Chargeback reason code 78. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. Chargeback reason code 78

 
 Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letterChargeback reason code 78  It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset

If the cardholder’s bank accepts the dispute, they will reverse the transaction, taking the funds back from the merchant and returning them to the cardholder. The charge is returned to the customer’s card that was used for payment. There are two types of invalid chargebacks. (22. 4 Section . Already reversed (by Switch) 80. The reason code. Mastercard: Reason Code 4859 Service not rendered. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. The merchant gets confused and offers to provide the documentation proving that Linda’s card was a valid card and that authorization was approved at the. Mastercom is Mastercard’s dispute management platform, which merchants can access via API connections enabled by their acquirer or payment processor. Mastercard Chargeback Reason Code 71: Disputed Amount. The chargeback is ordered by the bank that issued the consumer's payment card. 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. 1. Step #2 | Report the Scam to PayPal. The tickets were held at the box office, and no signature, swipe or imprint. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. Chargeback. You must contact your Relationship Manager for information about the. Code 4807: Fraudulent Card-Present Transaction. 1 Late Presentment 12. With the chargeback code in hand, the merchant can now review the transaction. 10. When they do, you’ll be given an alphanumeric string of text that helps to identify the chargeback – called a chargeback reason code. The chargeback transfers funds from the acquirer to the issuer. A chargeback is the potential outcome of a disputed credit or debit card transaction. They can also be caused by a merchant failing to process a cancellation promptly. Once you know why a chargeback happened, you can start building a case to address the claims that were made. Each of the major card brands, including Visa,. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective; American Express Reason. Visa Chargeback Reason Codes; Chargeback Management Software; Chargeback Reason Codes; Credit Card Dispute Time Limit; Mastercard Reason Codes; Bank Identification Number; CONTACT. Code 13. Otherwise, the acquiring bank sends a chargeback notification. Having a Lax Attitude Toward Industry Rules & Regulations. Preventing Mastercard Reason Code 4837 Chargebacks. The issuing institution may raise a chargeback for various reasons. 2 - Incorrect Transaction Code. The newer system is designed to. Use clear and consistent billing descriptors. Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds. Code 43 – Stolen card, pick up (fraud account) – Similarly to code 41, the cardholder reported the card stolen. UA06 Fraud – Chip and PIN Transaction. Spot these types of chargebacks using the below reason codes. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Early Warning: Reaching a chargeback ratio of 0. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Code 215 – Lost/stolen card – The cardholder’s credit card company flagged the account as lost or stolen and therefore blocked all the 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. 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. There are also third-party tools available to conduct advanced analysis. The sales receipt and/or date and amount of the authorization if other than the transaction date. Check the chargeback reason code. Collect Compelling Evidence. com Europe. Friendly fraud is challenging for merchants because it’s tough to diagnose. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. REQUEST A DEMO. Why is manual review time increased by false positives?Card networks send these codes to merchants to indicate why a chargeback has been filed. Chargeback reason code. Reason Code 03. Credit not processed for cancelled or. CM . ) A no-nonsense summary of evidence that proves transaction is legit. ©Visa Chargeback Life Cycle. 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. 78 (1) No Authorization: 12. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. ) has its own reason code system, so sellers should carefully check the card used for the transaction. Chargeback time frames - A specific period during which a chargeback can be raised. Chargeback time frames - A specific period during which a chargeback can be raised. Reason codes are created by the major. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. 99. The goal is to reduce. 4 Counterfeit goods . Choose “chargeback and inquiry status” from the drop-down menu. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. When one cardholder initiates a dispute with their issuing bank, a. Reason Code. 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. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. for chargeback reason code 4863 (Cardholder Does Not Recognize). Select the value “open”. The implication is that the merchant is at fault. 76 - Incorrect Currency or Transaction Code or * Domestic. According to Visa’s press release announcing the changes, those response codes are as follows: Response Code 62—Restricted card (card invalid in region or country) Response Code 78—Blocked, first used (transaction from new cardholder, and card not properly unblocked) Response Code 93—Transaction cannot be. [MasterCard Reason Codes 4853, 4855, 4859; Visa. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. Step 2: Customer initiates the chargeback. What is a chargeback time limit? The chargeback response. EMV Liability Shift Non-Counterfeit Fraud. 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. 78 “Blocked, first used”—Transaction from new cardholder, and card not properly unblocked. The merchant did not receive any returned merchandise. 13. 9808 info@chargebacks911. But friendly fraud is much more ambiguous. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable. “American Express Chargeback Reason Codes | Sift”. Once you receive this notification, you have 11 days to submit a response. If you believe you have received an ACH return in error, you can contact your bank. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. M10 Vehicle Rental – Capital Damages. In the distribution industry,. You can see a reason code 11. 2 falls under the “Processing Errors” category. EMV has been a mostly global standard since 2004. Reason Code 11. Issuer’s Arbitration Chargeback. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 2. Reason . The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. You should not retry the transaction or provide any services or goods to the customer. Chargeback prevention strategies vary based on the reason for the. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. Chargeback management describes all of the ways in which merchants can deal with fraud and disputes that result in payment reversals. On xx/xx/xxxx, we received a chargeback under the reason code 11. Only an issuer can initiate the chargeback process. When one cardholder initiates a dispute with their issuing. 3 No Authorization. AVS is a MasterCard service designed to stop CNP fraud; however, it is widely used by. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. 4859 Addendum, No-show, or ATM Dispute. But, it could be up to 540 days, in some situations. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. When a card is declined, it is in your best interest to accept that answer and either cancel the transaction or ask for a different form of payment. Mastercard created Mastercom to make the. Friendly fraud. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. Issuing banks follow standard rules to validate a chargeback and then associate it with a specific reason code according to the evidence that was provided. Reason. While there are many chargeback reason codes, all chargebacks fall into one of three categories:The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Managing Reason Code 41 chargebacks. 1. 76 (2, 4 & 5) Incorrect. Reason Codes A chargeback reason code is a distinctive two-to-four-character combination of letters and numbers issued by the involved bank to identify why a dispute was initiated. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. M49 Vehicle Rental – Theft or Loss of Use. There are several types of chargeback reason codes that can be used, including the following: 1. 12. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Chargeback Reason Codes Page 1 of 5 Card Type Reason Code Reason Text Chargeback Category Preventable Reversible MASTERCARD 4802 Requested/Required Item Illegible or Missing Request for Information YES YES MASTERCARD 4803 Documentation received was invalid/incomplete Request for Information YES YES Codes 51 (insufficient funds) and 05 (do not honor) are especially common. 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. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how. 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. Chargeback reason codes are one piece of evidence you can use to make your case. Chargebacks were introduced as a form of consumer protection against. The customer regrets their purchase. Chargeback Reason Codes. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Valid Values/Format: 22 - First Chargeback Handling Fee. However, the 30 day waiting period can be waived if you’ve. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Chargebacks. All chargebacks start with a customer making a purchase in person, in an app, or online. 3 No Authorization 53 (6) 13. [noun]/* rēzən kōd / 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. 4 applies to eCommerce, whereas code 10. By entering your email, you agree to receive marketing emails from Shopify. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. A chargeback reason code is a 2-to-4-digit alphanumeric code chosen by the issuing bank from a predetermined list to reveal the reason the cardholder gave for requesting a chargeback. 4 is an updated version of legacy reason code 77, which was phased out under the Visa Claims Resolution initiative. Please refer NPCI OC- 93 for details. A chargeback reason code is a number that helps to inform a hotel why a chargeback was filed. 5, and all aspects of chargeback reason codes, with proprietary. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. message. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. Not recognizing your billing descriptor on a statement. Chargeback Reason Codes Reason code are the first key to understanding the root causes . Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. Reason Code 53 re-presentments must be processed within 45 calendar days from the. 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. Reason codes. 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. Discover Chargeback Reason Codes Explained. Contact Crescent Payments to help manage your chargebacks. 00: The amount of the transaction. 3 No Authorization Processing Errors 12. Either the acquiring or issuing bank could initiate the chargeback. 6. Reason Code 53 re-presentments must be processed within 45 calendar days from the. Improve the customer experience by resolving issues quickly. While the updates have been published, they do not go into effect until Oct. Receiving a damaged product. Chargebacks are something every business wants to avoid, as they can. According to Nilson, 56% of global card transactions were done on Visa in 2015. The most effective fraud detection and chargeback prevention approach will always rely on multiple automated processes and human involvement. There are dozens of reasons why cardholders and issuers dispute transactions. ”. Visa organizes their chargeback codes by categories. 4. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Fraudulent Activity. This liability shift essentially provides merchants. Specify the default reason code to. Card Number:. 80 (2) 12. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. for chargeback reason code 4863 (Cardholder Does Not Recognize). Discover. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. We also included the reason code descriptions and an indication of when the allowable time frame begins. 634. 1 Quick Reference Lead. This code applies when either the transaction was processed using an incorrect account number, or the transaction itself was not authorized. There are dozens of reasons why cardholders and issuers dispute transactions. Identify issues within 24 hours of a cardholder dispute, rather than waiting. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Reason Code. ” This reason code means that the merchant processed a magnetic stripe transaction without obtaining authorization approval on a. Process Flow for P2M:- Issuer Banks: Can raise chargeback with reason code 1065 (If customer is expecting compensation for non-fulfilment of goods/services. Availability Date: October 24th, 2021. With the right compelling evidence,. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andA chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. If the order was genuinely not as described, then the cardholder has a case. 3. 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. Each chargeback reason code has its own set of specific documentation requirements so merchants should familiarize. Now, compliance cases must be submitted through Visa Resolve Online (VROL). 1 Goods and Services Related Issues 1. . 78 (1) 11. Click “add filter”. M49 Vehicle Rental – Theft or Loss of Use. You’ll put that reason code, the transaction amount and authorization number, and state that the. By understanding the root cause of chargebacks, merchants can strategically refine policies and approaches to reduce chargeback activity. Fight; Prevent;. Recurring billing transactions are a frequent source of conflict, disputes, and. 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. Click on “report a problem” and select the transaction in question. When a cardholder has an issue with a transaction, they can contact their bank to dispute the charge. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. In the case of friendly fraud, that reason could be completely invalid and. 3. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. PCI DSS v3. Card Number: Alphanumeric: The first 6 digits, followed by. 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. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. In all, there are four major categories of Chargeback Reason Codes. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Reason codes 30, 53, 81, 83: Evidence such as. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Ensure that the digits of the. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. 0. 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. UA01 Fraud – Card Present Transaction. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Each of the major. 3. Every of the major card brands, the inclusion of Visa, MasterCard, and others, has its acknowledged system of reason codes. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. . There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches. This Return Reason Code may only be used to return XCK Entries and is at the RDFI’s sole discretion. The Address Verification Service (AVS) is a fraud prevention system that, when used effectively, can help to limit fraud and chargebacks. Mastercard Chargeback Reason Code 70: Chip Liability Shift. The first thing you should do when you receive a chargeback notification is to check the reason code that the card issuer assigns to the dispute. ’Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. Chargeback reason code 12. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the. MasterCard does not have an equivalent reason code. Whenever an incorrect account number is processed, or the. Growth in the subscription economy has grown by well over 400% over the past decade or so, and as much as 78% of global adult consumers maintain at least one subscription. . Chargebacks911® can help your business manage risk from Visa chargeback reason code 10. Know these five rules to avoid payroll blunders triggering fines, penalties and IRS audits. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. A chargeback happens when a customer requests for a transaction to be reversed. If your chargeback ratio is high [i. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. 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. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at. 53 (6) 13. If one of your customers issues a chargeback through their bank, you have the chance to dispute it and win back the funds. 15, 2021. Step 1: Identify the Source. Responding to Mastercard Reason Code 4853 Chargebacks. Visa ® has launched the CE 3. 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. 4. In simple terms, Mastercard Chargeback Reason Code 4859 — No Show/Addendum/ATM Dispute refers to situations where a customer. Ethoca alerts can prevent chargebacks before they hit your bank account. FR4 Immediate Chargeback Program. Chargeback reason codes. To obtain additional information, the issuing bank sends a retrieval request to the merchant’s bank. • 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. 9808; [email protected] reason codes are what tell a merchant why a customer is disputing a charge. 13. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. 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. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Complete Guide to Visa Compelling Evidence Update CE 3. The chargeback can be for the total transaction amount or a lesser amount. 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. Code 534 – Do not honor, high fraud – The transaction failed authorization. [1] Sift. Using the same link provided above, contact PayPal to report the scam. Braintree Support Articles. com Europe. To quantify the total cost of fraud, we break down the many losses that accrue along the purchase journey of a fraudulent $100 sale. 3. Step 2: Customer initiates the chargeback. The aim of CE 3. Here’s how. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. ”. Now, compliance cases go through Visa Resolve Online. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. 2 Compliance CasesThe current list of 22 Visa chargeback reason codes will be replaced with new values and grouped into four new categories of disputes: Authorization, Fraud, Processing Errors and Consumer Disputes. Please refer to chapter 5 for more information. There are over 80 unique return codes, each representing a different return type. There are also specific return time frames, which can differ. These codes are given in response to Visa cards specifically and mean transactions can’t be processed for a short period of time. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Additionally, one clearing transaction. 3: Goods or services were not as described: C31: RM: 13. 3: Goods or services were not received: C08: RG: 4855: 13. Non-receipt of information. MasterCard does not have a reason code that exactly matches Visa’s 80. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Chargebacks are a problem that is growing worse across the board, and gas station. It is caused by things like beliefs, opinions, morals, regrets, fear, and confusion. Step 1: The cardholder disputes a charge. Search the Chargeback Reason Code Database. 4. 6 %âãÏÓ 2036 0 obj > endobj 2049 0 obj >/Filter/FlateDecode/ID[5449EEF7E92B4E348DFFF959ACC41A76>]/Index[2036 116]/Info 2035 0 R/Length 96/Prev 5434729/Root. According to Signifyd data, the total cost of a fraudulent purchase of $100 is actually $196. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 2 is the result of receiving a declined authorization but going ahead with the transaction anyway. The shorthand description is “Late Presentment. For defective or “Not as Described” reason codes. e above 0. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. If you did not receive the email, open Mave, Wave’s automated chatbot, and. Mastercard Chargeback Reason Code 73: Duplicate Transaction. The network hasn't wholly disallowed some old codes. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. reason code information. ©On that note, below are some vendor missteps that could result in Visa reason code 13. 4853 – Cardholder Dispute – Credit Not Processed. There are two parts to this. These codes are broken down into five different category. The reason for the dispute was false or inaccurate. This manual outlines the rules and guidelines to be followed by the members. For educational purposes, here is an overview of the general chargeback process with most major processors: Step 1: A purchase occurs – All chargebacks start with a customer making a purchase, either in-person, in-app or online. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Reference these when rebutting cardholder disputes at your small business. 2: No Authorization Legacy Code: 71. FR6 Partial Immediate Chargeback Program. 08. Region Only) 4855 Goods or Services Not Provided. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Specify the invoice date and net due date to assign to chargebacks. However, it is important to note that this reason code is based on the reason given by the customer to their bank. So the company has more incentive to side with customer during cardholder. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. After a few days, the merchant from whom Linda bought the necklace receives a chargeback from her bank under the Reason Code 78: Ineligible Transaction/ Service Code Violation. 1 chargeback: 1. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. ; Resources. Inform your acquirer of the date that the credit was issued. 1 Merchandise / Services not received . This chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. Submitted: The response has been sent and the issuer is.