For merchants who accept Visa transactions, it’s important to understand the credit card company’s reason codes and how to recognize them. Visa chargeback reason codes are always two-digit numbers. Today, we’ll define the most common codes:
1) Reason Code 30: Services Not Provided or Merchandise Not Received
This happens when a cardholder tells the card issuer that they didn’t receive the service or merchandise on time or at all. While there are a number of reasons why this may have occurred, a merchant has specific actions to take that will help them fix the chargeback if it was made in error.
2) Reason Code 41: Canceled Recurring Transaction
This comes up when a merchant is asked to cancel a recurring transaction and instead still bills the cardholder, or goes ahead and bills over and above the agreed amount.
3) Reason Code 53: Not as Described or Defective Merchandise
There are many reasons why a cardholder will use this code: from receiving a product or service that does not match the description, to having received a damaged product. The important thing for the merchant to remember in this case is that according to Visa’s policy, the cardholder must have made a valid attempt to resolve this dispute with the merchant. Again, this is why it’s important for the merchant to keep records, so that if the merchandise was as described, they can show that to the card issuer.
4) Reason Code 57: Fraudulent Multiple Transactions
This occurs when the cardholder acknowledges one transaction, but claims against additional transactions that he or she never made. This type of code only works for face-to-face transactions and cannot be claimed against online, mail or phone transactions. If the merchant has kept a record of valid transactions made by the cardholder, they'll need to show these as proof to the card issuer.
5) Reason Code 62: Counterfeit Transactions
This happens when a cardholder claims to have not authorized certain transactions. To prevent this type of fraud, the merchant should check all credit card security before allowing the transaction to go through.