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. P01 – Unassigned Card Number. Evidence Required. However, please note that a ‘Re-presentment’Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. [noun]/* kə • stə • mər • di • spyo͞ot/. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Below is a list of Mastercard chargeback codes used in eCommerce. The major card networks have unique reason code systems, and banks use separate tools. These codes can. What is Visa chargeback reason code 71? Visa chargeback reason code 71 falls under the “Authorization” category. 45. Previously, Visa expected the disputing member to start the dispute by filing a pre-compliance chargeback under reason code 98 (now obsolete). Chargeback Code Chargeback Reason; 10. Chargeback Reason Codes. 2: Canceled Recurring Transaction, is used when a cardholder claims a recurring transaction was processed illegitimately. View the entire list or search for any chargeback reason code. due to objection by the payer). Discover - RG Non-Receipt of Goods, Services, or Cash. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. This reason is made visible to all parties involved. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. The Resource Online Reports User Guide (PDF) is a comprehensive manual for the Resource Online modules and reports. 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. . Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 0: Changed report name from Downloadable Dispute Report to Case Report. 2023 Consumer Attitudes Towards Chargebacks 7 Best Practices in Chargeback MitigationVisa chargeback reason code 70 falls under the “Authorization” category. Chargeback Refund: return by the payer’s bank (e. We have been leading the charge against chargebacks since 2005, creating a world where merchants can flourish by focusing more on what they do best. Use the correct CVM (Cardholder Verification Method). Discover: Reason Code 4755 Non-receipt of goods or services. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. May be received up to 8 weeks after settlement. message. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. Each card company has its. Visa Chargeback Reason Codes. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. The client can define the chargeback reason code. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. Use this guide as a quick resource for Visa chargeback reasons at a. Documentation must be a direct result of cardholder communication. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. 8 – Original Credit Transaction Not Accepted. 100- 140 standards- , and will be removed in future releases. 3: Goods or services were not received: C08: RG: 4855: 13. To generate a chargeback, the issuer must submit the First Chargeback / 1442 message with the applicable message reason. 5: The chargeback under normal situations should be executed in under 120 days in all religions other than US Domestic. These codes are currently defined within the ANSI X9. The reason for the dispute was false or inaccurate. Chargebacks with the following reason codes are requested due to fraudulent activity. The Complete Chargeback Reason Codes List Visa Discover Mastercard American Express How to Use Chargeback Reason Codes 5 Things Merchants Should Understand About Chargeback. FR6 Partial Immediate Chargeback Program. View the Medicare reason codes list. The merchant failed to ship the merchandise by the promised delivery date/time. Need more help? Download Reason Code Cheat Sheets Chargeback Reason Codes Discover Discover Chargeback Reason Codes The Discover chargeback reason. 4 Fraud – Card-Absent Environ. About Careers Contact. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. Expand the categories below to view the full list of Discover chargeback reason codes. Dispute network reason codes categorization . M10 Vehicle Rental – Capital Damages. Chargeback. It was originally one of several possible scenarios covered by legacy Visa reason code 83. 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. It goes. 2. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Use this guide as a resource to quickly identify a chargeback reason code from Mastercard. Today, Visa expects members to communicate through VROL and try to. Company. 4 – CBK: Fraudulent Transaction: No Cardholder Authorization 11. Products. 1? Chargeback reason code 11. This reason code is accompanied by a fraudulent reason code (UA). The following table shows response codes and their meanings for ISO 8583-1987, later versions uses 3 and 4 digit response codes. Chargeback reason code 13. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. Each reason code is composed of a two-, three-, or four-digit number. The cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Mastercard Chargeback Reason Code 70: Chip Liability Shift. An ACH dispute results in a chargeback for the business that processed the payment. 5 percent of all transactions. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. . Visa Chargeback Reason Codes; MasterCard. Then, click individual codes for tips on how to prevent and fight each one. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. 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. 1And if the merchandise was returned for late delivery, the issuer should wait 15 days after the return of the merchandise before filing a chargeback. 1001 - Cardholder does not recognize the transaction. Resources. The Visa chargeback reason codings system underwent a major overhaul in May 2018 as part of their new Visa Claims Resolution (VCR) initiative. Reason. Retry after 8 days. Chargeback Reason Codes Page 3 of 5. If you believe you have received an ACH return in error, you can contact your bank. Card-not-present chargeback. Potential chargeback or compliance documentation is required:A chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. 1? Visa chargeback reason code 13. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. Automated Clearing House return codes, reasons, and details. Chargeback reason codes. But for illegitimate claims, the reason code doesn’t give the real reason for the dispute. Goods / Services Damaged or Defective. Please refer to chapter 5 for more information. What are Merchant Category Codes? A Merchant Category Code is a four-digit number that identifies the type of products or services the merchant provides. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Case Studies. Actions: This is where you respond to a case. to research a chargeback or reversal case, which is related to an authorization or fraud related chargeback reason code. 4871 – Chip Liability Shift – Lost / Stolen / Never Received Issue. Explanation. By taking the action advised by Mastercard’s logic, merchants and acquirers will be more likely to receive an authorization approval. Chargeback Reason Codes Page 2 of 5. Discover Chargeback Reason Codes Explained. Category. There are six different types of RFI reason codes for the dispute notifications. This chargeback<br />. Some credit card companies also include a short phrase describing the code. Explore more ACH Return Codes. P03 – Credit Processed as Charge. MasterCard and Visa each have their own chargeback codes. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. So don’t spend another second worrying about chargebacks. Previously, Visa expected the disputing member to start the dispute by filing a pre-compliance chargeback under reason code 98 (now obsolete). Thus, the easiest way to prevent chargeback reason code 75 from being. eCommerce grew too fast for the payments industry to respond. 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. Explanation. 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. In theory, the reason code will pinpoint why the cardholder is disputing the transaction. Invent - UA02 Fraud – Card Not Present Transaction. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. PCI DSS v3. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Common ACH dispute codes. Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds. Reason Code 04. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Fraudulent Transactions (Codes 4800. Commonly selected actions include Dispute/Reverse Chargeback or Accept Chargeback. 4 Updated Discover chapter for April (2012) Enhancements Chapter 2 1. g. Chargeback reason codes are alphanumeric codes established by the major card networks that indicate the reason a chargeback was filed. 5: Visa Fraud Monitoring Program: 11. Which is meant to know the reason for the dispute. It was originally just one facet of legacy reason code 81. 100187 and ANSI X9. Corresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. Services industry for image exchange and the creation of IRDs. Thanks for following the Chargeback Gurus blog. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. 7. The American Express chargeback process begins with Amex issuing a chargeback, along with a reason code to explain the dispute to the merchant. This chargeback may be reversed if merchant can. Card Recovery Bulletin Authorization Visa Code: 11. Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s. Code. 2 falls under the “Processing Errors” category. ”. This new ruleset expands the list of compelling evidence you can use to help undo an invalid customer. Partners. Get proper authorization and manual or electronic imprint for each card present transaction. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. 3 – Not as Described or Defective Merchandise / Services. 2. Feel free to submit topic suggestions, questions or requests for advice to:. 7: Defective goods and services: C32: RM: 13. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. 5 and, more or less, associate the dispute with an issue related to a stolen credit card. P22 – Non-Matching Card Number. The chart above outlines reason codes for when Walmart is not paying the full amount of an invoice. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. UA05 Fraud – Chip Counterfeit Transaction. If like most Discover cardholders, your card was issued by Discover Bank, they are the ones you must contact for a Discover chargeback or to dispute a transaction. This return reason code may only be used to return XCK entries. Scenario 2. Generally, this information can be used to: resubmit for payment. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. 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 codes are established by the payment brands to categorize the incoming dispute requests by reason. Additionally, Amex uses a fifth "Miscellaneous" category. Solution. To contest the chargeback, you must show strong evidence that the transaction was valid. Even if the chargeback is later canceled, the merchant will still have to pay fees and administrative costs. Reason codes are alphanumeric codes that provide the justification to awarding a chargeback. MATCH List Reason Code: Title: Explanation: Reason Code 01: Account Data Compromise: Account data is stolen from the card-present merchant and used with other merchants:. Reason codes give merchants information about the cause of a chargeback and what evidence. Thanks for following the Chargeback Gurus blog. 0. A family member used the card without the primary cardholder's knowledge. Again, banks should not really be using 4807. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaAlternatively, you can find the list of Klarna dispute notifications in your Customer Area by going to Risk > Disputes > Requests for Information. Every credit card network maintains a list of short alphanumeric codes that identify each valid chargeback reason and the conditions that must be met for them to be granted. Once filed, the merchant generally has 20. Like your chargeback-to-transaction ratio, card networks also monitor your fraud-to-sales ratio. 11, 16. 4808: This code can refer to: Account Number Not on File. Chargeback Reason Codes. View the entire list of Visa reason codes below. 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. M01 Chargeback Authorization. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. With the overhaul of their reason code system, Visa divided reason. Banks, processors, merchants, card networks, and third-party vendors all have a role. Chargeback /Dispute; Merchant Response. 2 Declined Authorization; 11. & Fighting Chargebacks? demo experience. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. The codes for each card brand are listed below along with the recommended documentation to provide. MasterCard: Reason Code 4859 Services not rendered. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. This is commonly caused by either true fraud or friendly fraud. 1 Merchandise/Services Not Received. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. A MATCH list reason code refers only to criteria for a merchant being added to the MATCH database. 2, it’s simple and straight-forward: The merchant attempts in any way to force, circumvent, or override a declined authorization. ”. The shorthand description is “Merchandise/Service Not Received. The chargeback transfers funds from the acquirer to the issuer. R13 No Reply. They can also be caused by a merchant failing to process a cancellation promptly. It depends on the chargeback reason code associated with the dispute. Additionally, there are several other reasons you could be on this list related to security, illegal activity, bankruptcy, fraud, or non-compliance. However, the codes are often insufficient to get to the root cause and prevent future chargeback occurrences. If they don't accept, disputes with reason codes 4808, 4870, or 4871 go straight to Arbitration. Chargeback reason code 10. Merchant must provide proof of authorization. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Visa chargeback reason codes, for example, are numerals with decimals. This process is called. . 2 – EMV Liability Shift Non-Counterfeit Fraud. Chargebacks explained. Each chargeback reason has its own, individual prevention techniques. Dispute Category. To complicate matters, the major credit card companies (Visa, MasterCard, Discover, and American Express) don’t even use the same number-coding system to describe. 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. Card Number: Alphanumeric: The first 6 digits, followed by. Ineligible Transaction (International only) 79. CHARGEBACK: Customer has disputed part or all of the transaction. § Support required to request a Chargeback Reversal - examples of required documentation if you request a Chargeback Reversal. Card Recovery Bulletin Authorization Visa Code: 11. Case Studies. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP) 4863 – Cardholder Does Not Recognize – Potential Fraud. Concerning Native Expres chargeback reason codes. Discover Card Chargeback and Dispute Rules. For a more detailed explanation, as well as a list of Visa’s individual codes, please refer to our guide on chargeback reason codes. The issuer is still reviewing the defense. Visa - 10. 3 – CBK: Fraudulent Transaction: No Cardholder Authorization 10. Identify Your Chargeback Triggers. Non Matching Account Number. 5 – Misrepresentation. A ratio of 3% or more with at least 300 chargebacks will result in being categorized as a High Excessive Chargeback Merchant (HECM). This reason code is accompanied by a fraudulent reason code (UA). Among the information contained in this package is the chargeback reason code. These codes help businesses understand the cause of chargebacks and how they can prevent them in the future. FR4 Immediate Chargeback Program. CHARGEBACK REASON CODESM10 Vehicle Rental – Capital Damages. American Express, Discovering, Visa. A reason code is how banks categorize the reason for a chargeback. The aim here was to streamline the list of reason codes, and make it. A reason code is how banks categorize the reason for a chargeback. 6 – Credit Not Processed. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. Mastercard Chargeback Reason Code 71: Disputed Amount. Chargeback fraud cost retailers $125 billion in lost revenue last year alone as the volume of customer disputes continues to rise in line with the rapid expansion of eCommerce and convenient payment options. 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. MATCH Reason Code Description; 00: Questionable Merchant/Under Investigation A Merchant that is the subject of an audit with respect to the Standards. Reason Code Directory. About Visa chargeback reason codes. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Cause. ACH Return Codes. 10. Before VCR, Visa reason codes were two-digit numbers that often seemed like they were assigned completely at random. The Chargeback Reason Code Format. At this point, funds are not yet deducted from your account, but a NoC always indicates that your account will be debited for the chargeback amount. Chargeback Reason Codes. 100187 and ANSI X9. Transaction can be sent again. When used at the point of sale, the transaction is. Select a tab to see the possible. The chargeback reason codes were created to standardize the list of acceptable reasons for which a bank may submit a credit card chargeback or a direct debit chargeback on behalf of its customer. Even learning all the terms and rules won’t keep you. 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. When one cardholder initiates a dispute with their issuing bank, a. Excessive Fraud: The merchant’s sales volume thresholds for the ratio of fraud to sales were exceeded. 2. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Every merchant on the MATCH list is assigned a reason code that explains why they’re on it: 01 Account Data Compromise; 02 Common Point of Purchase; 03 Laundering; 04 Excessive. Reason Code – 13. Case Studies. These codes are broken down into five different category. Chargeback time frames - A specific period during which a chargeback can be raised. 4849 – Questionable Merchant Activity – Mastercard Rule 3. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. What is Visa chargeback reason code 11. If you still believe you're in the right, then be prepared for a "fight". Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Cardholder Disputes. This may be done by either the merchant or the issuing bank. The charge is returned to the customer’s card that was used for payment. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. 11/03/15 Updated these MasterCard. 1 is an updated version of legacy reason code 70, which was phased out under the Visa Claims Resolution initiative. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. American Express chargeback reason codes are divided into five categories: authorization, cardmember disputes, fraud, processing errors, and miscellaneous. The latest edition of Visa’s core rules (effective April 2023) introduced Visa Compelling Evidence 3. . 4 — other fraud – card-absent environment — asserts the merchant processed a card-absent, card-not-present, or digital payment for a customer who used the. WEX began issuing chip cards in Q4, 2020. It gets worse. Condition 13. Pre-ArbitrationSteps to Prevention. The implication is that the merchant is at fault. A card-not-present chargeback is a payment reversal conducted by a bank in response to a card-not-present (i. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. #9. If you’re using the Online Dispute Management System, you will find the dispute reason codes on both the Level 1 and 2 screens. For instance, some reason codes allow cardholders over a year to file. Duplicate Processing - 811. It is associated with a chargeback reason code, and it is specific per Card Scheme. Step 2 – The issuing bank reviews the chargeback dispute charge and electronically sends the transaction to the acquiring bank. Each time a consumer files a chargeback, the merchant is hit with a fee ranging from $20 to $100 per transaction. Reference these when rebutting cardholder disputes at your small business. R03 Insufficient Reply. Some of the reasons why the order did not reach the cardholder can be as follows: The merchant did not provide the services;ECM monitors first presentment chargebacks regardless of reason code or transaction type. Chargeback Reason Code. 0: Updated report version from 1. 1003 - Transaction Supporting Document (TSD) needed. news & updates. Overall returns (all codes): 15%. It should address the Reason Code and allow us a ‘Re-presentment’ right. So the company has more incentive to side with customer during cardholder. 1. S. Cardholder-Activated Terminal (CAT) 3 Device. When a cardholder has an issue with a transaction, they can contact their bank to dispute the charge. Chargebacks have both short and long-term ramifications for merchants. The Visa Claims Resolution (VCR) initiative, launched in 2018, changed many aspects of the chargeback process. This Return Reason Code may only be used to return XCK Entries and is at the RDFI’s sole discretion. Every industry is unique and because of this, the list of chargeback reasons can vary from industry to industry. Code 4807 was used to cover various authorization-related. For first chargebacks, Mastercard currently only has 9 reason codes in use,. P07 – Late Submission. Added the following fields - Store ID, Credit Card Chargeback Reason Code. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. The format depends on the credit card company. F02. Please contact the issuing bank for a specific reason. Process reversals and credits promptly. 13. The deadline for a Chase Bank customer to dispute a transaction is 60 days. 1: Card Recovery Bulletin:This standard provides the financial industry with a list of Return Reason codes that are used by the Financial Services industry for image exchange and the creation of IRDs. When disputing a chargeback, select the document(s) that support your case, attach. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. Visa chargebacks can be a major inconvenience for merchants. 0 to 5. Merchants can find a. Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds. 4854 Cardholder Dispute—Not Elsewhere Classified (U. 5 – Misrepresentation. Visa retired the “unrecognized”. Chargeback Gurus takes the pain out of chargeback management, helping businesses recover their lost revenue. One of these changes was an overhaul of Visa’s list of chargeback reason codes. FR2 Fraud Full Recourse Program. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. List of Chargeback Reason Codes. A Shopify chargeback occurs when a cardholder contacts the bank about. 1. 4846. Presentment Message Reason Code to IPM Arbitration Chargeback Message Reason Code Removed first bullet in Supporting Documents section Arbitration Chargeback Summary of Changes, 1 May 2018How you respond is determined by the chargeback reason code: Embed This Graphic. The shorthand description is “Declined Authorization. ; If the acquirer bank. Depending on whether the documentation is required or not, Paymentology will submit these chargebacks on the client’s behalf. “Credit Not Processed,” the reason code for unreceived refunds, accounted for 12% of consumer disputes at the height of the pandemic. The initial release of this standard does not add, remove or change any Return Reason Codes. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. About Visa chargeback reason codes. 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. 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. This reason code is accompanied by a fraudulent reason code (UA). Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Reason code 12. Be careful not to process canceled or voided transactions. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Card Brand Reason Code Description.