But sometimes, a chargeback can be fraudulent. 5? Visa chargeback reason code 10. Reason Codes: 08 / 20 / 71 / 72 A card was used either before or after its valid date Never process a transaction on a card prior to, or after, the valid date. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. 26% - the number of chargebacks that result from undelivered orders. © A new 4 byte reason code will be used moving forward. The system does not accept blank as a value, even if it is defined in the user defined code table. You’ll put that reason code, the transaction amount and authorization number, and state that the. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. C02 | C04 | C05 | C08 | C14 | C18 | C28 | C31. 1 Chargeback. 4 spec (Section 8. This is a fairly common chargeback reason that can. 101. Reason Codes Category 4: Processing Errors. Others require banks to wait for a certain period before they can issue a chargeback. Chargebacks: Your Guide to Reducing Hassle and Cost. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. 00 in chargebacks. Everyone from processors and card brands to local and federal governments has rules about how payments should be handled. 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. REQUEST A DEMO. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. 1. A reason code or a chargeback reason code is a string of symbols (numbers and letters). Subsection5. MasterCard: Reason Code 4859 Services not rendered. The merchant did not receive any returned merchandise. The cardholder says they were incorrectly charged for capital damages for a car rental. . This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. 3 Changed Discover Reason Codes to match what is shown in the UI. 4 Fraud – Card-Absent Environment. "Acceptable Reason Codes" has the meaning set out in section 2. What is Visa chargeback reason code 10. FR4 Immediate Chargeback Program. UA06 Fraud – Chip and PIN Transaction. At the start of a transaction. Chargeback. In short: capture is the point at which you get paid for a sale. 2. 1: goods not received. By entering your email, you agree to receive marketing emails from Shopify. Use clear and consistent billing descriptors. You must tailor your representment case — including the compelling evidence — to the reason code under. Batch chargeback process. Acquirer Use of Message Reason Code 7623. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. 3: Goods or services were not as described: C31: RM: 13. • Removed reason code 4840 (Fraudulent Processing of Transactions) Chapter 1—General Information. 9% with at least 100 total disputes. Here’s how your store can prevent and deal with chargebacks. Chargebacks911 offers the most comprehensive chargeback management system available, backed by the industry's only performance-based ROI guarantee. Chapter 2 1. Aforementioned definitive guide includes and chargeback reason codes from each of the four major bill networks. 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. 2. Visa chargeback reason code 75 is filed as an honest mistake. Once you know why a chargeback happened, you can start building a case to address the claims that were. Chargebacks. However, a truly effective strategy must involve both prevention and disputing cases of friendly fraud. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Understanding these codes is essential because they'll guide your response strategy. 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. 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. ” This. 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. A chargeback happens when a customer requests for a transaction to be reversed. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Provide Explanation Give a clear overview of the documents you’re submitting, address the specific dispute reason, provide any changes made to the original purchase/agreement and explain the steps you’ve taken to resolve the dispute. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of payment and was 4853 – Cardholder Dispute – Credit Not Processed. 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. The shorthand description is “EMV Liability Shift Non-Counterfeit Fraud. Chargeback Reason Codes by Network - 2023 Orientation. MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. 4834. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. American Express chargeback reason code M10 falls under the “Inquiry/Miscellaneous” category. When the customer disputes a charge, the issuing bank then begins the chargeback process. “Goods Not Received” also jumped to 9% of repudiated transactions as customers attempted to recoup losses for canceled flights. That suggests that in the times when merchants. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. 2 address the specific dispute reason with the documents you send. ) A no-nonsense summary of evidence that proves transaction is legit. 46 4. 0, these guidelines guarantee merchant protections from certain categories of disputes. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. High-Risk (Excessive): Reaching a chargeback ratio of. Code 4807: Fraudulent Card-Present Transaction. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Reason Code 53 re-presentments must be. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Thus, the easiest way to prevent chargeback reason code 75 from being. This code tells you why the customer or bank initiated the dispute. It can range from 60 to 120 days from the billing date. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. 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. 10. 5 Categories of Visa Chargeback Reason Codes. Duplicate Processing - 81These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. Scenario 2. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. ”. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. This means providing evidence that will undermine the cardholder’s claim. If a criminal manages to defeat the technology and complete an online purchase, Mastercard will shift liability away from the merchant and onto the issuer. 3: Goods or services were not received: C08: RG: 4855: 13. If more information is needed, you’ll either receive an Inquiry or a Chargeback. 1Chargeback. 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. Chargeback reason code 10. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. 9% and 100 chargebacks per month], you can get into the excessive chargeback program, which can cause penalties of up to $50 per chargeback. When one cardholder initiates a dispute with their issuing bank, a. Faxing and Mailing Agencies: The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. RuPay has categorized all the chargeback reason codes into 5 different groups as stated below. Chargeback reason codes are one piece of evidence you can use to make your case. Chargebacks are a major threat to businesses big and small. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. Only an issuer can initiate the chargeback process. com Europe. Reason Codes: 22 / 23 / 32 / 35. Here’s how your store can prevent and deal with chargebacks. 3? Visa chargeback reason code 13. m10 Vehicle Rental - Capital Damages. It was originally just one facet of legacy reason code 81. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. The chargeback reason code. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Respond to invalid disputes. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. Reason code 83 represents a chargeback categorized as. There is a USD 25 limit for the First Chargeback (Reason Code 22). If you're contesting a chargeback, you'll need solid evidence. “Visa has 28 different reason codes. Excessive Chargebacks: The merchant exceeded established chargeback thresholds. 3 falls under the “Consumer Disputes” category. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. 4798. This will be referenced in the chargeback notice you received. By entering your email, you agree to receive marketing emails from Shopify. The system does not accept blank as a value, even if it is defined in the user defined code table. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. 1: goods not received. Assemble Your Evidence. 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. Also, remember that the time frame for your response includes any processing required by the acquirer. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Representment Documentation. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Download this sample Chargeback Rebuttal Letter. Stage 1: First Chargeback. Always ask for authorization regardless of the transaction amount. Chargeback reason codes. Valid Values/Format: 22 - First Chargeback Handling Fee. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. pdf - Free download as PDF File (. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. txt) or read online for free. Each credit card network has its own list of reason codes banks must choose from. Specify the invoice date and net due date to assign to chargebacks. UA06 Fraud – Chip and PIN Transaction. 26% - the number of chargebacks that result from undelivered orders. Dispute Best Practices Guide Overview This guide includes: Goods / Services Damaged or Defective. In most cases, you will have 20-45 days in which to respond to a chargeback. 800. In the case of friendly fraud, that reason could be completely invalid and. Each card network maintains reason codes to cover all the disputes that qualify for. Paymentology will submit the chargeback using the appropriate chargeback reason code. The following are some examples: Visa Reason Code 13. The format of the Code 10 call is designed to be discreet, so that it can be made in front of the customer, but they can be lengthy. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. Use clear and consistent billing descriptors. PCI DSS v3. They either issue a chargeback to the merchant’s bank, or they find that the charge is authentic and side with the merchant. Merchant Accepted Chargeback-Miscellaneous: Amex: M10: Capital damages-Miscellaneous: Amex: M11: CM Credited- Chargeback Reversed. Simplify reason codes; Let’s look at each of these objectives a little more closely. As expected, chargeback reason codes exemplified consumer sentiment. 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. . Take the time to note the following dispute reason codes for Visa. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. ADDL = Vantiv has the sales draft on file and is requesting additional documentation as required by the chargeback reason code. Check the chargeback reason code. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 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. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. 5 billion lost in 2020. 6. resolved via the chargeback management process and within timeframes. The main chargeback reasons look like this: Malicious fraud. Chargeback Reason Codes. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Chapter 4: American Express Chargeback Reason Codes; Chapter 5: Mastercard Chargeback Reason Codes; Chapter 6: Visa Chargeback Reason Codes; Chapter 7: Chargeback responses;. 3: Goods or services were not received: C08: RG: 4855: 13. 10. If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. Fraud liability shift - counterfeit. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. If you do perform a key-entered transaction, make a manual imprint of the card. A chargeback happens when a customer requests for a transaction to be reversed. American Express reason code 155, Visa reason code 30, MasterCard reason code 4855, and Discover reason code 4755 are all specific reason codes for Shopify payment chargebacks. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Try Shopify free for 3 days, no credit card required. Eligible Chargeback Reason Codes . This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Info Us; In and. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. . Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. • Rule changes for chargeback reason codes involving unjust enrichment associated with credits issued before or after a chargeback and/or after a second presentment. But sometimes, a chargeback can be fraudulent. Chargeback reason code 11. Fight; Prevent; Get; Assets. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. M10. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. Credit not processed for cancelled or returned goods and services 2. There are two types of invalid chargebacks. Field name: reasonCode. This definitive tour containing the chargeback reason codes after each of the four major card networks. This can provide important information to fight the dispute. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. 3. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. A chargeback happens when a customer requests for a transaction to be reversed. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Responding to Mastercard Reason Code 4853 Chargebacks. for chargeback reason code 4863 (Cardholder Does Not Recognize). Write customer-friendly policies. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). A Charge is Disputed * We’ll work directly with the Card Member and try to resolve the case before reaching out to you. 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. 16, 2021. American Express chargeback reason code M10 falls under the “Inquiry/Miscellaneous” category. Visa Chargeback Life Cycle. Documentation must be a direct result of cardholder communication. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. Chargeback. We also included the reason code descriptions and an indication of when the allowable time frame begins. While creating the reason codes, the. The first is true fraud, where someone used stolen credit card or account information to make a purchase. M10: Vehicle Rental - Capital Damages: M49: Vehicle Rental -. Visa is planning to shake up the chargeback process with new compelling evidence rules for fraud disputes with Reason Code 10. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Chargeback Reason Codes All received credit card disputes include a reason code. A reason code is how banks categorize the reason for a chargeback. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Analyze your chargeback data. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. 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. Understanding these codes is essential because they'll guide your response strategy. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. There are over 80 unique return codes, and each one represents a different type of return. Most reason codes apply to any merchant, regardless of what’s being sold. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. The EFTA was first enacted in 1978. Reason codes are important to help merchants address recurring. Apparel retailers and suppliers must proactively address chargeback issues. Network Processing ® ©The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. WEX began issuing chip cards in Q4, 2020. 3 falls under the “Consumer Disputes” category. Each code has a different timeline. The third digit indicates the specific reason within that category. A reason code is how banks categorize the reason for a chargeback. You’ll put that reason code, the transaction amount and authorization number, and state that the. 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. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. 3 DUE DATEA chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. There are multiple situations in which this can occur. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. The same is true of all chargeback reason codes. for chargeback reason code 4863 (Cardholder Does Not Recognize). 3. ECM monitors first presentment chargebacks regardless of reason code or transaction type. Discover chargeback reason code 7030. Every chargeback is filed with a reason code that identifies the given reason for the dispute. For this reason, you must document all debit and credit card transactions and. You can learn more about each one by visiting the Mastercard Chargeback Guide. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. A chargeback is like a refund, where a transaction made on a debit or credit card is reversed. Here are some numbers on chargeback reason codes: 30% - the number of chargebacks that result from transactions made with a stolen card. Every chargeback is different, so the evidence you provide will vary depending on the reason for the chargeback and the documents you have available. The shorthand description is “Vehicle Rental – Capital Damages. Check with the issuing banks to determine what time limits may apply to you. If the merchant has a signature showing that the order was delivered, or evidence that the. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. capital damages, theft, or loss of use (M10) Description. Code description a01 charge exceeds authorization. 3 DUE DATE Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. Step #2 | Report the Scam to PayPal. 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. If your chargeback ratio is high [i. There are two parts to this. See moreTime Frames by Chargeback Type and Reason Code. There are plenty of reasons as to why this would happen, hence the many. The chargeback can be for the total transaction amount or a lesser amount. 6). Card not present. 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. All card brands have their own number of codes). This ranges anywhere from roughly 60 to 90 days after purchase. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. Reason Code 11. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. Prevented; Recover; Tools. Unfortunately, it is pretty challenging to prevent friendly fraud. Other Fraud—Card Absent Environment. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. They may also have requirements that must be met in order for a transaction to be eligible for coverage, such as delivery confirmation. 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. There are over 80 unique return codes, each representing a different return type. American Express. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. many chargeback reason codes that exist today. 1. 2 – EMV Liability Shift Non-Counterfeit Fraud. This may be done by either the merchant or the issuing bank. Below is a list of Mastercard chargeback codes used in eCommerce. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. Updated August 23, 2023. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 1: Use the corresponding dates from the invoice. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. message. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. MASTERCARD Dispute Reason Codes. The reason for the dispute was false or inaccurate. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. The cardholder has a chip card and someone made a counterfeit copy of it. You double and triple check your customer service records to see if the customer wrote in about the shipment (they haven’t), you check the tracking. Here are some chargeback reason codes by card type. Thanks for following the Chargeback Gurus blog. . 2 Compliance CasesThe 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. Spot these types of chargebacks using. Try Shopify free for 3 days, no credit card required. Look below the surface. 1? Visa chargeback reason code 10. An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide.