For chargeback reason code 4837 (No Cardholder Authorizations) second presentments, new information such as a merchant name, location, or dates will no longer be allowed as a potential remedy to this chargeback when a merchant’s information is a complete mismatch between the authorization and clearing. 65% with at least 75 total disputes. 7? Visa chargeback reason code 13. Reason Code 04. Try Shopify free for 3 days, no credit card required. 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. The first liability shift went into effect in October 2015 and covered almost all card-present transactions except for those that take place at ATMs and gas pumps. It is a valuable resource for anyone involved in the payments industry. Older time limits for disputes vary based on reason code; in many cases buyers have 120 days after a purchase to file a chargeback. The terminal action codes are in Table 122 of the 4. For more information on these and other updates, check out our complete chargeback reason. Not remembering the original purchase. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. May 25, 2021 6 min read Suppose you are hearing the term Chargeback Reason Codes for the first time. PCI DSS v3. Clearly differentiate between card-present and card-absent transactions by noting mail, phone, and internet. 4: Fraud—Card-Absent Environment. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. FR6 Partial Immediate Chargeback Program. ECM monitors first presentment chargebacks regardless of reason code or transaction type. With that said, you still need to understand the reason codes with any chargebacks from Amex. UA01 Fraud – Card Present Transaction. 1: Card Recovery Bulletin. A recent survey by Checkout. Chargeback. What is Visa chargeback reason code 13. On xx/xx/xxxx, we received a chargeback under the reason code 11. Thus, the easiest way to prevent chargeback reason code 75 from being filed is to use a billing descriptor that is easily recognizable. 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. Code. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. Four reason codes have modified time frames: Reason Code 10. 4853 – Cardholder Dispute – Credit Not Processed. Across open networks and include account numbers sent over email, instant messaging, text, or chat. 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). As we touched on earlier, chargebacks can happen due to technical errors. 00. Transaction is not eligible for Reason Code 75 (cardholder does not recognize transaction) or 83 (fraud transaction - card absent environment). If the merchant has a signature showing that the order was delivered, or evidence that the. Mastercard also considers some chargeback reason codes to be indisputable. M01 Chargeback Authorization. Take the time to note the following dispute reason codes for Visa. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. Find out the reason codes, reasons for return, and reasons for rejection, and what the stamps and codes actually mean. 1, 5 January 2016. 54 - Expired Card. 4: Other Fraud – Card-Absent Environment. Step 2: Customer initiates the chargeback. Declined Authorization Authorization Visa Code: 11. Learn more about Visa reason codes. 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. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. The list of chargeback reason codes in this article is organized by card brand and type of dispute. Attachment A: Copy of the customer's transaction on xx/xx/xxxx using a credit card ending in XXXX. 7: Defective goods and services: C32: RM: 13. 0. Chargeback. A “No Authorization” code chargeback can also be the. WEX began issuing chip cards in Q4, 2020. 4853 – Cardholder Dispute – Goods or. Chargeback Reason Codes Page 3 of 5. . The purpose of reason codes is to help merchants realize the intent of a consumer’s dispute; however, if they are attempting to obtain goods/services for free, they do not provide any meaning. Here are some chargeback reason codes by card type. We want to clarify: this doesn’t imply that a transaction ID can reliably prevent chargebacks and fraud. 65% with at least 75 total disputes. 6. 4846 — Incorrect Currency Code. chargeback: The buyer filed a chargeback with the credit card issuer. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. . What are chargeback reason codes? Issuers send chargebacks to the merchant’s acquiring bank with a reason code to communicate what caused it. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). Each chargeback received a numeric code which is known as the “reason code”. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. If using any other currency than this, it should be equivalent to the specified amount. This release also includes the latest MasterCom related change i. 10 Tips to Prevent Fashion Chargebacks. Several reason codes fall under this heading, and it is important to differentiate between chargebacks with reason code 4870 (Chip Liability Shift) from those with reason code 4871 (Chip Liability Shift Lost/Stolen/Never. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. 7: Defective goods and services: C32: RM: 13. The cardholder’s bank assigns a reason code to each chargeback before sending it to the merchant. Friendly fraud. There are several reasons why many merchants turn a blind eye to suspected return fraud. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. 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. This can be transaction receipts, proof of. Early Warning: Reaching a chargeback ratio of 0. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. You must assign a chargeback reason code (03B/CB) to explain the reason for entering chargeback for the invoice. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. 3 is the less common version for card-present transactions. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. When a merchant processes a transaction against a counterfeit card in a. Below are some examples of more common reason codes. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. Card Number: Alphanumeric: The first 6 digits, followed by. 4 Other Fraud Card Absent. EMV Liability Shift Non-Counterfeit Fraud. 3. 0 rule changes take effect April 15,. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. This reason code is assigned when. Compare account numbers. It can include instances where the card was lost or stolen, as well as situations where the card information was. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. ©Updated August 23, 2023. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case. Reason Code 11. Code. 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. UA06 Fraud – Chip and PIN Transaction. SecureCode also includes another important benefit just for merchants: if fraud is reported on a transaction that was authenticated with SecureCode. 4 spec (Section 8. Card Number: Alphanumeric:. Fraud. Process a canceled guaranteed reservation properly. If they think it does, they assign it a reason code and credit the funds back to the cardholder’s account. 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. Examples are: DA: Disputed amounts DD: Disallowed discount amount. 0 initiative to update compelling evidence requirements for dispute reason code 10. Founded in February 2020 by Roenen Ben-Ami and Ofir Tahor, Justt says it. Common reason codes Mastercard. Your chargeback response must include at least one of the following items: Proof the transaction was authorized and the valid card was not an EMV chip card. It can protect against criminal fraud attacks, but equally important, it protects you from liability due to fraud and other losses. The shorthand description is “Incorrect Transaction Code. MasterCard does not have an equivalent reason code. 0 & above Screen Resolution To make the best use of URCS, we recommend a monitor of 1024x768 pixels or higher,. Another downside is that chargebacks on annual subscriptions. Use standard authorization criteria with Issuer retaining chargeback rights: 7: CAVV failed verification (attempt) – Issuer approves authorization:. 4853 Cardholder Dispute. , the MCOM Collaboration Layer. 74 (1 & 2) Late Presentment. These codes are broken down into five different category. 70 Account number on exception file; 71 Declined authorization; 72 No authorization obtained; 73 Expired card;Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. This code indicates the merchant made a swiped or keyed transaction with a counterfeit card rather than scanning the EMV chip. 7 (previously legacy reason code 85, condition 2) is part of the updated version reason codes that were phased out under the Visa Claims. reason code information. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. Each bank card network has its owner list of reason codes banks must prefer from. You should always fight illegitimate chargebacks, but first make sure you have the right evidence. Card Recovery Bulletin Authorization Visa Code: 11. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. Most commonly a Reason Code 70 chargeback occurs when the merchant processes a transaction below its floor limit without making sure that the exception file had been checked. What is Visa chargeback reason code 13. The newer system is designed to. . Visa chargeback reason code 11. It is associated with a chargeback reason code, and it is specific per Card Scheme. 12. 2: Canceled Recurring Transaction, is used when a cardholder claims a recurring transaction was processed illegitimately. 0. 4854 Cardholder Dispute—Not Elsewhere Classified (U. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. 2. If you're contesting a chargeback, you'll need solid evidence. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. Reason code 83 represents a chargeback categorized as. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 4841 Canceled Recurring or Digital Goods Transactions. The merchant did not receive any returned merchandise. Values are: Blank: Use the draft G/L date. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Unlike other. If the bill before tip is for $70. Visa ® has launched the CE 3. The cardholder may be the customer or the someone who lent their card to a friend or relative. There are plenty of reasons as to why this would happen, hence the many. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. Visa has recently announced changes to its chargeback rules. 9% with at least 100 total disputes. When you receive a dispute, a reason code will be assigned by the bank who issued the customer’s card. Responding to Mastercard Reason Code 4853 Chargebacks. The customer regrets their purchase. Stage 1: First Chargeback. Carefully analyze the reason provided by the cardholder for the chargeback. 1=1010,. There are many chargeback codes that MasterCard uses in order to organize and streamline its chargeback process. Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. 1: goods not received. CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. This reason code is used when the cardholder claims that their card was used fraudulently without their permission. ; Help Center Find answers to common questions about Midigator’s technology,. Discover uses unique codes to explain those reasons to merchants. e. Dispute Category. Floor limits are typically specified in merchant processing agreements, and the exception file is part of the merchant banks or the merchant account providers transaction. Mastercard Chargeback Guide is a comprehensive document that explains the rules and procedures for resolving disputes between cardholders, merchants and issuers. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. Oftentimes, the reason code assignment is based on limited knowledge and insight. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Card issuers and card networks deem certain chargeback codes to be nearly indisputable by merchants, and as a result, a merchant can be charged a fee of up to $500 by card networks for submitting a dispute of such chargebacks. the reason code doesn’t reflect the real reason for the dispute. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. Receiving a damaged product. Accessed October 31, 2022. 1: Use the corresponding dates from the invoice. Early Warning: Reaching a chargeback ratio of 0. 00: The amount of the transaction. Legacy Code: 70. 0 and above Chrome version 70. Message. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. For example, 'R04' indicates that an invalid account number was. 2 Compliance CasesThe good news is, the chargeback reason code should give you a great indication of where to start. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Depending on the code, that could mean gathering proof of authorization, signed receipts, proof of delivery, email correspondence and/or the cardholder’s IP address with transaction date and time for online purchases. Mastercard Chargeback Reason Code 70: Chip Liability Shift. 1 falls under the “Fraud” category. The table below indicates the most common reason codes per scheme. ”. What is the chargeback reason code? Chargeback reason codes are alphanumeric codes developed by banks to help cardholders select the reasons for filing chargebacks. The most common chargeback reason codes are fraudulent charges, unauthorized transactions, and products not received, however, there are dozens of different chargeback reason codes for cardholders to choose from. If you do perform a key-entered transaction, make a manual imprint of the card. Mastercard also considers some chargeback reason codes to be indisputable. Complaint reason_code values include: not_as_described: The buyer claims that the goods or services received differ from the merchant's description of the goods or services. There are two parts to this. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableOf course, delivery delays became a big issue with lockdowns caused by Covid-19. the chargeback reason code, the issuer/acquirer, and the end customer’s buying patterns, yielding a recovery rate that is three times the industry average. Updated Disputes/Chargeback Policy Coming April 2024Chargeback Reason Codes 85 and 4860 may be caused because the merchant: Did not issue a credit. 4. VisaConsider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). Spot these types of chargebacks using the below reason codes. We say the given reason because it may or may not reflect the true reason. M49 Vehicle Rental – Theft or Loss of Use. By entering your email, you agree to receive marketing emails from Shopify. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. So if the bill before tip is for $70. 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. The reason code. Reason code 83 represents a chargeback categorized as. Most reason codes apply to any merchant, regardless of what’s being sold. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. 'luhfw fruuhvsrqghqfh wr wkh dssursuldwh hpdlo edvhg xsrq wkh uhdvrq frgh ri wkh lvvxh olvwhg ehorz <rx pd frpelqh lvvxhv iru gliihuhqw uhdvrq frghv lq wkh vdph fruuhvsrqghqfh rqo li wkh hpdlo ghvwlqdwlrq lv wkh vdph <rx pd. WEX has repurposed chargeback reason code 10 to indicate EMV chargebacks. The merchandise was as described or was not defective. What is the chargeback reason code?. In the case of friendly fraud, that reason could be completely invalid and. 74. reason code information. 110. Proof that the chargeback is invalid because it doesn’t adhere to Mastercard requirements. Customer Dispute. Issue a refund because they don’t accept returns, but they failed to communicate this policy to the customer clearly. Chargeback. The following are some examples: Visa Reason Code 13. The cardholder claims they were charged multiple times for a single transaction. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. 196 Please note that the most common Chargeback reason code for Allocation disputes is 10. Now, compliance cases must be submitted through Visa Resolve Online (VROL). Chargeback reason codes fall under three main groups: Fraud. In the world of chargebacks, card networks almost always side with cardholders. In the case of an arbitration chargeback, though, the issuer must file within 45 calendar days of the second presentment settlement date. 4: Other Fraud–Card-Absent Environment. /HealthCare IIAS Auto-sub Data Retrieval Request 70 Int'l only Effective Change Date AMEX F24 FR4 FR5 M01 M04 M10 P01 P04 P05 R03 R13 Duplicate Billing Captial damages M19 Offset adjustment Non. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. 70 Account number on exception file; 71 Declined authorization; 72 No authorization obtained; 73 Expired card; 74 Late. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. Specify the invoice date and net due date that you want the system to assign to chargebacks. The reason code also presents a timeline to fight the chargeback and what evidence is needed to reverse the chargeback. 51 - Insufficient Funds. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Visa chargeback reason code 12. For example, a debit may have been processed instead of a credit, or a credit processed instead. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Reason Code 02. High-Risk (Excessive): Reaching a chargeback ratio of 1. Chargeback amount is equal to or less than the exceeded limited /authorised amount. Check with the issuing banks to determine what time limits may apply to you. Visa chargeback reason code 75 falls under the “Consumer Disputes” category. Ethoca alerts can prevent chargebacks before they hit your bank account. . Please note that the most common Chargeback reason code for Allocation disputes is 10. Technical. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. non_receipt: The buyer claims they didn't get the goods or services. For this reason, you must document all debit and credit card transactions and adhere to the strict rules set by the card networks. United States. 2 falls under the “Processing Errors” category. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. Encrypt transmission of cardholder data. 99. Complete Guide to Visa Compelling Evidence Update CE 3. When you engage in chargeback analysis and. for chargeback reason code 4863 (Cardholder Does Not Recognize). For each reason code, a definition isOne catch is that CE3. What is a chargeback fee? A chargeback fee is a non-negotiable fee, charged to merchants each time they receive a chargeback. The chargeback can be for the total transaction amount or a lesser amount. 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. . This is commonly caused by either true fraud or friendly fraud. What is a chargeback time limit? The chargeback response time limit is a. As we touched on earlier, chargebacks can happen due to technical errors. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible Chargeback reason codes. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. UA06 Fraud – Chip and PIN Transaction. A chargeback reason code may display a chargeback related to fraud, processing errors, consumer disputes, or a variety of other reasons. 0: Changed report name from Downloadable Dispute Report to Case Report. If the order was genuinely not as described, then the cardholder has a case. These codes are established by the payment brands to categorize the incoming dispute requests by reason. If a dispute has a strong enough basis to warrant a chargeback, Discover will send a chargeback notice to the merchant along with the reason code for the chargeback. com Reason Code 57: Fraudulent Multiple Transactions. A chargeback happens when a customer requests for a transaction to be. Estimates show that friendly fraud accounts for 70% of all chargebacks. What is Visa chargeback reason code 13. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. 4 applies to eCommerce, whereas code 10. 1. A reason code is how banks categorize the reason for a chargeback. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Once you receive this notification, you have 11 days to submit a response. 1. Eligible Chargeback Reason Codes . Card networks send these codes to merchants to indicate why a chargeback has been filed. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. 6: Credit not. 3. The goal is to reduce ‘friendly’ fraud chargebacks, helping sellers protect more of their hard-earned revenue. All cardholder data must be encrypted, truncated, or tokenized; account numbers can only be partially displayed. 65%: 4. Chargeback reason code 13. The tickets were held at the box office, and no signature, swipe or imprint. There are multiple situations in which this can occur. Proof you have already refunded the transaction and credited the cardholder’s account. 1st Chargeback. Either the acquiring or issuing bank could initiate the. Reason Code Reason Code North-America Reason Description; 4540: F29: Card Not Present (fraud). Chargeback Reason Code 70 is typically issued when the following two conditions are present: A card issuer receives a transaction that is below the merchant’s. Reason Code 53 re-presentments must be. . They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. 1 – EMV Liability Shift 10. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. 4853 – Cardholder Dispute – Credit Posted as a Purchase. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. Counterfeit Fraud Chargeback Condition All of the following: • The cardholder contacted the issuer. Merchant processed transaction below floor limit without authorization. It's an incentive for merchants to avoid chargebacks as much as possible. “American Express Chargeback Reason Codes | Sift”. 2. ” This indicates a transaction was processed using a card that Visa listed as stolen or counterfeit. Complete Guide to Visa Compelling Evidence Update CE 3. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. chargeback: The buyer filed a chargeback with the credit card issuer. 4. You must designate the write-off reason code for the system to use when you activate the automatic write-off feature. 196Merchants who believe they have received an invalid chargeback under reason code 13. This provided a number of insights into the typical. ” This indicates a transaction was processed using a card that Visa listed as stolen or counterfeit. Recurring billing transactions are a frequent source of conflict, disputes, and. Reason codes are very crucial to assist. The shorthand description is “Card Recovery Bulletin or Exception File. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. The shorthand description is “Chip Liability Shift. 7 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. The financial impact of fraud and chargebacks becomes greater during a recession. 7 falls under the “Consumer Disputes” category. non_receipt: The buyer claims they didn't get the goods or services. 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. • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. September 2011: 5. 5: Visa Fraud Monitoring Program. Mastercard Chargeback Reason Code 70: Chip Liability Shift. When appropriate measures are taken, merchants can reduce their chargebacks by about 70%. “It’s a lot tougher with Mastercard because they only use four main codes. 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. 1 Maestro chargebacks are still processed on legacy Chargeback processing as Maestro association has not switched onto MCOM interface yet. Chargeback Reason Codes. Each code begins with 'R' followed by a two digit number. The merchant didn’t: Issue a refund for canceled or returned merchandise. The transaction amount and authorization number (ARN. American Express . 1=1010,. Reason. 0: Updated report version from 1. The list of chargeback reason codes in this article. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. Cause. 1? Visa chargeback reason code 12. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from cardONE 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. Chargebacks. 2. But, it could be up to 540 days, in some situations.