What is a dispute?
A dispute is a cancellation of a payment that is either initiated by the bank or by the customer of your services. There are a number of reasons as to why a dispute can be opened. There are a variety of reasons for a dispute to be open, and not all are defendable. Please find examples at the bottom of the article.
How to defend a dispute?
Payment administrators in your club will receive a notification if a dispute is opened. If you want to defend it, please find the Disputes page available in the Payments menu.
Here you will see your current open disputes, and the reason behind them.
In reality, only customer initiated disputes will have a good chance of you winning - here any waiver or agreement of purchase can be a good defence document to upload through the disputes widget.
Reason Code | Reason | Description | Defendable |
4853 - Legacy code 4855 | Services not provided/Merchandise not received | The cardholder claims that the merchandise or services they ordered were not received, or they canceled the order because they didn't receive the merchandise or services within the expected delivery date (or merchandise was unavailable for pick-up). | ✓ |
4853 - Legacy code 4841 | Canceled recurring transaction | A recurring transaction was processed after it was canceled, or the cardholder's account was closed. | ✓ |
4853 | Goods not as described/defective | The goods or services were either not as described or defective. The goods either arrived broken or could not be used for the intended purpose. | ✓ |
4853 | Counterfeit merchandise | The merchandise was identified as counterfeit by the customer or a third party, for example, a customs agency. The goods were not produced by the authorized manufacturer and infringe on intellectual property rights. | ✓ |
4853 - Legacy code 4859 | Addendum dispute or "no-show" hotel charge was billed | The cardholder claims that they have been charged for a no show after they canceled the service. | ✓ |
4853 - Legacy code 4855 | Purchase transaction did not complete | The cardholder claims that they didn't use the merchandise/service as they believed the transaction was not processed. | ✓ |
4853 - Legacy code 4860 | Credit posted as a purchase | The cardholder claims that the credit was processed as a debit. | ✓ |
| Credit not processed | The cardholder contacted their issuer claiming one of the following: You agreed to provide a refund but failed to process that. You didn't disclose your refund policy at the time of the transaction and didn't accept returns or cancellation of the goods or services. You didn't respond to the return or cancellation of the goods or services. You posted a credit for a reduced amount without proper disclosure to the cardholder. You didn't issue a Value Added Tax Credit. | ✓ |
Here are all three tables:
Authorization
Reason Code | Reason | Description | Defendable |
4802 / 4808 | Requested/Required Authorization not obtained | The payment could not be authorized. | ✗ |
4807 | Warning Bulletin File | The payment could not be authorized. | ✗ |
4812 | Account Number Not on File | The account number does not correspond to the account numbers the issuer has on file for this cardholder. | ✗ |
4835 | Card Not Valid or Expired | A transaction completed with an expired card. | ✗ |
4859 | ATM Dispute | The cardholder complained to the issuer that they did not receive, or only received in part, funds charged to their account as a result of an automated cash disbursement. | ✗ |
Fraud-related
Reason Code | Reason | Description | Defendable | Timeframe | Defense Requirements |
4837 | No Cardholder Authorization | The cardholder states that they, nor anyone authorized by them, engaged in the transaction. | ✓ | 40 days from receiving the NoC | No cardholder authorization |
4840 | Fraudulent Processing of Transactions | The cardholder claims that a fraudulent purchase was made while the card was in the cardholder's possession at the time of the transaction. | ✗ | ✗ | ✗ |
4849 | Questionable merchant activity | The acquirer processed a transaction that was later listed in a Mastercard Global Security Bulletin for violating GMAP, QMAP, or reported to SAFE. | ✗ | ✗ | ✗ |
4863 | Cardholder does not recognize – Potential Fraud | The cardholder claims that they do not recognize the transaction and did not authorize the charge to their credit card. | ✗ | ✗ | ✗ |
4870 | Chip Liability Shift | The cardholder claims that they were in possession of a valid card on the date of transaction, but they did not authorize or participate in the transaction. | ✗ | ✗ | ✗ |
4871 | Chip/PIN Liability Shift | The cardholder claims that they were not in possession of a valid card on the date of transaction, and they did not authorize or participate in the transaction. | ✗ | ✗ | ✗ |
4999 | Domestic Chargeback Dispute (Europe region only) | The issuer can supply this message for a domestic chargeback that doesn't meet another chargeback categorization. | ✓ | 40 days from receiving the NoC | Merchandise not received |
Visa Reason Codes
Reason Code | Reason | Description | Defendable |
13.1 | Merchandise/Services Not Received | The cardholder did not receive the merchandise/services because you were unwilling or unable to provide these. | ✓ |
13.2 | Canceled Recurring | A recurring transaction was processed after it was canceled or that the cardholder's account was closed. | ✓ |
13.3 | Not as Described or Defective Merchandise/Services | The cardholder claims that either the goods were not as described or the quality of the merchandise or services is different. | ✓ |
13.4 | Counterfeit Merchandise | The merchandise was identified as counterfeit by a third party. | ✓ |
13.5 | Misrepresentation | The cardholder's bank received a notice from the cardholder claiming that the terms of the sale were misrepresented. | ✓ |
13.6 | Credit not Processed | The cardholder's bank received a notice from the cardholder claiming that they received a credit or voided transaction receipt that has not been processed. | ✓ |
13.7 | Canceled Merchandise/Services | The cardholder's bank received a notice from the cardholder stating that they returned merchandise or canceled services, but the credit has not appeared on the cardholder's Visa statement. | ✓ |
13.8 | Original Credit Transaction Not Accepted | The original credit was not accepted. | ✗ |
13.9 | Non-Receipt of Cash or Load Transaction Value | The cardholder claims that they did not receive cash or only received partial cash at an ATM withdrawal machine. | ✗ |