Introduction

Nuvei guarantees to do its best to detect and prevent fraud in real-time and offline, but at the end of the day, the Nuvei platform is a decision supportive system and your cooperation and actions are crucial to secure your processing account in the long term.

The purpose of this guide is to provide you with a smooth onboarding process, in a way that makes you aware of the risks involved in card-not-present (CNP) processing, as well as Nuvei’s products and services built from years of experience with mitigating risks.

The guide provides you with an overview of common terminology and regulations and describes your initial fraud screening profile that was customized for you during your onboarding process.

Your initial profile detailed in this guide might be different according to the rules’ compatibility/efficiency and emerging fraud trends.

To learn more about risk services contact us at RiskSupport@nuvei.com.

Nuvei Services

There are many fraud-screening services to help merchants assess the risk of a transaction and authenticate the cardholder to prevent chargebacks.

Nuvei provides you with three types of services for mitigating chargebacks, namely, standard services, personalized services, and added-value services:

Standard services include real-time fraud prevention through Nuvei’s Rule Engine, access to the Case Management System, Screening Profile Overview and Chargeback Re-presentments.

Personalized services include personal risk analysts.

Added value services include the 3D-Secure Authentication Program, Dynamic 3D, AVS check and CVV check.

Standard Services

Fraud Prevention Rule Engine

Nuvei’s rule engine provides real-time fraud prevention via your Nuvei payment page. The rule engine runs during the pre-authorization phase of a transaction and its decision can impact the flow of the authorization in the acquirer bank. Nuvei’s fraud screening rules can block, or flag transactions for review, for a particular user that matches the logical conditions of the rules. In addition, rules can be configured to automatically blacklist transactions according to elements such as credit card, email address, user ID, IP address and more.

The risk engine has three responses to transactions: accept the transaction, reject it, or flag it for review.

When the risk engine accepts a transaction, the transaction passes to the acquirer bank.

When the risk engine rejects a transaction, the transaction is not passed to the acquirer bank for authorization, and the merchant receives a detailed response with the reasons why that the transaction was rejected.

When the rule engine flags a transaction for review, the transaction passes to the Acquirer bank and the merchant receives a response with the reasons for review.

Additionally, you can refund or void suspicious transactions before they become chargebacks through the Case Management System.

Nuvei’s risk platform is proactive in combating fraudulent transactions and can be customized to your needs to automatically blacklist customers according to specific fraud rules or when a transaction has been reported as a chargeback.

Screening Profile Overview

Listed below are categories of rules available in the rule engine.

For the specific rules that have been configured to your account, please refer to the Control Panel, section Risk > Client Fraud Rules:

Please note that these rules are just an initial configuration and Nuvei may add or modify rules based on your needs and/or emerging fraud trends detected by the Nuvei platform.

The table below provides a list of the categories that are mapped to groups of Nuvei’s fraud screening rules. A category is displayed in the Nuvei Control Panel in the Transaction Report when a transaction is filtered due to a Custom Fraud Screen.

#	Rule Categories	#	Rule Categories
1	3D secure information	15	Inconsistency by IP address
2	Airline information	16	IP information
3	Banned Countries	17	List management global level
4	Billing information	18	List Management industry level
5	Credit Card Information	19	List management merchant level
6	Customer verification	20	Merchant information
7	Default Parameters	21	Merchant limits
8	Duplicate Charges	22	Merchant velocities
9	Geo-location	23	Names Conflict
10	Global Limits	24	Restricted Gambling Countries
11	Global velocities	25	Shipping information
12	Inconsistency by Billing address	26	Transactional information
13	Inconsistency by Credit Card	27	User information
14	Inconsistency by Email address	28	User Seniority

Case Management System

Nuvei’s Case Management system enables you to be proactive in your risk management. Through the Case Management system, your Risk Team can collaborate with the Nuvei Risk Team to mitigate the risks of fraudulent transactions and is embedded within Nuvei’s portal.

Through the Case Management system, real-time alerts are received for transactions that have been flagged for review by the rule engine, offline reports, or the Nuvei Risk Team.

With the Case Management system, you can independently review transactions, flag users, issue refunds, void transactions, perform follow-ups, blacklist and whitelist users and parameters such as Email addresses, and send live feedback to the Nuvei Risk Team. Nuvei logs all alerts and feedback in the system.

Merchants can cancel/void transactions prior to the transmission of the transaction to the acquiring bank. This allows merchants to decrease chargebacks and prevent even greater losses in cases where an affiliate sends bad traffic.

All alerts and merchant feedback are documented in the system. Nuvei’s Risk Team is able to measure the efficiency of fraud detection for each merchant’s account. The Risk Team can then further customize parameters and fine-tune the merchant’s risk profiles for better performance.

Chargeback Re-presentments

Nuvei handles disputes on behalf of clients. For more information about the re-presentment process and necessary documents, please refer to Appendix 5.

Please note that all chargeback notifications can be received in one of the following ways:

• Case Management System
• Chargebacks Report in Nuvei’s portal.

Personalized Services

Personalized services are customized services, which Nuvei can provide you in addition to standard services.

Risk Analyst

A personal risk analyst is responsible for your account in terms of monitoring and payment optimization including, but not limited to, reviewing fraud screening rules efficiency, chargeback ratio, fraud trends and conversion ratio. Your risk analyst is your focal point for any inquiry, customized analysis, or reports. The Risk Team handles post-process actions, such as blocks and whitelists, as well as answering merchant emails and inquires. For merchants eligible for personalized services, the Risk Team also performs manual reviews of suspicious transactions.

Emails to the risk analysts should be sent to RiskSupport@nuvei.com, and they will be forwarded to your personal risk analyst.

You can reach a risk analyst at: +44 20 3051 3031 ext. 5666

Added Value Services

Added value services are provided by Nuvei in addition to the standard and personalized services. This section provides a brief description of the Nuvei’s added value services.

3D-Secure Authentication Program

3D-Secure is a credit card authentication program implemented by Visa and Mastercard to reduce fraudulent purchases by verifying the cardholder’s identity during online transactions. The Nuvei Gateway can act as an MPI (Merchant Plug-in) for 3D-Secure when processing transactions.

The benefits of implementing 3D-Secure include a reduction in disputed transactions and chargebacks with fraud reasons and their resulting financial expenses.

3D stands for three domains:

• Issuer Domain

The issuer is responsible for managing the enrollment of their cardholders to the service and the authentication of the cardholder during an online purchase.

• Acquirer Domain

The acquirer is responsible for ensuring that the merchant participating in the transaction is operating under a merchant agreement and is also responsible for the actual processing of the authenticated transaction.

• Interoperability Domain

This domain facilitates the transaction exchange between the other two domains with a common protocol and shared services.

Transaction Flow

 

ECI (Electronic Commerce Indicator)

The Electronic Commerce Indicator (ECI) indicates the level of security used in a 3D Secure program when the cardholder provides the payment information to the merchant.

Possible ECI data values are:

ECI = 5 (VISA), 2 (Mastercard): This value is set by the ACS in the Payer Authentication Response message when the cardholder successfully passes 3D-Secure payment authentication leading to a shift in liability.

ECI = 6 (VISA), 1 (Mastercard): This value is set by the merchant when the merchant attempted to authenticate the cardholder using 3D-Secure, but the issuer or cardholder was not participating, or set by an ACS when the issuer or cardholder was not participating, or an issuer ACS was not able to respond, leading to a shift in liability.

ECI = 7 (VISA), 6 (Mastercard): This value is set by the Merchant when the payment transaction was conducted over a secure channel (for example, SSL/TLS), but payment authentication was not performed, or when the issuer responded that authentication could not be performed, leading to no shift in liability.

Below is a table that contains the ECI Values:

CC type	ECI	Enrollment	Authentication	CHB protection
MasterCard	1	N		Yes
		Y	A	Yes
	2	Y	Y	Yes
			A	Yes
	6	U		No
		E		No
		Y	N	No
			E	No
			U	No
			A	No
Visa	5	Y	Y	Yes
			A	Yes
	6	N		Yes
		Y	A	Yes
	7	U		No
		E		No
		Y	N	No
			E	No
			U	No
			A	No

Whether you have a liability shift or not depends on the combination of the enrollment and authentication result.

Results Explanations

Result	Enrollment	Authentication
N	Cardholder not participating	Authentication failed
U	Unable to authenticate	Authentication could not be performed
E	Critical field validation failed	Error
Y	Card participate	Authentication successful
A	-	Attempts processing performed

Exceptional Cases

Every user has the right to ask their issuer bank for clarification and details. Even though a transaction was processed through 3D-Secure, a retrieval request or report as fraud may occur when a cardholder does not recognize a charge in their credit card’s monthly statement.

It is also possible to get a chargeback from any user who is authenticated via 3D-Secure, but only under the following circumstances:

1. The chargeback reason is a customer service reason.
2. The credit card is a commercial (corporate, business, gift card) credit card and the user was not fully authenticated.
3. When the ECI result is (for MasterCard: ECI=6) (for VISA: ECI=7) and the enrollment status or authentication status returned an error (U, E, N).

Enhanced 3D Options: Dynamic 3D

The Dynamic 3D feature allows Nuvei to dynamically manage a 3D-Secure flow for suspicious orders based on multiple criteria in the rule engine in real-time.

Nuvei minimizes the merchants’ risk of chargebacks and fraud, while converting high-risk traffic into payments instead of automatically rejecting them during the fraud screening flow.

Suspicious flagged users are given an option to pay via a secured flow, and if authentication has been successfully completed, Nuvei accepts these transactions as legitimate transactions and ensures a liability shift in the event of a chargeback.

Routing parameters include the following parameters:

• Credit card company
• Transaction amount
• Currency
• Issuer bank
• BIN
• Device type
• BIN or Billing country
• BIN – Billing location mismatch
• Seniority by card or email
• Website

CVV Check

CVV2 (Card Verification Value) reduces credit card fraud by ensuring that the card number is legitimate, and that the customer physically possesses the credit card. The CVV number is printed on the back side of a credit card next to the signature panel.

Nuvei connects to Visa, Mastercard and AMEX networks to verify that the card verification number that appears on the back of a credit card matches the credit card number provided by the customer.

The result can be seen in the Transaction Search section in the Control Panel or in the API response from our server.

The possible CVV2 responses are listed below:

Code	Result
M	CVV2 Match
N	CVV2 No Match
P	Not Processed
U	Issuer is not certified and/or has not provided Visa the encryption keys
S	CVV2 processor is unavailable

AVS Check

Address Verification Service (AVS) enables merchants to verify the address of a cardholder. Nuvei’s AVS checking service verifies the billing address of the credit card provided by the customer against the address on file at the credit card company.

AVS has almost full coverage in the US, Canada, and UK. (For rest of the world it is supported when the issuer supports it.) In order to be able to receive AVS results you need to make sure that you send the relevant information in the Address, City, ZIP Code, State, and Country fields for all transactions processed from these countries.

The result can be seen in the transaction search in the Control Panel and in the API response from our server.

When sending a transaction for address verification, you will receive one of the following responses from the issuing bank:

Code	Summary	Value Description
X / Y / D / M / F	Match	Street address and zip code both match.
A / B	Partial Match	Street address matches, but zip code does not match.
W / Z / P	Partial Match	Street address does not match, but zip code matches.
N / I / C	No Match	Street address and zip code do not match.
G / S	Not Supported	Issuing bank does not support AVS.
U	System Unavailable	• Address information unavailable. Returned if non-US. • AVS is not available or the AVS in a U.S. bank is not functioning properly.
R	System Unavailable	Retry - Issuer's System Unavailable or Timed Out.

Appendix 1: Transaction Types

Click here to see a list of transaction types that our gateway supports.

Appendix 2: Credits and Payouts

Credit Restrictions

Nuvei restricts processing refunds and credits. The table below describes Nuvei’s credit and refund policy and various filters that may appear if you exceed the credit limit.

Filter Error Name	Filter Code	Description
Credit Count Exceeded CCC Restriction	1137	Under Visa International regulations, fraud refunds and non-CFT credits may be processed up to a limit of 5% out of the total sales count of the merchant since the start of the calendar month. Note: This filter is only applied to clients in the Gaming industry.
Credits Total Amount Exceeds Restriction	1124	Nuvei’s policy sets the credit limit for every account at a total of 100% of the total sales amount over the previous 7 days regardless of credit type. When the credit restriction is exceeded, transactions are rejected according to the filter error ‘1124: Credits total amount exceeds restriction’. The calculation for credit restriction is based on 100% of your positive sales amount over the previous seven days minus any current credit balance.
		Example: Assume that from 1/1 at 21:00 until 1/8 at 21:00 the positive balance (approved sales) was $1,000.
		Assume that credit transactions processed during the same period amount to $400.
		Then, the allowed credit at the designated time of 1/8 at 21:00 is:
		1,000*100% – 400
		1,000 – 400
		600
Limit Exceeding Amount	1127	Mastercard OCT limit is 50,000 Euros or the appropriate currency equivalent per transaction. Under Visa International regulations, Non-money transfer OCTs can be processed up to an equivalent amount of 50,000 USD per credit card per day. Refer to the following table: OCT Transaction Type Time Period One-Day Seven-Day Thirty-Day Domestic / Intra-EEA 150 transactions or USD 250,000 250 transactions or USD 600,000 750 transactions or USD 1,250,000 Inter-Regional 30 transactions or USD 50,000 50 transactions or USD 100,000 150 transactions or USD 200,000
		Note: This filter is only applied to clients that have an active CFT Merchant Identifier (MID).
Credit Amount Exceed Total Charges	1106	This error is activated when processing fraud credit and the amount of the credit is higher than the initial transaction amount. It can also occur when processing credit on transactions that were already credited, and the total amount of the credits is higher than the initial sale transaction amount.
Credit Amount Exceeds Ceiling	1126	This error occurs when the amount of the credit sent is higher than the permitted amount set on Nuvei’s systems, per single credit transaction per merchant.
		For example, a system limitation of 10,000 USD for a single credit transaction for a specific merchant.

Payout Supported Countries

Visa Credit Funds Transfer (CFT)

Below you will find the CFT restricted countries for Visa in the Gaming Industry.

Please note that Visa supports OCT for all countries in all other industries; however, it still depends on the issuer bank whether the BINs are supported.

• Barbados
• Benin
• Bolivia
  Botswana
• Brazil
• Burkina Faso
• Cameroon
• Cape Verde
• Cote Divoire
• Curacao
• Egypt
• El Salvador
• Gabon
• Gambia
• Guinea
• Honduras
• Iraq
• Kyrgyzstan
• Lao Peoples Democratic Republic
• Madagascar
• Malawi
• Morocco
• Mozambique
• Namibia
• Nigeria
• Oman
• Paraguay
• Puerto Rico
• Serbia
• San Marino
• Sri Lanka
• Tajikistan
• Tanzania, United Republic of
• Trinidad and Tobago
• Uruguay
• Zambia
• Zimbabwe

Mastercard Original Credit Transfer (OCT)

Below you will find the OCT supported countries for Mastercard in the Gaming Industry.

Please note that Mastercard supports OCT for all countries in all other industries.

• Andorra
• Austria
• Belgium
• Bulgaria
• Cyprus
• Czech Republic
• Denmark
• Estonia
• France
• Germany
• Gibraltar
• Greece
• Hungary
• Iceland
• Ireland
• Italy
• Latvia
• Luxembourg
• Malta
• Monaco
• Netherlands
• Norway
• Romania
• San Marino
• Slovakia
• Slovenia
• Spain
• Sweden
• Switzerland
• Turkey
• United Kingdom (including the Channel Islands & Isle of Man)

Appendix 3: Visa/Mastercard Fraud to Sale Programs

Fraud to Sale Ratio

The fraud to sale ratio is the ratio of transactions that were declared fraudulent by the issuing banks in relation to the merchant’s total sales for that month. This regulation is distinct from the chargeback ratio regulations. The issuer’s fraud-to-sale report does not necessarily contain chargeback users but does contain users that have been detected and marked as fraudulent by their issuing banks.

In most cases, Nuvei receives these notifications after a long delay between the original transaction date and the date the cardholder was reported as fraudulent. For this reason, these transactions cannot be voided. When the authenticity of the cardholder reported as fraudulent by the bank is unable to be proven and the cardholder has not yet initiated a chargeback, Nuvei advises you to block these users from further deposits. Crediting the cardholder prevents chargebacks only in 50% of the cases, therefore, Nuvei does not recommend you use this option.

The credit card companies, Visa and Mastercard, have several parameters by which they detect fraudulent or unauthorized activity with a card, such as:

• Card reported lost or stolen
• Card not received when mailed
• Card issued on the basis of a fraudulent application
• Issuer or acquirer reported counterfeit
• Fraudulent use of an account number

Nuvei does not receive the actual reason from the bank as the bank is not allowed to share this kind of information.

Please note that you may see the F2S transactions in the Control Panel, under Risk > Fraud Transactions report. Please bear in mind that this concerns only payments reported as fraud in Nuvei Acquirer.

Visa and Mastercard have created several programs to reduce high fraud-to-sale ratios.

The tables below describe the different fraud-to-sale programs provided by Visa and Mastercard, including the thresholds that must be exceeded to be placed in a program.

Visa Fraud Monitoring Program (VFMP)

The program reviews the reported as fraud transactions in the previous month over the sales transactions by purchase date in the same month.

Threshold	Fraud amount	Ratio
Early warning threshold	$ 50,000	0.65%
Standard threshold	$ 75,000	0.9%
Excessive (high-risk) threshold	$ 250,000	1.8%

In the ‘Early Warning’ period, the merchants have the opportunity to reduce the fraud levels before they are identified under VFMP.

VFMP has two program timelines – Early Warning, Standard, and High Risk (Excessive).

In order to be identified as ‘High Risk’ the merchant account must exceed the standard limits. Merchants that belong to MCC codes 5122, 5912, 5962, 5966, 5967, 7995, 7273, 5816*, 6051**, 4816*** will enter a high-risk timeline if the F2S ratio is higher than 0.9% and Fraud amount is higher than $75,000.

* Games of skill such as daily fantasy sports gaming where consumers pay a fee to enter and the outcome of the game is determined by skill instead of luck.
** Purchase of cryptocurrency, funding of crypto wallets or funding of initial coin offerings (ICO).
*** Cyberlockers and similar remote digital file-sharing services where uploaded content is accessible to the public or the service pays uploaders for content.

If at any point a merchant breaches the Visa High Fraud parameters, they enter an immediate ‘High Fraud’ status and are not afforded a workout period.

Fines

Month	Program
	Standard	High Risk
1 to 3	No fee	$10,000
4 to 6	No fee	$25,000
7 to 9	No fee	$50,000
10 to 12	No fee	$75,000

Program Timeline and Required Actions

Standard Program

Program Month	Program Status	Actions
1	Notification	No action needed at this stage, alert only.
2 to 4	Workout Period	After entering into the program, the merchant should provide a plan to reduce the fraud levels.
5 to 12	Enforcement Period	The merchant must continue to provide updates with information about the results of the implemented plan. The merchant may be liable for chargebacks related to F2S transactions. The merchant could be closed for Visa processing.

High Risk Program

Program Month	Program Status	Actions
1 to 11	Enforcement Period	The merchant should provide a plan to reduce the fraud levels. The merchant may be liable for chargebacks related to F2S transactions.
12	Enforcement Period	The merchant must continue to provide updates with information about the results of the implemented plan. The merchant may be liable for chargebacks related to F2S transactions. The merchant could be closed for Visa processing.

Exit Parameters

The merchant can exit VFMP if once it is below at least one of the program fraud thresholds for three consecutive months. If the merchant is below the program threshold for less than the required three consecutive months, its program status continues to be counted from the previous identification month.

MasterCard Excessive Fraud Merchant (EFM) Program

The goal of the EFM program is to reduce fraud on electronic commerce (e-commerce) transactions, creating a more secure ecosystem and providing a better experience for cardholders.

The EFM program will measure compliance at the merchant ID (MID) level and send the notifications and potential financial assessments through the acquirer.

Merchants in the following countries are excluded from the EFM Program:

• Ascension and Tristan Da Cunha
• Germany
• India
• Liechtenstein
• St. Helena
• Switzerland

Program Thresholds

The EFM program monitors the total amount of fraud-related chargebacks occurring at a given e-commerce merchant, as well as the number of transactions authenticated through 3D-Secure.

Merchants are considered non-compliant when all of the following conditions are met in a given month:

• Total volume from chargebacks with fraud reason of 50,000 USD or above for the reported month
• Fraud chargeback ratio – 0.50% or above
• Number of monthly cleared transactions – 1,000 or above
• 3D Usage – Less than 10% for non-regulated countries OR less than 50% for regulated countries

Program	Min. Number of Transactions	Fraud Chargebacks	Fraud Count Ratio	3D Utilization
EFM	1,000	50,000 USD	0.50%	Less than 10% non-regulated or less than 50% regulated

The tables list the countries identified as regulated or non-regulated.

Regulated Countries
Austria	Gibraltar	Netherlands
Belgium	Greece	Norway
Bulgaria	Hungary	Poland
Croatia	Iceland	Portugal
Cyprus	Ireland	Romania
Czech Republic	Italy	Slovakia
Denmark	Latvia	Slovenia
Estonia	Lithuania	Spain
Finland	Luxembourg	Sweden
France	Malta	United Kingdom

 

Non-regulated Countries
Albania	Israel	Serbia
Andorra	Kazakhstan	Tajikistan
Armenia	Kosovo	Turkey
Azerbaijan	Kyrgyzstan	Turkmenistan
Belarus	Macedonia	Ukraine
Bosnia and Herzegovina	Moldova	Uzbekistan
Channel Islands	Montenegro	Vatican City
Georgia	Russian Federation
Isle of Man	San Marino

EFM Assessment Structure

Mastercard applies assessments for appearing on the EFM program at increasing increments depending on how long a Merchant ID appears on the program.

Number of Months above EFM Thresholds	Violation Assessment
1	0
2	EUR/USD 500
3	EUR/USD 1,000
4 to 6	EUR/USD 5,000
7 to 11	EUR/USD 25,000
12 to 18	EUR/USD 50,000
19+	EUR/USD 100,000

Exit Parameters

When the merchant is below the program thresholds for three consecutive months.

Appendix 4: Visa/Mastercard Compliance Programs

Visa Global Brand Protection Program

The Global Brand Protection Program (GBPP) was created to ensure that acquirers maintain proper control over their merchants. Its primary goal is to protect the acquirers and the integrity of the Visa payment system by preventing merchants from:

• Handling transactions that are illegal
• Engaging in potentially deceptive marketing practices
• Processing transactions that may adversely affect the goodwill of the Visa payment system

The Visa Rules require that acquirers submit only legal transactions into the Visa payment system and that all transactions must be lawful in both the seller’s and buyer’s jurisdiction.

The key benefits of GBPP are:

• Risk reduction – Helps acquirers understand the unique challenges and possible exposures that can occur when doing business with card-absent merchants, especially those with high-brand risk Merchant Category Codes (MCCs). This, in turn, reduces the potential risk of:
  • Significant program penalties
  • Acquirer’s brand and reputation damage.
  • Financial losses due to inadequate reserves or chargeback and credit risk exposure
  • Restrictions on future portfolio
• Prompt remedial action – Acquirers are encouraged to implement immediate remedial action to reduce brand risk to their institutions and to Visa.
• Acquirer risk controls – Visa initiates an assessment of acquirers, their merchants, and agents on a risk-prioritized basis to ensure compliance with the Visa Global Acquirer Risk Standards and Visa International Operating Regulations.

Mastercard Business Risk Assessment and Mitigation Program

The Business Risk Assessment and Mitigation (BRAM) program was designed to protect Mastercard and its customers from illegal and brand-damaging transactions, which may pose significant fraud, regulatory, or legal risk, or may cause reputational damage.

Here is a list of identified frequent situations and BRAM violations (the list of violations is not exhaustive):

• Most recent BRAM compliance cases involve merchant transaction laundering where the acquirer may not be aware of the activity
• Merchant transaction laundering is the action where a merchant launders credit card transactions on behalf of another merchant
• Acquirers expressed difficulty in detecting BRAM activity resulting from unknown merchant transaction laundering
• Technologies have been created to monitor and detect events of transaction laundering
• Illegal sale of prescription drugs and/or tobacco products
• Illegal Internet gambling or miscoded gambling
• Illegal purchase, sell, or trade of cryptocurrency
• Sale of certain types of drugs or chemicals (such as synthetic drugs)
• Child exploitation
• Sale of counterfeit merchandise

As a result, a monitoring program called Merchant Monitoring Program (MMP) was launched to encourage acquirers to proactively monitor and prevent BRAM violations and merchant transaction laundering.

BRAM Program Best Practices and Solutions:

• Through the MMP, the Service Providers providing BRAM content monitoring and TL detection can be registered.
• Mastercard has provided assessment mitigation on investigations where acquirers have implemented monitoring solutions for BRAM and transaction laundering detection.
• Mastercard has witnessed many potential violations that have been identified by the MMSP and resolved by the acquirer prior to Mastercard identification thereby proving that the solutions are working.
• For BRAM prevention, acquirers should have a strong merchant on-boarding process to detect and reject suspicious or high-risk merchant applications.
• Acquirers should have implemented strong fraud control strategy to monitor sharp increases in merchant authorization requests and deposits.
• Proactively investigate all incidents of suspected non-compliance through fraud detection or MMP Alert.
• Create clear and obtainable action plans and timelines to resolve issues and deliver requirements on time.
• Develop a set of procedures and supporting process flows for non-compliance investigations.
  • In cases of non-compliance, submit a comprehensive investigation response to Mastercard providing answers to all questions and all required documentation.
• Consider termination of the Merchant Agreement within 2 days.
• Provide full and detailed report on the incident, including all investigation steps and actions taken.

Mastercard’s Global Risk Investigation Program (GRIP)

GRIP is a program that covers compliance cases and Mastercard rules and mandates violations that do not fall within the scope of the other existing Mastercard Compliance Programs.

GRIP’s most frequently observed non-compliances are related to:

• Monitor Area of Use of the License
• Monitor high-risk purchase merchants
• Sanction requirements and prohibited activities
• High-risk merchant activity – no license, wrong MCC, and so on
• Subscription scam merchants
• Discrimination Digital Environment

Merchants identified by the GRIP receive a formal investigation letter and are given an opportunity to respond and achieve compliance before potential non-compliance assessments are applied.

Merchants are required to respond within 5 business days and either confirm that they are compliant or provide an action plan of how compliance will be achieved within a reasonable time frame.

Non-compliance Assessments

If a merchant fails to come into compliance within a reasonable amount of time, the compliance case is referred to the Compliance Communications Team for assessments.

This team will send a Non-compliance Assessment Notification that details the specific assessment amount and the billing date.

The merchant will continue to receive escalating assessments until they reach compliance.

Appendix 5: Chargebacks

This appendix provides an overview of chargebacks and describes how chargeback fines and penalties are calculated.

Chargebacks are transactions in which the cardholder has disputed the charges, shifting the financial liability for the transaction from the cardholder back to the merchant. Charges can occur due to:

• Fraud
• Disputes with the cardholder
• Processing errors

When a chargeback occurs, the merchant may lose the amount of the transaction, any merchandise purchased, and incur additional fees. The cost of chargebacks can be quite significant. Nuvei provides several services for preventing chargebacks and disputing chargebacks should they occur.

Please note that users may initiate a chargeback with a fraud reason up to 120 days since the payment was made.

For chargebacks with the reason “Services Not Provided”, “Goods Not Received” or “Not as Described/Defective Merchandise”, disputes can be opened either within 120 days of the date the customer expected to receive the goods/services, or within 120 days of the date the customer was notified the goods/services will not be provided. In either case, the dispute must be processed on the cardholder side within 540 days of the original transaction.

Chargeback Types

There are three types of chargebacks in Nuvei’s system. Each chargeback type is described below.

Retrieval Request

A Retrieval request occurs when a credit cardholder does not recognize a charge in their credit card’s monthly statement and asks their issuer bank for clarification. A retrieval request does not have any financial impact or any fees involved, but it may be a preliminary step before the cardholder initiates a Chargeback.

When you receive a Retrieval, you have two options:

• Crediting the transaction before it becomes a Chargeback – You may use this option when you are convinced that the order is fraudulent and you cannot validate the user’s identity.
• Defending the case by uploading documents for re-presentment through the Control Panel.

The timeframe to re-present a Retrieval request is 30 days after the retrieval date, which includes your time to provide the documents, our time to review and prepare the documentation and operational time needed by the Acquirer to handle the request. We strongly advise you to send us the documents within 7 days, in order to ensure that the request will be handled in timely manner.

Please note that in some cases, if you do not re-present the Retrieval request, you lose your rights to defend the case further if Soft/Regular Chargeback is received. For Retrievals received for AMEX payment this should be considered as mandatory action.

In case you decide to represent the Retrieval, as the Retrieval is only a request for more information, it can be represented with fewer documents, like more details on the transaction, your comments, and screenshots from the system.

Chargeback with Soft CHB Status

A Soft Chargeback is a notification from some Acquirer banks that a Chargeback was received but the Acquirer bank is not charging the merchant at this stage and is giving them a time to react. It depends on the Acquirer how to file the dispute and not all Acquirers are following this procedure.

The Soft Chargeback does not have any financial impact or any fees involved, but it may become a Regular Chargeback; therefore, you may see a Soft Chargeback and a Regular Chargeback for the same transaction. According to Nuvei’s statistics, about 90% of the soft chargebacks turn into regular chargebacks within 21-30 days. If a regular chargeback was not received within 30 days, the dispute was most likely closed. As opposed to Retrieval request, Soft Chargeback cannot be refunded, and it is included in the Chargeback ratio calculation.

We recommend you to re-present the Chargeback on Soft status and not to wait for the Regular in order to have better chance to succeed in the dispute.

Chargeback with Regular Status

A Regular Chargeback occurs when a credit cardholder disputes a charge in their monthly statement. When a Regular Chargeback is received it means that the issuer bank has already refunded the money back to the cardholder. In the case of a Regular Chargeback the merchant is charged for the Chargeback amount and the Chargeback handling fee.

Official Chargeback Schemes

Visa Dispute Monitoring Program (VDMP)

Calculation

The soft and regular chargebacks received during the current month are divided by the amount of the cleared transactions for the same month. If a soft chargeback becomes regular, it is included only once in the chargeback ratio calculation.

VDMP has three program timelines – Early Warning, Standard and High Risk (Excessive).

Please note that Early warning notifications provide you with an opportunity to reduce chargeback levels before a merchant is identified in the Visa Dispute Monitoring Program.

To be identified as ‘high risk’ your account should either exceed the standard limits or belong to MCC codes 5122, 5912, 5962, 5966, 5967, 7995, 7273, 5816*, 6051**, 4816***.

*Games of skill such as daily fantasy sports gaming where consumers pay a fee to enter and the outcome of the game is determined by skill instead of luck.
**Purchase of cryptocurrency, funding of crypto wallets or funding of initial coin offerings (ICO).
***Cyberlockers and similar remote digital file-sharing services where uploaded content is accessible to the public or the service pays uploaders for content.

Visa may also move merchants into the high-risk timeline based on a review of merchant performance and inappropriate business practices.

Visa Early Warning Threshold

0.65% chargeback ratio and 75 chargebacks.

Visa Standard Threshold

0.9% chargeback ratio and 100 chargebacks.

Visa Excessive (High risk) Threshold

1.8% chargeback ratio and 1,000 chargebacks.

Fines

Month	Program
	Standard	High Risk
1 to 4	No fee	$50 per CHB
5 to 6	$50 per CHB	$50 per CHB
7	$50 per CHB	$50 per CHB, plus $25,000 review fee
8 to 9	$100 per CHB	$100 per CHB, plus $25,000 review fee
10 to 12	$100 per CHB, plus $25,000 review fee	$100 per CHB, plus $25,000 review fee

Program Timeline and Required Actions

Standard Program

Program Month	Program Status	Actions
1	Notification	No actions are needed at this stage, alert only.
2 to 4	Workout Period	After beginning the program, the merchant should provide a plan to reduce the CHBs.
5 to 11	Enforcement Period	The merchant must continue to provide updates, with information about the results of the implemented plan. The merchant may be liable for chargebacks related to F2S transactions. The merchant could be closed for Visa processing.
12 (and subsequent months)	Enforcement Period	The merchant could be closed for Visa processing.

High Risk Program

Program Month	Program Status	Actions
1	Enforcement Period	After beginning the program, the merchant should provide a plan how to reduce the CHBs.
2 to 5	Enforcement Period	The merchant must continue to implement plans to reduce chargebacks.
6 to 11	Enforcement Period	The merchant must continue to provide updates, with information about the results of the implemented plan. The merchant could be closed for Visa processing.
12 (and subsequent months)	Enforcement Period	The merchant could be closed for Visa processing.

Exit Parameters

A merchant can leave the VDMP if has been below at least one of the program chargeback thresholds for three consecutive months. If the merchant is below program thresholds for less than the required three consecutive months, its program status continues to be counted from the previous identification month.

Mastercard Excessive Chargeback Program

Calculation

The soft and regular chargebacks received during the current month are divided by the amount of cleared transactions for the previous month.

If a soft chargeback becomes regular, it is included only once in the chargeback ratio calculation.

The Excessive Chargeback Program (ECP) is a Mastercard monitoring program which evaluates merchants that receive an excessive number of chargebacks on a monthly basis.

Merchants can be identified under two categories – Excessive Chargeback Merchant (ECM) and High Excessive Chargeback Merchant (HECM).

Mastercard checks the chargeback performance of each merchant on the MID level, not by URL.

Refer to the following table for ECM and HECM monthly criteria information.

Monthly Criteria	Number of Chargebacks	Count Ratio (%)
ECM	100 to 299	1.5 to 2.99
HECM	300 or more	3 or more

Non-compliance Assessments

Exceeding the transaction-to-chargeback for the first month incurs no penalty.

Exceeding the ECM for a second and subsequent months incurs a fine calculated according to the following formula:

Number of Months Above ECM Thresholds	Assessment if ECM in Violation Month	Assessment if HECM in Violation Month
	Violation Assessment	Violation Assessment	Issuer Recovery Assessment
1	0	0	No
2	1,000 USD/EUR	1,000 USD/EUR	No
3	1,000 USD/EUR	2,000 USD/EUR	No
4 to 6	5,000 USD/EUR	10,000 USD/EUR	Yes
7 to 11	25,000 USD/EUR	50,000 USD/EUR	Yes
12 to 18	50,000 USD/EUR	100,000 USD/EUR	Yes
19 +	100,000 USD/EUR	200,000 USD/EUR	Yes

Issuer Recovery Fees = Number of chargebacks over 300 chargebacks * 5 USD /EUR per chargeback. For example, a merchant with 500 chargebacks would be assessed EUR/USD 1,000 in issuer recovery (500-300 = 200 x EUR/USD 5 = EUR/USD 1,000)

Exit Parameters

The retailer location maintains the designation of Chargeback Monitoring Program until its chargeback-to-transaction ratio is below the program thresholds for three consecutive months.

Chargeback Lifecycle in Visa/Mastercard

Visa Chargeback Lifecycle

Allocation Dispute Process

Under Allocation disputes are categorized the Fraud related disputes i.e. the ones with category Fraud and Authorization.

The dispute flow is as follows:

1. You have successful authorization, which is called Presentment, and in our system appears as Sale/Settle transaction type. The money is transferred to your account through the Acquirer.
2. In case the user initiates Dispute, the money is transferred from your account to the Issuer. In our system, it appears as Regular Chargeback.
3. In case you are willing to contest the chargeback, you need to send documents to the Acquirer within 7 days from the original Chargeback date. By re-presenting the dispute, you will raise Pre-Arbitration, where the funds still be in position of the issuer i.e. the liability of the dispute is still on Merchant’s/Acquirer’s side.
4. Within 30 days the Issuer should decide if to Reject or Accept the Pre-Arbitration.
   1. If the Issuer accepts the Pre-arbitration, the status of the Chargeback will be updated as canceled in our system.
   2. If the Issuer rejects the documents, they send a Pre-Arbitration response, then the Acquirer decides whether to Accept or Reject this Pre-Arbitration response.
      • If the Acquirer/merchant accepts the Pre-Arbitration response, the case would be decided in the Issuer’s favor; then the Issuer keeps the money. In our system, the Chargeback will remain with status Regular.
      • If the Acquirer/merchant rejects the Pre-Arbitration response, there is an option to raise an Arbitration within 5 days of the original Pre-Arbitration Response date, where the case will be decided by Visa. By raising an Arbitration, the merchant needs to be sure that the full list of compelling evidence will be provided.
5. At the Arbitration Stage, when the Dispute and Re-presentments process fails to resolve between the Issuer and the Acquirer, the case is being reviewed by Visa, in order to assign liability for the disputed Transaction. Visa decides in which favor the case will be closed and respectively assigns fees to the liable part:
   1. If the dispute is closed in cardholder’s favor, the status of the Chargeback will remain with status Regular.
   2. In case Visa rules in Merchant’s/Acquirer’s favor, the status will change to canceled.

Collaboration Dispute Process

Under Collaboration disputes are categorized the Service-related disputes i.e. the ones with category Processing Errors and Consumer Disputes.

The process is as follows:

1. You have successful authorization, which is called Presentment, and in our system appears as Sale/Settle transaction type. The money is transferred to your account through the Acquirer.
2. In case the user initiates Dispute, the money is transferred from your account to the Issuer. In our system, it appears as Regular Chargeback.
3. In order to re-present the dispute, you need to send documents to the Acquirer within 7 days from the original dispute date, so that they would raise a Re-presentment with the Issuer. During this step of the Dispute response, the money is again being transferred to the Acquirer’s/Merchant’s side – the Chargeback is updated with status “canceled” in our system.
4. Within 30 days the Issuer should decide whether to Accept or Reject the documents.
   1. If Accept, the case will remain with status canceled in our system.
   2. If Reject, they would raise a Pre-Arbitration. Then the Acquirer decides whether to accept or reject this Pre-Arbitration.
      • If the Acquirer/merchant accept the Pre-Arbitration, the case would be decided in the Issuer’s favor; then the money would be transferred to the Issuer and the case would be closed in cardholder’s favor. In our system, such cases are being updated as Chargebacks with status Duplicate.
      • If the Acquirer/merchant reject the Pre-Arbitration, they must respond within 7 days, filling Pre-Arbitration response. Within 10 days the Issuer has the right to escalate the case to Arbitration.
5. At the Arbitration Stage, the case is being reviewed by Visa in order to assign liability for a disputed Transaction when the Chargeback and Re-presentment process fails to resolve between the Issuer and the Acquirer. Visa decides in which favor the case will be closed and respectively assigns fees to the liable part.
   • If the dispute is closed in cardholder’s favor, the status of the Chargeback will change it status to Duplicate.
   • In case Visa rules in Merchant’s/Acquirer’s favor, the status will remain canceled.

In addition, Visa limits the numbers of raising disputes and Issuers may charge back maximum of 35 transactions on single PAN within 120 days of timeframe.

Mastercard Chargeback Lifecycle

1. You have successful Authorization, which is called First Presentment, and in our system appears as Sale/Settle transaction type. The money is transferred to your account through the Acquirer.
2. If the user initiates First Chargeback, the money is transferred from your account to the Issuer. In our system, it appears as a Regular Chargeback.
3. To re-present the chargeback, you need to send documents to the Acquirer within 7 days so that they would raise Second Presentment with the Issuer. During this step of the dispute process, the money is again being transferred to the Acquirer’s side. The Chargeback is updated with status canceled in our system.
4. If the Issuer rejects the documents, it has 45 days after the Re-presentment to raise an Arbitration Chargeback. The money is being transferred to the Issuer and the status of the Chargeback in our system will be changed to Duplicate.
   • If the Acquirer accepts the Arbitration Chargeback, then the case would be closed in favor of the Issuer (the status will remain Duplicate).
   • If the merchant wishes to continue further with the dispute, then they could respond with Pre-Arbitration Response along with new Compelling Evidence. If you submit a pre-arbitration response, the case will likely advance to arbitration.
5. Arbitration – At this stage, Mastercard decides which part to assign liability to, respectively fees would apply to the liable part. If Mastercard decides the dispute in cardholder’s favor, the status of the Chargeback will remain Duplicate and if the case is closed in your favor, the status will be changed to Canceled.

Dispute Process

Nuvei handles disputes on behalf of clients. When you receive a Chargeback, you are required to supply supporting documents, which are contesting the cardholder’s claims. When successfully disputed, the issuer cancels the Chargebacks and merchants can view the cancellations in Nuvei’s online reports.

Nuvei recommends that you dispute every Chargeback for which you have sufficient evidence. Please upload re-present documents, even if the Chargeback has been previously refunded or when there is a 3D-Secure liability shift.

In case you have any questions on Chargeback dispute process please send your inquiries at: Re-presentments@nuvei.com

Contesting a Chargeback

If you wish to contest a dispute, this can be done through the Chargebacks Report page in your Control Panel.

The feature is available for all Acquiring banks and card brands, and correlates with Nuvei’s dispute team’s management queue.

To initiate a Dispute request, you must follow the below steps:

1. Select the Chargebacks you wish to dispute – From the Chargebacks Report page or the Chargebacks Summary Report page, select the chargeback(s) you wish to dispute (including a bulk selection if the chargebacks belong to the same PAN and Acquiring bank):
   
2. Select the Dispute request button – On the lower left-hand corner of the screen and the Chargeback Dispute popup appears.
   
3. Attach evidence documentation – Drag and drop the relevant document(s) in the Upload documents section and enter relevant free text in the Response evidence section of the Chargeback Dispute popup.
   
4. Submit the request – Select Yes, submit and a confirmation appears, and an edit icon ( ) appears instead of the checkbox in the row of the chargeback in the chargebacks report. You can click on the icon in order to edit a previously opened dispute.

Requested disputes are updated and tracked in Chargebacks Reports.

Once a request is submitted, it is being reviewed by our Dispute team before it is forwarded to the Acquiring bank. If there are any issues with the documentation you will be contact by the dispute team.

For existing disputes, you can view an audit of evidence already submitted and you can amend the request.

Requirements:

• The file types for uploading are JPEG and PDF.
• Each file should be with maximum size of 4 MB.
• You can upload maximum of 10 files per case.
• Filling information in the free text field is mandatory. There you can state your position for the case.
• Only cases with status Retrieval, Soft Chargeback and Regular Chargeback can be re-presented.
• For Bulk re-presentment the transactions should be processed with the same card and through one Acquirer only. If chargebacks from one card are processed through different Acquirers, they should be sent on separate request.

Please note that all information which you submit must be compliant with the chargeback reason.

Chargeback Reason Codes and Documentation

In the section below, you may find information for all Chargeback reason codes as per Visa and Mastercard scheme rules and the required documentation for each Chargeback reason code.

VISA

CHARGEBACK REASON CODES

Group	Code	Description
FRAUD	10.1	EMV Liability Shift Counterfeit Fraud
	10.2	EMV Liability Shift Non-Counterfeit Fraud
	10.3	Other Fraud-Card Present Environment
	10.4	Other Fraud-Card Absent Environment
	10.5	Visa Fraud Monitoring Program
AUTHORIZATION	11.1	Card Recovery Bulletin
	11.2	Declined Authorization
	11.3	No Authorization
PROCESSING ERRORS	12.1	Late Presentment
	12.2	Incorrect Transaction Code
	12.3	Incorrect Currency
	12.4	Incorrect Account Number
	12.5	Incorrect Amount
	12.6	Duplicate Processing/Paid by Other Means
	12.7	Invalid Data
CONSUMER DISPUTES	13.1	Merchandise/Services Not Received
	13.2	Cancelled Recurring
	13.3	Not as Described or Defective Merchandise/Services
	13.4	Counterfeit Merchandise
	13.5	Misrepresentation
	13.6	Credit Not Processed
	13.7	Cancelled Merchandise/Services
	13.8	Original Credit Transaction Not Accepted
	13.9	Non-Receipt of Cash or Load Transaction Value

DISPUTE REQUIRED DOCUMENTATION

Dispute Group 1 – FRAUD

Reason Code 10.1 – EMV Liability Shift Counterfeit Fraud

Evidence of one of the following:

• A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
• The Cardholder no longer disputes the Transaction.

Reason Code 10.2 – EMV Liability Shift Non-Counterfeit Fraud

• A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
• The Cardholder no longer disputes the Transaction.

Reason Code 10.3 – Other Fraud-Card Present Environment

Either:

• Evidence that one of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Dispute is invalid.
  • The Cardholder no longer disputes the Transaction.
  • For a Transaction involving an initial Card-present Transaction and one or more ensuing key-entered Transactions, both:
    • Evidence that all Transactions occurred during the same stay, trip, or rental period
    • Effective for Transactions completed through 13 April 2018 In the Canada Region, US Region, and US Territories, evidence of an Imprint and signature, PIN, or CDCVM for the initial Card-present Transaction
    • Effective for Transactions completed on or after 14 April 2018 In the Canada Region, US Region, and US Territories, evidence of a valid Imprint for the initial Card-Present Environment Transaction.
• Or evidence of both:
  • Evidence of an Imprint (A pencil rubbing, or photocopy of a Card is not considered a valid Imprint.)
  • For an Unattended Transaction, PIN or Consumer Device Cardholder Verification Method (CDCVM)

Reason Code 10.4 – Other Fraud-Card Absent Environment

One of the following:

• Evidence that one of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
• Compelling Evidence
• For a Transaction involving an initial Card-present Transaction and one or more ensuing key-entered Transactions, both: (All)
  • Evidence that all Transactions occurred during the same stay, trip, or rental period
  • Effective for Transactions completed through 13 April 2018 In the Canada Region, US Region, and US Territories, evidence of a valid Imprint and signature, PIN, or CDCVM for the initial Card-present Transaction
  • Effective for Transactions completed on or after 14 April 2018 In the Canada Region, US Region, and US Territories, evidence of a valid Imprint for the initial Card-Present Environment Transaction
• For an Airline Transaction, evidence that the Cardholder name is included in the manifest for the departed flight and matches the Cardholder name provided on the purchased itinerary (For all except Europe)
• For a Transaction at a digital goods Merchant assigned MCC 5815 (Digital Goods – Media, Books, Movies, Music), 5816 (Games), 5817 (Applications [Excludes Games]) or 5818 (Digital Goods – Large Digital Goods Merchants), all of the following:
  • Evidence that the Merchant has been successfully registered in and continues to participate in the Visa Digital Commerce Program
  • Evidence that the Merchant is the owner of the operating system for the electronic device
  • Evidence that the account set up on the Merchant’s website or application was accessed by the Cardholder and was successfully verified by the Merchant before or on the Transaction Date
  • Evidence that the disputed Transaction used the same device and Card as previous Transactions that were not disputed
  • Evidence that the device ID number, IP address and geographic location, and name of device (if available) are linked to the Cardholder profile on record at the Merchant
  • Description of the digital goods and the date and time they were purchased and successfully downloaded
  • Customer name linked to the customer profile on record at the Merchant
  • Evidence that the customer password was re-entered on the Merchant’s website or application at the time of purchase
  • Evidence that the Merchant validated the Card when the Cardholder first linked the Card to the customer profile on record at the Merchant

Reason Code 10.5 – Visa Fraud Monitoring Program

• A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
• The Cardholder no longer disputes the Transaction.

Dispute Group 2 – AUTHORIZATION

Reason Code 11.1 – Card Recovery Bulletin

• Evidence that one of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
• For a dispute involving a Transaction at a Car Rental Merchant, a Cruise Line Merchant, or a Lodging Merchant for which multiple authorizations were obtained, evidence that the Account Number was not listed on the Card Recovery Bulletin on the following dates, as applicable:
  • For a Lodging Merchant, the check-in date
  • For a Car Rental Merchant, the vehicle rental date
  • For a Cruise Line, the embarkation date

Reason Code 11.2 – Declined Authorization

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• Evidence that the Transaction was Chip-initiated and offline-authorized, if applicable
• For a dispute involving a Transaction at a Car Rental Merchant, a Cruise Line Merchant, or a Lodging Merchant for which multiple authorizations were obtained, certification of all the following:
  • The check-in date, embarkation date, or vehicle rental date
  • The check-out date, disembarkation date, or vehicle return date
  • The dates, authorized amounts, and Authorization Codes of the approved Authorizations

Reason Code 11.3 – No Authorization

• Evidence of any of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
  • Evidence that the Transaction Date in the Clearing Record was incorrect and that Authorization was obtained on the actual Transaction Date.
• For a dispute involving special Authorization procedures where all the following apply:
  • The first Authorization Request included the initial/Estimated Authorization Request indicator.
  • Subsequent Authorization Requests included the Incremental Authorization Request indicator.
  • The same Transaction Identifier was used in all Authorization Requests.

Both:

• • The Transaction Receipt or Substitute Transaction Receipt
  • Certification of all the following:
    • The date the Transaction was initiated
    • The date the Transaction was completed
    • The dates, authorized amounts, and Authorization Codes of the approved Authorizations

Dispute Group 3 – PROCESSING ERRORS

Reason Code 12.1 – Late Presentment

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• The Transaction Receipt or other record with a Transaction Date that disproves late Presentment and obtained the required authorization

Reason Code 12.2 – Incorrect Transaction Code

One of the following:

• For a credit processed as a debit or a debit processed as a credit, either:
  • Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • Transaction Receipt or other record that proves that the Transaction code was correct
• For a credit refund that was processed instead of a Reversal or an Adjustment, either:
  • Evidence that a Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
  • Explanation of why a Credit Transaction was processed instead of a Reversal or an Adjustment

Reason Code 12.3 – Incorrect Currency

One of the following:

• Evidence that one of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
• Transaction Receipt or other record that proves that the Transaction currency was correct
• For a Dynamic Currency Conversion (DCC) transaction, either:
  • For a Dispute Response in the Merchant’s local currency, both:
    • Acquirer certification that the Merchant is registered to offer DCC
    • A copy of the Transaction Receipt showing the Merchant’s local currency
  • For a Dispute Response in the DCC currency, all the following:
    • Evidence that the Cardholder actively chose DCC
    • Acquirer certification that the Acceptance Device requires electronic selection of DCC by the Cardholder and that the choice cannot be made by the Merchant
    • A copy of the Transaction Receipt

Reason Code 12.4 – Incorrect Account Number

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• Transaction Receipt or other record to prove that the Account Number was processed correctly.

Reason Code 12.5 – Incorrect Amount

Transaction Receipt or other record to prove that Transaction Amount was correct.

Reason Code 12.6 – Duplicate Processing/Paid by Other Means

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• For an ATM Transaction, a copy of the ATM Cash Disbursement Transaction or Load Transaction records containing at least the following:
  • Account Number
  • Transaction time or sequential number that identifies individual Transactions
  • Indicator that confirms that the ATM Cash Disbursement or Load Transaction was successful
• For a Transaction that is not an ATM Transaction, either:
  • Effective for Transactions through 12 October 2018 In the Canada Region, US Region, and US Territories, separate signed or imprinted Transaction Receipts or other record to prove that separate
  • Effective for Transactions on or after 13 October 2018 In the Canada Region, LAC Region, US Region, and US Territories, two separate Transaction Receipts or other record to prove that separate Transactions were processed
  • Evidence to prove that the Merchant did not receive payment by other means for the same merchandise or service

Reason Code 12.7 – Invalid Data

Evidence of one of the following:

• A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
• The Cardholder no longer disputes the Transaction.
• The Authorization did not contain invalid data.

Dispute Group 4 – CONSUMER DISPUTES

Reason Code 13.1 – Merchandise/Services Not Received

Evidence of one or more of the following:

• A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• The Cardholder no longer disputes the Transaction
• Documentation to prove that the Cardholder or an authorized person received the merchandise or services at the agreed location or by the agreed date/time
• For an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and it matches the name provided on the purchased itinerary
• Compelling Evidence

Reason Code 13.2 – canceled Recurring

Evidence of one or more of the following:

• That a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• That the Cardholder no longer disputes the Transaction
• That the Cardholder requested cancellation for a different date and that services were provided until this date
• That the Merchant posts charges to Cardholders after services have been provided and that the Cardholder received services until the cancellation date
• Documentation to prove that service was not canceled.
• Documents to prove Merchant was not notified that account was closed.

Reason Code 13.3 – Not as Described or Defective Merchandise/Services

Either:

• Evidence that one of the following:
  • A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
  • The Cardholder no longer disputes the Transaction.
• All the following:
  • Evidence to prove that the merchandise or service matched what was described (including the description of the quality of the merchandise or service) or was not damaged or defective
  • Merchant rebuttal to the Cardholder’s claims
  • If applicable, evidence to prove that the Cardholder did not attempt to return the merchandise or certification that the returned merchandise has not been received.

Reason Code 13.4 – Counterfeit Merchandise

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• Documentation to support the Merchant’s claim that the merchandise was not counterfeit

Reason Code 13.5 – Misrepresentation

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• To prove that the terms of sale were not misrepresented

Reason Code 13.6 – Credit Not Processed

One of the following:

1. A credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute.
2. The Cardholder no longer disputes the Transaction.

Reason Code 13.7 – canceled Merchandise/Services

One of the following:

• Evidence that a credit or Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• Evidence that the Cardholder no longer disputes the Transaction
• The Transaction Receipt or other record to prove that the Merchant properly disclosed a limited return or cancellation policy at the time of the Transaction
• Evidence to demonstrate that the Cardholder received the Merchant’s cancellation or return policy and did not cancel according to the disclosed policy.

Reason Code 13.8 – Original Credit Transaction Not Accepted

A Reversal issued by the Merchant was not addressed by the Issuer in the Dispute

Reason Code 13.9 – Non-receipt of Cash or Load Transaction Value

• A Reversal issued by the Merchant was not addressed by the Issuer in the Dispute
• The Cardholder no longer disputes the Transaction.
• A copy of the ATM Cash Disbursement Transaction or Load Transaction
• record containing at least the following:
  • Account Number
  • Transaction time or sequential number that identifies the individual Transactions
  • Indicator that confirms that the ATM Cash Disbursement or Load Transaction value was successful

Compelling Evidence:

Item	Allowable Compelling Evidence	Applicable Dispute Condition
		10.4 (Other Fraud – Card-Absent Environment)	13.1 (Merchandise/Services Not Received)
1	Evidence, such as photographs or emails, to prove a link between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services.	x	x
2	For a Card-Absent Environment Transaction in which the merchandise is collected from the Merchant location, any of the following:	x	x
	* Cardholder signature on the pick-up form
	* Copy of identification presented by the Cardholder2
	* Details of identification presented by the Cardholder
3	For a Card-Absent Environment Transaction in which the merchandise is delivered, evidence that the item was delivered to the same physical address for which the Merchant received an AVS match of Y or M. A signature is not required as evidence of delivery.	x	x
4	For an Electronic Commerce Transaction representing the sale of digital goods downloaded from a Merchant’s website or application, description of the merchandise or services successfully downloaded, the date and time such merchandise or services were downloaded, and 2 or more of the following:	x	x
	* Purchaser’s IP address and the device geographical location at the date and time of the Transaction
	* Device ID number and name of device (if available)
	* Purchaser’s name and email address linked to the customer profile held by the Merchant
	* Evidence that the profile set up by the purchaser on the Merchant’s website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction Date
	* Evidence that the Merchant’s website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date
	* Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed
5	For a Transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery.	x	x
6	For a Mail/Phone Order Transaction, a signed order form	x
7	For a passenger transport Transaction, evidence that the services were provided and any of the following:	x	x
	* Evidence that the ticket was received at the Cardholder’s billing address
	* Evidence that the ticket or boarding pass was scanned at the gate
	* Details of frequent flyer miles relating to the disputed Transaction that were earned or redeemed, including address and telephone number, that establish a link to the Cardholder
	* Evidence of any of the following additional Transactions related to the original Transaction: purchase of seat upgrades, payment for extra baggage, or purchases made on board the passenger transport
8	For Transactions involving a Europe Member, for an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and matches the name provided on the purchased itinerary	x
9	For a T&E Transaction, evidence that the services were provided and either:	x	x
	* Details of loyalty program rewards earned and/or redeemed including address and telephone number that establish a link to the Cardholder
	* Evidence that an additional Transaction or Transactions related to the original Transaction, such as the purchase of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed
10	Effective for Disputes processed on or after April 14th, 2018, for a virtual Card Transaction at a Lodging Merchant, evidence of the Issuer’s payment instruction sent through Visa Payables Automation, containing all the following:	x
	* Issuer statement confirming approved use of the Card at the Lodging Merchant
	* Account Number
	* Guest name
	* Name of the company (requestor) and either their phone number, fax number, or email address
11	For a Card-Absent Environment Transaction, evidence that the Transaction used an IP address, email address, physical address, and telephone number that had been used in a previous, undisputed Transaction	x
12	Evidence that the Transaction was completed by a member of the Cardholder’s household or family	x
13	Evidence that the person who signed for the merchandise was authorized to sign for the Cardholder or is known by the Cardholder		x
14	Evidence of one or more non-disputed payments for the same merchandise or service	x
15	For a Recurring Transaction, evidence of all the following:	x
	* A legally binding contract held between the Merchant and the Cardholder
	* The Cardholder is using the merchandise or services
	* A previous Transaction that was not disputed
16	In the Europe Region, evidence that the Cardholder has been compensated for the value of the merchandise or services through another method		x
17	In the Europe Region, evidence that the initial Transaction to set up a wallet was completed using Verified by Visa but any subsequent Transaction from the wallet that was not completed using Verified by Visa contained all wallet-related Transaction data.	x

Mastercard

CHARGEBACK REASON CODES

Group	Code	Description
Authorization-Related Chargebacks	4807	Warning Bulletin File
	4808	Requested/Required Authorization Not Obtained
	4812	Account Number Not on File
Fraud-Related Chargebacks	4837	No Cardholder Authorization
	4840	Fraudulent Processing of Transactions
	4849	Questionable Merchant Activity
	4870	Chip Liability Shift
	4871	Chip/PIN Liability Shift
Errors in Processing or Procedure	4802	Requested/Required Item Illegible or Missing
	4831	Transaction Amount Differs
	4834	Duplicate Processing
	4842	Late Presentment
	4846	Correct Transaction Currency Code Not Provided
	4850	Installment Billing Dispute
	4863	Cardholder Does Not Recognize – Potential Fraud
Cardholder disputes	4841	canceled Recurring Transaction
	4853	Cardholder Dispute – Defective/Not as Described
	4854	Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only)
	4855	Goods or Services Not Provided
	4859	Addendum, No-show, or ATM Dispute
	4860	Credit Not Processed
	4999	Domestic Chargeback Dispute (Europe region only)

DISPUTE REQUIRED DOCUMENTATION

Authorization-Related Chargebacks

4870 – Warning Bulletin File

• Correct Merchant Location: The transaction date was incorrect or missing, and the acquirer can provide the correct date and show that the account was not listed on the correct date in the applicable Electronic Warning Bulletin.
• Authorized Transaction Face-to-Face: If Authorization was obtained via the magnetic stripe through the Mastercard Network, the acquirer can substantiate that the transaction was card-read because the Authorization shows the account number was electronically obtained from the card’s magnetic stripe, and that the cardholder account number was identical to the account number in the Authorization Request/100 message and First Presentment/1240 message were identical.
• Authorized Transaction Non–Face-to-Face: The acquirer properly identified the transaction as a non–face-to-face transaction in the Authorization record, and it received Authorization as specified in the Authorization Manual. For example, a properly identified non–face-to-face transaction must have a TCC of T in the Authorization request.
• Chip-DE 55 Not Provided in First Presentment/1240 Message:
• The acquirer can prove that the transaction was a valid chip transaction.
• The transaction did not require online Authorization and DE 55 and related data was not provided in the First Presentment/1240 message.

Account Number Not Listed in Region, Country, or Sub region of Electronic Warning Bulletin File- The acquirer can show that the account number was not listed in the applicable region, country, or sub-region of the Electronic Warning Bulletin File as of the transaction date.

4808 – Requested/Required Authorization Not Obtained

• Must be provided proof that the transaction has been Authorized by the issuer or CHIP or stand-in (STIP).
• If the POS terminal has been offline and the amount of the transaction is equal or below 50 EUR/USD, the data record must state “POS Device not online”.
• Acquirers are not required to provide Authorization logs.
• Only airlines may split an Authorization into multiple presentments.

4812 – Account Number Not on File

• Copy of imprinted TID.
• For card-read transactions that occurred at POI terminals that were not Authorized using the Mastercard Network, the acquirer must provide sufficient documentation to establish the card’s presence; for example, the acquirer’s Authorization log, electronic data capture log, or magnetic stripe reading (MSR) or hybrid terminal printer certification. The acquirer must explain clearly all such documentation in content and in usage. If the transaction occurred at an attended POI terminal, a copy of the printed terminal receipt must accompany the supporting documentation mentioned previously.
• An Authorization screen print and issuer fax, if available, to verify that the transaction was an Emergency Cash Disbursement.

Fraud Related Chargebacks

4837 – No Cardholder Authorization

• Provide compelling evidence for E-com of MOTO – written receipt, work order or another signed document by the CH. Also, CH confirmation or registration to receive electronic delivery of goods or services, or letters e-mails, or any other correspondence exchanged between CH and Merchant.
• For recurring transactions- if previous transactions were not disputed.
• In regions where AVS is available, the Acquirer can do second presentment with proof of positive response X or Y and documentation showing that the merchandise was shipped to an AVS confirmed location.
• Acquirer can raise second presentment with compelling evidence when the CH or auth. user has been registered as user and purchased the goods with password.

4840 – Fraudulent Processing of Transactions

• Acquirer needs to provide copies of the legitimate and disputed TID’s and a merchant explanation. No need for CHIP transactions.
• If the Second presentment is valid but the issuer still suspects fraud, must be provided another letter from the CH disputing the merchant’s claim and consider processing an Arbitration CB.

4849 – Questionable Merchant Activity

Second Presentment Condition – The acquirer can show both of the following:

• The transaction approved by the issuer contained a valid Accountholder Authentication Value (AAV) in the UCAF that the issuer or its service provider provided (DE 48, sub element 43).
• All the required e-commerce indicators were provided in the Authorization Request/0100 message and the clearing record.

4870 – Chip Liability Shift

• Invalid Chargeback – The issuer previously charged back two or more transactions, involving the same Mastercard card account prior to the Authorization approval date of the disputed transaction for any of the following message reason codes: 4837, 4863, 4870 or 4871.
• The issuer previously charged back more than 35 transactions involving the same account for any of the following message reason codes: 4837, 4863, 4870 or 4871.
• The acquirer can show that the issuer did not properly report the transaction to SAFE on or before the Chargeback date (Documentation that supports the second presentment from the Acquirer’s Loss Data File, the Acquirer Loss Data Report (AF739010-BB), or the Acquirer Transaction Data Report via Fraud Reporter).
• The acquirer can prove that the transaction was completed by reading the chip.
• The transaction was Authorized online and did not involve a valid EMV chip card as evidenced by the service code in DE 35 of the Authorization Request/0100 message.
• The acquirer can prove the transaction was the result of technical fallback.
• The transaction involved an issuer or acquirer located in a country or region without an applicable domestic or intraregional chip liability shift or that does not participate in the interregional Chip Liability Shift Program.

4871 – Chip/PIN Liability Shift

• The issuer previously charged back two or more transactions involving the same Mastercard card account prior to the Authorization approval date of the disputed transaction for any of the following message reason codes: 4837, 4863, 4870 or 4871.
• The issuer previously charged back more than 35 transactions involving the same account for any of the following message reason codes: 4837, 4863, 4870 or 4871.
• The acquirer can show that the issuer did not properly report the transaction to SAFE on or before the Chargeback date (Documentation that supports the second presentment from the Acquirer’s Loss Data File, the Acquirer Loss Data Report (AF739010-BB), or the Acquirer Transaction Data Report via Fraud Reporter).
• Both of the following: The transaction was Authorized online; Did not involve a valid EMV chip card as evidenced by the service code in DE 35 of the Authorization Request/0100 message.
• The transaction was Authorized online and DE 55 was not provided in the First Presentment/1240 message. And One of the following: The acquirer can prove that the transaction was completed with chip and PIN; Transaction was completed with chip while the card was not PIN preferring. The result of CVM fallback.
• The acquirer can prove the transaction was the result of technical fallback at a PIN-capable terminal.
• The acquirer can prove that a valid chip/PIN transaction occurred in which the PIN was either: 1. Verified offline by the chip 2. Present in the Authorization Request/0100 message and verified online by the issuer (documents – DE 55 and mandatory sub-elements).
• The transaction did not require online Authorization and DE 55 was not provided in the First Presentment/1240 message and one of the following: The acquirer can prove that the transaction was completed with chip and PIN; Completed with chip while the card was not PIN-preferring; The result of CVM fallback (documents – DE 55 and mandatory sub-elements).
• DE 55 was provided in the First Presentment/1240 message and one of the following: The acquirer can prove that the transaction was completed with chip and PIN; Completed with chip while the card was not PIN-preferring; The result of CVM fallback.
• The transaction involved an issuer or acquirer located in a country or region without an applicable intraregional chip/PIN liability shift or that does not participate in the interregional Chip Liability Shift Program at Level 2.

Errors in Processing or Procedure

4802 – Requested/Required Item Illegible or Missing

The acquirer provides one of the following:

• Information that was previously missing or illegible.
• A legible and complete copy of the TID.
• Supporting Documents Copy of TID or invoice as appropriate.

4831 – Transaction Amount Differs

• Payment by Other Means – The merchant provides an explanation plus documents.
• Correct Transaction Amount- the TID shows that the amount was processed correctly. (For example, there was no error in addition, or the “total” amount on the TID was properly submitted to GCMS.) plus TID doc.
• Increased Transaction Amount- The merchant can provide documentation that validates the increased debit to the cardholder’s account (Documentation to support that the cardholder is responsible for the disputed amount; for example, charges that the cardholder Authorized were not included on the hotel/motel folio at time of checkout or after the return of the vehicle rental).
• Unreasonable Amount (Intra-EEA Transactions Only) – The merchant can provide documentation showing the cardholder agreed to an amount range as reasonable, and the transaction amount did not exceed this amount range (Documentation supporting the merchant’s claim that the cardholder agreed to a reasonable amount range; for example:
• An itemized price list signed by the cardholder and an itemized transaction receipt showing that the transaction amount was calculated on the basis of this price list; or
• The cardholder’s written agreement to a recurring payment arrangement with the merchant, in which a maximum amount for each payment was specified).

4834 – Duplicate Processing

• Acquirer provides proof to support two separate transactions or proof that the credit has been processed or the issuer’s first Chargeback was invalid.
• PIN Transaction- The acquirer can substantiate that a PIN was present in the Authorization Request/0100 message for both transactions.
• Credit Previously Issued- The acquirer can provide documentation that a credit was issued and processed to the cardholder’s account, correcting the duplication.
• Two Different TIDs – ATM Only- Documentation that verifies the disbursement of funds. For example, the acquirer provides an audit tape showing that the ATM dispensed the requested amount. Two Different TIDs – Non-ATM- The acquirer can provide documentation to support two separate transactions by providing two different TIDs with the same cardholder account number.
• Invalid Message Text- The issuer did not include two sets of acquirer reference data with the original Chargeback.

4842 – Late Presentment

• Correct Transaction Date – The acquirer provides the correct transaction date that is within applicable time limit set forth in section Time Frame for First Presentment.
• Account Not Permanently Closed – The acquirer may prove that the account is not permanently closed after the Chargeback was processed.
• Delayed Presentment:
• The merchant’s delay in submitting the transaction, Transaction Records of the Transaction Processing Rules; or
• A national bank holiday of at least four consecutive days prevented the acquirer from receiving the transaction within the applicable seven-calendar-day time frame (Official documentation from the banking regulator or other authority showing the dates of the national bank holiday).

4846 – Correct Transaction Currency Code Not Provided

• Second Presentment Condition – The acquirer determines that the Chargeback was invalid because the correct transaction amount and currency code were provided. In a dual currency environment, the merchant specified a currency indicator on the TID.
• Supporting Documents – Documentation proving the correct currency was provided or specified.

4850 – Installment Billing Dispute

• The acquirer can substantiate that the number of installments in the Financial Detail Addendum (Generic Detail)/1644 message is the same as the number of installments agreed by the cardholder at the POI.
• Supporting Documents One of the following:
• A copy of the TID or other documentation showing that the cardholder agreed to the number of installments processed, or
• Proof that the acquirer corrected the discrepancy that led to the dispute
• A copy of the TID or other documentation showing that the cardholder agreed to the amount processed.

4863 – Cardholder Does Not Recognize – Potential Fraud

• Documentation of positive AVS response X or Y.
• Documentation that shows the merchandise was sent to the AVS-confirmed billing address.
• The acquirer must provide additional information, not contained in the Authorization or clearing message that would help to identify the transaction.
• Additional information includes one or more of the following:
• A description of the merchandise or services.
• The original transaction amount if the disputed transaction represents partial shipment.
• “Ship to” address (if applicable).

Cardholder Disputes

4841 – Canceled Recurring Transaction

• The Acquirer can prove that the CB is not valid; for example, the CH continued to use the service.
• The acquirer can substantiate one of the following:
• The transaction was not a recurring transaction. For example, the merchant bills the cardholder in installments.
• The transaction was recurring and the cardholder failed to meet the cancellation terms of the signed contract.
• The merchant can document that services are being provided to and used by the cardholder after the cancellation date.

4853 – Cardholder Dispute – Defective/Not as Described

• The Acquirer provides evidence that the goods or services described on the TID were “as described”, or if the CH is claiming defective goods, that the goods were not broken, damaged, or unsuitable when delivered.
• The merchant corrects the problem that led to CB (for example, the merchant repairs or replaces the merchandise). The Acquirer can provide proof that the merchandise is not counterfeit (Counterfeit Goods).

4854 – Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only)

• The acquirer can document it corrected the deficiency that led to the Chargeback (Supporting Documents – Copy of the TID or invoice; Merchant’s written rebuttal).
• The acquirer substantiates that the Chargeback was invalid. (For example, the necessary supporting documentation failed to support the Chargeback).
• The acquirer substantiates that the surcharge was correctly processed – Documentation proving the surcharge was correctly processed.
• The acquirer substantiates that the pro-rated surcharge was incorrectly calculated by the issuer – Documentation proving the surcharge was incorrectly calculated.

4855 – Goods or Services Not Provided

The Merchant provides information, which shows that the merchandise was delivered to the CH (for example, delivery receipt or detailed invoice), or an explanation to CH’s statement or a signed document by the CH removing the merchant’s responsibility for delivery.

4859 – Addendum, No-show, or ATM Dispute

• Documentation that verifies the disbursement of funds; for example, the acquirer provides an audit tape showing that the ATM dispensed the requested amount.
• The acquirer can provide a copy of a signed and imprinted sales form verifying that the transaction was not a “no-show” charge.
• The merchant or acquirer states that the merchant has a formal Guaranteed Reservation Program and that there is no record of cardholder cancellation when the cardholder canceled the reservation and cannot provide a cancellation number.
• The acquirer can request that the issuer show proof that the cardholder contacted the hotel cancelling the reservation.
• The acquirer can provide documentation substantiating that the cardholder was advised before the date of the reservation that he would be billed a “no-show” fee if the reservation was not canceled before 18:00 (merchant’s local time) on the date of the reservation.
• For disputes involving the rate of the “no-show” fee, the acquirer can provide documentation substantiating that the cardholder was notified of the rate before the date of the reservation.

4860 – Credit Not Processed

The Acquirer provides proof that the credit has been processed. The Merchant has not received the merchandise in return. The Merchant must accept the return of merchandise or cancellation of services unless prior disclosure of the cancellation policy was provided at the time of transaction, e.g. the Merchant’s refund policy is printed on the sales slip for invoice (example, “in store Credit Only: of “Final sale”).

4999 – Domestic Chargeback Dispute (Europe region only)

The issuer may not use this reason code when the transaction was a Master Card Commercial Payments Account transaction. A Mastercard Commercial Payments Account transaction occurs when PDS 0002 (GCMS Product Identifier) was MAP (Mastercard Commercial Payments Account) in the First Presentment/1240 message.

AMEX

CHARGEBACK REASON CODES

Reason	Code	Description
Chargeback documentation	6003	Support required to validate Cardmember’s claim for example: credit not received, duplicate billing, goods not received, paid through other means.
Cardmember claims fraud	6006	Cardmember has advised American Express that they believe that the transaction is fraudulent.
Cardmember requests copy bearing signature	6008	Cardmember requests supporting documentation of the charge bearing their signature for their records.
Documentation previously sent is illegible/ incomplete	6013	Supporting documents for a responded dispute are either not legible, do not relate to the correct Cardmember or have not been received in their entirety.
Unrecognized transaction	6014	Cardmember has advised us that A transaction on the Cardmembers statement that is unrecognised and requires further documentation and/ or information.
Personal information	6016	Cardmember is requesting supporting documentation for a particular charge for their personal records.
Incorrect transaction amount or primary account number presented	4507	Cardmember advised charges were incorrectly submitted by either being altered after signed for by them or submitted using an incorrect Card number or charge amount.
Multiple processing	4512	A charge was incorrectly submitted more than once to Cardmembers account.
Credit not presented	4513	Cardmember advised a credit has not been applied to their account for either goods/services cancelled, an advance deposit/payment, or a no-show reservation.
Paid through other means	4515	Cardmember advised a payment for the disputed charge was already made directly to your business by other means.
No reply to disputes enquiry letter	4516	American Express requested documents to support a dispute that a Cardmember has raised but did not receive a reply from the Merchant.
Insufficient or unclear reply to disputes enquiry letter	4517	Received documents from the Merchant to support a charge Cardmember queried but they were either not completely clear or didn’t link the charge to Cardmember.
Invalid authorization	4521	A charge was submitted for payment where either the approval code had expired; the authorization was declined or a single authorization for the total charge amount was not obtained.
Unassigned Cardmember account number	4523	Card number provided was not valid and American Express was not able to assign the charge to the correct account.
Missing signature	4526	Cardmember claimed fraud and documents provided do not show their signature.
Missing imprint	4527	The Card was not presented at the time of the transaction.
Currency discrepancy	4530	Cardmember advised the charge is in a currency that differs from that which they originally agreed upon.
Multiple ROCs	4534	Cardmember advised, despite prior charges with you, they dispute this charge.
Late presentment	4536	A charge was submitted for payment outside the timeframe specified in our agreement with your business.
Card not present	4540	Cardmember denies participation in a mail, telephone or internet type transaction processed by your business, and our investigation confirms that transaction is a result of fraudulent use of the Card.
Cancellation of recurring goods/services	4544	Cardmember advised that their Card account continues to be billed for recurring goods or services that the Cardmember has previously cancelled or revoked.
Not as described	4553	Cardmember has advised us that goods or services received from your business were either not as described by your business or the price should be lower than that claimed by your business.
Goods/ services ordered but not received	4554	Cardmember has advised us that the goods or services that were purchased at your business have not been received.
Car rental charge non-qualified/unsubstantiated	4750	Cardmember has advised us that the transaction includes a charge for damage, theft, loss, or related fees for the rental vehicle that were not agreed upon at the time the vehicle was returned.
Credit/debit presentment error	4752	Investigation shows that a charge was submitted as a debit/ credit and but processed as a credit/ debit.
Local regulatory/legal dispute	4754	Cardmember alleges that a law or regulation was not followed.
No valid authorization	4755	A charge was submitted for payment that exceeded the agreed floor limit and you were required to obtain approval prior to submitting the charge.
Expired/ not yet valid card	4758	Cardmember claims that transaction is fraudulent and investigation shows that the charge is on a Card that had expired or was not valid at the time of transaction.
Fraud full recourse	4763	Investigation confirms fraud. According to our terms and conditions, we may shift liability to you for all confirmed fraud charges.
Fraud liability shift – counterfeit	4798	Investigation confirms fraud. According to our terms and conditions, we may shift liability to you for all confirmed fraud charges.
Fraud liability shift – lost/ stolen	4799	Investigation confirms fraud. According to our terms and conditions, we may shift liability to you for all confirmed fraud charges.

DISPUTE REQUIRED DOCUMENTATION

6003 Chargeback Documentation

• Clearly signed (except for PIN transactions) and itemized receipt or invoice that supports the transaction
• Proof that the Cardmember agreed to transaction/made the booking or reservation and received confirmation
• Website name/URL/product description/IP address/cancellation policy
• Signed proof of shipment and delivery with the delivery address and date.

EXAMPLE:

• • Signed receipt and itemized invoice
  • Itemized invoice linking the order to the Cardmember and the booking
  • Confirmation/cancellation policy
  • Signed proof of delivery receipt

6006 – Cardmember Claims Fraud

• Clearly signed (except for PIN transactions) and itemized receipt or invoice that supports the transaction
• Proof that the Cardmember agreed to transaction/made the booking or reservation and received confirmation
• Website name/URL/product description/IP address/cancellation policy
• Signed proof of shipment and delivery with the delivery address and date

EXAMPLE:

• • Signed receipt and itemized invoice
  • Itemized invoice linking the order to the Cardmember and the booking confirmation/cancellation policy
  • Signed proof of delivery receipt.

6008 Cardmember Requests Copy Bearing Signature

• Clearly signed (except for PIN transactions) and itemized receipt or invoice
• Signed proof of shipment and/or delivery with the delivery address and date
• Signed membership contract indicating the expiration date and renewal policy.

EXAMPLE:

• • Signed receipt and Itemized invoice
  • Signed proof of delivery receipt
  • Signed contract and policy details.

6013 Documentation Previously Sent is Illegible/Incomplete

Please re-send clearer documentation in its entirety to satisfy the requirements of the dispute.

6014 Unrecognized Transaction

• Clearly signed (except for PIN transactions)
• Itemized receipt or invoice that supports the transaction
• Proof that the Cardmember agreed to transaction/made the booking or reservation and received confirmation
• Website name/URL/product description/IP address/cancellation policy.
• Signed proof of shipment and delivery with the delivery address and date.

EXAMPLE:

• • Signed receipt and Itemized invoice
  • Itemized invoice linking the order to the Cardmember and the booking confirmation/cancellation policy
  • Signed proof of delivery receipt.

6016 Personal Information

• Clearly signed (except for PIN transactions) and itemized receipt or invoice
• Signed proof of shipment and/or delivery with the delivery address and date
• Signed membership contract indicating the expiration date and renewal policy.

EXAMPLE:

• • Signed receipt and Itemized invoice
  • Signed proof of delivery receipt
  • Signed contract and policy details.

4507 Incorrect Transaction Amount or Primary Account Number Presented

• Proof that a correcting credit has already been processed
• Proof that the transaction amount was not in error or that the amount had not been altered
• Itemized support for the altered amount and that it was approved by the Cardmember.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized signed receipt/invoice for the full amount of the charge
  • Statement proving Cardmember agreed to this amount.

4512 Multiple Processing

• Proof that a correcting credit has already been processed
• Fully itemized documents that links the Cardmember to each charge processed and prove that all transactions are valid.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice that links each good/service to each charge.

4513 Credit Not Presented

• Proof that a correcting credit has already been processed
• A copy of your cancellation policy and a statement indicating why the cancellation does not comply with your policy
• Copy of signed support; itemization and proof that the refutes the Cardmembers claim or that their evidence is incorrect or inaccurate.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing full amount)
  • Itemized invoice linking the order to the Cardmember and copy of the cancellation
  • Policy highlighting non-compliance and why no credit is due.

4515 Paid through Other Means

• Proof that a correcting credit has already been processed
• Proof that the Cardmembers payment was not related to the disputed transaction.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing full amount)
  • Fully itemized invoice/receipt that links the payment to another charge.

4516 No Reply to Disputes Enquiry Letter

• Proof that a correcting credit has already been processed.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing full amount).

4517 Insufficient or Unclear Reply to Disputes Enquiry Letter

• Proof that a correcting credit has already been processed
• Fully itemized documents that are clear, complete, and directly link the Cardmember to the transaction
• Proof that the documents were sent and received by American Express within the reply by date on the dispute’s inquiry letter.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice/receipt that directly links the Cardmember to the charge
  • A successfully completed fax transmission report.

4521 Invalid Authorization

• Proof that a correcting credit has already been processed
• Proof that the original transaction was improperly described and did not exceed the network floor limit
• Proof that a single authorization for the full amount of the transaction was obtained on the transaction date and submitted in less than 7 days after obtaining authorization.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing full amount)
  • A valid authorization code obtained prior to the submission of the charge for the full transaction amount.

4523 Unassigned Cardmember Account Number

• Proof that a correcting credit has already been processed
• Evidence a Card carrying the disputed account number was used at Point of Sale terminal with a copy of the imprinted slip or copy of the receipt which read the account number from the magnetic strip, or chip.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • A copy of imprinted slip or receipt showing the account number from the magnetic stripe.

4526 Missing Signature

• Proof that a correcting credit has already been processed
• Proof that the receipt carries a signature OR that the Cardmember was present at the time of the transaction, or transaction was completed via PIN.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount).

4527 Missing Imprint

• Proof that a correcting credit has already been processed
• Proof the Card was present at the time of the charge by providing an imprinted receipt or showing capture of the magnetic stripe.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing full amount)
  • A copy of the imprinted receipt or showing capture of the magnetic stripe.

4530 Currency Discrepancy

• Proof that a correcting credit has already been processed
• Proof the Cardmember agreed to be charged in the currency.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Receipt stating the currency the Cardmember agreed to at time of sale.

4534 Multiple ROCs

• Proof that a correcting credit has already been processed
• Fully itemized documents that link the Cardmember to each charge processed and prove that all transactions are valid.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice that links each good/service to each charge.

4536 Late Presentment

• Proof that a correcting credit has already been processed
• Proof the transaction was submitted within the required timeframe.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Documents showing the charge was submitted within valid timeframes.

4540 Card Not Present

• Proof that a correcting credit has already been processed
• Evidence that the Cardmember did engage in the transaction
• Proof that the goods were sent to Cardmembers billing address and that Cardmembers agent signed a carrier delivery receipt for goods.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice/receipt that directly links Cardmember to the order
  • An invoice & delivery receipt signed by the Cardmember or their agent.

4544 Cancellation of Recurring Goods/Services

• Proof that a correcting credit has already been processed
• Copy of signed support/itemization and proof that refutes Cardmembers claim or that their evidence is incorrect/inaccurate
• A copy of your Cancellation policy and a statement indicating why the cancellation does not comply with your policy.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice linking the order to the Cardmember and a copy of the cancellation policy highlighting noncompliance and why no credit is due.

4553 Not as Described

• Proof that a correcting credit has already been processed
• Proof that the goods or services are as originally described or documentation that refutes the Cardmembers claim
• Copy of signed support: detailed itemization of transaction, return/refund policy and authentication or written appraisal or goods (where possible).

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice, product information or marketing information that describes the product/service and the costs.
  • Terms and conditions of sale and authenticated value of goods/service.

4554 Goods/Services Ordered but Not Received

• Proof that a correcting credit has already been processed
• Proof that the goods/services were received in their entirety by the Cardmember or their authorized representative
• Proof that the goods/services were delivered to Cardmembers billing address
• Proof refuting that the services were canceled OR the goods were returned to your business OR seized/held by customs
• For airline transaction disputes, acquirer may demonstrate that Cardmember was engaged in the transaction.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • An invoice, signed delivery receipt or proof of use
  • An invoice and delivery receipt signed by the Cardmember or their agent.
  • Documents from customs authorities indicating they currently hold them
  • Copy of boarding pass, credit of frequent flier miles for flight in question.

4750 Car Rental Charge Non-qualified/unsubstantiated

• Proof that a correcting credit has already been Processed
• Signed copy of the rental agreement including terms and conditions, cancellation/refund policy and rate schedule
• Damage report; itemized repair bill and signed acknowledgment of responsibility agreeing to charges after damage.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Signed rental agreement with terms and conditions and cancellation policy
  • Damage report and signed acknowledgment of responsibility.

4752 Credit/Debit Presentment Error

• Proof that a correcting credit has already been processed
• Proof that the transaction was correct.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Itemized invoice detailing charge amount submitted.

4754 Local Regulatory/Legal Dispute

• Proof that a correcting credit has already been processed
• Proof that the alleged law or regulation does not exist or does not apply to the type of transaction or business industry. Therefore, it is not applicable to the Cardmembers dispute.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Documentation of the application laws or regulations that apply to your business that refute the Cardmembers claim.

4754 No Valid Authorization

• Proof that a correcting credit has already been processed
• Proof that the original transaction was improperly described and did not exceed the network floor limit
• Proof that a single authorization for the full amount of the transaction was obtained on the transaction date.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • A valid authorization code obtained prior to the submission of the charge for the full transaction amount.

4758 Expired/Not Yet Valid Card

• Proof that a correcting credit has already been processed
• Proof that a valid authorization was provided
• Proof transaction date falls within the valid date range printed on Card.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • A valid authorization code obtained prior to the submission of the charge.

4763 Fraud Full Recourse

• Proof that a correcting credit has already been processed
• Proof that transaction falls in list of exempted transactions.

EXAMPLE:

• • SafeKey transactions are exempted
  • And so are the AEIPS compliant chip and PIN transactions.

4798 Fraud Liability Shift – Counterfeit

• Proof that a correcting credit has already been processed
• Proof that transaction falls in list of exempted transactions.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Proof of chip and PIN verification OR an authorization code (non-chip and PIN card).

4799 Fraud Liability Shift – Lost/Stolen

• Proof that a correcting credit has already been processed
• Proof a valid transaction was authorized.

EXAMPLE:

• • Date/amount of credit and reason (if not issuing the full amount)
  • Proof of chip and PIN verification OR an authorization code (non-chip and PIN card).