Fraud
Customer Complaint
Authorization
Processing Errors
Fraud Reason Code List
Customer Complaint Reason Code List
Authorization Dispute Reason Code List
Processing Error Reason Code List
Dispute Reasons
When a cardholder disputes a transaction, their issuing bank will request a detailed explanation of the problem from them. Once the issuing bank receives and validates the cardholder’s complaint, a dispute is initiated against the merchant. There are many reasons for a cardholder to initiate a dispute which the issuing bank considers valid - and understanding each of these valid reasons will help the merchant respond to disputes accordingly.
When a dispute is initiated it includes a reason code classifying the cardholder’s complaint. The actual reason codes vary by card brand, but disputes can generally be classified into four categories.
Fraud
Fraud disputes occur when the cardholder claims their payment information was fraudulently used by another individual to purchase goods/services from the merchant. Although fraud disputes are far more common in e-commerce (card not present) scenarios, they can also occur in card-present environments, e.g. when EMV-chip verification is not implemented.
Examples
- 10.4 Other Fraud: Card-absent Environment / Condition
- 4863 Cardholder Does Not Recognize / Potential Fraud
- F24 No Cardmember Authorization
- UA02 Fraud / Card-Not-Present Environment
Customer Complaint
This category of dispute includes complaints by the cardholder about the goods/services they purchased from the Merchant. Common customer complaints include goods/services not received, merchandise was defective or not as described, refund not processed, etc.
Examples
- 13.1 Merchandise / Services Not Received
- 13.2 Canceled Recurring Transaction
- 4860 Credit Not Processed
- C31 Goods / Services Not as Described
Authorization
Authorization disputes occur when a Merchant submits a payment with an invalid or expired authorization code. For example, if a Merchant authorized their customer's card without fully completing the transaction, and then captured the payment - with a now-expired authorization code - at a later date, this may result in an authorization dispute.
Examples
- 11.3 No Authorization
- A01 Charge amount exceeds authorization amount
- A08 Authorization approval expired
- DA Declined Authorization
Processing Errors
Processing errors generally indicate a payment submission error by the Merchant resulting in the cardholder initiating a dispute. For example, this can include the Merchant submitting incorrect data, using the wrong payment method other than the one the cardholder intended for them to use, a duplicate charge was processed, etc.
Examples
- 12.4 Incorrect Account Number
- 12.6 Duplicate Processing / Paid by Other Means
- 4834 Point of Interaction Error
- P05 Incorrect Charge Amount
Reason Code Lists
Fraud Reason Code List
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Card Brand
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Fraud Reason Codes
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Visa
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- 10.1 EMV Liability Shift Counterfeit Fraud
- 10.2 EMV Liability Shift Non-Counterfeit Fraud
- 10.3 Other Fraud: Card-Present Environment / Condition
- 10.4 Other Fraud: Card-absent Environment / Condition
- 10.5 Visa Fraud Monitoring Program
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Mastercard
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- 4837 No Cardholder Authorization
- 4840 Fraudulent Processing of Transactions
- 4849 Questionable Merchant Activity
- 4863 Cardholder Does Not Recognize / Potential Fraud.
- 4870 Chip Liability Shift
- 4871 Chip / PIN Liability Shift--Lost / Stolen / Never Received Issue (NRI) Fraud
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Amex
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- FR2 Fraud Full Recourse Program
- FR4 Immediate Chargeback ProgramFR2 Fraud Full Recourse Program
- FR4 Immediate Chargeback Program
- FR6 Partial Immediate Chargeback Program
- F10 Missing Imprint
- F14 Missing Signature
- F24 No Cardmember Authorization
- F29 Card Not Present
- F30 EMV Counterfeit
- F31 EMV List / Stolen / Non-received Inquiry / Miscellaneous
- R03 Insufficient Reply
- R13 No reply
- M01 Chargeback Authorization
- FR6 Partial Immediate Chargeback Program
- F10 Missing Imprint
- F14 Missing Signature
- F24 No Cardmember Authorization
- F29 Card Not Present
- F30 EMV Counterfeit
- F31 EMV List / Stolen / Non-received Inquiry / Miscellaneous
- R03 Insufficient Reply
- R13 No reply
- M01 Chargeback Authorization
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Discover
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- UA01 Fraud / Card Present Environment
- UA02 Fraud / Card-Not-Present Environment
- UA05 Fraud / Counterfeit Chip Transaction
- UA06 Fraud / Chip-and-Pin Transaction
- UA10 Request Transaction Receipt (swiped card transactions)
- UA11 Cardholder claims fraud (swiped transaction, no signature)
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Customer Complaint Reason Code List
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Card Brand
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Customer Complaint Reason Code
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Visa
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- 13.1 Merchandise / Services Not Received
- 13.2 Canceled Recurring Transaction
- 13.3 Not as Described or Defective Merchandise / Services
- 13.4 Counterfeit Merchandise
- 13.5 Misrepresentation
- 13.6 Credit Not Processed
- 13.7 Cancelled Merchandise / Services
- 13.8 Original Credit Transaction Not Accepted
- 13.9 Non-Receipt of Cash or Load Transaction Value
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Mastercard
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- 4807 Warning Bulletin File
- 4808 Authorization-Related Chargeback
- 4812 Account Number Not on File
- Cardholder Dispute
- 4841 Canceled Recurring or Digital Goods Transactions
- 4853 Cardholder Dispute
- 4854 Cardholder Dispute - Not Elsewhere Classified
- 4855 Goods or Services Not Provided
- 4859 No Show / Addendum / ATM Dispute
- 4860 Credit Not Processed
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Amex
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- C02 Credit not processed
- C04 Goods / services returned or refused
- C05 Goods / services canceled
- C08 Goods / Services Not Received or Only Partially Received
- C14 Paid by Other Means
- C18 "No Show" or CARDeposit Canceled
- C28 Canceled Recurring Billing
- C31 Goods / Services Not as Described
- C32 Goods / Services Damaged or Defective
- M10 Vehicle Rental - Capital Damages
- M49 Vehicle Rental - Theft or Loss of Use
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Discover
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- AA Cardholder Does Not Recognize
- AP Canceled Recurring TransactionAA Cardholder Does Not Recognize
- AP Canceled Recurring Transaction
- AW Altered Amount
- CD Credit Posted as Card Sale
- DP Duplicate Processing
- IC Illegible Sales Data
- NF Non-Receipt of Cash from ATM
- PM Paid by Other Means
- RG Non-Receipt of Goods or Services
- RM Quality Discrepancy
- RN2 Credit Not Received
- AW Altered Amount
- CD Credit Posted as Card Sale
- DP Duplicate Processing
- IC Illegible Sales Data
- NF Non-Receipt of Cash from ATM
- PM Paid by Other Means
- RG Non-Receipt of Goods or Services
- RM Quality Discrepancy
- RN2 Credit Not Received
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Authorization Dispute Reason Code List
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Card Brand
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Authorization Reason Codes
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Visa
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- 11.1 Card Recovery Bulletin
- 11.2 Declined Authorization
- 11.3 No Authorization
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Mastercard
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N/A
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Amex
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- A01 Charge amount exceeds authorization amount
- A02 No valid authorization
- A08 Authorization approval expired
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Discover
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- AT Authorization Non-compliance
- DA Declined Authorization
- EX Expired Card
- NA No Authorization
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Processing Error Reason Code List
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Card Brand
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Processing Error Reason Codes
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Visa
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- 12.1 Late Presentment
- 12.2 Incorrect Transaction Code
- 12.3 Incorrect Currency
- 12.4 Incorrect Account Number
- 12.5 Incorrect Amount
- 12.6 Duplicate Processing / Paid by Other Means
- 12.7 Invalid Data
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Mastercard
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- 4831 Transaction Amount Differs
- 4834 Point of Interaction Error
- 4842 Late Presentment
- 4846 Incorrect Currency Code
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Amex
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- P01 Unassigned Card Number
- P03 Credit Processed as Charge
- P04 Charge Processed as Credit
- P05 Incorrect Charge Amount
- P07 Late Submission
- P08 Duplicate Charge
- P22 Non-Matching Card Number
- P23 Currency Discrepancy
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Discover
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- IN Invalid Card Number
- LP Late Presentment
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