7.4. MC/VISA/AmEx Fraud Regulation

Definitions

Country ID

Country

CTR

MasterCard’s or Visa’s Chargeback-to-Transaction Ratio

FSDVR

MasterCard’s Fraud-to-Sales Dollar Volume Ratio

FSR

Visa’s Fraud-to-Sales Ratio

GMAP

MasterCard’s Global Merchant Audit Program

CMM

MasterCard’s Chargeback-Monitored Merchant

ECM

MasterCard’s Excessive Chargeback Merchant

MCMP

Visa’s Merchant Chargeback Activity Monitoring

HRCMP

Visa’s High Risk Chargeback Monitoring Program

GMCMP

Visa’s Global Merchant Chargeback Monitoring Program

GMFPP

Visa’s Global Merchant Fraud Performance Program

RMFPP

Visa’s Regional Merchant Fraud Performance Program

International transaction

Transactions where the card was issued in the different country then the merchant is located

Regional transaction

Transactions where the card was issued in the same region as the merchant is located

GoldenApple Flags and EFT possible Penalties

EFT

PNE Flag

Conditions

Penalties

MasterCard

CMM

  • CTR 1.00%

  • Chargebacks Count 100

  • Period calendar month

  • Report Submission Fee USD 50

  • Late Report Submission Fee USD 5,000 per month

  • Chargeback Fee USD 0

ECM

  • CTR 1.50%

  • Chargebacks Count 100

  • Period two consecutive calendar months

  • Report Submission Fee USD 100

  • Late Report Submission Fee from USD 500 to USD 1,000 per day

  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • Period first through sixth month

  • Report Submission Fee USD 100

  • Late Report Submission Fee from USD 500 to USD 1,000 per day

  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • Period seventh through twelfth month

  • Report Submission Fee USD 100

  • Late Report Submission Fee from USD 500 to USD 1,000 per day

  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • USD 50,000 per month after 12 months

GMAP Step 1

  • FSDVR 3.00 - 4.99%

  • Frauds Count 3

  • Frauds Amount USD 3,000

  • Period calendar month

  • Chargeback any fraud transaction NO

GMAP Step 2

  • FSDVR 5.00 - 7.99%

  • Frauds Count 4

  • Frauds Amount USD 4,000

  • Period calendar month

  • Chargeback any fraud transaction NO

GMAP Step 3

  • FSDVR 8.00%

  • Frauds Count 5

  • Frauds Amount USD 5,000

  • Period calendar month

  • Chargeback any fraud transaction YES

  • MasterCard, at its sole discretion, may extend the chargeback liability period to 12 months

Visa

MCMP

  • CTR 3.00%

  • International (or Regional) Chargebacks Count 100

  • Period any month

  • Chargeback Fee USD 0

GMCMP

  • CTR 2.00%

  • International (or Regional) Chargebacks Count 200

  • International (or Regional) Transaction Count 200

  • Period months 1-3

  • Chargeback Fee USD 0

  • Period months 4-9

  • Chargeback Fee USD 100 - USD 200

  • Period beyond month 9

  • Chargeback Fee USD 100 - USD 200

  • Penalty USD 25,000

HRCMP Step 1

  • CTR 2.00%

  • Period months 1-3

  • Chargeback Fee USD 100

  • Period months 4-6

  • Chargeback Fee USD 150

  • Period month 7 and subsequent months

  • Chargeback Fee USD 150

  • Penalty disqualify

HRCMP Step 2

  • CTR 4.00%

  • International (or Regional) Chargebacks Count 3000

  • Merchant is assessed US $1 million or more in GMCMP fees

  • Period any month

  • Penalty disqualify

GMFPP Step 1

  • FSR 2.50%

  • International Fraud Transaction count 25

  • International Fraud Transactions amount USD 25,000

  • Period month 1-3

  • Period month 3 and above

  • Penalty USD 5,000 + USD 5,000 for every next month

  • Chargeback any fraud transaction YES

GMFPP Step 2

  • FSR 2.50%

  • International Fraud Transactions amount USD 250,000

  • Period month 1 and above

  • Penalty USD 5,000 + USD 5,000 for every next month

  • Chargeback any fraud transaction YES

RMFPP Step 1

  • FSR 7.50%

  • Regional Fraud Transaction count 15

  • Regional Fraud Transactions amount USD 15,000

  • Period month 1-3

  • Period month 3 and above

  • Chargeback any fraud transaction YES

RMFPP Step 2

  • FSR 20.00%

  • Regional Fraud Transaction count 20

  • Regional Fraud Transactions amount USD 40,000

  • Period month 1 and above

  • Chargeback any fraud transaction YES

AmEx

AECP

  • CTR 3.00%

  • Period 3 months and above

  • USD 5 per Disputed Charge if the Merchant is in the Immediate Chargeback Program

  • USD 15 per Disputed Charge if the Merchant is not in the Immediate Chargeback Program

Fraud programs description

MasterCard Excessive Chargeback Program

MasterCard designed the Excessive Chargeback Program (ECP) to encourage each Acquirer to closely monitor, on an ongoing basis, its chargeback performance at the Merchant level and to determine promptly when a MasterCard Merchant has exceeded or is likely to exceed monthly chargeback thresholds.

See ECP Manual

ECP Definitions

MasterCard’s Chargeback-to-Transaction Ratio (CTR)
The CTR is the number of MasterCard chargebacks received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s MasterCard sales Transactions in the preceding month acquired by that Acquirer. (A CTR of 1% equals 100 basis points, and a CTR of 1.5% equals 150 basis points.)
MasterCard’s Chargeback-Monitored Merchant (CMM)
A CMM is a Merchant that has a CTR in excess of 100 basis points and at least 100 chargebacks in a calendar month.
MasterCard’s Excessive Chargeback Merchant (ECM)
A Merchant is an ECM if in each of two consecutive calendar months (the “trigger months”), the Merchant has a minimum CTR of 150 basis points and at least 100 chargebacks in each month. This designation is maintained until the ECM’s CTR is below 150 basis points for two consecutive months.
Tier 1 ECM
A Merchant is a Tier 1 ECM during the first through sixth month (whether consecutive or non-consecutive) that the Merchant is identified as an ECM.
Tier 2 ECM
A Merchant is a Tier 2 ECM during the seventh through twelfth month (whether consecutive or non-consecutive) that the Merchant is identified as an ECM.

MasterCard Global Merchant Audit Program

The Global Merchant Audit Program (GMAP) uses a rolling six months of data to identify MasterCard Merchant locations that, in any calendar month, meet the following criteria set.

See SPME Manual

Tier 1 - Informational Fraud Alert

  • Three fraudulent Transactions

  • At least USD 3,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 3% and not exceeding 4.99%

Tier 2 - Suggested Training Fraud Alert

  • Four fraudulent Transactions

  • At least USD 4,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 5% and not exceeding 7.99%

Tier 3 - High Fraud Alert

  • Five fraudulent Transactions

  • At least USD 5,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 8%

MasterCard, at its sole discretion, may extend the chargeback liability period to 12 months. MasterCard reserves the right to list the Acquirer ID, Acquirer name, Merchant name, Merchant location, and chargeback liability period of any Tier 3 Merchant in a Global Security Bulletin. When MasterCard lists the Acquirer and Merchant information in a Global Security Bulletin, Issuer chargeback rights will apply. Each Issuer then has a right to use message reason code 4849 - Questionable Merchant Activity to charge back to the Acquirer some fraudulent Transactions.

MasterCard’s Fraud-to-Sales Dollar Volume Ratio (FSDVR)
The FSDVR is the amount of MasterCard frauds received by the Acquirer for a Merchant in a calendar month divided by the amount of the Merchant’s MasterCard sales Transactions in the same month acquired by that Acquirer.

Visa Merchant Chargeback Activity Monitoring

Visa’s Chargeback-to-Transaction Ratio (CTR)
The CTR is the number of Visa chargebacks received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s Visa sales Transactions in the same month acquired by that Acquirer. Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program”, are excluded from program monitoring.

An Acquirer must monitor the Chargeback-to-Transaction volume ratio of its Merchants and identify any Merchant that:

  • Receives more than 100 Chargebacks per month

  • Exceeds a Chargeback-to-Transaction volume ratio of 3%

Visa Global Merchant Chargeback Monitoring Program Overview

Visa monitors Merchant Outlets and Acquirers that generate an excessive level of international Chargebacks through the Global Merchant Chargeback Monitoring Program, as noted below and as specified in the Visa Global Merchant Chargeback Monitoring Program (GMCMP) Program Guide. Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program,” are excluded from program monitoring.

A Merchant Outlet is identified in the Global Merchant Chargeback Monitoring Program if it meets or exceeds all of the following monthly performance activity levels:

  • 200 international Chargebacks

  • 200 International Transactions

  • 2% ratio of international Chargebacks to International Transactions

Visa may modify or create new monthly performance levels to respond to different Chargeback and fraud trends that emerge.

Global Merchant Chargeback Monitoring Program Handling Fees
Visa assesses an Acquirer a Chargeback handling fee of US $100 for each international Chargeback received for each identified Merchant Outlet once the Merchant has been placed in the Global Merchant Chargeback Monitoring Program. Visa collects the Chargeback handling fee from the Acquirer and disburses US $70 to the Issuer that initiated the Chargeback through the Visa Integrated Billing Statement. Visa retains the balance as an administration fee. If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer an increased Chargeback handling fee not exceeding US $200 for each international Chargeback received for its Merchant. Visa may, at its discretion, assess the Acquirer Chargeback handling fees for Trailing Chargeback Activity that occurs up to 4 months after Merchant termination, regardless of sales volume.
Global Merchant Chargeback Monitoring Program Penalties
Visa assesses Global Merchant Chargeback Monitoring Program penalties to the Acquirer, as described in the following tables.

Penalties for Global Merchant Chargeback Monitoring Program - Merchant-Level Thresholds

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, in months 1-3 (month 1 = initial notification)

  • Workout Period 1

  • No fee

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, in months 4-9

  • US $100 per international Chargeback for every month the Merchant meets or exceeds the program thresholds 1

  • If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant 2

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, beyond month 9

  • US $100 per international Chargeback for every month the Merchant meets or exceeds the program thresholds 1

  • If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant 2

  • Acquirer is eligible for US $25,000 review fee

  • Visa may initiate Merchant disqualification processes against a Merchant Outlet and/or its principals

1 The Workout Period is not applicable for Acquirer-level thresholds, High-Risk Merchants, or High-Brand Risk Merchants, as specified in High-Brand Risk Merchant Category Codes

2 Visa allocates US $70 of each fee to the Issuer via a Funds Disbursement

Visa High Risk Chargeback Monitoring Program

A Merchant required to use one of the following Merchant Category Codes is considered high-brand risk:

  • 5962, “Direct Marketing-Travel-Related Arrangement Services”

  • 5966, “Direct Marketing-Outbound Telemarketing Merchants”

  • 5967, “Direct Marketing-Inbound Telemarketing Merchants”

  • 7995, “Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks”

  • 5912, “Drug Stores, Pharmacies”

  • 5122, “Drugs, Drug Proprietaries, Druggist Sundries”

  • 5993, “Cigar Stores and Stands”, for Merchants that sell cigarettes in a Card-Absent Environment

Global Merchant Chargeback Monitoring Program - High-Brand Risk Merchants - Penalties
The following table specifies the penalties per international Chargeback for Acquirers of High-Brand Risk Merchants placed in the Global Merchant Chargeback Monitoring Program.

Merchant meets or exceeds the specified Chargeback ratio 1

  • Months 1-3

  • US $100 per Chargeback per month for each identified Merchant Outlet 2

Merchant meets or exceeds the specified Chargeback ratio1 1

  • Months 4-6

  • US $150 per Chargeback per month for each identified Merchant Outlet 2

Merchant meets or exceeds the specified Chargeback ratio 1

  • Month 7 and subsequent months

  • US $150 per Chargeback per month for each identified Merchant Outlet 2 and Visa may disqualify the Merchant from participation in the Visa Program

Visa may disqualify the Merchant from participation in the Visa Program if merchant meets or exceeds the specified Chargeback ratio 1 without an effective Chargeback reduction plan, and 2 of the following levels of Chargeback activity are reached:

  • Merchant’s Chargeback ratio is 2 or more times the specified Chargeback ratio (Single month)

  • Merchant is assessed fees for 3,000 or more Chargebacks (Single month)

  • Merchant is assessed US $1 million or more in Global Merchant Chargeback Monitoring Program fees (When reached)

1 The Chargeback ratio threshold is 2%

2 If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant

Acquirer does not identify a High-Brand Risk Merchant with the correct Merchant Category Code, as specified in “High-Brand Risk Merchant Category Codes”

  • When violation occurs

  • US $25,000 per Merchant per month

Visa’s Global Merchant Fraud Performance Program

Applies if a merchant is located in one region and a card is issued in another region.

Visa’s Regional Merchant Fraud Performance Program

Applies to transactions where the card was issued in the same region as the merchant is located.

Visa’s Fraud-to-Sales Ratio (FSR)
The FSR is the number of Visa frauds received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s Visa sales Transactions in the same month acquired by that Acquirer.

American Express Chargeback Programs

See American Express Merchant Reference Guide - U.S.

Some chargebacks arise because merchants are placed in one of AmEx’s chargeback programs. The company may place you in any of these programs either upon signing your contract or at any time during the term of the agreement. These programs are:

Immediate Chargeback Program
This program allows AmEx to process a chargeback at any time a cardholder disputes a transaction, for any reason other than actual or alleged fraud and without having to first send you an inquiry. You may be placed in this program for one of the following three reasons:

  • You choose to enroll in this program to avoid receiving inquiries or disputes.

  • AmEx places you in this program if you meet the company’s criteria for disproportionate inquiries and chargebacks.

  • Your industry has historically had high rates of customer disputes (not necessarily resulting in chargebacks).

Partial Immediate Chargeback Program
Your enrollment in this program allows AmEx to process chargebacks below a predetermined amount, without having to first send you an inquiry at any time a cardholder disputes a transaction for any reason other than actual or alleged fraud. All disputes for charges that are above that predetermined amount will be processed under the standard policy. You may be placed in this program for one of these three reasons:

  • You choose to enroll in this program to avoid receiving inquiries for charges below a specific dollar amount.

  • Your AmEx agreement stipulates participation in this program.

  • Your industry has historically generated high rates of customer disputes.

Fraud Full Recourse Program
This program allows AmEx to issue chargebacks without first sending you an inquiry at any time it receives a cardholder dispute that is based on actual or alleged fraud. You may be placed in this program for one or more of the following reasons:

  • You are classified as a high-risk merchant.

  • AmEx receives a disproportionately high number of inquiries and chargebacks relative either to your prior history or to industry standards.

  • Your merchant account has been cancelled for being fictitious, prohibited or otherwise in violation of the agreement.

Be advised that the above list of reasons, for which you may be placed in one of AmEx’s chargeback programs, is not exhaustive. At its sole discretion, the company may place you in any one of them at any time.
Excessive dispute fee
If, in any three (3) months, the monthly ratio of Disputed Charges to gross Charges (less Credits) at an Establishment exceeds three percent, and thereafter in any month when the Establishment again exceeds this ratio, we may charge the Merchant a fee for each Disputed Charge in excess of this ratio.

  • $5 per Disputed Charge if the Merchant is in the Immediate Chargeback Program or

  • $15 per Disputed Charge if the Merchant is not in the Immediate Chargeback Program

Visa US Rules

Merchant Chargeback Monitoring Program - U.S. Region

Visa monitors the total volume of U.S. Domestic and International Interchange and Chargebacks for a single Merchant Outlet and identifies U.S. Merchants that experience all of the following activity levels during any month:

  • 100 or more interchange transactions

  • 100 or more Chargebacks

  • A 1% or higher ratio of overall Chargeback-to-Interchange volume

For the purposes of the U.S. Merchant Chargeback Monitoring Programs, if an Acquirer submits Interchange for a single Merchant Outlet under multiple names, Visa:

  • Groups the Merchant activity

  • Notifies the respective Acquirer of the Interchange grouping

Merchant Chargeback Monitoring Program Fees - U.S. Region

Visa assesses Merchant Chargeback Monitoring Program fees to a U.S. Acquirer, as described in the table below.

Merchant Chargeback Monitoring Program Fees - U.S. Region

U.S. Merchant Outlet meets or exceeds the Chargeback activity thresholds specified in “Merchant Chargeback Monitoring Program - US Region”

  • Initial Notification - month 0

  • No fee

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for the month following initial Notification

  • Notification - month 1

  • US $5,000 for failure to return completed documentation within 10 calendar days of the Notification letter date

  • US $1,000 per day until completed documentation is received

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for the second month

  • Notification - month 2

  • US $10,000 for failure to respond with an acceptable Chargeback reduction plan within 10 calendar days of the Notification letter date

  • US $1,000 per day until acceptable Chargeback reduction plan is received

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 3, 4, and 5

  • US $50 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 1

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 6 and 7

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 8 and 9

  • US $25,000 review fee

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds beyond month 9

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

  • Merchant and its principals eligible for disqualification proceedings, as specified in “Critical Chargeback Levels - U.S. Region”

1 Visa allocates US $40 of each fee to the Issuer via a Funds Disbursement

2 Visa allocates US $90 of each fee to the Issuer via a Funds Disbursement

High-Brand Risk Chargeback Monitoring Program Fees - U.S. Region

Visa assesses High-Brand Risk Chargeback Monitoring Program fees to a U.S. Acquirer, from the date of Notification, as described in the following table

During months 1-3, the Merchant meets or exceeds the Chargeback activity thresholds specified in “High-Brand Risk Chargeback Monitoring Program - U.S. Region”

  • US $ 5,000 review fee month

  • US 100 per Chargeback in months 1-3 1

During months 4-6, the Merchant meets or exceeds the applicable Chargeback ratios specified in 1 above

  • US $ 150 per Chargeback in months 4-6 2

  • US $ 25,000 review fee in month 6

After 6 months in which the Merchant has met or exceeded the Chargeback thresholds specified in “High-Brand Risk Chargeback Monitoring Program - U.S. Region”

  • Visa may disqualify the Merchant from participation in the Visa Program

1 Visa allocates US $90 of each fee to the Issuer via a Funds Disbursement

2 Visa allocates US $135 of each fee to the Issuer via a Funds Disbursement

Merchant Disqualification - U.S. Region
Visa may disqualify a U.S. Merchant specified in “High-Brand Risk Merchant Category Codes” from participating in the Visa Program if the Merchant:

  • Meets or exceeds a critical level of Chargeback activity, as determined by Visa

  • Acts with the intent to circumvent Visa programs

  • Causes harm to the Visa system

  • The Acquirer must pay a US $5,000 non-refundable fee and include it with the appeal letter

Acquirer Penalties

Acquirer Global Merchant Chargeback Monitoring Program

An Acquirer is identified in the Global Merchant Chargeback Monitoring Program if it meets or exceeds all of the following monthly performance activity levels:

  • 500 international Chargebacks

  • 500 International Transactions

  • 1.5% ratio of international Chargebacks to International Transactions

  • One or more Merchants in the program during the reporting month

Penalties for Global Merchant Chargeback Monitoring Program - Acquirer-Level Thresholds

Acquirer meets or exceeds the Chargeback activity thresholds as specified in Global Merchant Chargeback Monitoring Program Overview

  • US $25,000 for every month the Acquirer meets or exceeds the program thresholds

Acquirer meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, more than 3 times in a rolling 12- month period

  • US $50,000 for every month the Acquirer meets or exceeds the program thresholds

Acquirer meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, more than 6 times in a rolling 12-month period

  • US $100,000 for each subsequent month the threshold is met or exceeded

  • Acquirer is eligible for the imposition of Risk Reduction Procedures as specified in Member Risk Reduction Requirements

  • Visa may apply additional fines for repetitive or willful violations, as specified in Repetitive Violations and Willful Violations

Acquirer Chargeback Monitoring Program - U.S. Region

Visa monitors the total volume of U.S. Domestic and International Interchange and Chargebacks for any U.S. Acquirer that experiences all the following activity levels during any month:

  • 500 or more interchange transactions

  • 500 or more Chargebacks

  • A 1% or higher ratio of overall Chargeback-to-Interchange volume

Visa assesses High-Brand Risk Chargeback Monitoring Program fees to a U.S. Acquirer, from the date of Notification, as described in the following table
Acquirer does not

  • Identify a High-Brand Risk Merchant with the correct Merchant Category Code

  • Register a High-Brand Risk Merchant

  • US $25,000 per Merchant per month

  • US $100,000 after 3 violations in calendar year and/or prohibition against signing High-Brand Risk Merchants 1

Acquirer knowingly signs a disqualified Merchant or any of the disqualified Merchant’s principals

  • US $250,000 per month until the Acquirer terminates the Merchant Agreement 1

1 Visa may impose conditions on Acquirers for violations of the U.S. Regional Operating Regulations, up to and including termination of the Acquirer program

Visa assesses Acquirer Chargeback Monitoring Program fees to a U.S. Acquirer, as described in the following table.

Acquirer Chargeback Monitoring Program Fees - U.S. Region

Acquirer knowingly attempts to circumvent the provisions of “Acquirer Chargeback Monitoring Program - U.S. Region”

  • US $25,000 assessed 60 calendar days after Notification to the Acquirer

Acquirer meets or exceeds the Chargeback activity thresholds specified in “Acquirer Chargeback Monitoring Program - U.S. Region”

  • US $25,000

Acquirer meets or exceeds the Chargeback activity thresholds more than 3 times in a rolling 12-month period

  • US $100,000 for each subsequent month that either threshold is exceeded

Acquirer has had 3 or more Merchants in the Merchant Chargeback Monitoring Programs for 6 consecutive months

  • Daily review fee of at least US $2,500, with a one-week minimum fee of US $17,500, assessed while a review of the Acquirer’s and/or Merchants’ Visa Card-related processing activities is being conducted, as specified in “Acquirer Processing Activity Review - U.S. Region”

Acquirer fails to take action on recommendations resulting from a review of the Acquirer’s and/or Merchants’ Visa Card-related processing activities

  • US $75,000 minimum

Acquirer Fraud Monitoring Program

Visa monitors an Acquirer to determine disproportionate fraud-to-sales ratios.

An Acquirer exceeding 3 times the worldwide or regional fraud-to-sales ratio for more than one quarter will be considered non-compliant and may be subject, but not limited, to the following fines and penalties:

  • Monetary fines specified in the applicable Visa Regional Operating Regulations

  • Temporary suspension of contracting with new Merchants

  • Termination of membership

Acquirer Fraud Performance Monitoring Program Penalty Schedule - AP Region and CEMEA Region

First violation

  • US $25,000

Second consecutive violation

  • US $50,000

3 or more consecutive violations

  • US $100,000 for every subsequent violation per quarter OR Visa may revoke or suspend the Acquirer’s license

Acquirer Fraud Monitoring Program Fines - U.S. Region

First month

  • US $25,000

Second month

  • US $50,000

Third month

  • US $75,000

Fourth and subsequent months

  • US $100,000

Risk Identification Service Online Conditions and Fees - U.S. Region

Visa may:

  • Impose conditions on a U.S. Acquirer if any of its Merchants are designated as an Identified Merchant by RIS Online

  • Assess a daily review fee of at least US $2,500, with a one-week minimum fee of US $17,500, if an onsite review is required

If Visa determines that a U.S. Acquirer or its Merchant changed, modified, or altered Merchant data in any way to avoid detection by Risk Identification Service (RIS) Online, Visa may assess a US $25,000 fee to the Acquirer for each occurrence identified.
Visa assesses the following fines, as specified in the table below, to a U.S. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U.S. Region.”

Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2

  • US $10,000

Fine Period - month 2 or 3. Acquirer receives Excessive Fraud Activity Notification 2

  • US $25,000

Fine Period - month 4. Acquirer receives Excessive Fraud Activity Notification 2

  • US $50,000

Fine Period - month 5. Acquirer receives Excessive Fraud Activity Notification 2

  • US $75,000

Fine Period - month 6. Acquirer receives Excessive Fraud Activity Notification 2

  • US $50,000

Fine Period - beyond month 6. Acquirer receives subsequent Excessive Fraud Activity Notification(s) 2

  • US $100,000 per month

  • Merchant and its principal(s) eligible for disqualification proceedings, as specified in “Critical Chargeback Levels - U.S. Region”

1 The Risk Identification Service Online remediation process, including Notification requirements, is described in “Excessive Fraud Activity Notification - U.S. Region.”

2 An Identified Merchant must remain below RIS Online Notification thresholds that incur a fine for at least 3 consecutive months for the Acquirer to exit the fine period specified in this table.

Fraud reasons

Fraud Reasons

00

Lost Fraud

A fraudulent transaction that occurs with the use of a lost credit or debit card (or other device accessing a credit or debit card account for example convenience and balance transfer checks) without the actual implied or apparent authority of the cardholder.

01

Stolen Fraud

A fraudulent transaction that occurs with the use of a stolen credit or debit card (or other device accessing a credit or debit card account for example convenience and balance transfer checks) without the actual implied or apparent authority of the cardholder.

02

Never Received Issue

The interception and use of a credit or debit card (or other device accessing credit or debit card account for example convenience and balance transfer checks) before receipt by the cardholder by a person without the actual implied or apparent authority of the cardholder.

03

Fraudulent Application

A fraudulent transaction that occurs with the use of a credit or debit card that was obtained with an application using a false name or other false identification information.

04

Counterfeit Card Fraud

The use of altered or illegally reproduced credit or debit card (or other physical device accessing a credit or debit card account for example convenience and balance transfer checks) including the replication or alteration of the magnetic stripe or embossing.

05

Account Takeover Fraud

An existing credit or debit account is used without the actual implied or apparent authority of the cardholder by a person who gains access to and use of the account through an unauthorized means such as a change of address or request for re-issuance of credit or debit cards (or other device for accessing a credit or debit account for example convenience and balance transfer checks) but not lost or stolen cards.

06

Card Not Present Fraud

A fraudulent transaction that occurs with the use of credit or debit account information including pseudo-account information without the physical card or other device being involved via the phone mail Internet or other electronic means without the actual implied or apparent authority of the cardholder.

07

Multiple Imprint Fraud

A fraudulent transaction that occurs with a credit or debit card where the merchant having completed a legitimate face-to-face transaction deposits one or more additional transactions without the actual implied or apparent authority of the cardholder. For example the merchant makes several imprints of a card on paper formsets or produces terminal receipts upon receiving additional online or offline card-read authorization approvals.

51

Bust-out Collusive Merchant

A collusive cardholder engaging in transactions with a collusive merchant as defined in the Cardholder-Merchant Collusion Program.

Chargeback reasons

Chargeback Reasons

30

Services Not Provided or Merchandise Not Received

Merchant was unable or unwilling to provide services or Cardholder or authorized person did not receive the merchandise at the agreed-upon location or by the agreed-upon date. Required documents: Documentation to prove that Cardholder received services or proof that merchandise or ticket was received by Cardholder or authorized person on agreed-upon date or at agreed-upon location. Time frame: 120 days from the Transaction Processing Date or the date that the Cardholder expected to receive the service.

41

Cancelled Recurring Transaction

The Merchant continued to charge a Cardholder for a Recurring Transaction despite notification of cancellation. Required documents: Documentation to prove that service was not cancelled 15 calendar days prior to the Transaction Processing Date and documentation showing portion or amount of services or merchandise used. Time frame: 120 days from the Transaction Processing Date.

4801

Requested Transaction Data Not Received

Retrieval Request was not fulfilled. Required documents: Copy of Transaction Receipt. Time frame: 60 days from Retrieval request date.

4802

Requested/Required Information Illegible or Missing

The Received a Transaction Receipt and the Account Number or amount is illegible. Required documents: Copy of Transaction Receipt. Time frame: 120 days from the Transaction Processing Date.

4807

Warning Bulletin File

The card was listed on electronic Warning Bulletin File however the Merchant completed the transaction. Required documents: None. Time frame: 45 days from the Transaction Processing Date.

4808

Requested/Required Authorization Not Obtained

The transaction amount exceeded the floor limit established by MasterCard but the Authorisation was not obtained or was declined. Required documents: None. Time frame: 45 days from the Transaction Processing Date.

4812

Account Number Not on File

Transaction did not receive Authorization and was processed using an Account Number that does not match any on the Issuer. Required documents: None. Time frame: 45 days from the Transaction Processing Date.

4831

Transaction Amount Differs

The cardholder states that he or she was billed an incorrect amount. Required documents: Copy of the transaction receipt and proof to support that the cardholder is responsible for the disputed amount. Time frame: 120 days from the Transaction Processing Date.

4834

Duplicate Processing

The same transaction was processed more than once. Required documents: Copies of two different transaction receipts. Time frame: 120 days from the Transaction Processing Date.

4835

Card Not Valid or Expired

A Merchant completed the Transaction with a Card that expired prior to the Transaction Date and the Merchant did not obtained Authorization. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4837

No Cardholder Authorization

A Merchant did not obtained an Imprint and a signature (or a PIN) in a Card-Present Environment and the Merchant complited the Transaction without the Card holder’s permission or a Transaction was processed with a Fictitious Account Number or no valid Card was outstanding bearing the Account Number or the Transaction Receipt. Required documents: Evidence of both: an Imprint, a signature or PIN. Time frame: 120 days from the Transaction Processing Date.

4840

Fraudulent Processing of Transactions

Multiple Transactions occurred on a single Card at the same Merchant Outlet without the Cardholder’s permission. Required documents: All transaction receipts and merchant explanation. Time frame: 120 days from the Transaction Processing Date.

4841

Cancelled Recurring Transaction

The card acceptor continued to bill a cardholder for a recurring transaction after receiving notification of cancellation from the cardholder or issuer or the issuer listed the cardholder. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4842

Late Presentment

Transaction was not processed within the required time limits. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4846

Correct Transaction Currency Code Not Provided

The acquirer did not transmit the correct transaction currency code. The transaction occurred in a dual currency environment and a transaction currency is not specified on the transaction receipt. A cardholder was not given the opportunity to choose the desired currency in which the transaction was completed or did not agree to the currency of transaction. Required documents: Documentation proving the correct currency was provided or specified. Time frame: 120 days from the Transaction Processing Date.

4847

Requested/Required Authorization Not Obtained and Fraudulent Transaction

The transaction amount exceeded the floor limit established by MasterCard but the Authorisation was not obtained or was declined and the transaction is fraudulent. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4849

Questionable Merchant Activity

Issuers can use this chargeback only if the acquirer processed a transaction for a card acceptor that later was listed in a MasterCard Global Security Bulletin for violating MasterCard rules. Required documents: None. Time frame: 120 calendar days from the Global Security Bulletin publication date.

4850

Credit Posted as a Purchase

Cardholder account has been inaccurately posted with a debit instead of a credit as a result of an incorrect transaction code or keying error. Required documents: The acquirer must provide a copy of the TID as proof of the retail sale instead of a credit. Time frame: 120 days from the Transaction Processing Date.

4853

Cardholder Dispute

Cardholder returned (or attempted to return) goods or services to a card acceptor because it was not as decribed. Required documents: Copy of the TID or invoice (if applicable). Card acceptor. Time frame: 120 calendar days from the Transaction Processing Date or the date of receipt of goods and services if delayed delivery.

4855

Nonreceipt of Merchandise

Cardholder or his or her authorized representative did not receive goods that were to be shipped or delivered. Required documents: Proof that the cardholder or person that the cardholder authorized received the merchandise. Time frame: 120-calendar day time frame is calculated from either the Transaction processing Date of the presented transaction or the latest anticipated delivery date.

4857

Card-Activated Telephone Transaction

The issuer. Required documents: Additional or corrected information to resolve billing discrepancy. Time frame: 120 days from the Transaction Processing Date.

4859

Services Not Rendered

The card acceptor is unwilling or unable to render services. The cardholder paid for services or goods by other means. The cardholder received none or only a part of an ATM cash disbursement. The cardholder did not receive airline transportation. Required documents: Proof that the services were rendered or that the card acceptor is able to render them. Appropriate card acceptor explanation. Documentation that verifies the disbursement of funds. Time frame: 120 days from the Transaction Processing Date.

4860

Credit Not Processed

Card acceptor has not posted a credit to his or her account or that the card acceptor posted a credit and reduced the amount of the credit due without proper disclosure. Required documents: Card acceptor rebuttal (for example, the card acceptor rebuttal states that the merchandise was never returned or that the cancellation was not accepted) or proper disclosure given at the point of int. Time frame: 120 days from the Transaction Processing Date.

4862

Counterfeit Transaction Magnetic Stripe POS Fraud

Fraudulent transaction and that the cardholder or a person authorized by him or her was in possession of all cards issued with the account on the transaction date. Required documents: Evidence of both: an Imprint, a signature or PIN. Time frame: 120 days from the Transaction Processing Date.

4863

Cardholder Does Not Recognize

The Cardholder does not recognize the Transaction. Required documents: Copy of Transaction Receipt. Time frame: 120 days from the Transaction Processing Date.

4870

Chip Liability Shift

A counterfeit card-present transaction was processed to chip card on non-EMV terminal and both the issuer and the acquirer are located in a country or region that has adopted a chip liability shift program. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4871

Chip/PIN Liability Shift

A fraudulent transaction resulted from the use of a hybrid PIN-preferring card at a magnetic stripe-reading-only terminal (whether PIN-capable or not) or at a chip-capable terminal not equipped with a PIN pad capable (at a minimum) of checking the PIN offline and both the issuer and the acquirer are located in a country or region that has adopted a chip liability shift program. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

4899

Domestic Chargeback Dispute (Europe Region Only)

Issuers only may use message reason code 4899 in the case of a centrally acquired domestic transaction or a domestic transaction processed through Banknet or EPS-Net where a chargeback is available according to the applicable domestic rule but cannot be processed under a different message reason code. Required documents: With accordance with domestic rule. Time frame: With accordance with domestic rule.

53

Not as Described or Defective Merchandise

The Cardholder received damaged or defective merchandise or the merchandise or service did not match what was described on the Transaction Receipt or other documentation presented at the time of purchase. Required documents: Documents to prove that the service or merchandise was correctly described and was not defective. Proof that the service was not cancelled and was used by the cardholder or proof that the merchandise. Time frame: 120 days from the Transaction Processing Date.

57

Fraudulent Multiple Transactions

Multiple Transactions occurred on a single Card at the same Merchant Outlet without the Cardholder’s permission. Required documents: Evidence that fraudulent multiple Transactions did not occur. Evidence that Transactions represent valid delayed or amended charges for T&E Transaction. Time frame: 120 days from the Transaction Processing Date.

60

Illegible fulfillment

The Received a Transaction Receipt and the Account Number or amount is illegible. Required documents: Legible copy of the Transaction Receipt. Time frame: 120 days from the Transaction Processing Date.

62

Counterfeit Transaction

A Counterfeit Card was used for a Magnetic stripe or Chip-initiated transaction that received Authorization but the Authorization Request did not include the required data or contained altered data. A counterfeit card-present transaction was processed to chip card on non-EMV terminal and both the issuer and the acquirer are located in a country or region that has adopted a chip liability shift program. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

70

Card Recovery Bulletin or Exception file

A Merchant did not check the Card Recovery Bulletin or Exception File for a Transaction with an amount that was below the Floor Limit. Required documents: None. Time frame: 75 days from the Transaction Processing Date.

71

Declined Authorization

A Merchant completed the Transaction after an Authorization Request received a Decline Response. Required documents: None. Time frame: 75 days from the Transaction Processing Date.

72

No Authorization

Authorization was required for the Transaction but the Merchant did not obtain Authorization. Required documents: None. Time frame: 75 days from the Transaction Processing Date.

73

Expired Card

A Merchant completed the Transaction with a Card that expired prior to the Transaction Date and the Merchant did not obtained Authorization. Required documents: Documentation to prove the card was not expired on the Transaction Date. Time frame: 75 days from the Transaction Processing Date.

74

Late Presentment

Transaction was not processed within the required time limits and the account was not in good standing on the Chargeback. Processing Date or the Transaction was processed more than 180 calendar days from the Transaction Date. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

75

Transaction not Recognized

The Cardholder does not recognize the Transaction. Required documents: Copy of Transaction Receipt. Time frame: 120 days from the Transaction Processing Date.

76

Incorrect currency or Transaction Code or Domestic Transaction processing violation

Transaction was processed with an incorrect Transaction code or an incorrect currency code or the Merchant did not deposit a Transaction Receipt in the country where the Transaction occurred or the Cardholder was not advised that Dynamic Currency Conversion would occur or was refused the choice of paying in the Merchant. Required documents: Transaction Receipt or other record that proves that the Transaction was correct. Time frame: 120 days from the Transaction Processing Date.

77

Non-matching Account Number

Transaction did not receive Authorization and was processed using an Account Number that does not match any on the Issuer. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

78

Service Code Violation

Authorization was not obtained for a Magnetic-Stripe read Transaction on a Visa Electron Card or on a Visa Card in a registered mandatory positive Authorization account range. Required documents: None. Time frame: 75 days from the Transaction Processing Date.

80

Incorrect Transaction Amount or Account Number

Transaction amount is incorrect or an addition or transposition error was made when calculating the Transaction amount or Merchant altered the Transaction amount after the Transaction was completed without the consent of the Cardholder or a Transaction was processed using an incorrect Account Number. Required documents: Transaction Receipt or other record to prove that Transaction Amount and Account number was correct. Time frame: 120 days from the Transaction Processing Date.

81

Fraud - Card-Present Environment

A Merchant did not obtained an Imprint and a signature (or a PIN) in a Card-Present Environment and the Merchant complited the Transaction without the Card holder’s permission or a Transaction was processed with a Fictitious Account Number or no valid Card was outstanding bearing the Account Number or the Transaction Receipt. A fraudulent card-present transaction was processed to lost/stolen chip card on non-EMV terminal and both the issuer and the acquirer are located in a country or region that has adopted a chip liability shift program. Required documents: Transaction Receipt or other record to prove separate Transactions were processed and a proof that the transactions were not for the same service or merchandise. Time frame: 120 days from the Transaction Processing Date.

82

Duplicate Processing

A single Transaction was processed more than once. Required documents: Evidence of Imprint and signature or PIN. Compelling evidence that the cardholder participated in the Transaction. Time frame: 120 days from the Transaction Processing Date.

83

Fraud - Card-Absent Environment

A Mail/Phone Order Recurring or Electronic Commerce Transaction was processed without the Cardholder’s permission or a Fictitious Account Number was used or no valid Card was outstanding bearing the Account number on the Transaction Receipt. Required documents: Proof that the service was not cancelled and was used by the cardholder or proof that the merchandise was not returned. Proof that cancellation palicy was correctly described. Time frame: 120 days from the Credit Transaction Processing Date.

85

Credit Not Processed

A Merchant did not process a Credit Transaction Receipt as required. Required documents: Documents (other than Transaction Receipt) to prove that Merchant did not receive payment by other means for the same merchandise or service. Time frame: 120 days from the Transaction Processing Date.

86

Paid by Other Means

Merchandise or service was received but paid by other means. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

90

Non-Receipt of Cash or Load Transaction Value at ATM or Load Device

Cardholder did not receive or received only a portion of cash or Load Transaction value. Required documents: Evidence of both: an Imprint, a signature or PIN. Time frame: 120 days from the Transaction Processing Date.

93

Merchant Fraud Performance Program

Visa notified that the Transaction is identified by the Merchant Fraud Performance Program. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

96

Transaction Exceeds Limited Amount

An Unattended Acceptance Terminal that performs Cardholder-Activated Transaction Type A or Cardholder-Activated Transaction Type B exceeded the allowed amount. Required documents: None. Time frame: 120 days from the Transaction Processing Date.

28

Request for Copy Bearing Signature

The cardholder’s bank requests a copy of the transaction receipt from the merchant for fraud analysis.

33

Fraud Analysis Request

The cardholder’s bank requests a copy of the receipt from the merchant for fraud analysis.

79

Requested Transaction Information Not Received

This chargeback occurs when a merchant does not respond to a retrieval request within the specified time frame or does not provide a legible response.

5621

Sales Draft Chargeback

Sales Draft Chargeback.

10

Fraud

Fraud.

10.1

EMV Liability Shift Counterfeit Fraud

EMV Liability Shift Counterfeit Fraud.

10.2

EMV Liability Shift Non-Counterfeit Fraud

EMV Liability Shift Non-Counterfeit Fraud.

10.3

Other Fraud-Card Present Environment

Other Fraud-Card Present Environment.

10.4

Other Fraud-Card Absent Environment

Other Fraud-Card Absent Environment.

10.5

Visa Fraud Monitoring Program

Visa Fraud Monitoring Program.

11.1

Card Recovery Bulletin

Card Recovery Bulletin.

11.2

Declined Authorization

Declined Authorization.

11.3

No Authorization

No Authorization.

12.1

Late Presentment

Late Presentment.

12.2

Incorrect Transaction Code

Incorrect Transaction Code.

12.3

Incorrect Currency

Incorrect Currency.

12.4

Incorrect Account Number

Incorrect Account Number.

12.5

Incorrect Amount

Incorrect Amount.

12.6

Duplicate Processing/Paid by Other Means

Duplicate Processing/Paid by Other Means.

12.7

Invalid Data

Invalid Data.

13

Consumer Dispute

Consumer Dispute.

13.1

Merchandise/Services Not Received

Merchandise/Services Not Received.

13.2

Cancelled Recurring

Cancelled Recurring.

13.3

Not as Described or Defective Merchandise/Services

Not as Described or Defective Merchandise/Services.

13.4

Counterfeit Merchandise

Counterfeit Merchandise.

13.5

Misrepresentation

Misrepresentation.

13.6

Credit Not Processed

Credit Not Processed.

13.7

Cancelled Merchandise/Services

Cancelled Merchandise/Services.

13.8

Original Credit Transaction Not Accepted

Original Credit Transaction Not Accepted.

13.9

Non-Receipt of Cash or Load Transaction Value

Non-Receipt of Cash or Load Transaction Value.

501

Non-JCB Card

This chargeback occurs when a valid authorization was not obtained from the Issuing bank and the card information embossed on or encoded in the magnetic stripe of the card does not conform to JCB’s card specification. This chargeback may be reversed by supplying proof that a valid authorization was obtained at the time of the sale along with a signed swiped or imprinted sales draft that conforms to JCB specifications or evidence that a credit was issued.

502

Card-Member Dispute

This chargeback occurs when a cardholder disputes goods received or services rendered. This chargeback may be reversed by supplying a written rebuttal which provides proof that the goods/services described on the sales receipt or invoice were suitable there was proper disclosure at the time of purchase or evidence that a credit was issued.

503

Expired JCB Card

This chargeback occurs when the card used in a transaction expired before the transaction date and the sale is processed without a valid authorization. This chargeback may be reversed by supplying proof that a valid authorization was obtained at the time of the sale along with a signed swiped or imprinted sales draft that provides a valid expiration date for the card at the time of the sale or evidence that a credit was issued.

507

Incorrect Transaction Amount

This chargeback occurs when the incorrect transaction amount is entered for a sale. This chargeback may be reversed by supplying proof that the transaction amount is correct and/or a legible copy of the signed swiped or imprinted sales draft or evidence that a credit was issued.

510

Mis-Post

This chargeback occurs when a credit transaction incorrectly posts as a debit or a debit posts as a credit to the cardholder’s account.

512

Duplicate Processing

This chargeback occurs when a cardholder states that they were charged twice for the same transaction. This chargeback may be reversed by supplying two separate signed sales drafts for each transaction or evidence that a credit has been issued.

513

Credit Not Received

This chargeback occurs when a customer indicates they have not received a credit to their account. This chargeback may be reversed by supplying proof that the credit has been issued to this account or a signed sales receipt stating your refund policy at the time of purchase or evidence that a credit has been issued.

516

Non-Receipt of Requested Item

This chargeback occurs when a customer claims they did not receive merchandise which was to be delivered or goods were paid for by other means. This chargeback may be reversed by supplying proof of delivery signed by the cardholder a signed swiped draft proving the cardholder picked up the merchandise or evidence that a credit has been issued.

517

Requested Copy Illegible

This chargeback occurs when the Issuer of an account requests a copy of a transaction receipt on behalf of the cardholder and a legible copy of the draft requested was not received. This chargeback may be reversed by supplying a legible copy of the signed swiped or imprinted draft that was requested or evidence that a credit has been issued.

521

Transaction Exceeds Floor limit

This chargeback occurs when a transaction exceeds the relevant floor limit that applies without a valid authorization at the time of the sale or the transaction amount that exceeds the relevant floor limit is greater than the authorized amount. This chargeback may be reversed by supplying proof of a valid authorization for the transaction or any amount that is greater than your assigned floor limit or evidence that a credit has been issued.

522

Authorization Declined

This chargeback occurs when a transaction for an account was processed after receiving a decline response. This chargeback may be reversed by supplying proof that a valid authorization was given for the transaction or evidence that a credit was issued.

523

Incorrect Card Number

This chargeback occurs when an account number is provided to the Issuer for a transaction and it does not match any account number in the bank’s master file. This chargeback may be reversed by supplying an imprinted or swiped sales draft which has the same account number as the one that is being disputed.

524

Addition Error

This chargeback occurs when a cardholder’s copy of the sales draft or other transaction record shows an error in addition which causes the total amount to be incorrect. This chargeback may be reversed by providing proof that the transaction amount is correct and/or a legible copy of the signed swiped or imprinted sales draft or evidence that a credit has been issued.

525

Altered Amount

This chargeback occurs when a customer claims that the incorrect amount was billed to their account. This chargeback may be reversed by supplying proof that the transaction was processed correctly or evidence that a credit has been issued.

526

No Signature

This chargeback occurs when a cardholder claims they did not participate in or authorize a transaction to take place. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft proof of delivery signed by the cardholder or evidence that a credit has been issued.

527

No Imprint

This chargeback occurs when a cardholder claims they did not participate in or authorize a transaction to take place. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft or evidence that a credit has been issued.

534

Unauthorized Multiple Transactions

This chargeback occurs when two or more transactions take place at one location and the cardholder claims they only authorized or participated in one. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft for all transactions with the cardholder or evidence that a credit has been issued.

536

Late Submission

This chargeback occurs when more than 45 days have elapsed between the transaction date and the settlement of the sale. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft and the corresponding batch header ticket or evidence that a credit has been issued.

537

No Show Dispute

This chargeback occurs when a cardholder claims they made a hotel or car rental reservation but one of the following occurred.

538

Advance Deposit

This chargeback occurs when a cardholder claims that they participated in a transaction for an advance deposit to secure a hotel reservation but one of the following occurred.

541

Illegible Item

This chargeback occurs when the Issuer of an account requests a copy of a transaction receipt on behalf of the cardholder and a legible copy of the draft requested was not received. This chargeback may be reversed by supplying a legible copy of the signed swiped or imprinted sales draft that was requested or evidence that a credit has been issued.

544

Cancelled Recurring Transaction

This chargeback occurs when a cardholder claims that the authority to process recurring transactions was cancelled prior to the transaction date. This chargeback may be reversed by supplying proof that the cardholder authorized the transaction or evidence that a credit has been issued.

546

Unauthorized Purchase

This chargeback occurs when a cardholder claims that they did not participate in or authorize a transaction to take place. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft proof of delivery signed by the cardholder or evidence that a credit has been issued.

547

JCB Card on Stop List

This chargeback occurs when the JCB card presented for payment was listed on a Stop List that was effective at the time of sale. This chargeback may be reversed by providing proof that the card was not listed on the Stop List at the time of sale or evidence that a credit has been issued.

554

Non-Receipt of Merchandise/Cash at ATM

This chargeback occurs when a) the cardholder does not receive merchandise at the agreed location or b) the cardholder participated in an ATM transaction but the requested amount of cash was not dispensed to the cardholder. This chargeback may be reversed by supplying proof of delivery showing the cardholder received the merchandise or received the requested amount in the case of an ATM transaction or evidence that a credit has been issued.

580

Non-Receipt of T&E Documentation

This chargeback occurs when an Issuer did not receive the requested copy of the sales draft within the allowed time frame. This chargeback may be reversed by supplying proof that the requested copy was provided within the allowed time frame or evidence that a credit has been issued.

581

Split Sale

This chargeback occurs when a transaction requiring an authorization decision was split into two or more card sales to avoid authorization and had the whole sale been submitted for authorization it would have been declined. This chargeback may be reversed by supplying proof that the transaction is not a split sale or that a valid authorization was obtained for the whole amount or evidence that a credit has been issued.

582

Domestic Transaction

This chargeback occurs when the domestic transaction processed was settled through the International Interchange. This chargeback may be reversed by supplying documentation or information that you feel will assist in reversing the chargeback or evidence that a credit has been issued.

583

Paid By Other Means

This chargeback occurs when a cardholder paid for a transaction by an alternate method. This chargeback may be reversed by supplying a signed swiped or imprinted sales draft or evidence that a credit has been issued.

A01

Charge Amount Exceeds Authorization Amount

No additional information.

A02

No Valid Authorization

No additional information.

A08

Authorization Approval Expired

No additional information.

C02

Credit Not Processed

No additional information.

C04

Goods/Services Returned or Refused

No additional information.

C05

Goods/Services Canceled

No additional information.

C08

Goods/Services Not Received or Only Partially Received

No additional information.

C14

Paid by Other Means

No additional information.

C18

No Show or CARDeposit Canceled

No additional information.

C28

Canceled Recurring Billing

No additional information.

C31

Goods/Services Not As Described

No additional information.

C32

Goods/Services Damaged or Defective

No additional information.

F10

Missing Imprint

No additional information.

F14

Missing Signature

No additional information.

F24

No Card Member Authorization

No additional information.

F29

Card Not Present

No additional information.

F30

EMV Counterfeit

No additional information.

F31

EMV Lost/Stolen/Non-Received

No additional information.

FR2

Fraud Full Recourse Program

No additional information.

FR4

Immediate Chargeback Program

No additional information.

FR6

Partial Immediate Chargeback Program

No additional information.

M01

Chargeback Authorization

No additional information.

M10

Vehicle Rental - Capital Damages

No additional information.

M49

Vehicle Rental - Theft or Loss of Use

No additional information.

P01

Unassigned Card Number

No additional information.

P03

Credit Processed as Charge

No additional information.

P04

Charge Processed as Credit

No additional information.

P05

Incorrect Charge Amount

No additional information.

P07

Late Submission

No additional information.

P08

Duplicate Charge

No additional information.

P22

Non-Matching Card Number

No additional information.

P23

Currency Discrepancy

No additional information.

R03

Insufficient Reply

No additional information.

R13

No Reply

No additional information.

6321

No authorize or participate

A chargeback initiated when the cardholder claims they were in possession of a valid card on the date of transaction or she did not authorize or participate in the transaction processed by the merchant.

6323

Transaction Information Document (TID)

Represents a situation where the cardholder is requesting Transaction Information Document (TID) from the merchant needed for his personal records expense reporting etc.

6341

Fraud investigation by the bank or issuer

A dispute that is initiated due to a fraud investigation by the bank or issuer.

G001

Recall/Customer Dispute

Recall/Customer Dispute.

Retrieval Request Reasons

Retrieval Request Reason Codes

3

Credit Not Received for Tickets/Vouchers

4

Request Reshipment of Tickets Not Received

7

Billing was to be in Installments – Credit Due

9

Customer Requests Return Instructions/Pickup

10

Partial Credit Received – Remaining Credit Due

11

Customers Requests Waiving Cancellation Fee – Credit Due

12

Charged Billed Twice in Error

15

Requests Credit for Exchange Fee

16

Requests Credit for Damaged Merchandise

18

Requests Credit for Overcharge

20

Claims Cancelled Service – Requests Credit and Discontinue Future Billings

21

Claims Cancelled Service – Issue Credit or Provide Cancellation Policy and Discontinue Billing

22

Claims Cancelled Membership – Requests Credit and Discontinue Future Billings

24

Damaged Merchandise, Requests Return

27

Order Canceled – Issue Credit or Provide Cancellation Policy/Proof of Delivery

28

Membership Cancelled in Writing – Issue Credit/supply signed Cancellation Policy & discontinue

29

Membership Expired – Issue Credit or supply signed contract with renewal policy/expiration date

30

Defective Merchandise – Credit Requested

31

Deposit on Vehicle not Purchased, Issue Credit or provide Signed Agreement

33

Cardholder Does has No Knowledge of Charges, Provide support and itemization or Issue Credit

40

Service / Membership Cancelled – Credit Requested or Proof of Usage

41

Unable to contact/cancel – Discontinue Charges

42

Customer Claims Alternate Bill Arrangement – Requests Credit and Discontinue Future Billings

43

Request to Cancel Service – Contact Customer Directly

44

Requests Cancellation of Service – Provide Cancellation instructions/authorization

45

Requests Replacement for Damaged Merchandise

48

Requests Replacement for Damaged Merchandise

49

Deposit on Vehicle not Leased – Issue Credit or Provide signed Agreement

59

Requests Repair of Damaged Merchandise

60

Requests Repair of Defective Merchandise

61

Credit should have been Charge – Bill Customer

62

Charge should have been Credit – Issue Full Credit

63

Dissatisfied w/ Good/Service – Credit Requested

70

Dissatisfied w/ Repair Work on Vehicle – Credit Requested

71

Requests Credit for Personal Property Damage (Moving services) – Credit Requested

72

Cardholder has no Knowledge of Billing and it has Wrong Signature

73

Reservation not Guaranteed, was to be Cancelled – Credit Requested

76

Cancelled Service – Issue credit or provide copy of agreement and Discontinue Future Billings

77

Request to Return Merchandise – Provide Return Instructions

78

Invalid Plastic Number, Provide Valid Number to avoid Chargeback

79

Invalid Plastic Number, Provide Valid Number to avoid Chargeback

80

Cancelled Time Share – Credit Requested or provide copy of signed agreement

82

Customer has No Knowledge of Credit to their Account

83

Referenced Customer Deceased

86

Discontinue billings to this Inactive Account

87

Issue Credit and Discontinue Billing to Inactive Acct

89

Alternative Billing Arrangements – Credit Requested or provide supporting documentation

90

Membership/Service Paid in Full – Credit Requested and Discontinue Future Billings

91

Cancellation Made within Allowable Time – Credit Requested

93

Cardholder Does Not Recognize Charges

94

Cardholder Does Not Recognize Charges

95

Cancelled Service – Credit Requested or provide signed proof serviced were rendered

97

Customer Requests Credit for Unauthorized Charges

99

Class/Course Cancelled – Credit Requested

107

Facility No Longer Open – Credit Requested and Discontinue Future Billings

110

Calls associated with charges Connected to Wrong Number

117

Call associated with charges was Cut-off

119

Cardholder has No Knowledge of CARDeposit Billing – Requests Credit

120

Requests Credit for Overcharge for Vehicle Rental

121

Requests Credit for Rental Vehicle did not perform properly

122

Cardholder has No Knowledge of Vehicle Rental – Issue Credit

123

Cardholder has No Knowledge of Vehicle Rental – Issue Credit

124

Customer Requests support for Charges

125

Cardholder has No Knowledge of Vehicle Rental – Issue Credit

127

Cardholder Does Not Recognize Charges, Provide Documentation or Issue Credit

128

Cardholder Claims they did Not Authorize Charges, Provide Documentation or Issue Credit

129

Cardholder Does Not Recognize Charges, Provide Documentation or Issue Credit

130

Requests Credit for Deposit not Deducted from Rental Billing

131

Charge was to be Billed Directly to Insurance company

132

Customer Billed Twice from separate business addresses

133

Billed Twice for same Purchase

134

Customer Claims Portion of Charge was a Deposit

136

Customer Claims Charge was for Deposit

141

Customer Claims Charge was Deposit on Vehicle Returned

143

Customer Claims Flowers ordered Not Received

146

Disputed Merchandise Returned but 2nd charge processed instead of credit

147

Customer Claims Billing Paid by Insurance Company

150

Returned Damaged Merchandise – Provide Documentation or Issue Credit

151

Returned Damaged Merchandise and Requests Replacement or Credit

152

Received & Returned Incorrect Merchandise, Provide Documentation or Issue Credit

153

Received & Returned Incorrect Merchandise and Requests Replacement or Credit

154

Cancelled Order – Provide Documentation or Issue Credit

155

Merchandise not Received – Provide Documentation or Issue Credit

156

Merchandise not Received – Issue Credit and Rebill Upon Delivery

157

Returned Merchandise but not sent Replacement- Provide Documentation or Issue Credit

158

Merchandise Returned, Provide Documentation or Issue Credit

159

Customer Requests signed support and itemization for Charges

160

Tickets/Vouchers not Ordered – Provide Documentation or Issue Credit

161

Tickets/Vouchers Returned – Provide Documentation or Issue Credit

162

Tickets/Vouchers Returned – Provide Documentation or Issue Credit

163

Tickets/Vouchers Not Received – Provide Documentation or Issue Credit

164

Tickets/Vouchers unused and Lost or Stolen – Provide Documentation or Issue Credit

165

Tickets/Vouchers Lost or Stolen – Provide Documentation or Issue Credit

166

Requests Credit for Payment made directly to establishment,

167

Reservation Confirmed on Incorrect Date – Provide Documentation or Issue Credit

168

Reservation Confirmed in Incorrect Location – Provide Documentation or Issue Credit

169

Incorrect Conversion Rate Used – Provide Documentation or Issue Credit

170

Cancelled Reservation – Provide Documentation or Issue Credit

171

Assured Reservation Not Honored – Provide Documentation or Issue Credit

173

Requests Credit for Duplicate Billing

174

Customer Requests signed support and itemization for Charges

175

Customer Requests Credit for a Charge

176

Cardholder Does Not Recognize the referenced Charges

177

Cardholder Claims Charge Unauthorized

178

No Merchandise Ordered or Delivered – Provide Documentation or Issue Credit

179

Cardholder Does Not Recognize Charge for Reservation

180

Cardholder Does Not Recognize Charge for stay at Establishment.

181

No Knowledge of Referenced No Show Charge

182

Cardholder Question Charges for Damages at Establishment

183

Cardholder Does Not Recognize Charges from Establishment

184

Charges identified as Cash Advances – cannot be billed through AmEx

185

Purchased but refused Delivery – Provide Documentation or Issue Credit

186

Incorrect Merchandise – Issue Credit and provider Return Instructions

187

Requests Replacement for Incorrect Merchandise

188

Cardholder has no Knowledge of Charge, Requests Credit

189

No Subscription Issues Received – Provide Documentation or Issue Credit

190

No Subscription Issues Received – Request to begin Delivery

191

Merchandise not Ordered or Received – Provide Documentation or Issue Credit

192

Customer Requests signed support and itemization for Charges

193

Charges Incurred at establishment are Fraudulent

194

Charges Incurred at establishment are Fraudulent – Full Magnetic Stripe data not received

195

Customer Doesn’t Recognize charge and Requests signed support and itemization for Charges

196

Cardholder Does Not Recognize Charges, Provide Documentation or Issue Credit

197

Subscription Cancelled yet Billed – Provide Documentation or Issue Credit

198

Subscription Never Ordered – Provide Documentation or Issue Credit

199

Cardholder charged for both stay and no-show – Requests Credit for No-show

200

Sent Claim Report and Request signed support and itemization for Charges

608

Customer not disputing but requests signed support and itemization of charges

610

Charge was to be to Third Party – Provide Documentation or Issue Credit

620

Customer was under billed

656

No Knowledge of Referenced No-Show/Assured Reservation Charge

657

Requests Credit for Overcharge

658

Claims Received Multiple Billings in Error

671

Billing was to be Complimentary Stay

672

Customer Doesn’t Recognize delayed charges – Provide Documentation or Issue Credit

673

Billed Assured Reservation and Actual Stay – Credit Due for Assured Reservation

674

Invalid or Incorrect Acct Number – Customer Doesn’t Recognize Charge

675

CARDeposit Billing was to be Applied to the Stay – Provide Documentation or Issue Credit

676

Cancelled CARDeposit Reservation – Provide Documentation or Issue Credit

678

Second Request for Credit on Billing

679

Billed Twice for CARDeposit

680

Customer Claims Overcharge – Provide Documentation or Issue Credit

681

Guaranteed Reservation Cancelled within Guidelines – Provide Documentation or Issue Credit

682

Cancellation of Membership – Provide Documentation or Issue Credit

683

Charge Belongs to another Person due to AmEx cards being switched

684

Charge was Paid in Cash – Provide Documentation or Issue Credit

685

Customer Requests Copy of Signed Receipt

687

Does Not Recognize Charge, Provide Documentation or Issue Credit

688

Charge was to be Paid by Customer’s Company – Credit and Rebill Correct Party

689

Reservation Made and paid by Third Party – Provide Documentation or Issue Credit

690

Not Disputing Charges but requesting support and itemization

691

Not Disputing Charges but requesting signed support and itemization

692

Customer should have been billed for only one night – Provide Documentation or Issue Credit

693

Customer Questions charge for Damages – Provide Documentation or Issue Credit

694

Dissatisfactory Accommodations, Requests Credit

695

Payment made directly to Establishment – Provide Documentation or Issue Credit

696

Car Rental Cancelled – Provide Documentation or Issue Credit

697

Claims Billed Twice for same Rental Vehicle – Provide Documentation or Issue Credit

698

Customer Requests support for Rental Charges

699

Customer should have been billed for only one night – Provide Documentation or Issue Credit

700

Service Cancelled – Provide Documentation or Issue Credit

701

Customer Requests Cancellation of Service- Discontinue Future Billings

702

Customer Received Duplicate Credits

703

Repair/Replacement was to be covered under warranty – Provide Documentation or Issue Credit

704

Event Cancelled – Credit due for Tickets not used

705

Tickets Cancelled – Provide Documentation or Issue Credit

706

Customer Refused Delivery – Provide Documentation or Issue Credit

707

Call Associated with Bill had poor transmission quality

708

Call Associated with Bill was not completed/connected

712

Services Not Rendered

713

Duplicate Billing – Provide Documentation or Issue Credit

722

Customer Does Not Recognize Charge for Stay – Provide Documentation or Issue Credit

723

Payment made directly to Establishment – Provide Documentation or Issue Credit

730

Issue Credit for Charge and Discontinue all Future Billings

792

Customer has no Knowledge of charge – Credit and Discontinue Future Billings

800

Customer No Longer Disputes Charge (Positive Signal)

R040

Service/Membership Cancelled – Issue Credit and Discontinue Future Billings

R041

Customer Unable to contact and Cancel Service – Discontinue Future Billings

R042

Customer made Alternate Billing Arrangements – Provide Documentation or Issue Credit

R043

Customer Requests Cancellation of Service – Contact Customer Directly

R044

Customer Requests Cancellation Instructions/Authorization- Contact Directly

RM05

Cardholder does not agree to amount billed

RM21

Cardholder does not recognize

RM23

Cardholder Requests Copy

RM41

Require for Legal/Fraud Analysis

RM42

Required for chargeback

S06

Automatic Closure of Inquiry

V28

Cardholder Requests Copy w/ Signature

V29

Charge detail or rental agreement request

V30

Cardholder requests copy

V31

Required for chargeback

V32

Original lost in transit

V33

Required for legal/fraud analysis

V34

Repeat request for copy

V35

Written cardholder demand

V36

Legal process specifies original

V37

Previous copy illegible

V38

Required for paper/handwriting analysis

V39

Repeat request for original

V40

Required for arbitration

V78

Cardholder requests copy with signature

V79

Charge detail or rental agreement request

V80

Cardholder requests copy

V81

Required for chargeback

V82

Original lost in transit

V83

Required for legal/fraud analysis

V84

Repeat request for copy

V85

Written cardholder demand

V86

Legal process specifies original

V87

Previous copy illegible

V88

Required for paper/handwriting analysis

V89

Repeat request for original

V90

Required for arbitration

6305

Cardholder does not agree with billed amount

6321

Cardholder does not recognize transaction

6322

Transaction Certificate (ICC Transaction)

6323

Transaction Information Document (TID) needed for cardholder’s personal records expense reporting

6341

Fraud investigation

6342

Potential chargeback or compliance documentation

6343

Real-time Substantiation Audit Request (IIAS)