This chargeback occurs when merchants do not adequately provide currency information. 3 –. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. Click on the Chargeback Reason Code drop-down menu, the user can change the. Other Fraud—Card Absent Environment. The customer regrets their purchase. 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. The new Visa CE 3. Visa Reason Code 13. Our Most Important Advice for Scam Victims is that to Get Your Money Back You Must File a Chargeback Request Correctly! Here’s more advice for scam victims: If you paid by credit or debit card, it is imperative to understand your rights and the power that’s in your hands. FR2 Fraud Full Recourse Program. Code 22: Merchandise Billed not Shipped. Following the Mastercard dispute guidelines, consumer dispute chargebacks are filed under reason code 4853 - Cardholder Dispute. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Select the transaction in question and tap the ellipses symbol in the top right corner of the screen. 10. [noun]/* kə • stə • mər • di • spyo͞ot/. See the list of reason codes below: Card Network. The most popular type of disputes of the chargeback category. Specifically, these updates only pertain to transactions that are charged back after Oct. 9808 [email protected] using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). M01 Chargeback Authorization. Partners. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Thanks for following the Chargeback Gurus blog. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Retrieval Request/ Copy request Reason Codes. Reason Codes: 08 / 20 / 71 / 72 A card was used either before or after its valid date Never process a transaction on a card prior to, or after, the valid date. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. The old-fashioned way of determining the root causes of your chargebacks involves comparing. In that way, winning one dispute may help prevent the next chargeback to come after it. 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. Download this sample Chargeback Rebuttal Letter. United States. An ACH (Automated Clearing House) payment dispute is a situation in which one party involved in an ACH transaction raises a concern or disagreement over the legitimacy, accuracy, or authorization of the transaction. Fraudulent transactions almost always lead to chargebacks, and chargebacks are also. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. reasonable and that the transaction did not exceed this amount range. SP: Short payment. Verify that the processing options are set up appropriately for discounts, chargebacks, write-offs, and deductions, as well as for any type input codes that you allow. The third digit indicates the specific reason within that category. Reason Codes: 22 / 23 / 32 / 35. The Chargeback Reason Codes are alphanumeric key codes provided to the merchant and that comes along with. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. Visa Merchant Official Documentation. This function allows you to: • associate the charge back with a specific purchase order. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. The list of chargeback reason codes in this article is organized by card brand and type of dispute. If your business never experiences a chargeback, you’ll never have to pay this fee. The charge is reversed and goes back to your credit card. 4853 – Cardholder Dispute – Credit Posted as a Purchase. 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. 2. With that said, you still need to understand the reason codes with any chargebacks from Amex. Chargeback Reason Codes by Industry. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. transactions with a CPD before 1 October 2017. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 1 To help simplify things, we’ve compiled a list of chargeback codes used by the four major card networks: Visa, Mastercard, American Express, and Discover. R03 Insufficient Reply. ). Unauthorized returns (R05, R07, R10, R29, R51): 0. chargeback: The buyer filed a chargeback with the credit card issuer. Reason code 83 represents a chargeback categorized as. Chapter 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. Not only do you need to know how long the timeline is, but you also need to know when the clock. Visit Representing Chargebacks for our complete guide to representing chargebacks and a detailed list of the recommended evidence for each card brand, product type, and reason code. When one cardholder initiates a dispute with their issuing bank, a. A chargeback reason code is just what it sounds like: A code indicating the reason a charge was disputed and a chargeback occurred. Receive the Chargeback. Case Studies. One of the most common chargebacks that are being filled by cardholders across the globe, is the “fraud related chargeback. A reason code or a chargeback reason code is a string of symbols (numbers and letters). 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. 103. 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. 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. 1. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. Reason Codes Category 4: Processing Errors. Visa chargeback reason code 75 falls under the “Consumer Disputes” category. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. What are chargeback reason codes? It’s an alphanumeric string of text provided by an issuing bank following a chargeback that describes the reason for the. 1 Interchange Reimbursement Fee (IRF) Determination and Payment 127First, let’s start by establishing why chargebacks happen in the first place. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show. 10. 2. . 3 Fraud – Card-Present Environment. ”. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. No two merchants will get exactly the same chargebacks for the same reasons, but there are definite patterns depending on the market you serve. 3: Goods or services were not as described: C31: RM: 13. 9. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. However, the 30 day waiting period can be waived if you’ve. 4541 AP: Recurring Payments: 120: Cardholder Dispute: Discover: 4542 LP: Late Presentation: 120: Processing Errors: Discover: 4550 CD:. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. 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. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Thus, all deduction activities with the same deduction activity code might have the same chargeback reason code. If you did not receive the email, open Mave, Wave’s automated chatbot, and. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. What is the chargeback representment process? When faced with a chargeback representment, you should take these steps. compliance process depending on whether a chargeback right exists. 1 – Merchandise/ Services Not Received 13 . See moreWhat 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. Terms and conditionsHow you respond is determined by the chargeback reason code: Embed This Graphic. 4, MasterCard 4837, AMEX F29, Discover UA02, and so on). M10 Vehicle Rental – Capital Damages. Every chargeback has a reason code associated with it. This can provide important information to fight the dispute. Added the following fields - Store ID, Credit Card Chargeback Reason Code. Which is meant to know the reason for the dispute. In the case of friendly fraud, that reason could be completely invalid and. Service Dispute. ISD technology lets you fight chargebacks based on the true reason, not just the reason code. Auto Write Off. CLAIM DEBIT VNDR-AP APPLIED CARRIER CLAIM AP Forms, Invoice Shortage Dispute Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. As a merchant, you face the brunt of chargeback losses. Step 4: Card Network Collects Dispute Information. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. American Express chargeback reason code C42. 10. They may also have requirements that must be met in order for a transaction to be eligible for coverage, such as delivery confirmation. R03 Insufficient Reply. Feel free to submit topic suggestions, questions or requests for advice to:. Banks may issue a credit to an account holder at their discretion. 6 Settlement 124 1. 4853 – Cardholder Dispute – Goods or Services Not Provided. 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. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. Multiple Authorization Requests. . . 6 Setting Up Payment Terms for Accounts Receivable. 00 in chargebacks. You can learn more about each one by visiting the Mastercard Chargeback Guide. The most comprehensive guide to chargeback reason codes. 1Chargeback reason codes are one piece of evidence you can use to make your case. 634. . The system also uses this AAI when you perform AR or AP netting using the Manual Netting program (P03B455). Specify the default reason code to. The shorthand description is “Warning Bulletin File. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. S. 3: Goods or services were not received: C08: RG: 4855: 13. Chargebacks occur when a credit cardholder disputes a charge on their statement with their issuing bank, in order to ask for a refund. This extra step can be frustrating for Card Members and lead to lost sales. You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. 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. Offer shipment and delivery tracking. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. 1: Use the corresponding dates from the invoice. You may have to pay the chargeback fees if the dispute is successful, ranging from $15 to $100. There are multiple situations in which this can occur. If the bulk of reason codes your business sees are fraud-related and you lose these chargebacks after submitting compelling evidence, true fraud problems are present. Valid chargeback reason codes are defined in UDC 03B/CB. Visa chargeback reason code 75 is filed as an honest mistake. 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. most common reason codes for recurring merchants include: 7. A chargeback can happen when a customer initiates a transaction dispute. Visa Chargeback Reason Codes. . Can it be disputed?In order to identify the reason a customer disputed a charge, it can be helpful to examine the reason code on the chargeback. Category. 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. Capturing a customer's original reason code and automatically converting it to an internal reason code can make claim. 29 Reason Code 30: Services Not Provided or Merchandise Not. You can learn more about each one by visiting the Mastercard Chargeback Guide. 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. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. eCommerce Travel Crypto Gaming SaaS Gambling Ticketing. The reason code may not necessarily reflect the actual reason for the chargeback, but you ought to respond to it based on the provided chargeback code. ”. issuers must not initiate chargebacks for any AFD or ATM transactions outside the U. Goods / Services Damaged or Defective. EMV Liability Shift Counterfeit Fraud. 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). Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. 2 Compliance CasesReason codes for the chargeback with detailed explanation of what it means, how to dispute the chargeback, and how to avoid future disputes. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. 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. Chargeback . 00 EUR as a Withdrawal fee. 1. Fight; Prevent; Get; Assets. 7. These reason codes allow merchants to better understand the underlying cause of a dispute and develop strategies for preventing future chargebacks. 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. Today, it’s one of the most widely used codes, but Pullen said that’s because agents often slap it on. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. To assemble the right evidence to fight and win chargebacks, you may need documents. Date Option. 03B/RC for write-off reason codes. May 2011: 5. PCI DSS v3. Chargeback Reason Codes. This means that meticulous and organized record-keeping is essential for effective chargeback revenue recovery. . Also, remember that the time frame for your response includes any processing required by the acquirer. One of the manufacturers--Toy House maintains only 30 internal reason codes to. 0 etc. 2 – EMV Liability Shift Non-Counterfeit Fraud. The shorthand description is “Credit Not Processed. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. Vantage HouseREQUEST A DEMO. A provisional credit is a temporary credit issued by a bank to an account holder. txt) or read online for free. Code 4807: Fraudulent Card-Present Transaction. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. . . 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. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. The chargeback transfers funds from the acquirer to the issuer. The shorthand description is “Goods/Services Not as Described. MasterCard chargeback reason code 4540. The chargeback transfers funds from the acquirer to the issuer. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Any chargeback that is received without a reason code will be assigned a default code of 53. 5%. Last updated: October 15, 2019 . In the world of chargebacks, card networks almost always side with cardholders. BENEFITS AUTHORIZED AR = ADMINISTRATIVE REVIEW AT = ACCEPTED AS. 3: Goods or services were not as described: C31: RM: 13. 1 Original Credits 126 1. Review the code to learn the reason for the chargeback and any other pertinent details. By entering your email, you agree to receive marketing emails from Shopify. Resources. Step 1: The cardholder disputes a charge. Now chargeback responses need to contain evidence that proves the cardholder’s identity was verified. If you believe you have received an ACH return in error, you can contact your bank. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Information on proper voice authorization procedures may be needed for ‘referral’ responses. And according. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. Based on this, you can. In order to fight a chargeback effectively, however, you'll need to know the reason code. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. 3. . Unfortunately, the final decision in such cases comes down to the issuing bank, and not all. Instead, ask for a different form of payment. Chargeback. ; Help Center Find answers to common questions about Midigator’s technology,. For best results, your chargeback win rate should be as close to 100% as possible. AP: Canceled Recurring Transaction: AW: Altered Amount: CD:. 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. Reason Code 53: Not as Described or Defective Merchandise. 4 (Other Fraud – Card Absent Environment). This code applies when valid authorization for a transaction was required but not obtained, and the merchant processed the transaction anyway. Chargeback Reason Key by Network - 2023 Guide. 2. If the chargeback stems from the use of non-EMV readers, for example, the merchant should implement compliant terminals. 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. Clerical 101. 2. This chargeback reason code was retired by Visa in April 2018. . The notification will also specify the terms of the agreement under which Amazon Pay will assist you in handling the chargeback. Values are: Blank: Use the receipt G/L date. The Guide Gain a better understanding of the nature of your chargebacks and effectively manage them. But cardholders and merchants have different time limits. Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. that the transaction was either approved online by the issuer or offline by the chip. Chargeback . To file a dispute for a Cash App transaction, you will need to select the transaction in Cash App. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. AP Asia Pacific (AP) CEMEA Central Europe, Middle East, and Africa (CEMEA)About American Express chargeback reason codes. 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. UA01 – Fraud: Card Present Transaction. Overview. . Specifically, it has introduced a Compelling Evidence requirement for disputes falling under the Visa CE/30 chargeback reason code. ” This type of chargeback reason could be named differently across the different card schemes (some examples: Visa 10. 4853 Cardholder Dispute. Spot these types of chargebacks using the below reason codes. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. 10. Solutions. It’s indeed fortunate that there are many rules and laws that. Receiving a damaged product. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Equally, U. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. AP: Automatic Payment Dispute: 4586: AW: Altered Amount Dispute: 4751: CA: Cash Advance Dispute: 4550: CD: Credit Posted as Card Sale: 4594: CR: Cancelled Reservation:Authorization reversals, refunds, and chargebacks are all forms of payment reversals. If you're contesting a chargeback, you'll need solid evidence. The merchant did not receive any returned merchandise. 0 is to make the chargeback process more efficient, transparent, and fair. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. Merchants can find a. 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. Chargeback prevention strategies vary based on the reason for the dispute. THE LAG It can take anywhere from 15 days to 6 months for a. If you've determined the chargeback is meritless, and you know the reason code, below are the five stages of an effective chargeback representment. 4: Other Fraud–Card-Absent Environment. Every chargeback has a reason code associated with it. 1001 - Cardholder does not recognize the transaction. Select Need Help & Cash App Support. 4: Other fraud: Card-absent environment: VCR Dispute Reason Code 13. Instead of relying on individuals within your organization to route paper or emailed invoices to the appropriate AP desk, an automated solution would scan the invoice. These codes are established by the payment brands to categorize the incoming dispute requests by reason. 10. . A “No Authorization” code chargeback can also be the. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. Reason codes vary by card brand. Chargeback Reason Codes. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. Chargeback Reason Codes. . Step 2: Customer initiates the chargeback. 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. This statement item can later be reversed, or made permanent, depending on the reason for the credit issuance. Previous Page. Discover chargeback reason code AT falls under the “Authorization” category. 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. These processing options activate the automatic write-off feature and enable you to establish write-off limits for both under- and overpayments. When you receive notification of a chargeback, the first thing you want to do is look up the reason code. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. In representment, the merchant provides evidence to the issuing bank based on the chargeback reason code. Otherwise, the bank may reject the transaction. Other Fraud—Card Present Environment. Additionally, Discover uses a fifth "No Classified" category. Each code corresponds to an issue or problem. Merchants who believe they have received an invalid chargeback under reason code 13. This authoritative guide includes the chargeback reason key from each from the four major card netz. Chargeback reason codes are what tell a merchant why a customer is disputing a charge. Now, compliance cases must be submitted through Visa Resolve Online (VROL). While obtaining authorization approval is usually. The most comprehensive guide to chargeback reason codes. Chargeback Reason Codes by Network - 2023 Orientation. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Understanding these codes is essential because they'll guide your response strategy. 02/10/16 Added Debit Chargeback Reason Codes. ) Contracts. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. The win rate for this particular reason code is extremely slim because they generally refer to fraud issues. Read on for the complete guide to dealing with chargebacks. . The chargeback can be for the total transaction amount or a lesser amount. This may include information about the. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. Shopify Payments Chargeback Reason Code #5: Product Not Delivered. DA: Declined. Merchants can analyze the root causes of their chargebacks by examining the reason code of the chargeback and their own records regarding the purchase in question. . In the UK, the fee typically ranges from £15-25 but can be as high as £150. Fraud UA01 Fraud – Card Present Transaction UA02 Fraud – Card Not Present Transaction UA05 Fraud – Chip Counterfeit Transaction UA06 Fraud – Chip and PIN Transaction UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Authorization NA No Authorization DA Declined Authorization Date Updated: Oct 17 2022 TABLE OF CONTENTS What Are Chargeback Reason Codes? Importance of Chargeback Reason Codes Chargeback Reason Code Categories The Complete Chargeback Reason Codes List Visa Discover Mastercard American Express How to Use Chargeback Reason Codes 5 Things Merchants Should Understand About Chargeback Codes The new reason codes follow a format of two digits, a period, then a third digit. Time Frames by Chargeback Type and Reason Code. In simple terms, a payment reversal is just what it sounds like: a reversal of a previous payment, most often referring to a credit card transaction. . 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. 7: Defective goods and services: C32: RM: 13. The use of this reason code indicates that a cardholder is disputing a charge that did not go through the required authorization approval process. 4854 Cardholder Dispute—Not Elsewhere Classified (U. 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.