 – Authorization-Related Chargeback – Multiple Authorization Requests. There are plenty of reasons as to why this would happen, hence the many. A reason code is an alphanumeric code selected from a predetermined list by the issuing bank to indicate the reason the cardholder gave for requesting a chargeback. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. If the chargeback stems from the use of non-EMV readers, for example, the merchant should implement compliant terminals. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Message. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer.