Chargeback Reason Codes Associated with Criminal Fraud

Determined fraudsters are everywhere. Because fraud can cause significant profit losses, it is important to recognize potential fraud and take the necessary steps to prevent it from happening.

There are several reason codes that can result from fraudulent or unauthorized activity.

Visa MasterCard Title and Explanation Causes
62 4870/4871 Counterfeit transaction/Chip liability shift/Chip/PIN liability shiftThe cardholder did not participate in the transaction (a fraudster made a duplicate or counterfeit copy of the card).

**card-present transactions only

  • The merchant did not compare the first four embossed digits to the printed digits.
  • The merchant received authorization without providing required data.
  • The use of an EMV chip card resulted in a fraudulent transaction at a non-hybrid terminal.
  • The use of an EMV chip card resulted in a fraudulent transaction at a hybrid terminal (with or without a PIN pad).
81 4837 Fraud (card-present)/No cardholder authorizationThe merchant processed a transaction without the cardholder’s consent or it was charged to a fictitious account.

**card-present transactions only

  • The merchant processed a transaction instigated by someone other than the cardholder.
83 4837 Fraud (card-not-present)/No cardholder authorizationThe cardholder did not authorize the transaction.
  • The transaction was placed by someone who had fraudulently obtained the account information.

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