2: EMV Liability Shift Non-Counterfeit Fraud Visa Chargeback Code. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. † Make sure the credit card presented is valid. Pros: $0 monthly fee. Code. We break it down by card network, reason code, and more. 8 million identity theft. For a debit card, the fraud liability is $500 if reported within 60 days. If the bank does file a chargeback, they’ll transmit the dispute information to the merchant’s bank. The start date for that window can vary, though. The cost of payment. Category. 113Credit card fraud is rampant, surging after the massive shift to e-commerce that took place during the COVID-19 pandemic. 5 - Visa Fraud Monitoring Program: Visa flagged the transaction under the Fraud Monitoring Program, and the issuer has not filed a chargeback under another reason code. Chargeback reason codes are alphanumeric strings of digits created by the four card networks – Visa, Mastercard, American Express, and Discover – that help you. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The card issuer assigns it a chargeback reason code, a simple alphanumeric code to describe the reason for the chargeback. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. But you should also know that just because the cardholder indicated fraudulent activity as the reason code does not mean actual fraud took place. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Disputes also arise regarding the bill itself. . FR4 Immediate Chargeback Program. This can happen if the merchant processed a credit card as a debit card, or processed a similar mix up. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. 3. If they rule against the retailer, funds are returned to the. It applies when a cardholder participated in an ATM cash withdrawal, but. Even if a merchant disputes a chargeback and wins, it still counts against their ratio. [noun]/* rə • trē • vəl • rə • kwest/. C01:. 1001 - Cardholder does not recognize the transaction. Codes 51 (insufficient funds) and 05 (do not honor) are especially common. 4853 – Cardholder Dispute – Credit Posted as a Purchase. A chargeback on a credit card is when you try to get your money back for things like fraudulent transactions, unauthorized payments, or other credit card disputes where you got the short end of the stick. [noun]/* chahrj • bak • frôd/. In broad terms, representment refers to the process of fighting a chargeback. El. R13 No Reply. g. 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 is valid. Chargebacks were first established for credit cards by the Fair Credit Billing Act of 1974, with chargebacks for debit cards coming with the Electronic Funds Transfer Act of 1978. The code is used to help verify buyers during a card-not-present transaction. The credit card issuer—which could be their bank, Visa, Discover, Mastercard, or American Express—will then assign a reason code to the chargeback. According to my company's 2018 State of Chargebacks report, 28% of all merchants identified friendly fraud as their most common source of chargebacks, second only to card-not-present (criminal) fraud. The credit card chargeback rebuttal letter is one of the first things a bank agent will look at after receiving your case. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. Investigate suspicious orders. ”Updated August 23, 2023. Here are some of the most common chargeback culprits: 1) Fraudulent transactions. According to the customer, the product or service purchased was never received or used. Visa Reason Code 10. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. In Visa’s case, day one is the day after each phase is initiated. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. 2. 3: No Authorization For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. The Fair Credit Billing Act, which became federal law in the United States in 1974, was created to address consumer concerns about a new financial product: The credit card. How can merchants fight code 4837 chargebacks? Merchants can fight code 4837 chargebacks by providing evidence that the charge was authorized, such as signed delivery confirmation or records showing the cardholder downloaded or used a digital purchase. 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. How Do Credit Card Chargebacks Affect Your Business? Credit card chargebacks cost businesses their revenue and increase their chargeback rate, which can have serious consequences if it reaches 1%. Visa chargeback reason Code 10. The most common reason for chargebacks (30%) is that the purchase was made with a stolen card. Credit Card Chargeback Time Constraints. Added these Discover. Chargeback. Canada reached $11. A concern for businesses is the fact that chargebacks have been increasing by 20% year over year. Refund. 1003 - Transaction Supporting Document (TSD) needed. If a transaction has been declined, the authorization code will provide further details. A Visa chargeback is a process by which a Visa cardholder disputes a transaction and requests a refund from the merchant through their issuing bank. What is a credit card chargeback? Chargebacks occur when a cardholder asks their bank to reverse a transaction. 4 - Fraudulent Transaction – Card Absent Environment: The cardholder claims that a fraudulent transaction was made without the physical card involved. By Randa Kriss. The merchant accidentally charged the customer twice. Visa chargeback reason code 13. 5 Visa Fraud Monitoring Program. A chargeback is the reversal of a transaction made using a credit card or debit card. • 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. Through it, authorized users can look up transaction and cardholder details, along with other data for each dispute. Please deal directly with the cardholder for reimbursement. 4: Counterfeit Merchandise. Chargeback reason code 13. They help categorize cardholder disputes and determine next steps, and they vary by card network. What are Amex Reason Codes? Every card network features its own list of chargeback reason codes. It was originally just one facet of legacy reason code 81. F22 Expired or Not Yet Valid Card F24* No Card Member Authorisation F29 Card Not Present Chargeback Code Type: Card Member Dispute C02 Credit (or Partial Credit) Not Processed C04. This can happen if the merchant's name or description is not easily recognizable, or if the transaction amount is significantly different than the expected amount. 15-Day Waiting Period on Returns. If the numbers don't match, call your Automated Voice Authorization Center and tell the operator that you have a "Code 10" authorization and that. If the numbers don't match, call your Automated Voice Authorization Center and tell the operator that you have a "Code 10" authorization and that. Administrative returns (R02, R03, R04): 3%. A refund comes directly from a merchant, while a chargeback comes from your card issuer. 1 is an updated version of legacy reason code 74, which was phased out under the Visa Claims Resolution initiative. Credit cards were in use by the late 1960s, but they still hadn't gained the widespread acceptance banks were hoping for. About 127 million people in the U. FR6 Partial Immediate Chargeback Program. Some credit card companies also include a short phrase describing the code and chargeback. 4808: This code can refer to: Account Number Not on File. Square’s chargeback fee: $15 to $25. A chargeback isn’t just a single event. M10 Vehicle Rental – Capital Damages. This code applies when a cardholder reports that the actual merchandise received (or service provided) differs greatly from the written or verbal description provided at the time of purchase. To make matters worse, the consumer that had their card stolen will also call their credit card-issuing bank and hit you with the chargeback against the $2,000 charge. Chargeback reason code 10. The issuing bank assigns each dispute a code according to the consumer’s claim. paper processing and mailing costs. This code applies when a transaction was processed without acquiring authorization…but the card used in the transaction was listed in the Visa Card Recovery Bulletin (CRB). Retrieval Request/ Copy request Reason Codes. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Below you'll find a list of chargeback codes along with an explanation of what each one means, covering both general codes and those specific to the major card. Only an issuer can initiate the chargeback process. Chargebacks with a “paid by other means” reason code are the result of a simple mistake on the part of the merchant. In these cases, a credit card chargeback is fairly straightforward. We have issued a chargeback for a portion of theunauthorized submitted charge. Eventually, the Uniform Commercial Code, or UCC, shapes the current chargeback. Each chargeback is disputed by a specific reason code. Canada reached $11. Authorization reversals, refunds, and chargebacks are all forms of payment reversals. 1 Card Recovery Bulletin or Exception File. A chargeback is a debit or credit card payment that is reversed by the cardholder’s bank when the cardholder disputes the charge. We say the given reason because it may or may not reflect the true. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment. Customer Service Department PO Box 981532. Category. What are reason codes?. com. Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. Any action(s) already completed by the acquirer. Cardholders have the right to dispute part of a charge on. Different networks may have different takes on what a merchant’s “primary” service or product line is, which means that a merchant can. 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. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Once a chargeback is filed, a merchant has: 5 days to accept or challenge the chargeback. FR2 Fraud Full Recourse Program. 2. Reason codes vary by bank networks (card association), but fall into four general categories: 1. Step 1 – The customer initiates a chargeback dispute request over a transaction. linkedin. Friendly fraud occurs when the cardholder requests a chargeback after they’ve. They may sometimes be referred to as Issuer Identification Numbers (IIN). 10. The most comprehensive guide to chargeback reason codes. Step 3 – The acquiring bank receives the. The third digit indicates the specific reason within that category. Credit Cards. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. which are applied to disputes by the banks that issue credit and debit cards under their brands. But if they have a lot of chargebacks (usually above 1% - 1. When Amazon Pay receives a chargeback claim, we email information to you about the chargeback, including the order number and the amount of the chargeback claim. Card Member Dispute. R03 Insufficient Reply. Merchant time limits have only one exception: if either party wants to escalate a dispute to arbitration, they must do so within 10 days. Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. have experienced credit card fraud, and more than a third of all cardholders have been victimized by card fraud more than once. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. Will fluctuate depending on the claim The cardholder may also initiate this chargeback up to 365 days from the ordering date for the credit card transaction, Debit Card Transactions and Prepaid Identity Known Card Transactions. A standard billing descriptor may include the merchant’s name. Specifically, the FBCA grants consumers the right to dispute such charges and caps their liability at $50. The bank files that disagreement on the cardholder’s behalf, overturning the sale, then claws the funds back from the merchant and. Mastercard and Visa print a three-digit card code. A business facing chargebacks may see an increase in its chargeback ratio and chargeback penalty fees. Description. Sift’s Visa chargeback reason code guide features every single Visa reason code, its description, expert insights, and real world examples. The entire chargeback process is managed through a rule set that theoretically covers every circumstance. 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. In the distribution. Chargeback Codes (continued) C04 Goods/services returned. Chargebacks are also known as payment disputes. The first step in. Start your 3-day free trial today! Try Shopify free for 3 days, no credit card required. Unauthorised: Card-Not-Present (CNP) transactions. Visa overhauled their chargeback reason codes after the implementation of Visa Claims Resolution in 2018. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is. In 2020, Visa owned about 50% of the credit card market share in the United States alone. • If the card is present at the time of sale, be sure to compare the credit or debit card account number on an electronically printed draft to the credit or debit card number embossed on the card. Chargeback fraud is a serious concern for businesses, and the impacts should not be. A partial chargeback refers to a chargeback that returns only a portion of a disputed transaction. Below is a list of VISA chargeback codes. For merchants, the deadline to respond is 30 days for Visa chargebacks and 45 days for Mastercard chargebacks. Approval messages are usually straightforward, but there are some which contain additional important information. Provide relevant documentation as requested (e. 40 C08 Goods/services not received. The cardholder can use these chargeback scheme rules to recover funds lost due to fraud or merchant abuse. This field communicates information about credit card declines post-transaction attempt. Will fluctuate depending on the claim The cardholder may also initiate this chargeback up to 365 days from the ordering date for the credit card transaction, Debit Card Transactions and Prepaid Identity Known Card Transactions. Code. Generally, you’ll have two options when disputing a transaction: refund or chargeback. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. Mastercard chargeback reason code 4853 is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. What it Means: When a customer demands a chargeback, that money isn’t drawn directly from the merchant’s account. This 15-day window offers merchants more time to file a refund and avoid the chargeback issue. Step 4: Card Network Collects Dispute Information. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. Both parties can still file a. they provided their credit or debit card details to a supplier of goods and services (usually over the phone or online), which the supplier used in a way the customer didn’t expect or authorise they asked their card issuer to refund them (through the ‘chargeback’ process) for an incorrect card transaction, but the card issuer hasn’t. A credit card chargeback is a charge that’s refunded to you after you successfully dispute a credit card transaction. The cost of chargebacks is said to rise to $117. That’s 50%. A chargeback filed due to buyer’s remorse is a prime case. The second is friendly fraud, where a cardholder falsely claims a legitimate charge was unauthorized. The American Express chargeback process begins with Amex issuing a chargeback, along with a reason code to explain the dispute to the merchant. BINs are placed at the beginning of the card number, after the first digit, which is called. The issuer will also claw back the disputed amount from the acquirer. Goods/Services Not Received or Only Partially Received. Chargeback Codes 31. The problem continues to grow out of control with each year. MCCs are assigned to merchants by credit card issuers. Step 1: Require credit card security codes. In such. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. The chargeback scheme is a body of practices built up. Deadline for submitting representment documents. After the chargeback is initiated, the merchant will usually have between 7 and 21 days to respond with evidence. Chargebacks were introduced as a form of consumer protection against fraud. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. Chargeback reason code. Be transparent about your products. Immediately issue a credit for any duplicate transaction identified. The issuer returns the disputed transaction to the acquirer explaining the reason for the dispute, potentially with supporting documentation. Let’s look at the normal process of a chargeback: 1. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. You'll learn about the major categories of chargeback reason codes: fraud, authorization errors, processing errors, customer disputes; You'll learn about the usual types of chargeback reason codes due to fraud (not authorised or recognised transactions, fraudulent processing, monitored merchant or monitored card, the EMV liability shift);. A chargeback is a cancellation of a transaction. P04 — Charge. They also assign a numeric reason code for the chargeback, then electronically transmits all the chargeback information to the acquirer. Chargeback fraud isn’t only a risk to the merchant. A disputed charge, or chargeback, describes the process that occurs once a cardholder refuses to accept responsibility for a charge on their credit or debit card. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. Overdrafts also can damage your credit. By entering your email, you agree to receive marketing emails from Shopify. Reason codes vary by card brand. 4: Other Fraud–Card-Absent Environment. Canceled Recurring Billing. When the cardholder’s card is swiped or their chip is inserted into your EMV. [noun]/* kre • dǝt • kard • dis • pyōōt/. See moreChargeback Codes by Card Networks Visa chargeback reason codes. Thanks for following the Chargeback Gurus blog. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. This factsheet provides information about COVID-19 and chargebacks, including:The most comprehensive guide to chargeback reason codes. This is considered unauthorized use, and the cardholder isn’t liable. If a person does it too much and the CC company expects chargeback fraud at the minimum they will cancel the CC for excessive or suspect chargebacks. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. It’s crucial that you recognize the common merchant errors that might trigger a reason code 13. 51 - Insufficient Funds. Code. A successful chargeback involves your bank (or credit union) applying to your credit card scheme (e. Without the card, fraudsters won’t know the code. Chargeback Reason Code Quick Reference Guide. 6. Write a chargeback rebuttal letter (with sample template) 8 Ways to Prevent Chargebacks. When you discover an unauthorized or incorrect charge on your credit card. This chargeback occurs when the cardholder does not recognize the transaction on their credit card statement. Visa Chargeback Code Condition 10. Chargebacks are also known as "charge disputes" and reversals, and they can be filed for a variety of reasons, including unauthorized use of the credit card. 11. If a transaction has been declined, the authorization code will provide further details. The chargeback filing period for cardholders is usually 120 days. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment volume, according to Payments Canada. The average chargeback fee is around $25. It can have serious consequences for the perpetrator. 4 Ways to Fight Chargebacks: Gather compelling evidence. Without the card, fraudsters won’t know the code. The cardholder claimed they didn’t receive the goods or services or only partially received the order. Fraud. C28. The purpose of the FCBA was to protect cardholders from fraud and unfair billing practices. Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time. A chargeback is the reversal of a prior credit or debit card sale transaction. However, took on a new dimension with the arrival of eCommerce. A chargeback is an action taken by a bank to reverse a payment and trigger a dispute resolution process. Reason codes are important to help merchants address recurring. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. Card networks recommend that both issuing banks and merchant acquirers support the protocol. You literally “re-present” the transaction to the bank and card network, along with evidence to support your claim. The chargeback is ordered by the bank that issued the consumer's payment card. 2. Discover provides a dashboard called the Discover Network Dispute System. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes. Primary Menu. These types of information are very important for. Per your agreement with American Express, when you give a refund for a purchase made with the card, you must credit that card account. Genuine mistakes happen. Reason Code 11. Non-receipt of information. Top chargeback reasons, and documentation to submit. In broad terms, representment refers to the process of fighting a chargeback. A PayPal chargeback happens when a cardholder makes a purchase with their credit card, then later calls their bank and asks for a chargeback. Disputes with this reason code are still limited to a 120-day filing window. Dear [Credit Card Company or Bank Issuer], This is a rebuttal letter to contest chargeback [number] for [dollar amount]. Learn more about Mastercard chargeback reason codes. 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. Learn which strategies to use as you fight and prevent consumer disputes by reason code. 4. As we can demonstrate, this transaction was for the legitimate purchase of [description of item] from our store [or online store] on [transaction date]. The customer regrets their purchase. With a chargeback, funds are held from businesses until payment card issuers decide what to do. 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. That seems unfair, but it makes sense. When a merchant receives an invalid chargeback, they can fight it by representing the charge along with the evidence that proves the transaction was carried out properly. While the ISO may be in charge of defining the MCCs, it’s the credit card networks who dictate which code will be assigned to a merchant. Visa Chargeback Reason Codes. 0: 3DS2 is the technology behind automated fraud detection programs that compare over 100 data points to verify the buyer as the. Billing issues: Duplicate billing, incorrect amount billed, or promised refund never issued. The credit card issuer might take out the wrong amount or bill you for something you didn’t charge. This code relates to and authorizes a specific sales transaction. In card-network speak, this update introduces new data values to the existing Mastercard merchant advice code field (DE48 SE84). 30 Days *. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Card Member cancelled, refused or returned goods and/or services A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. 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 is valid. 54 - Expired Card. Requirements ©When you get one of these response codes, you’re going to have to ask the customer to provide a different payment method: 5 - Do Not Honor. Relevant customer communication, such as order confirmation email or Social Media message confirming satisfaction with the order. This code is unique—at least currently—in that Visa has since split it into two separate categories: 12. 10. M49 Vehicle Rental – Theft or Loss of Use. When you receive notification of a payment dispute or chargeback you may see a code listed with it. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. Credit Card Dispute. 8 chargebacks? If the Original Credit Transaction was reversed and should not have. The bank files a second chargeback based on new information from the cardholder or because of a change to the chargeback code. Transaction unauthorized make up 30% of all. 6. So the company has more incentive to side with customer during cardholder disputes. The only thing return item chargebacks have in common with credit card chargebacks is the name. Friendly fraud. 1 chargebacks if the charge was processed before the applicable deadline or if the cardholder has already been. Customer Service Department PO Box 981532. g. About 127 million people in the U. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. 14 - Invalid Card Number. Once the 16-digit virtual card number is generated, tap “accept. A Visa chargeback reason code is a number that identifies the reason why a cardholder disputed a transaction that led to a chargeback. This can cover unintentional “friendly” fraud, as well as deliberate abuse of the chargeback process. Chargeback is particularly useful where the cost of the goods or services is £100 or under as Section 75 doesn't apply. For example, gambling and direct marketing transactions. That seems unfair, but it makes sense. Fortunately, all major credit card networks. Learn more about Visa. Learn More about Discover Chargeback Reason Code NC: Not ClassifiedA chargeback is a safety net designed for cardholder’s security. 2. Visa chargeback reason code 13. The full unfolding of the chargeback process ends when one of the parties escalates the dispute to arbitration by the credit card network, which has the final word on the chargeback, but not the greater question of the dispute itself. When a company notifies you of a chargeback, a reason code is attached to the document. The bank “charges back” the amount of the disputed payment to the merchant or service provider. Merchants must respond within 30 days of day one for each phase. Code. Amex Processing Errors Chargeback Reason Codes P01 — Unassigned Card Number. American Express Credit Card Account . So the company has more incentive to side with customer during cardholder. Chargeback fees are assessed by acquirers and processors, so they can vary. 3 days to respond to pre-arbitration requests. 1 chargebacks? The acquirer or merchant has 30 days to respond to a chargeback filed under reason code 12. Step 1: First Chargeback. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. A chargeback is a return of money to a payer of a transaction, especially a credit card transaction.