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Understanding chargebacks is crucial for merchants to maintain a successful business. In this guide, we'll focus on Visa Chargeback Reason Code 83, also known as the Card Absent Environment Chargeback. This type of chargeback occurs in card-not-present transactions, such as online purchases or recurring billing. 

We'll explore the reasons behind these chargebacks, their impact, and how you can prevent them. Let's equip you with the knowledge and strategies to handle Visa Chargeback Reason Code 83 effectively.

Understanding Card Absent Environment Chargebacks

Card absent environment chargebacks are a common concern for merchants conducting transactions without physical card presence. This type of chargeback occurs in situations where the customer's card is not physically present during the transaction, such as online purchases, mail order/telephone order (MOTO) transactions, and recurring billing or subscription payments.

As a merchant, it is crucial to understand the dynamics of card absent environment chargebacks to effectively manage them and minimize financial losses. These chargebacks can arise due to various reasons, including unauthorized transactions, non-receipt of goods or services, or canceled/returned merchandise.

Visa Chargeback Reason Code 83: Explained

Visa chargeback reason code 83 is a fraud chargeback reason code that falls under the "Fraud" category. It is used when a cardholder disputes a transaction that was made in a card-not-present (CNP) environment, such as an online or over-the-phone purchase. The cardholder claims that they did not authorize or participate in the transaction, and therefore it must be fraudulent.

Here are some examples of transactions that may result in a Visa chargeback reason code 83:

  • A customer orders a product from your website, but then claims that they never received it.
  • A customer calls your customer service line to make a purchase, but then claims that they never authorized the charge.
  • A customer uses their credit card to make a purchase over the phone, but then claims that they did not speak to anyone from your company.

If you receive a Visa chargeback reason code 83, you will need to provide evidence to the card issuer that the transaction was legitimate. This evidence may include:

  • Invoices or receipts
  • Order confirmation emails
  • Customer contact information
  • Shipping records
  • Security footage of the customer making the purchase

If you can provide enough evidence to support your claim, the card issuer may reverse the chargeback. However, if the card issuer is not convinced that the transaction was legitimate, they may uphold the chargeback and you will be responsible for the funds.

Preventing Card Absent Environment Chargebacks

As a merchant, it is crucial to take proactive measures to prevent card absent environment chargebacks, also known as CNP chargebacks. By implementing the following best practices, you can minimize the risk of CNP chargebacks and protect your business.

1. Verify Customer Information

When processing card-not-present transactions, it's essential to verify the customer's information. Collect accurate data such as billing address, contact number, and email address. Ensure that the information provided matches the details associated with the cardholder.

2. Utilize Address Verification System (AVS)

Implementing an Address Verification System (AVS) can help reduce the likelihood of fraudulent transactions. AVS verifies the billing address provided by the customer with the address on file at the card issuer. It provides an additional layer of security by ensuring the address matches the cardholder's information.

3. Apply CVV/CVC Verification

CVV (Card Verification Value) or CVC (Card Verification Code) is a three-digit security code printed on the back of most credit and debit cards. Require customers to enter this code during the transaction process. By validating the CVV/CVC, you can confirm that the customer has the physical card in their possession.

4. Implement Multi-Factor Authentication

To enhance security, consider implementing multi-factor authentication for your customers. This adds an extra layer of protection by requiring customers to provide additional verification, such as a one-time password (OTP) sent to their registered mobile number or email address.

5. Use Tokenization and Encryption

Tokenization and encryption technologies safeguard sensitive customer data during online transactions. Tokenization replaces actual card data with unique tokens, ensuring that the customer's card information remains secure. Encryption converts data into unreadable code, protecting it from unauthorized access.

6. Monitor Suspicious Activities and Fraudulent Patterns

Implement real-time monitoring systems to detect suspicious activities and fraudulent patterns. Set up alerts for transactions that deviate from the norm, such as unusually high-value orders or multiple transactions from the same IP address. Promptly investigate any flagged transactions to mitigate potential risks.

By implementing these preventive measures, you can significantly reduce the risk of card absent environment chargebacks. However, it's important to note that no system is foolproof, and chargebacks can still occur. In such cases, having a clear understanding of the chargeback process and maintaining comprehensive transaction records can help you effectively respond to and dispute chargebacks.

Remember, a proactive approach to chargeback prevention not only protects your business from financial losses but also enhances customer trust and loyalty. By prioritizing security measures and staying vigilant, you can create a safer and more reliable shopping experience for your customers.

Prevent Chargebacks with Chargeflow

Chargebacks are a costly and time-consuming problem for eCommerce merchants. In 2022, merchants lost an average of $20 for every $100 in fraudulent transactions. Chargeflow is an automated chargeback management solution that can help merchants reduce chargeback losses and improve their chargeback win rates.

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

  • Automated dispute management: Chargeflow automatically generates dispute responses based on your business data and the specific chargeback reason code. This can save you time and money, and it can also help you improve your chargeback win rates.
  • Chargeback prevention tools: Chargeflow offers a variety of tools to help you prevent chargebacks, such as fraud detection, chargeback alerts, and chargeback training. These tools can help you identify and prevent fraudulent transactions, and they can also help you train your staff on how to prevent chargebacks.
  • Chargeback reporting: Chargeflow provides detailed reports on your chargeback activity, so you can track your progress and identify areas for improvement. These reports can help you identify trends in your chargeback activity, and they can also help you identify areas where you can improve your chargeback prevention efforts.
  • Chargeback education: Chargeflow offers a variety of educational resources to help you understand chargebacks and how to reduce your losses. These resources can help you learn about the different types of chargebacks, the reasons why customers initiate chargebacks, and how to prevent chargebacks.

Chargeflow is a valuable tool for any eCommerce merchant that wants to reduce chargeback losses and improve their chargeback win rates. If you are looking for an automated chargeback management solution, Chargeflow is a great option.

Here are some of the benefits of using Chargeflow:

  • Reduce chargeback losses: Chargeflow can help you reduce your chargeback losses significantly.
  • Improve chargeback win rates: Chargeflow can help you improve your chargeback win rates by up to 50%.
  • Save time and money: Chargeflow can save you time and money by automating the chargeback management process.
  • Get peace of mind: Chargeflow can give you peace of mind knowing that your chargebacks are being handled by experts.

If you are an eCommerce merchant, Check out Chargeflow today. It is a great way to reduce chargeback losses and improve your chargeback win rates.


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Average Dispute Amount
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# Disputes Per Month
Time Spent Per Dispute
Time Spent Per Dispute
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