3: Goods or services were not received: C08: RG: 4855: 13. Code. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. 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. This means that if a merchant issues a refund in response to an alert, and it still results in a chargeback, the management company will refund the alert fee. It is associated with a chargeback reason code, and it is specific per Card Scheme. 4 Other Fraud Card Absent. That’s 50% more time than what the major card networks allow. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. View the entire list or search for any chargeback reason code. They usually have up to 120 days after purchase to dispute a charge, though some card schemes allow up to 365 days. Cardholder-Activated Terminal (CAT) 3 Device. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . The most comprehensive guide to chargeback reason codes. For a brief overview of chargeback reason codes, refer to the table below. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Date Option. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. 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. 3: Goods or services were not as described: C31: RM: 13. During research, a claim processor might call a customer and refer to the customer's reason code. Review your credit card processor’s policies to understand its chargeback dispute process. Use this guide as a quick resource for Visa chargeback reasons at a glance. Assemble Your Evidence. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. So the company has more incentive to side with customer during cardholder disputes. FR2 Fraud Full Recourse Program. 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. 3 –. When these chargebacks are legitimate, merchant error is usually the cause. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. For example, if a customer disputes a credit or debit card transaction with code 4837 (Mastercard’s code for “Fraudulent Multiple Transactions”), then the merchant should review their fraud. Reason Code Description 4750 AL Airline Transaction Dispute 4541 AP Recurring Payment 4586 AW Altered Amount 4751 CA Cash Advance Dispute 4550 CD Credit Posted as Card SaleAn 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. Code 64: Early Shipment. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. The Guide Gain a better understanding of the nature of your chargebacks and effectively manage them. It's essential to respond within the. There are dozens of reasons why cardholders and issuers dispute transactions. . Values are: Blank: Use the draft G/L date. 03B/CB for chargeback reason codes. All chargebacks start with a customer making a purchase in person, in an app, or online. 0 initiative will enhance the taxonomy of fraud chargebacks, characterizing consumer disputes more exactly with a code for “I didn’t receive this” or “I canceled this three months ago, and they’re still billing me. Values are: Blank: Use the receipt G/L date. Code 22: Merchandise Billed not Shipped. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. In all, there are four major categories of Chargeback Reason Codes. Specify the invoice date and net due date that you want the system to assign to chargebacks. Once filed, the merchant generally has 20 days to respond to the chargeback. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. What is Visa chargeback reason code 13. Chargeback Reason Codes by Network - 2023 Orientation. 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 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. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not Received Non-Receipt of Goods or Services NO YES VISA 41 Canceled Recurring Transaction Cancelled/Returned by CardholderThe situation grows more tenuous when you realize most of those chargebacks were likely the result of friendly fraud. 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. Discover uses unique codes to explain those reasons to merchants. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Chargeback Reason Codes by Mesh - 2023 Guide. Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. 2. Your business may not have to. Visa chargeback reason code 75 is filed as an honest mistake. Discover: Reason Code 4755 Non-receipt of goods or services. When a cardholder has an issue with a transaction, they can contact their bank to dispute the charge. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. These are only a handful of common Visa chargeback reason codes. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. 29 Reason Code 30: Services Not Provided or Merchandise Not. 6 General update and rebranding. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. The use of this reason code indicates that a cardholder is disputing a charge that did not go through the required authorization approval process. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,AP automation is an approach to the AP process that involves using software solutions to create an efficient, digitized workflow for receiving, reviewing, and paying invoices. 7. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. 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. Reason Code. Reason codes are important to help merchants address recurring. The chargeback process can last from one month to six months. A chargeback happens when a customer requests for a transaction to be reversed. If the claim is invalid, the dispute will go no further and no chargeback will occur. What follows is a quick reference guide for all the current reason codes for each of the four major credit card networks: Visa, Mastercard, American Express, and Discover. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. These reason codes indicate disputes that occur as a result of inaction or wrong action on either party’s part (merchant or cardholder). Chargeback Reason Key by Network - 2023 Guide. 6: Duplicate processing/Paid by other means. So don’t spend another second worrying about chargebacks. This is commonly caused by either true fraud or friendly fraud. 2 – EMV Liability Shift Non-Counterfeit Fraud. MasterCard: Reason Code 4859 Services not rendered. 2 – Cancelled Recurring 13 . 4808: This code can refer to: Account Number Not on File. Scribd is the world's largest social reading and publishing site. Each code has a different timeline. Feel free to submit topic suggestions, questions or requests for advice to:. . 4841 Canceled Recurring or Digital Goods Transactions. When every chargeback comes with a separate fee and an incremental uptick to your chargeback rate, several $1 chargebacks can be a lot worse than a single chargeback. Check the chargeback reason code. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. What causes code AP chargebacks? Code AP chargebacks are often caused by a merchant failing to process a cancellation request from a customer or by a customer forgetting to cancel a subscription before the payment date and filing a false dispute with their bank. 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. 3 is the less common version for card-present transactions. 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 fees typically cost $15-$25 per incident. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Code 22: Merchandise Billed not Shipped. Try Shopify free for 3 days, no credit card required. On the other hand, PayPal—which can serve as a credit card processor for merchants—allows buyers up to 180 days to file a claim. The cardholder claims they were charged multiple times for a single transaction. 60 due to merchandise, fees, overhead, and other sources of loss. Second, chargeback reason code 75, for “Transaction Not Recognized,” is going away. Reason Codes Category 4: Processing Errors. Be sure to communicate with the customer and their bank professionally and courteously. 10. 502 DM-REFUSED DEBIT VENDOR-DOCK REFUSAL AP Forms, Invoice Shortage Dispute 503 DM-PAY/CAN BOOK INV IN & OUT PO CANCEL AP Forms, Invoice Shortage Dispute 504 DM-DUP INV DM-DUPLICATE INVOICE AP Forms, Invoice Shortage Dispute 505 DM-T. Mastercard Chargeback Reason Code 71: Disputed Amount. The CB Reason represents the default reason for marking the transaction as a chargeback, but this default value can be changed. 4860 Credit Not Processed. There are multiple situations in which this can occur. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. Chargeback Reason Codes by Industry. Reference these when rebutting cardholder disputes at your small business. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. The new Visa CE 3. . 4. • process inventory transfers and, optionally, adjust the inventory “off the books”. This extra step can be frustrating for Card Members and lead to lost sales. Chargeback Reason Codes (03B/CB) You must assign a chargeback reason code (03B/CB) to explain the reason for entering chargeback for the invoice. Valid chargeback reason codes are defined in UDC 03B/CB. Reason code 4541 - Recurring Payment. In representment, the merchant provides evidence to the issuing bank based on the chargeback reason code. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. There are several types of chargeback reason codes that can be used, including the following: 1. • 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. AP Canceled Recurring Transaction; AW Altered Amount; CD Credit Posted as Card Sale; DP Duplicate Processing; IC Illegible Sales Data;It’s vital that you know the chargeback’s reason code so you can properly craft your response. 7: Defective goods and services: C32: RM: 13. As we touched on earlier, chargebacks can happen due to technical errors. most common reason codes for recurring merchants include: 7. pdf - Free download as PDF File (. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. This can be transaction receipts, proof of. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. 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. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. that the transaction was either approved online by the issuer or offline by the chip. AP:. 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). reason code group can be utilized for analysis and segmentation purposes. Reason codes. Friendly Fraud Dispute caused by accidental or deliberate chargeback abuse. This reason code is used when the cardholder claims that their card was used fraudulently without their permission. 10. . . Which is meant to know the reason for the dispute. SU: Spread unapplied amount. Reason Codes: 22 / 23 / 32 / 35. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. You should place a Code 10 call when. 2 Added chapter providing information about the DiscoverFraud and chargebacks always result in revenue loss, but they also include fixed-rate fees and other negative consequences. 3 – Incorrect Currency 12 . Visa chargeback reason code 75 falls under the “Consumer Disputes” category. Chargeback fees are designed to cover the bank’s overhead for processing chargebacks. 16, 2021. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 1 for Visa transactions, or reason code 4834 for Mastercard. The notification will also specify the terms of the agreement under which Amazon Pay will assist you in handling the chargeback. ” “Visa has 28 different reason codes. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. 4 Fraud – Card-Absent Environment. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardRECOVER YOUR LOST REVENUE RECOVER YOUR LOST REVENUE PAGE 4 REASON CODES THE IMMEDIATE COST OF THE CHARGEBACK In addition to losing the revenue from the sale and the cost of the product, fees charged by the issuing bank can be as high as $125 per chargeback. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. You can see the reason code for the dispute in the Dispute page. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. Always ask for authorization regardless of the transaction amount. It’s just what it sounds like—the reason they’re fighting the charges, which can range from fraud and non-delivery of services to processing errors—and the codes for each problem differ between card networks. 3: Goods or services were not received: C08: RG: 4855: 13. Code 60: Handling Charge as Documented. Stage #1: Awareness - be aware of the chargeback response time limitVisa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. What is Visa chargeback reason code 12. The win rate for this particular reason code is extremely slim because they generally refer to fraud issues. Try Shopify free for 3 days, no credit card required. Amazon Pay will send you a notification email when you get a chargeback, which will include details such as the order number and reason code. reason code information. 1 – Merchandise/ Services Not Received 13 . 1 falls under the “Processing Errors” category. About American Express chargeback reason codes. Second chargeback. 4853 – Cardholder Dispute – Credit Not Processed. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. It’s indeed fortunate that there are many rules and laws that. 102. AT: Authorization Non-compliance: AW: Altered amount. Message. Be transparent about your products. Chargeback prevention strategies vary based on the reason for the dispute. Select the transaction in question and tap the ellipses symbol in the top right corner of the screen. . AP Asia Pacific (AP) CEMEA Central Europe, Middle East, and Africa (CEMEA)Updated August 23, 2023. 2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Discover uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Duplicate Processing - 81The issuing bank listens to the cardholder’s claim and determines whether it constitutes a valid reason to grant a chargeback. The Code 10 call gives merchants a chance to bring possible fraud to the card issuer’s attention and receive instructions from them about how to proceed with the transaction. AP: Canceled Recurring Transaction: AW: Altered Amount: CD:. The first step to fighting a chargeback, is to research the reason code which explains the reason for the chargeback and the required compelling evidence to. Check the chargeback reason code. You can create multiple chargebacks against each transaction, for positive or negative amounts. . You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. If a no-authorization claim is based on merchant activity, there are steps the merchant should take to avoid a recurrence. In order to fight a chargeback effectively, however, you'll need to know the reason code. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. The actual underlying cause of this chargeback is. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder authorized each of the. S. Vantage HouseOn that note, below are some vendor missteps that could result in Visa reason code 13. We also included the reason code descriptions and an indication of when the allowable time frame begins. 10. Eliminate false positives. Thanks for following the Chargeback Gurus blog. Chargeback . txt) or read online for free. Once you know why a chargeback happened, you can start building a case to address the claims that were made. The shorthand description is “Late Presentment. Written over Chargeback Gurus. That’s why you need to kick chargeback mitigation into high-gear. 3: Goods or services were not as described: C31: RM: 13. A chargeback can happen when a customer initiates a transaction dispute. Discover Chargeback Reason Codes. Fraud UA01 Fraud – Card Present Transaction UA02 Fraud – Card Not Present Transaction UA05 Fraud – Chip Counterfeit Transaction UA06 Fraud – Chip and PIN. Solutions. Terms and conditionsHow you respond is determined by the chargeback reason code: Embed This Graphic. 10. A merchant error chargeback is a chargeback caused by an error on the part of the merchant, such as non-delivery, damaged goods, etc. R03 Insufficient Reply. Updated the following columns - card type, response due date. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. . The sales receipt and/or date and amount of the authorization if other than the transaction date. 1 CODE 168 172 CHAR/5 OCC-CODE Claimant’s job at the time of injury AGENCY CODE 173 176 NUM/4 AGENCY-CODE Employing agency code BUILDING CODE 177 178 NUM/2 AGENCY-BLDG Building location code INTERNAL TO OWCP GEOGRAPHIC LOCATION 179 187 CHAR/9 GEO-LOC Geographic location where the injury or death took place The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Vantage HouseREQUEST A DEMO. Code 12 . 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. You can learn more about each one by visiting the Mastercard Chargeback Guide. chargeback. Chargeback. . A chargeback happens when a customer requests for a transaction to be reversed. There are several reasons why many merchants turn a blind eye to suspected return fraud. Q. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. 3. Merchants who believe they have received an invalid chargeback under reason code 12. In simple terms, VCR introduced five definitive. 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. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. 1. 02/10/16 Added Debit Chargeback Reason Codes. chargeback: The buyer filed a chargeback with the credit card issuer. 7: Defective goods and services: C32: RM: 13. . VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Dispute Description: RC VI/MC/AX/DI: Card Absent - Fraud Dispute: 10. These codes are established by the payment brands to categorize the incoming dispute requests by reason. 1001 - Cardholder does not recognize the transaction. But with the alerts system, you can proactively take. 10. Transaction unauthorized make up 30% of all chargeback reason codes. American Express chargeback reason code C42. ). Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. 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. [1] Sift. The authorized transaction was for goods or services that the merchant did not deliver as per a contract, receipt, or some other written. . For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. 1002 - Cardholder disputes billed amount. FR6 Partial Immediate Chargeback Program. By entering your email, you agree to receive marketing emails from Shopify. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. 7 Updated format All 1. 8. The list of chargeback reason codes in this article is organized by card brand and type of dispute. Please note that the most common Chargeback reason code for Allocation disputes is 10. Some credit card companies also include a short phrase describing the code and chargeback. 2023 Consumer Attitudes Towards Chargebacks 7 Best Practices in Chargeback Mitigation Purchase Experience Checklist Hidden Costs of Chargebacks Chargeback Solution Buying Guide How to Win Chargebacks at Scale Buy Now Pay Later's Chargeback Problem Taking a "Bite" out of Friendly Fraud The Link Between Supply Chain Disruption and Fraud Reason. This may include information about the. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. Investigate suspicious orders. A Shopify chargeback occurs when a cardholder contacts the bank about. Typical chargeback reason codes are:Reason Code Reason Code Description Timeframe; 4808: Authorization-related Chargeback: 90 calendar days: 4853: Cardholder dispute: 120 calendar days: 4837/4849/4870/4871: Fraud - No cardholder authorization - Questionable merchant activity - Chip liability shift - Chip liability shift - Lost/Stolen/ Never Received Issue (NRI) fraud :. 3: Goods or services were not received: C08: RG: 4855: 13. About Careers Contact. Each bank card network has its owner list of reason codes banks must prefer from. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. Customer disputes are a reality of accepting payments. com Europe. Reason code 04 pertains to your chargeback-to-transaction ratio and is the most common reason for being MATCHed. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. This chargeback<br />. 3. . 5 Visa Fraud Monitoring Program. 5 billion lost in 2020. Reason Codes Category 4: Processing Errors. 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. Discover is a credit card network and an issuing bank—just like American Express. Capturing a customer's original reason code and automatically converting it to an internal reason code can make claim. Here are some steps you can take to handle chargeback requests: 1. If the merchant attempts to force a transaction through after the presentment window, the bank may respond with a “late presentment” chargeback. Additionally, one clearing transaction. This reason code covers the following scenarios: Reason Code Description; 4853: Services not provided/Merchandise not received. ”. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. 4 Fraud – Card-Absent Environment. To obtain additional information, the issuing bank sends a retrieval request to the merchant’s bank. The authorized transaction was for goods or services that the merchant did not deliver as per a contract, receipt, or some other written. For perspective, the next highest. 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. Code 70: Co-Op Allowance. Specify the default reason code that you want the system to assign when you enter a chargeback amount. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Merchants can find a. . 105. 1: EMV Liability Shift Counterfeit Fraud:. To do so: Tap the Activity tab on your Cash App home screen. transactions with a CPD before 1 October 2017. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. When you post. Customer Dispute. There are also specific return time frames, which can differ. 3 Fraud – Card-Present Environment. 1. Updated Visa Reason Codes. Chargebacks911® offers the industry’s most innovative solutions for chargebacks. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code F29, which indicates an unauthorized transaction that the cardholder does not believe they should be responsible for paying. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases.