Each card network maintains reason codes to cover all the disputes that qualify for. There are two parts to this. 3 – Incorrect Currency 12. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Modified on: Wed, 15 Apr, 2020 at 9:11 AM. You’ll put that reason code, the transaction amount and authorization number, and state that the. ”. Discover is a credit. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. But cardholders and merchants have different time limits. That suggests that in the times when merchants are compelled to file a dispute, most of the time they will prevail. Then they instruct the merchant’s acquiring bank to reverse the transaction and withdraw the funds from the merchant account. 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. MasterCard - 4855 Goods or Services Not Provided. Business Track is a web-based reporting and management tool that helps you manage your payment processing business. Log in to access your account, view transactions, download reports, and more. Code. Fraudulent Activity. The shorthand description is “Insufficient Reply. The shorthand description is “Paid by Other Means. Here’s how your store can prevent and deal with chargebacks. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. Respond to invalid disputes. In the case of reason code 11. While the format of chargeback reason codes. FR4 Immediate Chargeback Program. 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. Write customer-friendly policies. ” Currently, merchants can already prevent many 10. The issuer suffered a financial loss due to the exchange rate difference between the credit and the. Reasons a customer may initiate a chargeback include: Ordering a product and not receiving it. 15, 2021. 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. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Each bank card network has its owner list of reason codes banks must prefer from. All ACH return reason codes consist of the letter “R” followed by two. It doesn’t help matters that travel is a high risk industry for credit card payments and with 100+ reason codes across all issuers, making sense of them all is a challenge. 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. Across open networks and include account numbers sent over email, instant messaging, text, or chat. Chargebacks. The cardholder claims either that the merchandise was never received, or the services purchased were not provided. The network hasn't wholly disallowed some old codes. For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. e above 0. As chargeback time limits get shorter and shorter, automated technology will become more and more valuable. When one cardholder initiates a dispute with their issuing bank, a. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Check the chargeback reason code. UA06 Fraud – Chip and PIN Transaction. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Ethoca alerts can prevent chargebacks before they hit your bank account. GraphQL Docs & Tools. 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. Merchants can find a. ”. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. Both EFM and ECM measure compliance at the MID level. Code 4807: Fraudulent Card-Present Transaction. Chargeback Reason Codes and Descriptions. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Q. Yes, it’s possible to win a reversal on a. 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. Fraudulent TransactionsThe chargeback process is similar across most credit card networks and issuing banks, with specific differences for each bank or network. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. A chargeback works its way from the issuing bank through the. ; Resources. Mastercard Chargeback Reason Code 71: Disputed Amount. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. 0: Updated report version from 1. [1] Sift. In that way, winning one dispute may help prevent the next chargeback to come after it. 65% with at least 75 total disputes. 1130: No Authorization: up to 120 days: Authorization: Visa: 1210: Late Presentment: up to 120 days: Processing Errors: Visa: 1220: Incorrect. Once you receive this notification, you have 11 days to submit a response. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. 5 Appendi New Reason Code 1149 – Addition of New Reason 70 x C23 “ Lost or Stolen. Documentation must be a direct result of cardholder communication. The idea was to allow the merchants to dispute the chargeback process and help prevent certain chargeback frauds. Check out the definitive guide to. 3. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. without a reason code will be assigned a default code of 1. Chargebacks from all three categories can show . The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. 2. 1 Quick Reference Lead. 7: Defective goods and services: C32: RM: 13. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. It was originally one of several possible scenarios covered by legacy Visa reason code 83. For more information on these indicators, check out our full article on Discover reason codes. Select a tab to see the possible reason codes for each dispute event category, divided by scheme. Visa chargeback codes are broken up into four categories: Fraudulent activity; Authorization issues; Processing errors; Customer disputes; Fraudulent activity The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Visa’s rules allow merchants to fight chargebacks by presenting the charge a second time along with evidence supporting its legitimacy. The merchandise was as described or was not defective. 4: Other Fraud–Card-Absent Environment. Chargeback prevention strategies vary based on the reason for the. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Another downside is that chargebacks on annual subscriptions. 3. Some of these reason codes are specifically designated to apply to authorization-related issues. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. Additionally, one clearing transaction. The codes for each card brand are listed below along with the recommended documentation to provide. What is Visa Reason Code 13. Chargeback Reason Codes Reason code are the first key to understanding the root causes . ) A no-nonsense summary of evidence that proves transaction is legit. PCI DSS v3. . 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. It is very similar to: Mastercard's 4853- Defective/Not as Described Reason Code. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. Every chargeback comes with a reason code. Each of these situations was given an alphanumeric identification code called a chargeback reason code, which is meant to explain the reason for the dispute. The cardholder claims they were charged multiple times for a single transaction. Each chargeback is assigned a reason code that explains the justification for the chargeback. Summary of Changes, 13 December 2018There are over 80 unique return codes, and each one represents a different type of return. Having a Lax Attitude Toward Industry Rules & Regulations. Chargeback Reason Codes Page 2 of 5. 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. 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. Solutions. You must tailor your representment case — including the compelling evidence — to the reason code under. I have encountered each of these chargeback reasons at my previous job, where I helped resolve many disputes by identifying which reason code applied to each case. Each code corresponds to an issue or problem. 5 percent of all transactions. Visa chargeback reason codes are used to categorize the reasons for a chargeback. Paymentology will submit the chargeback using the appropriate chargeback reason code. Chargeback time limits vary depending on the reason for the dispute. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. High-Risk (Excessive): Reaching a chargeback ratio of. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. EMV has been a mostly global standard since 2004. Poor order fulfillment: Late order fulfillment or billing for an order before shipping the goods. Inform your acquirer of the date that the credit was issued. 1 falls under the “Processing Errors” category. PCI DSS v3. Thursday, February 10, 2022. 1 The Stakes: Ignoring reason codes can lead you to confuse valid chargebacks for problematic ones. This code applies when a cardholder claims to have returned merchandise or cancelled services, but the credit did not appear on the cardholder’s monthly. There is a USD 25 limit for the First Chargeback (Reason Code 22). The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. The issuing bank will then pass on the chargeback to the merchant. 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. The shorthand description is “No Authorization. Business Track is a web-based reporting and management tool that helps you manage your payment processing business. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. But research by Javelin found that merchants dispute 43% of all chargebacks and succeed at 60% of those disputes. You should place a Code 10 call when. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, and recommendations are given for resubmitting the transaction and preventing similar chargebacks in the future. If the transaction date listed in the clearing record is incorrect, provide documentation that proves authorization was obtained on the correct date. The chargeback can be for the total transaction amount or a lesser amount. This extra step can be frustrating for Card Members and lead to lost sales. 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. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. Everyone has had the experience of buying. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. Description: Reason code for applying handling fee. e. [noun]/* chahrj • bak • rə • pôrt/. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. 4854 Cardholder Dispute—Not Elsewhere Classified (U. The aim of CE 3. This ranges anywhere from roughly 60 to 90 days after purchase. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Code. All card brands have their own number of codes). The most comprehensive guide to chargeback reason codes. If the transaction has special authorization procedures, provide documentation that proves the first authorization request included an estimated amount; the subsequent authorization requests. UA05 Fraud – Chip Counterfeit Transaction. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud. The better news: Merchants have the option to challenge said chargebacks and, when successful, reclaim money lost. Availability Date: October 24th, 2021. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Only by researching the disputed transaction and examining the true facts of the situation can you tell whether a chargeback is legitimate or not. They also can’t prevent the lost sales revenue and merchandise resulting from a consumer dispute. M10 Vehicle Rental – Capital Damages. Visa categorizes these types of disputes as “first-party misuse” under their reason code 10. The chargeback process can last from one month to six months. A credit card authorization code is a two- to six-digit alphanumeric code that indicates whether a transaction has been approved or declined. Together, we serve some 45,000. There are tricks you might use to circumvent an. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. 2. Reason Codes Category 4: Processing Errors. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. 0: Changed report name from Downloadable Dispute Report to Case Report. 10. According to a chargeback report, the projected costs of chargeback for 2023 are estimated at $117 billion, with around $79 billion as merchant losses. 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. What is Visa chargeback reason code 13. 6. Merchants who believe they have received an invalid chargeback under reason code 13. WEX began issuing chip cards in Q4, 2020. When one cardholder initiates a dispute with their issuing. Chargeback Reason Codes by Industry. Modified the matching 68 xG criteria for Refund transaction 04-09-2015 1. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how. 7: Defective goods and services: C32: RM: 13. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. Visa uses Reason Code 74 and its MasterCard’s equivalent is 4842. American Express chargeback reason code R03 falls under the “Inquiry/Miscellaneous” category. 3. chargeback: The buyer filed a chargeback with the credit card issuer. 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). #9. Transaction unauthorized make up 30% of all chargeback reason codes. Request for Information. Visa chargeback reason code 12. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. See full list on chargebacks911. The chargeback system was designed as a last resort; only to be used in specific situations. Accessed October 31, 2022. The chargeback transfers funds from the acquirer to the issuer. In such circumstances, networks like Mastercard may allow consumers to reverse such a transaction by filing a chargeback. Category. 04/04/16 Added American Express Chargeback and Retrieval Reason Codes. There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches. 9% with at least 100 total disputes. The new reason codes follow a format of two digits, a period, then a third digit. Description. 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. However, these chargeback reason codes cannot. Visa chargeback reason code 75 is filed as an honest mistake. Use this guide as a quick resource for Visa chargeback reasons at a glance. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Use order validation and prevention alerts. Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Specifically, these updates only pertain to transactions that are charged back after Oct. A reason code is an alphanumeric code that explains the reason behind the dispute. Updated the following columns - card type, response due date. EMV Liability Shift Non-Counterfeit Fraud. Discover: Reason Code 4755 Non-receipts of goods or services. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Pursuant to the Fair Credit Billing Act. Some common Visa reason codes include: 10. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Chargebacks. If the merchant has a signature showing that the order was delivered, or evidence that the. 0 to 5. 4846 — Incorrect Currency Code. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. Examples, processing a transaction even after the subscription is cancelled, defective items delivered, non-delivery of sold goods and so on. Experts at Chargebacks911 explained: “By working out a plan of action in advance, merchants can reduce the risk of chargebacks happening in the first place. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. The incorrect amount being charged. 0 only applies to reason code 10. On xx/xx/xxxx, we received a chargeback under the reason code 11. 1 chargeback: 1. Each chargeback reason code is two, three, or four digits and includes a short description detailing the chargeback. Chargeback reason codes were created to standardize the list of acceptable reasons why a bank may file a credit card chargeback or debit chargeback on their customer’s behalf. Using the same link provided above, contact PayPal to report the scam. Visa Reason Code Updates. 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 dispute it. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. ”. What are chargeback reason codes? Reason codes inform merchants about the reason why the customer is disputing a transaction, based on the information they provided to their bank. 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. 2. Luckily, our reason code directory makes is a bit simpler to make sense of issuer codes. Knowing these codes can help you dispute chargebacks more effectively. Chargeback fees make up a big chunk of the total costs, so we’re going to take a. Step 2: Customer initiates the chargeback. Codes are not often shared between issuers which means it can be difficult to remember the details of each. As we touched on earlier, chargebacks can happen due to technical errors. 3 falls under the “Consumer Disputes” category. Reason Codes Category 4: Processing Errors. The chargeback transfers funds from the acquirer to the issuer. 1. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. 1 Quick Reference Lead. 1 – Late Presentment 12. Each card issuer follows their own standards for defining reason type, code and its format. Merchants. If you did not receive the email, open Mave, Wave’s automated chatbot, and. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Attachment A: Copy of the customer's transaction on xx/xx/xxxx using a credit card ending in XXXX. Here are some chargeback reason codes by card type. 3? Chargeback reason code 13. 9808; [email protected]: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. The other member could accept the chargeback or contest it, escalating the dispute to compliance where Visa adjudicates. Chargeback reason codes have changed. reason codes. In most cases, you will have 20-45 days in which to respond to a chargeback. What to Include in Your eCommerce Return PolicyRead chargeback reason code descriptions carefully, especially if they include any transaction modifiers. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Chargeback reports can help merchants identify opportunities to increase efficiency, improve processes, and prevent future. g. Chargeback reason codes are one piece of evidence you can use to make your case. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. 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. For example, Mastercard has a code which indicates a ‘consumer dispute. A chargeback happens when a customer requests for a transaction to be reversed. 1: goods not received. A chargeback can happen when a customer initiates a transaction dispute. Level 2/Phase 2: Chargeback. EFM MONTHLY CRITERIA NUMBER OF E-COMMERCE TRANSACTIONS FRAUD CHARGEBACK AMOUNT FRAUD CHARGEBACK RATIO BASIS POINTS (BPS) 3DS UTILIZATION (EMV 3DS + DATA. Visa groups its various reason codes into several broad dispute categories. . For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. “American Express Chargeback Reason Codes | Sift”. 2. Processing Errors 12. Reason codes are very crucial to assist. Collaboration Processing Errors 1210. Each card. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. up under any number of different chargeback . FR2 Fraud Full Recourse Program. Here the cardholder is claiming that you were supposed to provide them with a refund, but no credit has been applied to their account. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Technical. 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. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience. Chargeback Report. Updated August 23, 2023. Region Only) 4855 Goods or Services Not Provided. 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. The problem continues to grow out of control with each year. Visa chargeback reason code 11. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. 4 applies to eCommerce, whereas code 10. Take the time to note the following dispute reason codes for Visa. According to our research, friendly fraud will represent six out of every ten chargebacks filed in North America by 2023. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Visa chargebacks can be a major inconvenience for merchants. If your chargeback ratio is high [i. Oftentimes, the reason code assignment is based on limited knowledge and insight. 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. Recurring billing transactions are a frequent source of conflict, disputes, and. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 1 Merchandise/ Services Not Received. Chargeback reason code - A numeric, custom way to explain the reason of raising a chargeback specific per Card Scheme, e. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Reason Codes 74. 5 Categories of Visa Chargeback Reason Codes. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. Fortunately, all major credit card networks provide clear information regarding chargeback reason codes. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. Understand the reason for the chargeback. The chargeback initially results in the debit or credit card charge being reversed and the funds that you received for the payment being returned to the customer. A second presentment transfers funds from an issuer to an acquirer. Which is meant to know the reason for the dispute. Click on “report a problem” and select the transaction in question. 2. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims Resolution initiative. Protect stored cardholder data. Now, 10. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. For merchants at risk of exceeding important chargeback thresholds, this cost is often well worth it. A new 4 byte reason code will be used moving forward. It’s generally more efficient to take a proactive stance when it comes to chargeback management. This may be done by either the merchant or the issuing bank. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Betty's issuing bank assigned chargeback reason code 10. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence.