The chargeback transfers funds from the acquirer to the issuer. How long can the issuer wait to file a chargeback? A good faith investigation can be launched up to two years after the original transaction. 2. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized face-to-face. In short, the bank didn’t have a clear, specific coding option to explain why it wanted to dispute a particular case. 3 No Authorization. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. R03 Insufficient Reply. Discover uses unique codes to explain those reasons to merchants. In that way, winning one dispute may help prevent the next chargeback to come after it. Fraudulent Activity. VCR Dispute Reason Code 10. lost_card. We’ll send you a notification, request for relevant information, and temporarily hold the transaction funds. Merchants who believe they have received an invalid chargeback under reason code 13. This may include information about the. ) Collect Compelling Evidence. Merchants can find a. 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. You win, but a second dispute is filed: The issuer has the right to file a second chargeback for the same transaction. Below is a list of Mastercard chargeback codes used in eCommerce. 2. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. When you receive notification of a payment dispute or chargeback you may see a code listed with it. (98) Credit Card. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. Type. Across open networks and include account numbers sent over email, instant messaging, text, or chat. 4808 Authorization-Related Chargeback. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. 02/10/16 Added Debit Chargeback Reason Codes. g. And chargeback guarantees aren't without. 1 EMV Liability Shift 10. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. 3. Read the Chargeback Advice letter carefully. The deadline for a Chase Bank customer to dispute a transaction is 60 days. 2=1020 etc. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. 18167 US Highway 19 N Clearwater, FL 33764 877. Receiving a damaged product. 11. Breakdown your chargeback data by some of the variables you collected in step #2: marketing source, product type, issuer BIN, customer’s country, reason code, price, billing cycle, and lag time (amount of time between the transaction and the dispute). The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Accessed October 31, 2022. There are dozens of reasons why cardholders and issuers dispute transactions. At Visa they used to receive reason code 98. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. ” This code indicates that the cardholder claims the merchant processed a recurring billing transaction after they had submitted a cancellation request or. 7: Defective goods and services: C32: RM: 13. Once you submit the documentation to Wave, our Disputes Resolution Team will work on the case, and submit the required information to the bank on your behalf. We would like to submit compelling evidence that the purchase was legitimate. Chargeback reason code 13. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. Multiple Authorization Requests. 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. Step 2: Customer initiates the chargeback. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. 9% with at least 100 total disputes. CHARGEBACK REASON CODES Chargebacks. Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Visa Chargeback Life Cycle. 65 - Withdrawal limit exceeded: The transaction would exceed the. . This is commonly caused by either true fraud or friendly fraud. Pay close attention to the reason for the chargeback. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. 4853 – Cardholder Dispute – Goods or Services Not Provided. However, the 30 day waiting period can be waived if you’ve. Use this guide as a quick resource for Visa chargeback reasons at a. M01 Chargeback Authorization. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. 08. Unfortunately, it is pretty challenging to prevent friendly fraud. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 18167 US Highway 19 N Clearwater, FL 33764 877. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. Terms and conditions. Visa Chargeback Reason Codes. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardA chargeback reason code is a two- or four-digit alphanumeric code issuing banks assign to disputes. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. The sort of proof required differs depending on the chargeback reason code. 4853 – Cardholder Dispute – Credit Not Processed. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. 2, below. The chargeback initially results in the debit or credit card charge being reversed and the funds that you received for the payment being returned to the customer. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. 4808: This code can refer to: Account Number Not on File. underlying your chargeback. 0 and its benefits; Difference between current and. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. Reason Code. There are several types of chargeback reason codes that can be used, including the following: 1. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. Learn about the different chargeback reason codes and what they mean. 4 – Other Fraud, Card-Absent Environment. While there are many chargeback reason codes, all chargebacks fall into one of three categories:The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. TC40 data is used to inform banks and card networks when a merchant has an outstanding fraud. 4. This ranges anywhere from roughly 60 to 90 days after purchase. 2. 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. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. 11. Depending on the chargeback, the required evidence might consist of transaction receipts, particular authorization response codes, proof of delivery, correspondence with the customer, or any number of other specific documents. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. While every card system has its own particular exceptional arrangement of chargeback reason codes, the categories are fundamentally very similar. Reasons for a second filing might include the discovery of new information or a change of the reason code. 14 (+0. 9808 info@chargebacks911. 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. Because there are many reasons for which customers may file a chargeback, Discover issues an accompanying chargeback reason code with each chargeback. 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 cardholders to choose from. 98%. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. 2. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. 634. 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. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. A reason code is how banks categorize the reason for a chargeback. At their core, false declines are legitimate transactions that get blocked on the suspicion of fraud without any fraud actually occurring. Download this sample Chargeback Rebuttal Letter. Try Shopify free for 3 days, no credit card required. “Visa has 28 different reason codes. Process Flow for P2M:- Issuer Banks: Can raise chargeback with reason code 1065 (If customer is expecting compensation for non-fulfilment of goods/services. Most chargebacks are violations of the rules and regulations established by a payment brand, such as Visa®, MasterCard® or debit network. American Express: Reason Code C08 Goods or services. Your first step is to identify the chargeback reason code, which is a kind of shorthand that indicates why the transaction is being disputed. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. With the chargeback code in hand, the merchant can now review the transaction. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. S. 98 First Chargeback. The owner of the credit card realizes it was stolen and reports the fraudulent. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. 00 USD. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. The terminal action codes are in Table 122 of the 4. 3: Goods or services were not as described: C31: RM: 13. In fact, 91. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. ACH return codes and explanations for R01 – R33 returns. Let’s say you got a Visa chargeback with reason code 13. ; Help Center Find answers to common questions about Midigator’s technology,. Specify the invoice date and net due date to assign to chargebacks. If the dispute is successful, funds are taken from your merchant account and a strike is made. The cardholder claims they were charged multiple times for a single transaction. Be sure you understand the cardholder’s claim. ” Currently, merchants can already prevent many 10. If you believe you have received an ACH return in error, you can contact your bank. Retrieval request regulations vary significantly from one card brand to another. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. The chargeback filing period for cardholders is usually 120 days. Subsection5. 4854 Cardholder Dispute—Not Elsewhere Classified (U. Dispute Category. 3 – Other Fraud, Card-Present Environment 10. This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. The transaction was recurring and the cardholder failed to meet the cancellation terms of the. The most effective chargeback professionals can deliver customized solutions for chargeback management with every facet of your dispute process. They were mandated by the Internal Revenue Service in 2004 to facilitate tax reporting. Acquirer Use of Message Reason Code 7623. Mastercard Chargeback Reason Code 70: Chip Liability Shift. So don’t spend another second worrying about chargebacks. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. It can range from 60 to 120 days from the billing date. Description: Reason code for applying handling fee. 4807 Warning Bulletin File. Mastercard Chargeback Reason Codes. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. The most popular type of disputes of the chargeback category. They give consumers recourse against fraud and errors, which preserves public confidence in credit and debit card payments. 7. A chargeback is a reversal of funds following a debit or credit card purchase, set in motion when the customer files a dispute over the charge with their bank or credit card provider. If you leave this processing. A few other common reason codes for Visa include late presentment; non-receipt of cash from ATM; invalid data; EMV liability shift non-counterfeit fraud; no authorization; canceled merchandise and fraud related to stolen cards on the card recovery bulletin. Be sure to communicate with the customer and their bank professionally and courteously. This can be transaction receipts, proof of. Reason codes give merchants information about the cause of a chargeback and what evidence. Also, remember that the time frame for your response includes any processing required by the acquirer. 31. Description of Change Where to Look Incorporated the changes announced in “AN 1677—Revised Standards—Questionable Merchant Activity Chargebacks” that includedAT Authorization Noncompliance. A “No Authorization” code chargeback can also be the. #9. 0900 (-1. A02 No Valid Authorization. The situation grows more tenuous when you realize most of those chargebacks were likely the result of friendly fraud. Merchants. So the company has more incentive to side with customer during cardholder. 7. Updated August 23, 2023. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. 5%. There is a violation of a Visa or MasterCard rule, for which there is no chargeback reason code. According to Nilson, 56% of global card transactions were done on Visa in 2015. The same is true of all chargeback reason codes. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. A chargeback is the reversal of a sale transaction that arises from a processing technicality, a customer dispute or fraudulent activity. This provided a number of insights into the typical causes of subscription chargebacks by industry: Computer Software : Cancelled Services was the most common chargeback reason code, which is troubling because these should be easily avoidable disputes. Fight; Prevent;. 5 Ways I’m Using AI to Make Money in 2023. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. ) A no-nonsense summary of evidence that proves transaction is legit. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. If using any other currency than this, it should be equivalent to the specified amount. Different card networks have different reason code systems. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Date Option. But friendly fraud is much more ambiguous. Any time. Versions Affected: v5, v6. You could also end up submitting the wrong evidence, which will cost you time, money, and standing with the bank. But cardholders and merchants have different time limits. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Discover chargeback reason code 7030. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Each card issuer follows their own standards for defining reason type, code and its format. Message. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. The. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. Pursuant to an Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and edition banks must reverse a disputed deal if aforementioned cardholder’s. Reason codes. The scammer claims to be from the bank, and is seeking to confirm a specific transaction, which the victim denies. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. American Express chargeback reason code C42. Receive the Chargeback. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. 1001 - Cardholder does not recognize the transaction. Which is meant to know the reason for the dispute. Thanks for following the Chargeback Gurus blog. Losing Non Fraud-Related Customer Issues. These companies can also handle the entire representment process. All parties are subject to the rules of the card networks, including response time limits. Some credit card companies also include a short phrase describing the code and chargeback. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. Thus, the easiest way to prevent chargeback reason code 75 from being. 6. All parties are subject to the rules of the card networks, including response time limits. A chargeback happens when a customer requests for a transaction to be. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. Code 4807: Fraudulent Card-Present Transaction. processed the transaction correctly. It gets worse. [noun]/* kə • stə • mər • di • spyo͞ot/. According to our research, friendly fraud will represent six out of every ten chargebacks filed in North America by 2023. Administrative returns (R02, R03, R04): 3%. By entering your email, you agree to receive marketing emails from Shopify. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. This means providing evidence that will undermine the cardholder’s claim. That's why we've created this guide, which goes over what reason codes are and how they help fight chargebacks and includes up-to-date lists of the reason codes for all the major US card networks. Valid Values/Format: 22 - First Chargeback Handling Fee. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. You can see a reason code 11. 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. 98%. 1: Use the corresponding dates from the invoice. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. 2 chargeback if you override a declined, referral, or pickup authorization message, but process the transaction anyway. Additional data from Mastercard shows that global chargeback volume reached 615 million in 2021. The codes for each card brand are listed below along with the recommended documentation to provide. It was originally just one facet of legacy reason code 81. 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. Also, they’ll often issue a provisional credit to the customer until there is an investigation on the claim. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Click on “report a problem” and select the transaction in question. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. Braintree Support Articles. What is a chargeback? March 10, 2023. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. Following is the list of Chargeback Reason Codes used by MasterCard: MasterCard Chargeback Reason Codes Reason Code: Category: Description: 4802: Request for Information: Requested/Required Item Illegible or Missing:. What is Visa chargeback reason code 12. Managing Reason Code 41 chargebacks. Requested Transaction Information Not Received. Fraud 10. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. On that note, below are some vendor missteps that could result in Visa reason code 13. 98: Other: Good Faith Collection: 99: Other:Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. Make sure your entire team is on the same page. Usually, there will be a straightforward and user-friendly way to dispute a charge over the phone, on the web, or through their online banking app. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. Chargeback Reason Codes for MasterCard. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Ineligible Transaction (International only) 79. 4. 1 falls under the “Processing Errors” category. Pro Tip: Prepare a chargeback representment template that you can edit per incoming disputes, and be sure to include. 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. 4859 Addendum, No-show, or ATM Dispute. Proof that the. A reason code is an alphanumeric string of text an issuing bank attaches to a chargeback dispute to explain its cause. 3 is the less common version for card-present transactions. Visa Code # MasterCard Code # Reason. Updated: Valid values updated. Approval Rating. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. This may include: Transaction receipts; Merchant credentials; Customer authorizationReason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. Guide to Chargeback Reason Codes. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. Chargebacks from all three categories can show . Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. Processors handle exception items outside of the chargeback management system, however the merchant will see them designated as a chargeback, with an assigned reason code (e. most common reason codes for recurring merchants include: 7. 4 spec (Section 8. 4. Visa chargeback reason codes. These codes are broken down into five different category types: Fraud codes 7 RBI Penalty (Reason Code - 1065/ AC & AT RBI Compensation is settled today on manual basis RBI Compensation is completely automated. The following is an inside and out diagram of reason codes for Visa, MasterCard, Discover & Amex alongside their depiction. At the same time, the average chargeback costs $191, with merchants bearing more than two-thirds of the financial impact. And. All of Visa’s existing reason codes were. It gets worse. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. R13 No Reply. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. WEX began issuing chip cards in Q4, 2020. 0) Email conversations with the customer; Contracts; Digital usage logsChapter 6: Visa Chargeback Reason Codes; Chapter 7: Chargeback responses; Chapter 8: Chargeback response templates; Chapter 9: Chargeback accounting; Chapter 10: Arbitration; Chapter 11: Fraud filters; How to Create the Best Chargeback Responses. . ). The payment was declined because it matches a value on the Stripe user’s block list. Each card company has its. Responding to a chargeback request. 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. #4 step: The issuer assigns a chargeback reason code. This code helps you identify the exact cause of the dispute. While the updates have been published, they do not go into effect until Oct. The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. Chargeback reason code. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34: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. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. . By entering your email, you agree to receive marketing emails from Shopify. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. 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. 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. In short, the bank didn’t have a. Please note that the most common Chargeback reason code for Allocation disputes is 10. The aim of CE 3. Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. In some cases it can be upwards of 540 days, though, depending on the reason. FAQs About Visa Chargebacks How does a Visa chargeback work? Chargebacks begin when a cardholder disputes a charge.