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Have you encountered a chargeback from Visa recently and had no idea why? With over 1 billion Visa cards in circulation, itā€™s inevitable that e-commerce store owners will get the occasional chargeback.Ā 

Unfortunately, deciphering the cryptic code of Visa's chargebacks often leads to more confusion than clarity. Fortunately, there is an answer for understanding what those codes mean and how to effectively process them.Ā 

In this blog post, we'll be unlocking the mysterious world of Visa chargeback codes by exploring what they are, why they matter to you as a merchant and steps you can take to minimize their frequency. By gaining insight into each type of code in this unique language, you'll have a better chance at recognizing potential problems aheadā€“which means your business will be ready and equipped when facing any unexpected issues along the way!

Understanding the Different Types of Visa Chargeback Codes

As an e-commerce merchant, it's important to understand the different categories of chargeback codes in order to effectively manage chargebacks and protect your business. Here is an overview of the different categories of chargeback codes, along with an explanation of each category:

1. Fraud and Authorization ChargebacksĀ 

These chargebacks occur when a transaction is not authorized by the cardholder, or when the transaction is fraudulent. This can happen when a stolen credit card is used to make a purchase, or when a cardholder disputes a transaction that they did not authorize.

2. Processing Errors Chargebacks

These chargebacks occur when a processing error occurs during the transaction. This can happen when the merchant incorrectly enters the transaction information, or when the payment processing system fails to properly process the transaction.

3. Customer Dispute ChargebacksĀ 

These chargebacks occur when the customer disputes the transaction, either because they did not receive the product or service they expected, or because the product or service was not as described. This can happen when the product does not meet the customer's expectations, or when the product is damaged during shipping.

4. Subscription Cancellation ChargebacksĀ 

These chargebacks occur when the customer cancels a subscription, but the merchant continues to charge the customer for the subscription. This can happen when the merchant does not properly cancel the subscription, or when the merchant fails to properly process the cancellation.

5. Miscellaneous ChargebacksĀ 

These chargebacks occur for a variety of reasons that do not fit into the other categories. This can happen when the customer does not recognize the transaction on their credit card statement, or when the transaction is processed after the expiration date of the credit card.

As an e-commerce merchant, it's important to understand the different categories of chargeback codes and take steps to prevent chargebacks from occurring in the first place. This can include improving your customer service, ensuring that your products are accurately described, and using fraud detection tools to identify potentially fraudulent transactions.Ā 

If you do receive a chargeback, it's important to respond promptly and provide all the necessary information to support your case. By effectively managing chargebacks, you can protect your business and ensure that your customers are satisfied with their purchases.

Common Visa Chargeback Codes and Their Meanings

As an e-commerce merchant, it's essential to be familiar with the most common Visa chargeback codes and their meanings. Here are some of the most common Visa chargeback codes, along with an explanation of each code and what merchants can do to prevent them:

1. 30 - Services Not Provided or Merchandise Not Received

It occurs when the cardholder has not received the product or service they paid for, or if the product or service was not as described. This can happen if the merchant fails to fulfill the order, if the product is lost in shipping, or if the product is not as described. To prevent this chargeback, merchants should ensure that they have accurate product descriptions and that they provide tracking information for shipped products.

2. 41 - Cancelled Recurring Transaction

This happens when a recurring transaction is canceled by the cardholder, but the merchant continues to charge the customer. To prevent this chargeback, merchants should make sure that they have accurate and up-to-date information on customer subscriptions, and that they promptly cancel subscriptions when requested by the customer.

3. 53 - Not as Described or Defective Merchandise

It occurs when the product is not as described, or if the product is defective. This can happen if the product is damaged during shipping, or if the product does not meet the customer's expectations. To prevent this chargeback, merchants should provide accurate product descriptions and images, and should take steps to ensure that the product is packaged securely and arrives in good condition.

4. 62 - Counterfeit Transaction

This chargeback happens when the transaction is fraudulent, and the cardholder did not authorize the transaction. This can happen if a stolen credit card is used to make a purchase. To prevent this chargeback, merchants should use fraud detection tools, such as AVS and CVV verification, and should be vigilant for suspicious transactions.

5. 71 - Declined AuthorizationĀ 

This code occurs when the merchant attempts to charge the customer, but the transaction is declined due to insufficient funds or other authorization issues. To prevent this chargeback, merchants should ensure that they have accurate and up-to-date information on the customer's payment method and that they verify the customer's payment information before charging their account.

6. 72 - No AuthorizationĀ 

This common code occurs when the merchant does not have proof of authorization for the transaction. This can happen if the merchant fails to obtain proper authorization, or if the authorization information is lost or not properly recorded. To prevent this chargeback, merchants should ensure that they obtain proper authorization for each transaction and that they retain all authorization records.

7. 85 - Credit Not ProcessedĀ 

This chargeback occurs when the merchant fails to issue a refund or credit for a returned or canceled item. To prevent this chargeback, merchants should promptly issue refunds or credits as requested by the customer and should ensure that they have accurate and up-to-date information on customer returns and cancellations.

8. 83 - Fraudulent Transaction

When the transaction is fraudulent and the cardholder did not authorize the transaction this code is validated. This can happen if a stolen credit card is used to make a purchase, or if the transaction is processed without proper authorization. To prevent this chargeback, merchants should use fraud detection tools, such as AVS and CVV verification, and should be vigilant for suspicious transactions.

9. 75 - Transaction not Recognized

This chargeback occurs when the cardholder does not recognize the transaction on their credit card statement. This can happen if the merchant's name or description is not easily recognizable, or if the transaction amount is significantly different than the expected amount. To prevent this chargeback, merchants should ensure that their name and description are easily recognizable, and should provide clear and accurate transaction details.

10. 86 - Paid by Other Means

It happens when the cardholder disputes the transaction because it was paid for by other means, such as a check or cash. This can happen if the merchant fails to properly record the payment method or if the customer forgets that they paid for the item by other means. To prevent this chargeback, merchants should ensure that they have accurate and up-to-date information on the customer's payment method and that they properly record all payment transactions.

Reason Code Description Merchant Action
10.1 EMV Liability Shift Counterfeit Fraud Investigate the transaction and provide evidence of EMV compliance.
10.2 EMV Liability Shift Non-Counterfeit Fraud Investigate the transaction and provide evidence of EMV compliance.
10.3 Other Fraud, Card-Present Environment Investigate the transaction and take steps to prevent fraud in the future.
10.4 Other Fraud, Card-Absent Environment Investigate the transaction and take steps to prevent fraud in the future.
10.5 Visa Fraud Monitoring Program Merchant must comply with Visa's fraud prevention program.
11.1 Card Recovery Bulletin Merchant must comply with Visa's card recovery bulletin.
11.2 Declined Authorization Merchant must investigate the reason for the declined authorization and take steps to prevent it from happening again.
11.3 No Authorization Merchant must obtain authorization for all transactions.
12.1 Late Presentment Merchant must present the transaction to the cardholder's bank within 60 days of the transaction date.
12.2 Incorrect Transaction Code Merchant must use the correct transaction code for each type of transaction.
12.3 Incorrect Currency Merchant must process transactions in the correct currency.
12.4 Incorrect Account Number Merchant must ensure that the account number is correct.
12.5 Incorrect Amount Merchant must ensure that the amount charged is correct.
12.6 Duplicate Processing / Paid By Other Means Merchant must investigate the duplicate transaction and take steps to prevent it from happening again.
12.7 Invalid Data Merchant must investigate the invalid data and take steps to prevent it from happening again.
13.1 Merchandise / Services Not Received Merchant must investigate the claim and provide the merchandise or services to the cardholder.
13.2 Cancelled Recurring Transaction Merchant must refund the cardholder for the cancelled recurring transaction.
13.3 Not as described or defective Merchant must investigate the claim and provide a refund or replacement to the cardholder.

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Tips for Reducing Visa Chargebacks

If you want to reduce chargebacks, having a well-informed customer is key! To ensure customers are fully informed about their purchase, invest time in providing them with detailed product descriptions and expedited customer service response times.Ā 

Additionally, investing in fraud detection tools will help protect your business from dispute cases you never anticipated. By evaluating payment details and reviewing transaction history, you can detect suspicious or void purchases that could lead to a future dispute.Ā 

Reduce Chargebacks with Chargeflow Automated Solutions

Chargeflow is an AI-powered chargeback management solution that can help merchants reduce chargebacks and win more disputes. Chargeflow uses machine learning and artificial intelligence to identify and prevent chargebacks, as well as to generate winning chargeback responses.

Here are some of the ways that Chargeflow can help merchants reduce chargebacks:

  • Automated dispute management: Chargeflow automates the entire chargeback process, from dispute initiation to resolution. This frees up merchants to focus on running their businesses.
  • Machine learning and artificial intelligence: Chargeflow uses machine learning and artificial intelligence to identify and prevent chargebacks, as well as to generate winning chargeback responses. This gives merchants a significant advantage in the chargeback process.
  • Integration with major payment processors: Chargeflow integrates with major payment processors, such as PayPal, Stripe, and Shopify. This makes it easy for merchants to get started with Chargeflow.

Reducing chargebacks is no simple task but by taking proactive steps to improve customer service and implementing fraud detection tools like Chargeflow, you can significantly increase the likelihood of safeguarding your business against costly chargebacks.

FAQs:

What are the time limits for filing a chargeback under different Visa reason codes?

The time limits for filing a chargeback under different Visa reason codes can vary. Generally, the time limit ranges from 60 to 120 calendar days from the transaction processing date or the delivery date of the merchandise or service.

What is the difference between Visa reason codes 30 and 41?

Visa reason code 30 is used when a cardholder claims that credit was not processed to their account, while reason code 41 is used when a cardholder claims that credit was processed, but not received.

What is the difference between Visa reason codes 53 and 85?

Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. 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 cardholder's account.

Average Dispute Amount
Average Dispute Amount
$
30
# Disputes Per Month
# Disputes Per Month
#
50
TimeĀ Spent Per Dispute
TimeĀ Spent Per Dispute
M
20
calculation
You could recover
ā€$500,000 and save
ā€1,000 hours every month with Chargeflow!
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