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.||
|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.||
|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.||
|75||4863||Transaction not recognizedThe cardholder doesn’t recognize or remember the transaction.||
|83||4837||Fraud (card-not-present)/No cardholder authorizationThe cardholder did not authorize the transaction.||