2. Reason Code Number. About American Express chargeback reason codes. The transaction amount and authorization number (ARN. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. 2. Here’s how. The good news is that most of these invalid claims are disputable by the merchant. Assemble Your Evidence. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. Step 2: Customer initiates the chargeback. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. If your chargeback ratio is high [i. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. A chargeback happens when a customer requests for a transaction to be reversed. Dubbed "Compelling Evidence 3. Dispute Best Practices Guide Overview This guide includes: Goods / Services Damaged or Defective. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders. Reason. These are only a handful of common Visa chargeback reason codes. Reason Code Description. 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. Please note: You do not benefit from liability shift for any other chargeback reason codes other than those defined in this document above. Reason Code 02. Mastercard Chargeback Reason Code 71: Disputed Amount. When you receive notification of a payment dispute or chargeback you may see a code listed with it. 2. 800. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Values are: Blank: Use the receipt G/L date. Once you hear from. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Every chargeback is filed with a reason code that identifies the given reason for the dispute. Chargeback Reason Codes All received credit card disputes include a reason code. Credit card fraud is a big problem for eCommerce merchants, leading to many true. Assemble Your Evidence. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. 26% - the number of chargebacks that result from undelivered orders. By entering your email, you agree to receive marketing emails from Shopify. Despite the reason for a chargeback, it means that as a merchant you don’t get paid for the goods and. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. F01. There are several reasons why many merchants turn a blind eye to suspected return fraud. Section5. 18167 US Highway 19 N Clearwater, FL 33764 877. Specifically, these updates only pertain to transactions that are charged back after Oct. American Express chargeback reason code C42. It can range from 60 to 120 days from the billing date. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. UA05 Fraud – Chip Counterfeit Transaction. The system does not accept Blank as a value, even if it is defined in the UDC table. Then, they charge the merchant this credit amount to compensate for the bank’s loss, plus a. Every chargeback is different, so the evidence you provide will vary depending on the reason for the chargeback and the documents you have available. Unfortunately, the final decision in such cases comes down to the issuing bank, and not. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 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. chargeback. Read the Chargeback Advice letter carefully. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. FR4 Immediate Chargeback Program. © A new 4 byte reason code will be used moving forward. . 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. UA02 Fraud – Card Not Present Transaction. 10. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. pdf - Free download as PDF File (. Visa anticipates that changes to the required up-front information will help eliminate the back-and-forth between merchant, acquirer, and issuer, intending to result in a quicker chargeback resolution time for our merchants. Now, 10. The shorthand description is “Late Presentment. Others require banks to wait for a certain period before they can issue a chargeback. Here are the two possible scenarios: 1. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. Mastercard Chargeback Reason Code 73: Duplicate Transaction. There are two common causes of code 10. Pages 124 This preview shows page 90 - 93 out of 124 pages. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Chargeback Reason Codes. Try Shopify free for 3 days, no credit card required. 00 EUR as a Withdrawal fee. Plus, get valuable tips to prevent and fight chargebacks with greater accuracy. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Try Shopify free for 3 days, no credit card required. Visa - 10. Reason codes. The chargeback reason code. “Credit Not Processed,” the reason code for unreceived refunds, accounted for 12% of consumer disputes at the height of the pandemic. 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. Reason Code 03. Instead, ask for a different form of payment. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. Merchants who believe they have received an invalid chargeback under reason code 13. 975. But, merchants should be aware that, eventually, everyone will be required to use the new designations. This list can provide you with a brief detail on the reasons for chargebacks. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. 5 Visa Fraud Monitoring Program. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. 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. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. The Electronic Fund Transfer Act is a piece of US legislation that requires banks to provide certain information to customers regarding electronic fund transfers (EFTs). The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. Each bank card network has its owner list of reason codes banks must prefer from. 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. Improve chargeback-resolution time. Goods and services not as described or cardholder received defective goods or services 3. 4846 — Incorrect Currency Code. UA05 Fraud – Chip Counterfeit Transaction. Chargeback Reason Codes and Descriptions. 101. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. MasterCard chargeback reason code 4540. Standard Threshold: Reaching a chargeback ratio of 0. The reason for the dispute was false or inaccurate. Customer Dispute. ECM monitors first presentment chargebacks regardless of reason code or transaction type. May 2011: 5. Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. US and Canada. The chargeback system was designed as a last resort; only to be used in specific situations. Take the time to note the following dispute reason codes for Visa. Either the acquiring or issuing bank could initiate the. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Those reasons are explained through the corresponding reason codes. 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. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. Late Presentment Rules: Mastercard. It happens when the cardholder disputes the payment, claiming it was invalid or unauthorised. 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. It is important for the merchant to know about the American Express Chargeback Reason Codes when dealing with a chargeback. Acquirer Use of Message Reason Code 7623. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Your establishment may only bill for capital damages when you have obtained a signed and dated acknowledgment of responsibility. Many subscription payment disputes are made under code 13. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Each card issuer follows their own standards for defining reason type, code and its format. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. 5? Visa chargeback reason code 10. There are plenty of reasons as to why this would happen, hence the many. Chargeback reason code 11. The shorthand description is “Credit Not Processed. Representment Documentation. 1. A chargeback is the potential outcome of a disputed credit or debit card transaction. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. Early Warning: Reaching a chargeback ratio of 0. A chargeback happens when a customer requests for a transaction to be reversed. At Visa they used to receive reason code 98. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. 2: No Authorization Legacy Code: 71. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. But sometimes, a chargeback can be fraudulent. 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. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. What is Visa chargeback reason code 10. Time and Labor. ” This code indicates the merchant made a swiped or keyed transaction with a counterfeit card rather than scanning the EMV chip. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. Merchants can find a. By entering your email, you agree to receive marketing emails from Shopify. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. What is Visa chargeback reason code 12. April 2018_Chargeback Reason Code Encyclopedia. Reason codes vary by card brand. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. 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. Breaking Down Chargeback Fees. Try Shopify free for 3 days, no credit card required. 1, "Compelling Evidence for goods/services notChargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). 5 billion lost in 2020. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. If the order was genuinely not as described, then the cardholder has a case. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Pursuant to the Fair Credit Billing Act. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. 2. Under the legacy Visa Chargeback system, there are 22 chargeback reason codes (And remember, this is just for Visa. These codes can help a merchant with an inquiry or chargeback reversal. What is Visa chargeback reason code 10. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. Visa chargeback reason code 11. 11, 16 November 2015, Elimination. The term "counterfeit fraud" refers to specific chargeback situations defined by Visa Reason Code 10. Solutions. A reason code is how banks categorize the reason for a chargeback. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. EMV Liability Shift Counterfeit Fraud. If a dispute is filed with Discover and a ticket retrieval request is sent, the merchant has just five calendar days to respond with. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. With that said, you still need to understand the reason codes with any chargebacks from Amex. Terms and conditions. 3? Visa chargeback reason code 13. Understanding these codes is essential because they'll guide your response strategy. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. The cardholder has a chip card and someone made a counterfeit copy of it. 4853 – Cardholder Dispute – Goods or. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. 2. Number two: Product Not Received chargebacks. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. Any chargeback that is received without a reason code will be assigned a default code of 53. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. 10 Tips to Prevent Fashion Chargebacks. 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. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. 4 Fraud – Card-Absent Environment. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Fight; Prevent;. 1 Chargeback. Here are some chargeback reason codes by card type. Mastercard Chargeback Reason Code 70: Chip Liability Shift. By entering your email, you agree to receive marketing emails from Shopify. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. What is Visa Reason Code 13. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. Code. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. These disputes are commonly referred to as friendly fraud. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. It’s even more frustrating if you don’t understand what the chargeback code means. 3: Goods or services were not as described: C31: RM: 13. Administrative returns (R02, R03, R04): 3%. The reason code used to describe the dispute will determine the chargeback time limit. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. 1. You can learn more about each one by visiting the Mastercard Chargeback Guide. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. Under the new VCR process, there will be 4 dispute categories: Fraud, Authorization, Processing Errors and Consumer Disputes. ”. Prevented; Recover; Tools. How you respond is determined by the chargeback reason code: Embed This Graphic. 634. For defective or “Not as Described” reason codes. The first is true fraud, where someone used stolen credit card or account information to make a purchase. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Reason . Overall returns (all codes): 15%. Different card networks have different reason code systems. 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 Codes by Network - 2023 Orientation. Which definitely guide includes the chargeback motive. For example, some reason codes offer cardholders over a year to file. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Each of the major card brands, including Visa,. This code tells you why the customer or bank initiated the dispute. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. FR6 Partial Immediate Chargeback Program. “American. M10 - Vehicle Rental – Capital Damages. Cardholders and card issuers can place disputes on transactions for a variety of reasons including product returns, defects, cancelled reservations, and card processing errors. M10: Vehicle Rental – Capital Damages: Inquiry/Miscellaneous: M49: Vehicle Rental – Theft or Loss of Use: Inquiry/Miscellaneous: R03:. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. High-Risk (Excessive): Reaching a chargeback ratio of. The chargeback reason codes were created to standardize the list of acceptable reasons a bank may submit a card chargeback or a direct debit chargeback on behalf of its customer. Chargeback reason code. “ Chargeback Fraud Threat Growing as 65% of Chargebacks911’s Respondents Reported an Increase in 2022 “. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) These chargebacks occur to resolve chargeback-related disputes between network members. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. 5. Subsection5. The chargeback event is logged as credit money movement. Chargebacks911® can help your business manage all aspects of chargeback reason codes, using proprietary technologies and experience. 3? Chargeback reason code 13. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,The assigned chargeback reason code outlines why a customer submitted the dispute. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. This liability shift essentially provides merchants. 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. Reason Codes: 22 / 23 / 32 / 35. that the transaction was either approved online by the issuer or offline by the chip. 1? Visa chargeback reason code 10. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. “Late Presentment” is a reason code description for three of the four card brands (reason code 12. Discover: Reason Code 4755 Non-receipt of goods or services. The 12 calendar day response time period begins from the dispute filing date in the DDR. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. 3. M49 — Vehicle Rental – Theft or. American Express is incentivized to keep their customers happy. September 2011: 5. The chargeback fee debit appears in the STL as T0106. Merchants. 4: Fraud—Card-Absent Environment. 0: Changed report name from Downloadable Dispute Report to Case Report. Visa, MasterCard, and American Express all list compelling evidence by reason code. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. What is Visa. 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. The good news is that most of these invalid claims are disputable by the merchant. Chargeback reason code 10. This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. Blog and Articles; Success Stories; Chargeback Reason Codes;. This can be transaction receipts, proof of. For perspective, the next highest. All online retailers have to deal with at least some false positives. However, they don’t address the reason why that chargeback was issued in the first place. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. As we touched on earlier, chargebacks can happen due to technical errors. Discover - UA02 Fraud – Card Not Present Transaction. Each code corresponds to an issue or problem. Chargeback Reason Coded by Network - 2023 Guide. Simplify reason codes; Let’s look at each of these objectives a little more closely. 1=1010,. Thanks for following the Chargeback Gurus blog. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. The most popular type of disputes of the chargeback category. 4834. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. The reason code. There are dozens of reasons why cardholders and issuers dispute transactions. Try Shopify free for 3 days, no credit card required. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. The shorthand description is “EMV Liability Shift Non-Counterfeit Fraud. Description. 102. ” This chargeback comes into play when a cardholder is charged incorrectly for damages to a rented vehicle. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). If more information is needed, you’ll either receive an Inquiry or a Chargeback. If you’re not, there’s a good chance you’re about to see a high volume of chargebacks with “fraud” reason codes come pouring in. 1. M10. Only an issuer can initiate the chargeback process. 2. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. The chargeback reason code. Everyone from processors and card brands to local and federal governments has rules about how payments should be handled. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. MASTERCARD Reason Code Description. FAQ: What is Chargeback Representment?. M10: Vehicle Rental - Capital Damages: None: Inquiry/Miscellaneous: M49: Vehicle Rental - Theft or Loss of Use: None:. Fewer chargeback reason codes. Contact ChargebackHelp and we can have you sleeping better at night by improving your dispute protection in very short order. The Fintech Times. 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. This may be done by either the merchant or the issuing bank. Now, compliance cases go through Visa Resolve Online (VROL). 10. You’ll want to carefully review all chargeback reason codes so you are familiar with the very detailed regulations. 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. The Chargeback Reason is fraud-related and the Chargeback Notice identifies that one of the below chargeback codes (each, an "Acceptable Reason Code") applies: Acceptable Reason Codes. Section5. Vehicle rental-capital damages, theft or loss of use. Chargebacks: Your Guide to Reducing Hassle and Cost. The chargeback transfers funds from the acquirer to the issuer. 6. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. If the available information indicates that the customer dispute is a valid one, American Express will automatically debit your merchant account for the amount of the disputed transaction and will send you a chargeback notification for you to review. Reason codes are created by the major. The list of chargeback reason codes in this article is organized by card brand and type of dispute. The cardholder claims the merchant incorrectly billed for capital damages. Chargeback.