6: Duplicate processing/Paid by other means. Retry after 10 days. Chargeback reason code 4853 can be used to indicate cases involving hotels or other temporary lodging establishments where a customer claims that the hotel charged an undeserved fee to the cardholder’s bill. It was originally one of several possible scenarios covered by legacy Visa reason code 83. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. 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. Some reason codes are easy to verify. Feel free to submit topic suggestions, questions or requests for advice to:. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. We say the given reason because it may or may not reflect the true reason. reason code information. Then there are the reason codes that apply to merchants who are unable to keep up with the unrelenting barrage of chargebacks and fraud attempts that e-commerce companies of today are constantly dealing with. This Chargeback Reason Code has to do with all authorization issues, such as when someone makes a. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Another downside is that chargebacks on annual subscriptions. Each code begins with 'R' followed by a two digit number. Visa Chargeback reason code 13. On that note, below are some vendor missteps that could result in Visa reason code 13. If a chargeback is requested as a direct result of the quality of the sold item, the chargeback will have one of the following reason codes. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. . 4 spec (Section 8. ©Some new codes do not have legacy counterparts and should be coded 0 – Unknown/Unspecified. The following chargeback reason codes are related to EMV: Visa: 10. It was created to protect. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. This is commonly caused by either true fraud or friendly fraud. It can also apply when the merchant processed a recurring billing charge after the issuer requested cancelation. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. When filing a chargeback, the issuing bank chooses a reason code from the list for the applicable card network. Some credit card companies also include a short phrase describing the code and chargeback. Which is meant to know the reason for the dispute. For example, some reason codes offer cardholders over a year to file. The implication is that the merchant is at fault. Visa chargeback reason codes. As things currently stand, when an issuer believes that their initial chargeback was valid and the evidence submitted with the second presentment. These codes are established by the payment brands to categorize the incoming dispute requests by reason. First presentment fraud chargebacks include those with chargeback reason codes 4837 (No cardholder Authorization) and 4863 (Cardholder does not recognize — potential fraud). Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Visa chargeback reason code 13. There are two parts to this. You're not legally required to have a written policy in place to accept returns. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. You can learn more about each one by visiting the Mastercard Chargeback Guide. Merchant processed transaction below floor limit without authorization. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. But cardholders and merchants have different time limits. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. 7 Violation for Coercion Claim. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. RM Cardholder Disputes Quality of Goods or Services. Find this type of chargeback with the below reason codes. Use fallback options—like manually entering transaction data—as a last resort. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Duplicate Processing - 81How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. The most comprehensive guide to chargeback reason codes. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. 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. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). PM Paid by Other Means. Chargeback reason code 10. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. The customer regrets their purchase. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. The chargeback can be for the total transaction amount or a lesser amount. Explanation. . This lets the merchant resolve the issue before a chargeback happens. Under Visa’s previous chargeback rules, merchants could contest a reason code 10. . 29. Assemble Your Evidence. President Lyndon B. The reason code indicates the nature and category. 180 First Chargeback: MTI 1442. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Retrieval Request. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. The implication is that the merchant is at fault. . Chargeback. Using our e-commerce fraud prevention tools, we help lower friendly fraud costs and chargeback rates, but also reduce gift card and coupon abuse, and promote secure login authentication. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCardVisa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. The sales receipt and/or date and amount of the authorization if other than the transaction date. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. Specifically, these updates only pertain to transactions that are charged back after Oct. Invalid Reasons for a DisputeFraud reason codes are those indicating disputes regarding fraudulent activity, authorization discrepancies, and EMV liability shift issues. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. M49 Vehicle Rental – Theft or Loss of Use. . Administrative returns (R02, R03, R04): 3%. 2, which specifically deals with. Chargeback reason code 4853: Cardholder Dispute applies to situations in which a customer feels they have been cheated or misled. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer claims the services purchased from a merchant were not fulfilled. You probably won’t know for certain that you’re being targeted until the fraudster contacts you for an overpayment refund. . The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 7 Updated format All 1. . 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. [noun]/* fren • dlē • frôd • /. About American Express chargeback reason codes. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. 11, 16. 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. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. . In theory, reason codes help merchants. It was originally just one facet of legacy reason code 81. When an ACH payment is returned, the reason for the return is indicated by an ACH Return Code. Before starting your Disputes API integration, make sure that you: Understand the disputes process. The ultimate purpose of a chargeback reason code is to explain to the merchant why a chargeback was filed. PCI DSS v3. M01 Chargeback Authorization. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. What Are Chargeback Reason Codes? Chargeback reason codes identify the general reason behind a chargeback. The format depends on the credit card company. . 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. This can provide important information to fight the dispute. 00 EUR as a Withdrawal fee. Whenever a card used in a transaction is declined, the. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. Step #1 | Cancel the Transaction. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Reason Codes Category 4: Processing Errors. It might be possible that the customer. For a no-show reason code to apply. Category. If you do perform a key-entered transaction, make a manual imprint of the card. Enhanced Customer Service. About Visa chargeback reason codes. 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. Find out the differences between the reason codes, how. If merchants find that the order didn’t ship or wasn’t received, then accepting the. 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. To easily accomplish accepting cases that you are not going to provide a response to, you may select chargeback(s), (up to 50 cases at a time), by dollar amount or reason code and select “Accept Chargeback”. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,Network Processing ® ©message. 100187 and ANSI X9. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. It can range from 60 to 120 days from the billing date. You must tailor your representment case — including the compelling evidence — to the reason code under. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Visa Chargeback Reason Codes; MasterCard. This is commonly caused by either true fraud or friendly fraud. In some cases, chargebacks from Visa Reason Code 12. If you're contesting a chargeback, you'll need solid evidence. Find a detailed explanation of the Visa reason codes, the new format of the reason codes, and the categories they fall under. Chargeback reason code 10. The major card networks (Visa, Mastercard, Discover, and American Express) established these codes to clearly identify the reason a chargeback was. Chargeback Message Reason Codes. NF Non-Receipt of Cash from ATM. American Express has its own set of chargeback reason codes, and they refer to situations that correspond to Visa and Mastercard reason codes you may already be acquainted with. At Visa they used to receive reason code 98. FR6 Partial Immediate Chargeback Program. 1 falls under the “Processing Errors” category. About Visa chargeback reason codes. . However, for simplification, they are divided into eight categories:. 2. Identifying the chargeback. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. This list was generated 5/4/2022. The most relevant Mastercard chargeback codes for the majority of merchants can be broken down into four main categories—authorization, cardholder dispute, fraud, and point of interaction. Chargeback Reason Codes by Industry. Code 10. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. Chargebacks with the following reason codes are requested due to fraudulent activity. This code applies when a cardholder disputes a charge, and the merchant is informed by the processor that there is a problem with the transaction currency code. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Chargebacks with the following reason codes are requested due to fraudulent activity. Chargeback reason code 10. 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. 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. 0 is to make the chargeback process more efficient, transparent, and fair. Sometimes, cardholders perpetrate first. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. [noun]/* rə • trē • vəl • rə • kwest/. RG Non-Receipt of Goods, Services, or Cash. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 4 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. Chargeback alerts are a dispute prevention product provided by a chargeback management specialist. See moreTime Frames by Chargeback Type and Reason Code. . . Overview. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. This provided a number of insights into the typical. The letter indicates the category the reason code falls under: A for Authorization, C for Cardmember Dispute, F for Fraud, and P for Processing Errors. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback reason code 12. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Visa Fraud Chargeback Reason Codes 10. Make sure customers know how to reach you and that they always get a quick response—leaving a message from an unhappy customer unanswered is always an invitation to a chargeback. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 6). 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. Merchant must provide proof of authorization. A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. 6: Credit not. Discover. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 6. There are plenty of reasons as to why this would happen, hence the many. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. The Merchant failed to obtain a valid Authorisation for the full amount of the Transaction. While there are many chargeback reason codes, all chargebacks fall into one of three categories: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. 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. These are only a handful of common Visa chargeback reason codes. Most such requests are made to. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. [noun]/* kə • stə • mər • di • spyo͞ot/. Thanks for following the Chargeback Gurus blog. 4808: This code can refer to: Account Number Not on File. The system does not accept blank as a value, even if it is defined in the user defined code table. R02 – Account Closed: The account holder has closed their account since the transaction was initiated. 6). A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Visa reason code 13. Reason Code 05. Now, 10. Chargeback Reason Codes Page 2 of 5. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Reason codes. . Now, 10. 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. The most comprehensive guide to chargeback reason codes. Lack of proper chargeback reason codes. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. Chargebacks with code 4836 were easy to file and hard to contest, meaning the code was commonly misused by cardholders and issuers. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. . A chargeback is a transaction reversal resulting from a credit card payment dispute. To take advantage of these new advice codes, merchants and their acquirers must learn to recognize the new data values and their meanings and use them. Attentive, accommodating, 24/7 customer service can work wonders to help you avoid chargebacks from disgruntled customers. Chargebacks with a “paid by other means” reason code are the result of a simple mistake on the part of the merchant. Chargeback reason code 4853 can be used to indicate disputes in which the cardholder feels that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at. 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. In 2020, MasterCard revised their chargeback rules and eliminated the “second chargeback” step. Chargeback Reason Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 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. 5 Categories of Visa Chargeback Reason Codes. 6 is an updated version of legacy reason code 85, which was phased out under the Visa Claims Resolution initiative. If the chargeback is in the customer’s favor, the bank reverses the transaction and debits the business’s acquiring bank instead of crediting itAcquirer Use of Message Reason Code 7623. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. List of Chargeback Reason Codes. R13 No Reply. Under Visa Claims Resolution, the Visa dispute process is split into two different tracks, each with its own requirements. Vantage House4849 – Questionable Merchant Activity – Mastercard Rule 3. Learn more about chargeback reason codes Chargeback Time Limits: One More Thing to Worry About. 4 Chargebacks: Prevention & Response. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderIn the case of reason code 11. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Chargeback reason code 4853/Credit Not Processed applies to situations where customers claim they are owed a refund or other credit that has not appeared, but do not feel the issue being resolved by the merchant. In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Each reason code is composed of a two-, three-, or four-digit number. The newer system is designed to. . Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Identifying the. Card networks send these codes to merchants to indicate why a chargeback has been filed. 4 is part of the updated Visa reason codes that were phased out under the Visa Claims Resolution initiative. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). R13 No Reply. About American Express chargeback reason codes. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. Network reason code is available on the dispute object. Reason codes identify why the chargeback was issued. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. Nor is the situation static. IC Illegible Sales Data. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 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. Goods / Services Damaged or Defective. If the customer is still. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Each bank card network has its owner list of reason codes banks must prefer from. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase. 51 Pleasant St # 1072, Malden, MA 02148 +1 (888) 901-8653. 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. 1 chargeback: 1. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Learn more about Mastercard chargeback reason codes. Visa Fraud Chargeback Reason. For the time being, however, merchants should be aware that banks may still use the legacy code. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The aim of CE 3. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. 634. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. Customer Dispute. We say the given reason because it may or may not reflect the true reason. . com Europe. Chargeback reason code 12. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. The most comprehensive guide to chargeback reason codes. It’s easy for the bank to be tricked into allowing a friendly fraud chargeback. In some cases, the reason code may not match the real reason. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. “Visa has 28 different reason codes. M10 Vehicle Rental – Capital Damages. All of Visa’s existing reason codes were. But if RDR receives a dispute about a Visa card transaction, it will instead consult the ruleset provided by 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 cardholders to choose from. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. To help you identify what happened, look up the code you received for the dispute below. 1. An ACH dispute results in a chargeback for the business that processed the payment. Friendly fraud. supporting documentation in first chargebacks for chargeback reason code 4863 (Cardholder Does Not Recognize). Fraud Category CodesThese reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. Which is meant to know the reason for the dispute. 6? Chargeback reason code 13. 2 specifically refers to chargebacks from recurring billing; in other words, a chargeback. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Mastercard Authorization Chargeback Reason CodesAbout Mastercard chargeback reason codes. About Visa chargeback reason codes. Updated Disputes/Chargeback Policy Coming April 2024A chargeback with reason code 4834 may refer to disputes in which the cardholder participated in an ATM cash withdrawal, but claims to have not received part—or all—of the cash amount requested. 30. The separation of the Return ReasonChargeback reason code 13. The terminal action codes are in Table 122 of the 4. Learn about the different chargeback reason codes and what they mean. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Visa uses a numeric scheme for its chargeback reason codes. A chargeback with reason code 4834 may refer to disputes in which the merchant failed to present the transaction within the required timeframe. With this information, you can determine the root causes of your chargebacks and take. R03 Insufficient Reply. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. 196ACH 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. Chargeback alerts allow. 6 deals with chargebacks stemming from a credit not being processed. 6. 4 Other Fraud Card Absent. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. 16, 2021. It can also refer to situations where the cardholder’s account has been debited more than once for the same transaction. This extra step can be frustrating for Card Members and lead to lost sales. Each of these causes has a designated “reason code,” and banks assign the appropriate code to. The chargeback process can last from one month to six months. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The cardholder claims they were charged multiple times for a single transaction.