The client will send this dispute to Paymentology’s Global support team via email – support@paymentology. Other Fraud—Card Present Environment. Fraudulent TransactionsReason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. Thus, the easiest way to prevent chargeback reason code 75 from being. These disputes are commonly referred to as friendly fraud. 2 Added chapter providing information about the DiscoverChargeback guarantees usually carry some fine print—they may only cover certain chargeback reason codes, or only cover costs up to a certain dollar amount. Write customer-friendly policies. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Visa - 10. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. . 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. 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 TRR According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. 3 Fraud – Card-Present Environment. Respond to invalid disputes. Visa chargebacks can be a major inconvenience for merchants. Chargeback Representment. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Try Shopify free for 3 days, no credit card required. Mastercard Chargeback Reason Code 71: Disputed Amount. 0" or CE3. Step 2: Customer initiates the chargeback. 2. The list of chargeback reason codes in this article. Availability Date: October 24th, 2021. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. 4 chargebacks. Here are the two possible scenarios: 1. Each code has a different timeline. Reason Code. Those reasons are explained through the corresponding reason codes. Prevented; Recover; Tools. The chargeback fee debit appears in the STL as T0106. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. Visa has recently announced changes to its chargeback rules. 2: No Authorization Legacy Code: 71. Mastercard Chargeback Reason Code 70: Chip Liability Shift. txt) or read online for free. Chargeback reason codes 71 and 4808 are caused when merchants ignore a declined authorization response from the issuer and attempt one of the following actions: Forced posting. This liability shift essentially provides merchants. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. 2. Most reason codes apply to any merchant, regardless of what’s being sold. 9808; info@chargebacks911. MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. Now, the cardholder claims the purchase was unauthorized. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. 5? Visa chargeback reason code 10. Standard Threshold: Reaching a chargeback ratio of 0. The most comprehensive guide to chargeback reason codes. 1 Chargeback. This means providing evidence that will undermine the cardholder’s claim. Section5. Here’s how your store can prevent and deal with chargebacks. There are two types of invalid chargebacks. Documentation must be a direct result of cardholder communication. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. 1 for Visa, 4842 for Mastercard, and LP for Discover). Merchants. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. Each card network maintains reason codes to cover all the disputes that qualify for. How you respond is determined by the chargeback reason code: Embed This Graphic. However, they don’t address the reason why that chargeback was issued in the first place. 2. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. This definitive guide includes the chargeback rationale codes from each of to four major card networks. Write Off. Different card networks have different reason code systems. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. At Visa they used to receive reason code 98. Your firm needs to embrace a customer-centric approach focused on transparency and. [noun]/* chahrj • bak • rə • pôrt/. For defective or “Not as Described” reason codes. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Follow the Rules. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Valid Values/Format: 22 - First Chargeback Handling Fee. Provide exemplary customer service. Solutions. Chargebacks: Your Guide to Reducing Hassle and Cost. They are provided to the merchant by the issuing bank, and they help all involved parties categorize disputes and determine next steps. Apparel retailers and suppliers must proactively address chargeback issues. 104. Try Shopify free for 3 days, no credit card required. Fight; Prevent; Get; Assets. 16, 2021. But sometimes, a chargeback can be fraudulent. © A new 4 byte reason code will be used moving forward. The shorthand description is “Credit Not Processed. Chargeback Reason Codes. 4540. By entering your email, you agree to receive marketing emails from Shopify. For example, Mastercard has a code which indicates a ‘consumer dispute. UA02 Fraud – Card Not Present Transaction. For example, some reason codes offer cardholders over a year to file. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. Unfortunately, it is pretty challenging to prevent friendly fraud. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. And according. 3: Goods or services were not as described: C31: RM: 13. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)These chargebacks occur to resolve chargeback-related disputes between network members. With that said, you still need to understand the reason codes with any chargebacks from Amex. American Express. 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. Chargeback Reason Codes and Descriptions. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. Scenario 1 — upfront chargeback. 0: Updated report version from 1. 103. Specify the default reason code that you want the system to assign when you enter a chargeback amount. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. Each reason code has its own set of regulations regarding: Proper and. FAST = Vantiv already has the documentation on file; the agency need only complete the Fast Track form. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. 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. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. This ranges anywhere from roughly 60 to 90 days after purchase. Aforementioned definitive guide includes and chargeback reason codes from each of the four major bill networks. reason codes. Which is meant to know the reason for the dispute. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Always ask for authorization regardless of the transaction amount. 3. "Acceptable Reason Codes" has the meaning set out in section 2. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time. Chargeback Report. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. 3. A new chargeback notice is created. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. This code tells you why the customer or bank initiated the dispute. And chargeback guarantees aren't without. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Make sure your sales agreements, terms and conditions, and other policy documents clearly address your. Instead, ask for a different form of payment. DD: Unearned (disallowed) discount amount. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. Once you hear from. If you're contesting a chargeback, you'll need solid evidence. 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. 11, 16 November 2015, Elimination. However, for simplification, they are divided into eight categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Product or service issues; Returned merchandise; Non-receipt of merchandise or services; Credit not. Code 4807: Fraudulent Card-Present Transaction. Each code corresponds to an issue or problem. Any chargeback that is received without a reason code will be assigned a default code of 53. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Fight; Hinder; Recover; Resources. 5. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. The chargeback reason code. 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. 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—QuestionableAn ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. 3? Visa chargeback reason code 13. Each of the major card brands, including Visa,. Once you hear from. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. There are dozens of reasons why cardholders and issuers dispute transactions. For perspective, the next highest. The merchant did not receive any returned merchandise. Visa chargeback reason codes are used to categorize the reasons for a chargeback. Updated the following columns - card type, response due date. Use clear and consistent billing descriptors. About American Express chargeback reason codes. Chargebacks are a major threat to businesses big and small. The reason code. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Eligible Chargeback Reason Codes . Understanding these codes is essential because they'll guide your response strategy. This provided a number of insights into the typical. According to our research, friendly fraud will represent six out of every ten chargebacks. 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. The merchandise was as described or was not defective. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. 4 Funding Process. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Card Enrolled for 3-D Secure VS Card Not Enrolled for 3-D Secure. Solutions. Now, compliance cases must be submitted through Visa Resolve Online (VROL). A01 | A02 | A08. Blog and Articles; Success Stories; Chargeback Reason Codes;. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. M10 Vehicle Rental – Capital Damages. Either the acquiring or issuing bank could initiate the chargeback. Here’s how your store can prevent and deal with chargebacks. Chargebacks: Your Guide to Reducing Hassle and Cost. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. A chargeback happens when a customer requests for a transaction to be. Visa - 10. 7. Some credit card companies also include a short phrase describing the code and chargeback. 196First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for. Visa chargeback reason code 75 is filed as an honest mistake. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Using the same link provided above, contact PayPal to report the scam. Chargeback prevention alerts require you to monitor and respond to notifications within a short time frame, usually 24 to 72 hours. Chargeback Reason Coded by Network - 2023 Guide. You must tailor your representment case — including the compelling evidence — to the reason code under. Early Warning: Reaching a chargeback ratio of 0. 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. Regardless, merchants must respond to the given reason code. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. The first is true fraud, where someone used stolen credit card or account information to make a purchase. 9% with at least 100 total disputes. Use order validation and prevention alerts. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. ”. ”. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. The new reason codes follow a format of two digits, a period, then a third digit. Take the time to note the following dispute reason codes for Visa. All chargebacks start with a customer making a purchase in person, in an app, or online. Check with the issuing banks to determine what time limits may apply to you. processed the transaction correctly. Simplify reason codes; Let’s look at each of these objectives a little more closely. 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. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. A reason code is how banks categorize the reason for a chargeback. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. m10 Vehicle Rental - Capital Damages. Scenario 2. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Network Processing ® ©The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. 18167 US Highway 19 N Clearwater, FL 33764 877. However, Visa is the largest card brand in both the United States and the world. 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). . Helpful items may include, but are not limited to:Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. United States. [noun]/* kə • stə • mər • di • spyo͞ot/. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. reason code information. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Discover - UA02 Fraud – Card Not Present Transaction. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. Description. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. WEX began issuing chip cards in Q4, 2020. ) A no-nonsense summary of evidence that proves transaction is legit. Include any terms relevant to the transaction, including return, cancellation and. By entering your email, you agree to receive marketing emails from Shopify. 3. 3. 3: Goods or services were not received: C08: RG: 4855: 13. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Time Frames by Chargeback Type and Reason Code. Specifically, these updates only pertain to transactions that are charged back after Oct. Here’s how your store can prevent and deal with chargebacks. Card issuers are in the process of enrolling all cards issued to cardholders to participate in 3-D Secure. Merchants who believe they have received an invalid chargeback under reason code 10. F02. 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. They may also have requirements that must be met in order for a transaction to be eligible for coverage, such as delivery confirmation. Reason Code Number. Chargeback Reason Codes Reason code are the first key to understanding the root causes . High-Risk (Excessive): Reaching a chargeback ratio of. 1: Use the corresponding dates from the invoice. 4798. School Yeshiva University; Course Title BUS MISC; Uploaded By KidGorilla7385. Your establishment may only bill for capital damages when you have obtained a signed and dated acknowledgment of responsibility. Chargeback Reason Code . Mastercard Chargeback Reason Code 73: Duplicate Transaction. This reason code is assigned to consumers wishing to file a chargeback for defective product. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. The shorthand description is “Goods/Services Not as Described. If a chargeback is issued, the cardholder’s bank reverses the fraudulent charge by giving them a provisional credit. 2 – EMV Liability Shift Non-Counterfeit Fraud. This ranges anywhere from roughly 60 to 90 days after purchase. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. M01 Chargeback Authorization. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. Try Shopify free for 3 days, no credit card required. Chargeback amount is equal to or less than the exceeded limited /authorised amount. The rules which will take effect in April 2023 are meant to reduce the volume of friendly fraud occurring over the card network. 4, 12. Save finalize leaders includes the chargeback good codes off each of the four major card networks. 4 Fraud – Card-Absent Environment. Duplicate Processing - 81These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. 5 billion lost in 2020. Reason codes are created by the major. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. 6. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Message. com. Chargeback reason codes are one piece of evidence you can use to make your case. For this reason, you must document all debit and credit card transactions and. This is a fairly common chargeback reason that can. Values are: Blank: Use the draft G/L date. 4 Fraud – Card-Absent Environment. Chargeback reason codes were created to standardize the list of acceptable reasons why a bank may file a credit card chargeback or debit chargeback on their customer’s. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. Also, remember that the time frame for your response includes any processing required by the acquirer. 1: Use the corresponding dates from the invoice. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. pdf), Text File (. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. VCR Dispute Reason Code 10. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) These chargebacks occur to resolve chargeback-related disputes between network members. If you leave this processing. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. For those facing a lower chargeback volume, however, alerts might not provide a positive ROI. In short: capture is the point at which you get paid for a sale. About American Express chargeback reason codes. MASTERCARD Reason Code Description. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Number two: Product Not Received chargebacks. The cardholder says they were incorrectly charged for capital damages for a car rental. In fact, the total costs of chargebacks exceed $30 billion per year, which is more than the revenue of many Fortune 500 companies, like McDonald’s and Netflix. M49 — Vehicle Rental – Theft or. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). The first thing you should do when you receive a chargeback notification is to check the reason code that the card issuer assigns to the dispute. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Each card issuer follows their own standards for defining reason type, code and its format. A “No Authorization” code chargeback can also be the. The card networks will often spell out exactly what evidence you need to successfully represent a chargeback. Visa anticipates that changes to the required up-front information will help eliminate the back-and-forth between merchant, acquirer, and issuer, intending to result in a quicker chargeback resolution time for our merchants. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. Merchants who believe they have received an invalid chargeback under reason code 10. It gets worse. Description: Reason code for applying handling fee. Discover Chargeback Reason Codes Explained. 2 EMV Liability Shift. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. This may be done by either the merchant or the issuing bank. Try Shopify free for 3 days, no credit card required. Thus, the easiest way to prevent chargeback reason code 75 from being. 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. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 2 falls under the “Fraud” category. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. This code tells you why the customer or bank initiated the dispute. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Assemble Your Evidence. Category. Reason Code Description. 0 only applies to reason code 10. 5 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. This can be transaction receipts, proof of. Accessed October 17, 2022. If you’re not, there’s a good chance you’re about to see a high volume of chargebacks with “fraud” reason codes come pouring in. American Express chargeback reason code M10 falls under the “Inquiry/Miscellaneous” category. 7: Defective goods and services: C32: RM: 13. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. A chargeback happens when a customer requests for a transaction to be reversed. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks.