Timeframe: Under card network rules, a cardholder has up to 120 calendar days from the settlement date to initiate a chargeback (depending on the chargeback reason code). Your actions in response to a Reason Code 57 chargeback will depend on the particular circumstances, the most typical of which are listed in the table below: You did process the appropriate credit to your customer’s card account. American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. France saw a drop of roughly 50% during the same period. The shorthand description is “Goods/Services Not as Described. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. This definitive guide includes the chargeback rationale codes from each of to four major card networks. Batch chargeback process. [noun]/* kə • stə • mər • di • spyo͞ot/. Fight; Prevent; Recover; Technical. A good chargeback return policy will, at a minimum, include. Availability Date: October 24th, 2021. The most popular type of disputes of the chargeback category. Step 1: The cardholder disputes a charge. This means providing evidence that will undermine the cardholder’s claim. 15% - the number of chargebacks initiated by cardholders due to retailers shipping the wrong product. Be transparent about your products. 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—QuestionableAbout American Express chargeback reason codes. And, each code has unique compelling evidence requirements if you choose to fight. Then look it up in our database. Solutions. For details on how to receive notifications of chargebacks, accept or dispute them, and submit evidence to. ; Resources. 4 – Other Fraud, Card-Absent Environment; Mastercard 4837 – No Cardholder Authorization American Express F24 – No Cardmember Authorization; Discover UA02 – Fraud: Card Not Present TransactionAmerican Express Chargebacks / Disputes. F24 – No Cardmember Authorization. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. All ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc. About American Express chargeback reason codes. 1 = EMV-Liability Shift counterfeit. F24 – No Cardmember Authorization. High Level Visa Chargeback Dispute Flow. 60 due to merchandise, fees, overhead, and other sources of loss. Discover is a credit card network and an issuing bank—just like American Express. Chargeback. For QSRs, which deal in a large volume of relatively small transactions, the financial impact of a high chargeback rate can be severe. 3 falls under the “Consumer Disputes” category. Visa chargeback reason code 75 is filed as an honest mistake. ”. PCI DSS v3. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. ”. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. The merchandise was as described or was not defective. Additionally, one clearing transaction. For example, the dispute reason “Cardholder Does Not Recognize” is denoted under the Discover reason codes system as “AA. A Merchant Outlet is identified in the Global Merchant Chargeback Monitoring Program if it meets or exceeds all of the following monthly performance activity levels:. The most common fraud-related reason codes are: Visa 10. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. This scenario applies when the arbitration was raised by either the. The system does not accept blank as a value, even if it is defined in the user defined code table. Chargebacks. 2. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. This extra step can be frustrating for Card Members and lead to lost sales. Blog and Articles; Success Stories; Chargeback Reason Codes; BIN Look-up; eGuides the Reports; Webinars; Knowledgebase; Online; Partners. This can. Reason Code F24: No Cardmember Authorization. New Visa CE 3. The cardholder initiates contact with their bank or credit union to file a dispute. The main chargeback reasons look like this: Malicious fraud. 1: Use the corresponding dates from the invoice. Chargeback reason code 75 is issued when a card issuer receives a complaint from a cardholder stating that the name of the merchant that. P07 – Late Submission. GraphQL Docs & Tools. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. Here are the two possible scenarios: 1. These chargebacks will show up under reason codes that will, on first glance, appear legitimate. Visa. Goods/Services Not Received or Only Partially Received. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. Here’s how your store can prevent and deal with chargebacks. Chargeback reason code. many chargeback reason codes that exist today. 1 chargeback: 1. Chargeback fees make up a big chunk of the total costs, so we’re going to take a. 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. 0. Here are some steps you can take to handle chargeback requests: 1. The list of chargeback reason codes in this article is organized by card brand and type of dispute. WEX began issuing chip cards in Q4, 2020. In simple words, the chargeback reason code provides the reason why you are dealing with a chargeback. Later in the week, George checks his account to find out an unknown transaction to an online accessory merchant. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. Identify issues within 24 hours of a cardholder dispute, rather than waiting. Click “add filter”. #9. However, it is important to note that this reason code is based on the reason given by the customer to their bank. 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. Description. Take the time to note the following dispute reason codes for Visa. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. At their core, false declines. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. A “No Authorization” code chargeback can also be the. Get your complete guide to Amex reason codes, including all the detailed information, chargeback time limits, and other important information you need. ”. Be sure you understand the cardholder’s claim. It is mandatory to send this field if you async status update is chargeback. Fight; Prevent; Recover; Predict; Success Story; Resources. A chargeback happens when a customer requests for a transaction to be reversed. Clerical Reason Code. At Visa they used to receive reason code 98. To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder’s bank to reevaluate the case. By understanding the reason behind the chargeback, you can gather the necessary evidence to support your case effectively. A reason code is a numeric code that describes the cause behind a chargeback dispute. P03 – Credit Processed as Charge. Change of Chargeback Reason to an Authorization-related Chargeback Replace ‘Change of Reason within the Cardholder Dispute Chargeback’ with this section. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. The win rate for this particular reason code is extremely slim because they generally refer to fraud issues. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. Bank of America issues both Mastercard- and Visa-branded cards, so the exact requirements may vary depending on the Mastercard reason code or Visa reason code . ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. 5 Visa Fraud Monitoring Program. Here finalizing user includes the chargeback reason codes from either of the foursome major card networks. Visa Chargeback Reason Codes. up under any number of different chargeback . Reason code 83 represents a chargeback categorized as. 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. Solution. Issued the credit but did not deposit it with its processing bank in time for it to appear on the cardholder’s next statement. Moreover, there are other two categories to handle the Amex chargeback: inquiry and chargeback programs. Understand the reason for the chargeback. 31. ”. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. Blog and Articles; Success Stories; Chargeback Reason Codings; DUMPSTER Look-up;. Chargeback Report. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. To avoid this, issuers can identify their chip cards using the Service Code field with a first byte value of 2 or 6. A chargeback happens when a customer requests for a transaction to be reversed. Under “Transaction History,” tap the transaction you want to dispute, then tap “Report an Issue. American Express. 3. Consult the applicable network’s guidelines for examples of acceptable compelling evidence. Each chargeback reason has its own, individual prevention techniques. F24: No Cardmember Authorization: F29: Card Not Present: F30: EMV Counterfeit: M01: Chargeback Authorization: P01:. The shorthand description is “No Authorization. 2. Here’s how your store can prevent and deal with chargebacks. Open Chargeback Amount by Reason Code: Sums the Open Amount (AAP) for all records retrieved by business unit and reason code. /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-Matching Account Number. You can see a reason code 11. Region. A reference for dispute reason codes, divided by dispute event category. It is associated with a chargeback reason code, and it is specific per Card Scheme. 1 UA01 Fraud – Card Present Transaction. If more information is needed, you’ll either receive an Inquiry or a Chargeback. View the entire list of AmEx. 2 Compliance CasesOn that note, below are some vendor missteps that could result in Visa reason code 13. F24 Multiple Charges F25 No authorization for total amount of charge F26 Incorrect name on transactionP01 – Unassigned Card Number. Please note that the most common Chargeback reason code for Allocation disputes is 10. Under Set Order Status, select None, Refund, or Chargeback. For your reference, here's a list of chargeback reason codes for Visa, Mastercard, Discover, and Amex. Dispute Category. September 2011: 5. 0 is to make the chargeback process more efficient, transparent, and fair. com. 1: Use the corresponding dates from the invoice. Updated the following columns - card type, response due date. A01 – Charge Amount Exceeds Authorization Amount. 4846 — Incorrect Currency Code. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. F24. Additionally, Amex uses a fifth "Miscellaneous" category. The new reason codes follow a format of two digits, a period, then a third digit. Reason Code. P05 – Incorrect Charge Amount. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. So don’t spend another second worrying about chargebacks. F24: Multiple Charges: F25:Try Shopify free for 3 days, no credit card required. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. The shorthand description is “No Card Member Authorization. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,Attempted to process transactions fraudulently. 04/09/14 Discover: DC, U02. Values are: Blank: Use the receipt G/L date. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. pdf), Text File (. The usual period that card networks will accept chargeback disputes is up to 120 days from the date of the settlement for the charge. 2. When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. Offer shipment and delivery tracking. Solutions. Mastercard uses reason code 4842 for late presentment chargebacks, but the conditions are considerably more complex. The bank or credit union then conducts an investigation to ascertain the validity of the dispute. What is Visa chargeback reason code 12. 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. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. This may be done by either the merchant or the issuing bank. 2. 18167 US Highway 19 N Clearwater, FL 33764 877. Specify the invoice date and net due date that you want the system to assign to chargebacks. com 14. Chargeback. 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. Unauthorized returns (R05, R07, R10, R29, R51): 0. 3. However, Visa is the largest card brand in both the United States and the world. 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. 7. Mastercard Chargeback Reason Code 71: Disputed Amount. Oftentimes, the reason code assignment is based on limited knowledge and insight. One of two things will happen next. The terminal action codes are in Table 122 of the 4. 10. 3 DUE DATEChargeback Reason Codes. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. These reason codes are divided into three categories depending on the supposed cause of a chargeback: consumer disputes, processing error, or fraud. If the merchant has a signature showing that the order was delivered, or evidence that the. processed the transaction correctly. About American Express chargeback reason codes. 2 – EMV Liability Shift Non-Counterfeit Fraud 10. Products. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. Based on the information provided, Paymentology will investigate the transaction being disputed. As a merchant, you face the brunt of chargeback losses. The most comprehensive guide to chargeback reason codes. 103. Discover uses unique codes to explain those reasons to merchants. Description: Reason Code: Explanation: Incorrect Card Number: American Express P01, P22; Discover IN; Mastercard 4808; Visa 12. 4. This code tells you why the customer or bank initiated the dispute. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. These chargebacks occur to resolve chargeback-related disputes between network members. This definitive guide comprise which chargeback reason encrypted with apiece of the four greater bill networks. American Express chargeback reason code F24 falls under the “Fraud” category. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. American Express . You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Each credit card network has its own list of reason codes banks must choose from. Most reason codes apply to any merchant, regardless of what’s being sold. Written to Chargeback Gurus. F24 F29 F30 Charge Amount Exceeds Authorization Amount No Valid Authorization. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and Miscellaneous. Stage 1: First Chargeback. The cardholder may be the customer or the someone who lent their card to a friend or relative. Card Member cancelled, refused or returned goods and/or. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. The other two chargeback reasons can be traced to very obvious causes — criminal activity and merchant mistakes. The cardholder alleges they never received the products or services. In fact, 91. Scenario 1 — upfront chargeback. These can be classified into three types of chargebacks. Authorization Reason Codes. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. How you respond is determined by the chargeback reason code: Embed This Graphic. Blog and Featured; Success Stories; Chargeback Reasoning Codes; BIN Look-up; eGuides and Reports;. Paymentology will submit the chargeback using the appropriate chargeback reason code. Prevented; Recover; Tools. Chargeback Reason Codes Visa. ”. 2 EMV Liability Shift. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. RR - Retrieval Request MID - Merchant Identification number PA - Pre-arbitrations NOTE: PayPal often cites reason codes from card Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. The use of this reason code indicates that the cardholder does not recognize the transaction as it appears on their bank statement. Overview. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. P04 – Charge Processed as Credit. Chargeback reason code. 6. compliance process depending on whether a chargeback right exists. 1UA01 Fraud – Card Present Transaction. CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. 10301. It’s typical to see fraud chargebacks roll in 2-3 months after the initial charges took place. 08. Yes. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. This can provide important information to fight the dispute. For example, Mastercard has a code which indicates a ‘consumer dispute. Stop order fulfillment so cost of goods isn’t lost. Reason codes vary by card brand. The way you manage chargebacks depends on your account setup. Each chargeback reason code has specific rules and documentation requirements. 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. If one member believed the other violated a Visa rule when handling a chargeback, they filed a pre-compliance chargeback for compensation. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. Customer Dispute. ). • Chargeback – a message sent via the card brand network to debit the merchant and credit the issuer for a cardholder dispute. Each card network maintains reason codes to cover all the disputes that qualify for. EXIDRL–IKVFDLIONCFKNQLOFC AMEX CODE A01Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein. If you believe you have received an ACH return in error, you can contact your bank. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Chargeback codes Chargeback codes Last updated: August 16, 2023 Below you'll find a list of chargeback codes along with an explanation of what each one. In short: yes. Amex Fraud Chargeback Reason Codes FR2 — Fraud Full Recourse Program. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. Definition. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 3: Goods or services were not received: C08: RG: 4855: 13. Chargeback . When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. Once filed, the merchant generally has 20 days to respond. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. This chargeback will include a description that provides additional information: Digital Goods $25 or Less. As expected, chargeback reason codes exemplified consumer sentiment. Once filed, the merchant generally has 20 days to respond to the chargeback. 04/09/14 Discover: DC, U02. Most chargebacks occur due to merchant error, true fraud and friendly fraud. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. Click the Update Chargeback link to edit the chargeback details. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. Vantage House“Visa has 28 different reason codes. Chargeback Reason Codes and Descriptions. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. Accepting recurring transactions is enough cause for acquiring banks and processors to label you as a “high-risk” merchant. This ranges anywhere from roughly 60 to 90 days after purchase. With that said, you still need to understand the reason codes with any chargebacks from Amex. 4853 – Cardholder Dispute – Credit Not Processed. 5 (1050) (Visa) Card-not-present fraud. There are also third-party tools available to conduct advanced analysis. Fight; Prevent; Get; Assets. Accessed October 31, 2022. Please see the below “cheat sheet” for the new 4 byte reason codes. A chargeback is the potential outcome of a disputed credit or debit card transaction. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. And according to The True Cost of Fraud report by LexisNexis, businesses end up paying $3. Example: 25. Chargeback. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature) According to a study released by Juniper Research, ecommerce businesses were projected to lose roughly $20 billion in 2021 due to fraud, an 18% increase over the $17. Chargeback Reason Codes Reason code are the first key to understanding the root causes . When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. So the company has more incentive to side with customer during cardholder. 2. Additionally, Amex uses a fifth "Miscellaneous" category. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. F24: No Cardmember Authorization: F29: Card Not Present:. Nothing immediately identifies a chargeback as being the result of first-party misuse. Blog. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and. During this process, the representative of the institution examines the reasons’ list. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. That’s 50% more time than what the major card networks allow. A new 4 byte reason code will be used moving forward. April 2018_Chargeback Reason Code Encyclopedia. Reason Code 02. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. The cardholder does not recognize the Merchant. AMERICAN EPRESS CARGEBACK CODES 6 REASON CODE 4513 Credit Not Presented Chargeback Reason Any of the following reasons: 1. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. F02. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. However, the disputes themselves are still categorized by the issuing bank based on the card network issuing the card. MDR also retired reason code 4840 – Fraudulent Processing of Transactions. ” This reason code is used when a cardholder claims that while they have previously shopped with the merchant, they did. See the list of reason codes below: Card Network. There are two parts to this. Check the chargeback reason code. 5 billion lost in 2020. Also, remember that the time frame for your response includes any processing required by the acquirer. There are several useful benefits of chargeback prevention alerts: Reduce chargeback rates by about 20-30% to help prevent chargeback threshold breaches. Q. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. To do so, you should open your Wallet app and tape “Apple Card. Amex Chargeback Reason Code F24: No Cardmember Authorization Description A card-not-present transaction occurs when cardholder files a complaint that he/she. 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. Below is a list of Mastercard chargeback codes used in eCommerce. If the order was genuinely not as described, then the cardholder has a case. Chargeback Reason Coded by Network - 2023 Guide. 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. Typical chargeback reason codes are: DA: Disputed amounts DD: Unearned (disallowed) discount amount Note. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. Additionally, Amex uses a fifth "Miscellaneous" category. ) A no-nonsense summary of evidence that proves transaction is legit. Partnerships; Integrations; About. Chargeback reason codes are one piece of evidence you can use to make your case. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Some credit card companies also include a short phrase describing the code and chargeback. While there are many chargeback reason codes, all chargebacks fall into one of three categories:What are chargeback reason codes? Mike Conway 2021-03-04T20:56:54+00:00. Both EFM and ECM measure compliance at the MID level. Let’s say you got a Visa chargeback with reason code 13. It gets worse. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. It’s even more frustrating if you don’t understand what the chargeback code means. Sometimes, customers get wrongly debited due to manual data entry errors by the merchant’s team. Chargeback prevention strategies vary based on the reason for the.