Chargeback Reason Codes Associated with Friendly Fraud

Chargeback fraud is commonly referred to as friendly fraud because the assault comes from a traditionally non-hostile enemy–the merchant’s own customers. A customer contacts the bank to inaccurately report a genuine charge as fraud.

Most merchants view this as a form of shoplifting. While there are instances where the fraud might have been accidentally committed, consumers often set out with the intention of getting something for free.

The following reason codes are commonly associated with friendly fraud.

Visa MasterCard Title and Explanation Causes
30 4855 Services not provided or merchandise not receivedMerchandise or services were not received or not received by the agreed upon delivery date.
  • The cardholder experienced buyer’s remorse, and regretted the purchase.
  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.
  • The cardholder didn’t understand the shipping process and expected delivery prematurely.
41 4841/4850 Cancelled recurring transaction/Installment billing disputeA recurring transaction was processed after the cardholder requested termination, the account had been closed, the charge exceeded the predetermined amount, or the merchant failed to notify the cardholder of the upcoming charge.
  • The cardholder failed to withdraw permission to charge the account or cancel a membership fee but didn’t want to pay.
  • The cardholder denies receiving notification of a billing change.
  • The cardholder intentionally canceled a card account to avoid payments.
53 4853 Not as described or defective merchandiseThe merchandise was: damaged or defective upon its arrival, not the same as shown (online) or described (telephone), unsuitable for the intended purpose.
  • The cardholder experienced buyer’s remorse, and regretted the purchase.
  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.
75 4863 Transaction not recognizedThe cardholder doesn’t recognize or remember the transaction.
  • The merchant’s name (billing descriptor) was incorrect or unrecognizable.
  • The cardholder didn’t remember making the purchase.
83 4837 Fraud (card-not-present)/No cardholder authorizationThe cardholder did not authorize the transaction.
  • The cardholder experienced buyer’s remorse and regretted the purchase.
  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.
  • The cardholder didn’t know someone else with access to the card (child, spouse) had made the purchase.

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