mastercard chargeback reason code 37. Expedited Dispute Resolution forms will not be allowed. mastercard chargeback reason code 37

 
 Expedited Dispute Resolution forms will not be allowedmastercard chargeback reason code 37 [noun]/* rēzən kōd / 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

Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. 6. Specifically, these updates only pertain to transactions that are charged back after Oct. 6. Mastercard chargeback reason code 4808 falls under the “Authorization” category. ”. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. July 26, 2023 10 min read As an e-commerce store owner, it's important to understand the concept of chargebacks and the role they play in your business. Only chargebacks with the following reason codes are eligible for Chargeback Protection: Reason Code: Definition: 10. 37: Filing notes: Type: Varchar; Unique: No; Blanks: Yes; Max length: 4000 characters; This is free form text about the Filing Reasons. . 5158. This chargeback reason code was retired by Visa in April 2018. It is subject to change and may not include every currently known dispute reason code. The chargeback process can last from one month to six months. This guide is updated regularly to reflect the latest rules and standards of Mastercard. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Description of Change Where to Look • Increasing the CVM Limits in St. Chargebacks. It takes more effort to convert 25 cards to cash, each valued at $20, than one gift card valued at $500. According to Nilson, 56% of global card transactions were done on Visa in 2015. 4853 – Cardholder Dispute – Digital Goods Purchase of $25 or Less. Friendly fraud was actually the #1 fraud threat concerning merchants in 2021. Reason code 37 is not allowed for AFD transactions with CAT Level 2. Documentation must be a direct result of. That doesn’t count sales involving debit and prepaid cards, which add nearly $2 billion more to the total. 1% + 10¢ Visa Business: 2. This code is now obsolete, and issuers have been instructed to use code 4834 instead. Depending on the bank, chargeback fees can range anywhere from $20 to $100. Please note that the most common Chargeback reason code for Allocation disputes is 10. 4808 Authorization-Related Chargeback. Expedited Dispute Resolution forms will not be allowed. The program focuses on small ticket and digital goods merchant fraud transactions. An example of a chargeback is when a credit card holder contacts their bank to dispute a charge that was made on their account without their permission. It’s not unreasonable, though; after all, if you’re the common denominator. paper processing and mailing costs. 00: The amount of the transaction. Always use the correct cardholder verification method—signature, PIN, etc. Retry after 10 days. Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders. for chargeback reason code 4863 (Cardholder Does Not Recognize). The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. 3), the acquirer has 18 days to respond to the dispute • For Visa Collaboration reason codes (RC 12. . Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Expedited Dispute Resolution forms will not be allowed. wessneijder • • 6 yr. R13 No Reply. The following are some examples: Visa Reason Code 13. 10/21/14 Updated Chargeback Time Frames: Added Reason Code 05; Addendum Reason Code PM; Changed TF time frame from 120 days to 540 days. Fewer Chargebacks: Alipay's unique settlement mechanism bypasses conventional chargeback processes. AT Authorization Noncompliance. The Mastercard Dispute Resolution Initiative is designed to improve the process of handling credit card disputes, reduce the time it takes to resolve them, and prevent many illegitimate disputes from being filed. Acquirer Use of Message Reason Code 7623. How the chargeback process works. This cannot change once the value is set. Reason codes are important to help merchants address recurring. Network Processing ® ©What is Mastercard chargeback reason code 4837, no cardholder authorization, and how can you win it? Don’t waste time defending chargebacks, make your company more profitable by preventing them. Testing. It is a valuable resource for anyone involved in the payments industry. Visa chargeback reason code 53 falls under the “Consumer Disputes” category. 1, which covers duplicate processing errors, and 12. Some 90% of merchants said “cardholder abuse of the chargeback process” was a leading concern for their business. . These codes tell you why the transaction is disputed. 1 Quick Reference Lead. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. 4, 37, F29, U02:. In fact, CNP fraud now accounts for a staggering 80% of all fraudulent transactions in the US. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. UA10 Request Transaction Receipt (swiped card transactions) UA11 Cardholder claims fraud (swiped transaction, no signature)Goods / Services Damaged or Defective. 1 to RC 11. 0% ratio. New Mastercard Chargeback Rules. Changes to “no cardholder. The shorthand description is “Canceled Recurring or Digital Goods Transactions. Otherwise, the bank may reject the transaction. Field name: reasonCode. Mastercard is reducing the chargeback filing time frame specifically for issuers from 120 to 90 days, in cases involving Mastercard chargeback reason code 4834 (Point of Interaction Error). They utilize bank identification numbers in the range between 34**** and 37. Based on the information provided, Paymentology will investigate the transaction being disputed. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. Though the credit card networks have a vast choice of codes, loopholes still happen. The shorthand description is “Goods/Services Damaged or Defective. Visa chargeback reason code 71 falls under the “Authorization” category. The merchant did not receive any returned merchandise. Common Point of Purchase: Data stolen from a merchant’s system is used to make fraudulent transactions. 11, 16. Regardless, merchants must respond to the given reason code. How many chargeback reason codes are there? Among the four major credit card networks, there are a total of 151 reason codes. These codes are notoriously inaccurate; in fact, first-party fraud is predicated on reason codes being inaccurate. Mastercard Issues Guidance Clarifying How to Manage Chargebacks During the Crisis. A CVV2 code is a 3-digit code located on the back of a Visa credit, debit, or prepaid card. Chapter 5: Mastercard Chargeback Reason Codes. Monitoring programs temporarily suspended; July – October 2019. Being familiar with these codes will help. But cardholders and merchants have different time limits. September 2011: 5. Added the following fields - Store ID, Credit Card Chargeback Reason Code. 70% + 10¢ Visa Credit Card: Keyed Rate (card not present) Visa Credit Basic: 1. 90 Days. ago. Representment Documentation. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Chargeback. The following reason codes require compelling evidence: Fraudulent transaction (83) Fraud/card absent environment (1040) Merchandise/services not received (1310) Code 4807: Fraudulent Card-Present Transaction. The bank or credit card provider will issue a reason code based on any of these four categories based on the cardholder’s claim when they challenge a transaction and initiate a dispute. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. This scenario applies when the arbitration was raised by either the. The test payment should be authorized and then captured within 5 minutes. Reason Code 04. Card Absent - Fraud Dispute: 10. 2 Declined Authorization. 2% decrease: Georgia: 1. Reason Code 53 Re-presentment Conditions. 2 Other Fraud – Card Present Environment 81(1) 10. The claim the cardholder is making here is that they did not authorize the transaction and are alleging their card was used fraudulently or that the merchant pushed a transaction through without. The sales receipt and/or date and amount of the authorization if other than the transaction date. Description of Change Where to Look AN 1193—Revised Standards for the Chip Liability“Visa has 28 different reason codes. For MasterCard reason code 4853, provide documentation to support that the chargeback is remedied or invalid through one of the following: The transaction was not a recurring transaction. The issuer generates a claim, then transmits it to the merchant’s acquirer, as well as to Visa, as a means of noting all reported fraud incidents tied to the merchant. 11, 16. 11, 16. While the format of chargeback reason codes. 4853 – Cardholder Dispute – Credit Not Processed. 4849 – Questionable Merchant Activity – Questionable Merchant Audit Program (QMAP). This is a fairly common chargeback reason that can. 3 – Not As Described or Defective Merchandise/Services; Mastercard Reason Code 4853 – Goods or. 4 chargebacks. Chargeback time frames - A specific period of time during which a chargeback can be raised. 196Our ultimate Discover merchant chargeback guide contains all Discover chargeback reason codes with an in-depth explanation. FIGURE 2-1 Retrieval Request Cycle The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. UA01 Fraud – Card Present Transaction. 60 due to merchandise, fees, overhead, and other sources of loss. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. 1 for Visa transactions, or reason code 4834 for Mastercard. 3: Incorrect Currency. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. 4853 – Cardholder Dispute – Goods or Services Not Provided. What are reason codes, and why are they important? How to use reason codes. . American Express chargeback reason code C04 falls under the “Card Member Disputes” category. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. Corresponding Retrieval Reference Numbers mapped for the same Card Number and ARN in Chargeback application. While customers can still secure payment reversals, your business won't suffer from a surge in chargebacks. Ready to Start Preventing. com. 6. To subscribe and learn more about the free online chargeback management system, or contact Chase Paymentech Client Services at 1. Chargeback Reason Code. Mastercard Reason Codes the Complete Merchants Guide 2021-2022 Form. . Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. 44%: 58. The small business’ guide to credit card chargeback codes. Goods / Services Damaged or Defective. Chargebacks are a reality of running a small business, and a. FR2 Fraud Full Recourse Program. The situation is only growing worse; according to the 2022 Chargeback Field Report, six out of every ten chargebacks issued. Reason codes are alphanumeric strings of text provided in a chargeback notification as a means of explaining the cause for the dispute. Step #2 | Report the Scam to PayPal. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just experienced with Travel Insurance Resolution. MasterCard Chargeback Reason Codes: Authorization Issues (Codes 3000 - 3011) Authorization issues occur when a merchant fails to obtain proper authorization for a transaction or when the transaction amount exceeds the authorized amount. Reason Code 02. Credit card authorization is a notification given by a credit or debit card issuer (i. The EFTA was first enacted in 1978. Chargebacks. July 2011 Chargeback and Exception Processing Guide 3 The Chargeback Cycle. In some cases, the agency will have no recourse for disputing a chargeback initiated by MasterCard or Visa. It indicates that the merchant has not properly deposited the transaction amount within the card network’s acceptable time frame and a chargeback will be issued as a result. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. The merchant breached predetermined chargeback thresholds. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. For example, if the agency fails to provide. You must keep in mind, though: the reason code seldom gives the full story behind the chargeback. Chapter 3: Chargeback Reason Codes Guide. The bank will investigate the claim and, if necessary, reverse the charge and. 4 For MasterCard Reason Code 37, a manually imprinted and signedMastercard chargeback reason code 4831 falls under the “Point-of-Interaction Error” category. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. 4853 – Cardholder Dispute – Goods or Services Not Provided. 2 for Visa and Reason Code 4850 for Mastercard). The shorthand description is “Declined Authorization. 4853 Cardholder Dispute. 2, 41, C28, AP: Not as Described: 13. 0: Changed report name from Downloadable Dispute Report to Case Report. If the dispute is successful, funds are taken from your merchant account and a strike is made. 1 Chargeback Handling Guidelines 20 10. Credit Card Activated Telephone Transaction: 59: 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. Once the new evidence is received and reviewed, the chargeback reason code may reflect information that the merchant left out or falsified. Mastercard Chargeback Reason Codes Fraud 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transactions 4849 Questionable Merchant Activity 4863. 1: Services not provided or merchandise not received: VCR Dispute Reason Code 13. The shorthand description is “Credit Not Processed. FR6 Partial Immediate Chargeback Program. 265. MasterCard uses four-digit numbers for their chargeback reason codes, each beginning with 48 as the first two digits. Get access to. Chargeback reason code 4853/Credit Not Processed applies to situations where customers claim they are owed a refund or other credit that has not appeared, but do not feel the issue being resolved by the merchant. 3. Arbitration Chargeback Message Reason Code Removed first bullet in Supporting DocumentsMasterCard Chargeback Reason Code 4842 — Late Presentment. INTRODUCTION 1. What is Mastercard chargeback reason code 4871? Mastercard chargeback reason code 4871 falls under the “Fraud” category. 1 for Visa, 4842 for Mastercard, and LP for Discover). Chargebacks occur. mastercard chargeback reason code 37. Mastercard Reason Code Description. Step 2 | Identify the Reason Code. Secure your business from login to chargeback. July 2020. 4849: Questionable Merchant Activity. What is Mastercard chargeback reason code 4807? Mastercard chargeback reason code 4807 falls under the “Authorization” category. For more information on these indicators, check out our full article on Discover reason codes. Visa requires processors and banks use to this system for multiple tasks, including challenging initial chargeback results. This reason code means that the cardholder is claiming that they did not authorize or participate in a card-not-present transaction, and therefore it must be fraudulent. We say the given reason because it may or may not reflect the true reason. Unfortunately, true fraud is not the only cause of. “It’s a lot tougher with. In such circumstances, Mastercard may allow consumers to reverse a transaction by filing a chargeback. This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and believes that the transaction was fraudulent. The bank files that disagreement on the cardholder’s behalf, overturning the sale, then claws the funds back from the merchant and. The small business’ guide to credit card chargeback codes. 4854 Cardholder Dispute—Not Elsewhere Classified (U. 4860 Credit Not Processed. 4863: Cardholder does not recognize. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. 3, 13. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Travel & Hospitality. 37: No Cardholder Authorization. 11. Credit Card Dispute. For example, if their card was stolen or the magnetic stripe is copied and used without their knowledge. UA02 Fraud – Card Not Present Transaction. 4866: Fraud Chip Card Counterfeit Transaction: A cardholder is claiming that they did not authorise or participate in a transaction that you processed. The aim of CE 3. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. . If you believe you have received an ACH return in error, you can contact your bank. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. The act serves as the legal basis for the chargeback process. Elimination of “cardholder does not recognize” reason code; April 2019. The actual underlying cause of this chargeback is usually either true fraud or friendly fraud. Reason Code 53 re-presentments must be. Credit Card Dispute; Chargeback Reason Codes; Prevent. R21 Late Chargeback Response R22. A reason code is how banks categorize the reason for a chargeback. The better news: Merchants have the option to challenge said chargebacks and, when successful, reclaim money lost. ”. 30% + 10¢ Visa Rewards Signature Preferred: 2. ”. Visa chargeback reason code 13. This liability shift essentially provides merchants. Similar disputes on Visa cards would use Visa Reason Code 12. American Express chargeback reason code F14 falls under the “Fraud” category. July 2011 Chargeback and Exception Processing Guide 3 The Chargeback Cycle. . Card Number: Alphanumeric: The first 6 digits, followed by. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. By default, payments should be auto-captured, but if this fails, you have the option to manually. 3. 0 is to make the chargeback process more efficient, transparent, and fair. When a cardholder disputes a transaction, their issuing bank reviews. 4808: This code can refer to: Account Number Not on File. Reason code explanations can be found on MasterCard's website. Whatever the case, the merchant may have made a mistake or forgotten to. The fact is, that this type of reason code is typically harder to fight than other types of chargebacks. Card Recovery Bulletin Authorization Visa Code: 11. In some cases, the agency will have no recourse for disputing a chargeback initiated by MasterCard or Visa. What is Mastercard chargeback reason code 4837? Mastercard chargeback reason code 4837 falls under the “Fraud” category. It also regulates the way banks must respond to consumer complaints and sets limits on liability for lost or stolen debit cards. Reason Codes: 23 / 37 / 61 / 83 Account numbers do not match After swiping a card, if the card number displayed does not match the number embossed on the face of Do you want to know how to handle chargebacks as a merchant? Download the Mastercard Chargeback Guide - Merchant Edition, a comprehensive resource that explains the chargeback process, the reasons, the time frames, and the best practices to prevent and dispute chargebacks. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Products. The chargeback can be for the total transaction amount or a lesser amount. Invalid Reasons for a Dispute. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. Reason code 4853 indicates the broad category “Cardholder Dispute,” which in general means the cardholder was not happy with a purchase and blames the merchant. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the checkout. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. Addition of pre-arbitration cycle; April 2020. Reason code 4855 chargebacks must be processed within 120 calendar days from the settlement date. Step 2: Customer initiates the chargeback. Duplicate Processing: 34: Card Not Valid or Expired: 35: No Cardholder Authorisation: 37: Fraudulent Processing of Transactions: 40: Cancelled Recurring Transaction: 41: Late Presentment: 42:2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Without this, the test dispute won't be created. Retail chargebacks occur when consumers dispute credit card transactions that were used to pay for retail goods. 0 to 5. This chargeback reason code means that the cardholder was not able to recognize the charge on their bank statement and believes that the transaction was fraudulent. 20% + 10¢ Visa Corporate: 2. The chargeback reason codes below explain why this happened. manual processing by uploading chargeback documents instantly. . It allows an independent third party (card network) to review the case and make a. Code. 2: Cancelled recurring transaction: VCR Dispute Reason Code 13. . 5 Visa Fraud Monitoring Program. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. 195 Acquirer Use of Message Reason Code 7627. This reason code may also be used for. Mastercard Reason Code Description Code; Requested/Required Information Illegible or Missing: 2:. 6. ’ All 2. A02 No Valid Authorization. Reason code 4853 indicates the broad category “Cardholder Dispute,” which in general means the cardholder was not happy with a purchase and blames the merchant. for chargeback reason code 4863 (Cardholder Does Not Recognize). for chargeback reason code 4863 (Cardholder Does Not Recognize. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,Mastercard does not approve pre-arbitration cases unless the cardholder can provide further evidence to prove their claim. 4% decrease:. Although there have not been major updates to Mastercard’s chargeback rules in 2022, there were a few notable changes in 2021. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of. Versions Affected: v5, v6. The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. pdf from ACC 103 at Stevens-Henager College. Mastercard issuing banks will no longer be able to bundle more than one transaction into a single dispute case. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. 3: Not as described or defective. 4863: Cardholder does not recognize. This means providing evidence that will undermine the cardholder’s claim. FR4 Immediate Chargeback Program. Merchants will no longer receive a credit when the First Chargeback Response is sent to the issuing bank for review; however, an adjustment will be. 0: Updated report version from 1. providing the credit card information is the rightful cardholder, nor is it an unconditional promise or guarantee that you as a merchant will not be subject to a chargeback or a debit. Region Only) 4855 Goods or Services Not Provided. Mastercard chargeback reason code 4840 falls under the “Fraud” category. Global chargeback volume topped 615 million cases in 2021, and was estimated to cost merchants nearly $117 billion in revenue. Banks may also include customer claims on Checks, ACHs, etc under "Disputes". Visa groups its various reason codes into several broad dispute categories. Mastercard chargeback collaboration period is between 24-72 hours. Multiple Authorization Requests. 4849 – Questionable Merchant Activity – Mastercard Rule 3. However, Visa is the largest card brand in both the United States and the world. Some acquirers, processors or PSPs may just provide the last two digits of the reason code in their data reporting, as that is all that is needed to distinguish between the reason codes and recognize the chargeback description. 5 billion in 2023. MasterCard uses four-digit numbers for their chargeback reason codes, each beginning with 48 as the first two digits. See the SNAD filing reason codes section for valid values. 4866: Fraud Chip Card Counterfeit Transaction: A cardholder is claiming that they did not authorise or participate in a transaction that you processed. Create this form in 5 minutes! Use professional pre-built templates to fill in and sign documents. If the merchant attempts to force a transaction through after the presentment window, the bank may respond with a “late presentment” chargeback. Less than 20% of merchants noted a slight decline in Visa chargebacks after VCR, while over 55% reported no decline in chargebacks. 4834. Reason Code: Numeric: Code for the chargeback request (see below). [noun]/* kre • dǝt • kard • dis • pyōōt/. There are multiple situations in which this can occur. In fraud cases, the cardholder’s liability is limited by law to $50 for a credit card transaction. Chargebacks were originally initiated as a means of providing consumer protection from fraud. 2025—Mastercard Rebranding of the Recurring Payment Cancellation Service” that included. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. The chargeback can be for the total transaction amount or a lesser amount. . If you ask your bank or credit union for. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRR Mastercard will eliminate dispute Reason Code 63 “Cardholder Does Not Recognize”. Paymentology will submit the chargeback using the appropriate chargeback reason code. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. Defending Chargebacks 20 10. In 2020, MasterCard revised their chargeback rules and eliminated the “second chargeback” step. . 3 Other Fraud – Card Present Environment 83(1) 10. This guide is updated regularly to reflect the latest rules and. This industry faces a higher average chargeback ratio due to factors like cancellations, changes in travel plans, and service dissatisfaction. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. Some acquirers, processors or PSPs may just provide the last two digits of the reason code in their data reporting, as that is all that is needed to distinguish between the reason codes and recognize the chargeback description. Learn more about Mastercard chargeback reason codes. Description: Reason code for applying handling fee.