Decoding Credit Card Chargebacks Using their Reason Codes
Have you ever swiped your credit card for a purchase, only to find out later that something went wrong with the transaction? Maybe you didn’t receive the item you paid for, or you noticed an unauthorized charge on your statement. This is where the magic of chargebacks comes into play.
In this guide, we’ll walk you through the ins and outs of credit card chargebacks in the simplest terms possible. Whether you’re a seasoned credit card user or just getting started, understanding chargebacks is crucial for protecting your hard-earned money.
What is a Chargeback?
Let’s start with the basics. A chargeback is a way for you, as a credit card holder, to dispute a transaction and get your money back. It’s like hitting the rewind button on a transaction that went wrong. Chargebacks are designed to protect consumers from fraudulent or unauthorized charges, as well as from merchants who fail to deliver the goods or services they promised.
How Does it Work?
When you notice a problem with a transaction on your credit card statement, you can contact your bank or credit card issuer and request a chargeback. You’ll need to provide some information about the transaction and why you’re disputing it. This could include things like:
- Not receiving the product or service you paid for.
- Receiving a damaged or defective item.
- Being charged more than once for the same purchase.
- Seeing unauthorized charges on your statement.
Once you file a chargeback, your bank will investigate the dispute and determine whether or not to reverse the transaction. If they find it in your favor, the funds will be returned to your account.
Why Do Chargebacks Happen?
There are several reasons why chargebacks might occur:
- Fraudulent Transactions: Someone steals your credit card information and makes unauthorized purchases.
- Unfulfilled Orders: You pay for something online, but the merchant never delivers the goods.
- Billing Errors: You’re charged the wrong amount for a purchase, or you’re billed for something you didn’t buy.
- Quality Issues: You receive a product or service that doesn’t meet your expectations, such as a defective item or poor service.
The Chargeback Process
Now, let’s break down the chargeback process into simple steps:
- You Spot a Problem: You notice something fishy on your credit card statement, like an unfamiliar charge or a purchase you don’t remember making.
- You Contact Your Bank: You call or go online to file a dispute with your bank or credit card issuer. You’ll need to provide details about the transaction and why you believe it’s incorrect.
- Investigation: Your bank investigates the dispute. They may reach out to the merchant for more information or ask you for additional evidence to support your claim.
- Resolution: If the bank finds it in your favor, they’ll reverse the transaction and credit your account. If not, they’ll explain why the charge stands.
Tips for Preventing Chargebacks
While chargebacks can be a lifeline when something goes wrong with a transaction, it’s best to avoid them whenever possible. Here are some tips to help you prevent chargebacks:
- Keep Records: Save receipts, order confirmations, and any communication with merchants. These documents can help support your case in a dispute.
- Check Your Statements: Review your credit card statements regularly to catch any unauthorized or incorrect charges early.
- Use Secure Websites: When shopping online, make sure the website is secure and reputable. Look for HTTPS in the URL and check for customer reviews.
- Read the Fine Print: Before making a purchase, read the merchant’s return and refund policies. Make sure you understand what you’re agreeing to.
Chargeback Reason Codes
When you receive notification of a payment dispute or chargeback you may see a code listed with it. Each card company has its own set of codes that indicate the specific reason that a cardholder initiated a dispute.
- For American Express
- For Visa
- For Mastercards
American Express Chargeback Reason Codes:
| Reason Code | Description |
| A01 | Charge Amount Differs |
| A02 | No-Show or Card Member Dispute |
| A08 | Authorization Approval Code |
| A10 | Authorization |
| A11 | Cardmember Disputes |
| A12 | Credit Not Processed |
| A13 | Duplicate Charge |
| A14 | Merchandise/Services Not Received |
| A15 | Merchandise/Services Not as Described |
| A16 | Cancelled Recurring Billing |
| A17 | Fraud Full Recourse |
| A18 | “No Merchandise/Services Provided” |
| A19 | “Transaction Amount Differs” |
| A20 | “Invalid Card Number” |
| A21 | “Other” |
| A22 | Non-Receipt of Cash or Load Transaction |
| A23 | Non-Receipt of Goods at Destination |
| A24 | Counterfeit Merchandise |
| A25 | Cardholder Does Not Recognize |
| A26 | Counterfeit Transaction |
| A27 | Chip Liability Shift |
| A28 | Chip/PIN Liability Shift |
| A29 | Card Not Present |
| A30 | EMV Liability Shift Counterfeit |
| A31 | EMV Liability Shift Non-Counterfeit |
| A32 | Missing or Incorrect Data |
| A33 | Fraud No Recourse |
| A34 | Late Presentment |
| A35 | Incorrect Transaction Amount |
| A36 | Fraud Domestic Chargeback |
| A37 | Fraud Card Present Chargeback |
| A38 | Fraud Delayed Delivery Chargeback |
| A39 | Fraud Digital Goods Chargeback |
| A40 | Fraud Recurring Chargeback |
| A41 | EMV Liability Shift Non-Counterfeit |
| A42 | EMV Liability Shift Counterfeit |
| A43 | EMV Liability Shift Counterfeit and Non-Counterfeit |
| A44 | No Show No Card Chargeback |
| A45 | Not as Described or Defective Merchandise |
| A46 | EMV Liability Shift Non-Counterfeit Card Not Present |
| A47 | EMV Liability Shift Counterfeit Card Not Present |
| A48 | EMV Liability Shift Counterfeit and Non-Counterfeit Card Not Present |
Visa Chargeback Reason Codes:
| Reason Code | Description |
| 10 | Authorization |
| 11 | Card Recovery Bulletin |
| 12 | Account Number Not on File |
| 13 | No Account |
| 14 | Paid No Return |
| 15 | No Cardholder Authorization |
| 16 | Transaction Not Recognized |
| 17 | Fraudulent Transaction |
| 18 | Fraudulent Transaction, Card Absent |
| 19 | No Show |
| 20 | Invalid Transaction |
| 21 | No Cardholder Authorization |
| 22 | Expired Card |
| 23 | Currency Discrepancy |
| 24 | Chargeback (General) |
| 25 | Retrieval Request |
| 30 | Services Not Provided |
| 41 | Cancelled Recurring Transaction |
| 51 | Declined Authorization |
| 53 | Not as Described or Defective Merchandise |
| 57 | Fraudulent Multiple Transactions |
| 62 | Counterfeit Transaction |
| 71 | Declined Authorization |
| 72 | No Authorization |
| 73 | Expired Card |
| 74 | Late Presentment |
| 75 | Transaction Not Recognized |
| 76 | Incorrect Currency or Transaction Code |
| 77 | Non-Matching Account Number |
| 78 | Fraudulent Transaction Card Absent |
| 79 | Requested Transaction Information Not Received |
Mastercard Chargeback Reason Codes:
| Reason Code | Description |
| 4807 | Warning Bulletin File |
| 4808 | Account Temporarily Suspended |
| 4809 | Fraud Investigation |
| 4810 | Credit Not Processed |
| 4811 | Authorization Approval Code Required |
| 4812 | Account Number Not on File |
| 4813 | Card Recovery Bulletin |
| 4814 | Fraudulent Transaction Card Absent |
| 4815 | Transaction Not Recognized |
| 4816 | Transaction Amount Differs |
| 4817 | Chip Liability Shift |
| 4818 | Chip/PIN Liability Shift |
| 4819 | Chip Liability Shift Non-Counterfeit |
| 4820 | Chip/PIN Liability Shift Non-Counterfeit |
| 4821 | Chip Liability Shift Counterfeit |
| 4822 | Chip/PIN Liability Shift Counterfeit |
| 4823 | Chip Liability Shift Counterfeit and Non-Counterfeit |
| 4824 | Fraudulent Transaction |
| 4825 | Transaction Not Recognized by Cardholder |
| 4826 | Counterfeit Transaction |
| 4827 | Chip Liability Shift Non-Counterfeit Card Not Present |
| 4828 | Chip/PIN Liability Shift Non-Counterfeit Card Not Present |
| 4829 | Chip Liability Shift Counterfeit Card Not Present |
| 4830 | Chip/PIN Liability Shift Counterfeit Card Not Present |
| 4831 | EMV Liability Shift Non-Counterfeit |
| 4832 | EMV Liability Shift Counterfeit |
| 4833 | EMV Liability Shift Counterfeit and Non-Counterfeit |
| 4834 | No Show |
| 4835 | Cardholder Dispute |
| 4836 | Credit Not Processed by Cardholder |
| 4837 | No Cardholder Authorization |
| 4838 | Fraudulent Transaction Card Absent |
| 4839 | No Cardholder Authorization |
| 4840 | Fraudulent Transaction Card Absent |
| 4841 | Cancelled Recurring Transaction |
| 4842 | Late Presentment |
| 4843 | Incorrect Transaction Amount |
| 4844 | Fraudulent Transaction |
| 4845 | Fraudulent Transaction |
| 4846 | Correct Transaction Currency Code |
| 4847 | Questionable Merchant Activity |
| 4848 | Exceeds Floor Limit |
| 4849 | Cardholder Dispute |
| 4850 | Installment Billing Dispute |
| 4851 | ATM Transaction Dispute |
| 4852 | Goods or Services Not Received or Merchandise Not As Described |
| 4853 | Cardholder Dispute |
| 4854 | Cardholder Dispute |
| 4855 | Non-receipt of Cash or Load Transaction |
| 4856 | Transaction Not Recognized by Cardholder |
| 4857 | No Cardholder Authorization |
| 4858 | Fraudulent Transaction Card Absent |
| 4859 | Transaction Not Recognized by Cardholder |
| 4860 | Fraudulent Transaction Card Absent |
| 4861 | Cancelled Recurring Transaction |
| 4862 | Late Presentment |
| 4863 | Incorrect Transaction Amount |
| 4864 | Fraudulent Transaction |
| 4865 | Fraudulent Transaction |
| 4866 | Correct Transaction Currency Code |
| 4867 | Questionable Merchant Activity |
| 4868 | Exceeds Floor Limit |
| 4869 | Cardholder Dispute |
| 4870 | Installment Billing Dispute |
| 4871 | ATM Transaction Dispute |
| 4872 | Goods or Services Not Received or Merchandise Not As Described |
| 4873 | Cardholder Dispute |
| 4874 | Cardholder Dispute |
| 4875 | Non-receipt of Cash or Load Transaction |
| 4876 | Transaction Not Recognized by Cardholder |
| 4877 | No Cardholder Authorization |
| 4878 | Fraudulent Transaction Card Absent |
| 4879 | Transaction Not Recognized by Cardholder |
| 4880 | Fraudulent Transaction Card Absent |
| 4881 | Cancelled Recurring Transaction |
| 4882 | Late Presentment |
| 4883 | Incorrect Transaction Amount |
| 4884 | Fraudulent Transaction |
| 4885 | Fraudulent Transaction |
| 4886 | Correct Transaction Currency Code |
| 4887 | Questionable Merchant Activity |
| 4888 | Exceeds Floor Limit |
| 4889 | Cardholder Dispute |
| 4890 | Installment Billing Dispute |
| 4891 | ATM Transaction Dispute |
| 4892 | Goods or Services Not Received or Merchandise Not As Described |
Final Thoughts
Credit card chargebacks are a valuable tool for protecting consumers from fraud and unscrupulous merchants. By understanding how chargebacks work and taking steps to prevent them, you can shop with confidence and safeguard your finances.
If you ever encounter a problem with a transaction, don’t hesitate to reach out to your bank and file a chargeback. It’s your right as a consumer, and it can help ensure that you’re not left holding the bag for a purchase gone wrong.
