A chargeback reason code is a numeric or alphanumeric code that issuers assign to chargebacks to help explain why transactions are disputed. Each card network (Mastercard, Visa, etc.) maintains their own list of reason codes. While codes vary by card network, the definitions are fairly similar and, for the most part, fall into four into four categories: fraud, cardholder dispute, processing error, and authorization issues.

Here is a sampling of reason codes.

Mastercard

• 4837 – No Cardholder Authorization
• 4812 – Account Number Not on File
• 4831 – Incorrect Transaction Amount
• 4853 – Cardholder Dispute – “No Show” Hotel Charge

Visa

• 10.4 – Other Fraud, Card-Absent Environment
• 11.3 – No Authorization
• 12.5 – Incorrect Amount
• 13.1 – Merchandise or Services Not Received

American Express

• F24 – No Cardmember Authorization
• A08 – Authorization Approval Expired
• P03 – Credit Processed as Charge
• C32 – Goods or Services Damaged or Defective

Discover

• UA02 – Fraud: Card Not Present Transaction
• AT – Authorization Noncompliance
• IN – Invalid Card Number
• RN2 – Credit Not Processed

Sometimes, the reason code assigned to the chargeback isn’t a true reflection of why the dispute happened. A cardholder’s “friendly” fraud dispute can be disguised as criminal fraud. It’s important to understand the underlying reason for disputes and how to solve them at their source. AltoPay provides real-time data to help make this process easier and more effective.

In addition to real-time reporting, AltoPay can help prevent chargebacks and recover revenue as part of our comprehensive suite of chargeback management solutions.