. 2022 Visa Chargeback. Updated Disputes/Chargeback Policy Coming April 2024Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Customer disputes are a reality of accepting payments. To submit your documents to Wave, use the link in the chargeback notification email, or reply to the email. They are provided to the merchant by the issuing bank, and they help all involved parties categorize disputes and determine next steps. the Airline cancelled the original ticket; That credit for duplicate charges was completed or multiple<br />. The length and structure of Reason Codes changed from a current two-digit code to four to six digits that contains decimal(s) point(s). 105. Mastercard Chargeback Reason Code 70: Chip Liability Shift. One of the most common chargebacks that are being filled by cardholders across the globe, is the “fraud related chargeback. 6 – Duplicate Processing/ Paid by Other Means 12 . com Europe. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks. The format of the Code 10 call is designed to be discreet, so that it can be made in front of the customer, but they can be lengthy. Even though these codes are not detailed enough, they are crucial when it comes to successfully preventing and fighting chargebacks. Learn about the different chargeback reason codes and what they mean. Solution. Prevention strategy: Implement EMV chip card technology to reduce the risk of fraudulent card-present transactions. Since Chargebacks are time sensitive, card networks provide time limits on each reason code to help merchants manage time and data to submit their claims in a timely manner. Not remembering the original purchase. 0 initiative will enhance the taxonomy of fraud chargebacks, characterizing consumer disputes more exactly with a code for “I didn’t receive this” or “I canceled this three months ago, and they’re still billing me. Reference these when rebutting cardholder disputes at your small business. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing date of. For each claim, you must craft your representment to suit the reason code under which the bank filed the chargeback. 4853 – Cardholder Dispute – Credit Posted as a Purchase. You can email us at: disputeresponses@barclays. 1: Use the corresponding dates from the invoice. ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. For a brief overview of chargeback reason codes, refer to the table below. . Either the acquiring or issuing bank could initiate the. The reason code. 1002 - Cardholder disputes billed amount. 2 – EMV Liability Shift Non-Counterfeit Fraud. 3 –. Like definitive guide involves the chargeback reason laws upon each of the four major cards networks. Spot these types of chargebacks using the below reason codes. 1Chargeback reason codes are one piece of evidence you can use to make your case. To assemble the right evidence to fight and win chargebacks, you may need documents. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Chargeback Reason Codes: List & Tips for Merchants REASON CODE CATEGORIES Fraud 10. By entering your email, you agree to receive marketing emails from Shopify. The merchant did not receive any returned merchandise. After the introduction of Visa Claims Resolution, Visa set the goal of resolving all disputes in less than 31 days. 7: Defective goods and services: C32: RM: 13. . Chargebacks occur when a credit cardholder disputes a charge on their statement with their issuing bank, in order to ask for a refund. The merchant's evidence must demonstrate that this claim is false. Once filed, the merchant generally has 20 days to respond to the chargeback. Receivable’s lets you enter a chargeback against a credit memo or an on-account credit memo only if they have a. AP: Canceled Recurring Transaction: AW: Altered Amount: CD:. Always ask for authorization regardless of the transaction amount. 3: Goods or services were not as described: C31: RM: 13. Code 4807: Fraudulent Card-Present Transaction. . The bank can then reverse the transaction, deducting the funds from your account and returning them to the cardholder's account. American Express chargeback reason code C31 falls under the “Card Member Disputes” category. 3. Read on for the complete guide to dealing with chargebacks. This reason code is accompanied by a fraudulent reason code (UA). Reason Code. Second, chargeback reason code 75, for “Transaction Not Recognized,” is going away. There are several types of chargeback reason codes that can be used, including the following: 1. For example, if there was a scheduled delivery date for the order, then the timeframe starts on that date. 43 EST. This means that it will require merchants to provide evidence supporting their claim that a transaction was authorized by the cardholder. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. About American Express chargeback reason codes. 101. Click below to request a free demonstration, and we’ll create a customized report showing exactly how much ROI you can expect. A Shopify chargeback occurs when a cardholder contacts the bank about. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. About Us; Careers We're hiring! In The Press; Latest News; Events; Corporate Responsibility; Brand Resources; Contact Us. The aim of CE 3. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Reason Codes Category 1: Authorization. The shorthand description is “Goods/Services Not as Described. Vantage HouseOn that note, below are some vendor missteps that could result in Visa reason code 13. The implication is that the merchant is at fault. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. Step 4: Card Network Collects Dispute Information. 104. Region Only) 4855 Goods or Services Not Provided. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. This provided a number of insights into the typical. Dispute Description: RC VI/MC/AX/DI: Card Absent - Fraud Dispute: 10. Card brand definitions for “excessive” vary, but as an example, Mastercard requires acquirers to submit your business to MATCH if: Your number of Mastercard chargebacks exceed 1% of Mastercard sales transactions in a single month. Visa chargeback reason code 75 is filed as an honest mistake. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. Major card networks including Visa, MasterCard, Discover and American Express have different reason code systems. 0: Updated report version from 1. Please refer to chapter 5 for more information. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Responding to a chargeback request. What is a chargeback time limit? The chargeback response. The chargeback timeline can be based on one of several start dates: If the delivery date or service performance date was not specified, the issuer must wait at least 30 calendar days after the transaction processing date to initiate the chargeback but not exceed 120 calendar days. In the UK, the fee typically ranges from £15-25 but can be as high as £150. VCR Dispute Reason Code 10. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. Vantage HouseREQUEST A DEMO. This means the cardholder claims that they received goods or services that were substantially different from what the merchant described. Typically, cardholders file a chargeback if they were not informed of dynamic currency conversion fees or were not given the option to complete the sale in their local currency. Thanks for following the Chargeback Gurus blog. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Blog and Articles; Success Stories; Chargeback Reason Codes;. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. • create an A/P credit for the charge back. You can create multiple chargebacks against each transaction, for positive or negative amounts. Chargeback Report. chargeback: The buyer filed a chargeback with the credit card issuer. ISD technology lets you fight chargebacks based on the true reason, not just the reason code. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. 1 Quick Reference Lead. Chargeback. Time Frames by Chargeback Type and Reason Code. Read the Chargeback Advice letter carefully. Consider Deadlines. . Chapter 2 1. You can learn more about each one by visiting the Mastercard Chargeback Guide. FR6 Partial Immediate Chargeback Program. This will be referenced in the chargeback notice you received. . chargeback: The buyer filed a chargeback with the credit card issuer. The newer system is designed to. Other Fraud—Card Present Environment. April 2018_Chargeback Reason Code Encyclopedia. The authorized transaction was for goods or services that the merchant did not deliver as per a contract, receipt, or some other written. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. Values are: Blank: Use the draft G/L date. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received 02 Requested\Required information illegible or missing 07 Warning Bulletin File 08 Requested\Required authorization not obtained 12 Account number not on file 31 Transaction amount differs 34 Duplicate Processing An issuer can initiate a first chargeback when the circumstances of the transaction meet the requirement of a chargeback reason code described in the Chargeback Guide. Step 2: Customer initiates the chargeback. ” This code indicates the merchant waited too long to finish processing a transaction, and the account was no longer in good standing when the transaction was completed. What does the reason code of my chargeback mean? Whenever a payment is disputed, a dispute reason code is used by the issuer to let you and us know why the payment is charged back. There are many reasons why a chargeback occurs, with over 100 reason codes listed across the major credit card brands. When you do the math, you are looking at a $5,000 penalty per month, along with a chargeback fee of $15-$30 per chargeback, and all the other associated costs. . Updated Visa Reason Codes. A “No Authorization” code chargeback can also be the. Cardholder-Activated Terminal (CAT) 3 Device. Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. 4841 Canceled Recurring or Digital Goods Transactions. The system also uses this AAI when you perform AR or AP netting using the Manual Netting program (P03B455). AT: Authorization Non-compliance: AW: Altered amount. Code 10. 4853:About American Express chargeback reason codes. 3. This chargeback reason code was retired by Visa in April 2018. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. transactions with a CPD before 1 October 2017. In addition to Reason Codes changing as a result of the VCR program, each Reason Code is now associated with a new Reason Category. Reason code 4541 - Recurring Payment. Specify the default reason code that you want the system to assign when you enter a chargeback amount. 4 – Incorrect Account Number 12 . 1 falls under the “Processing Errors” category. A chargeback is a cancellation of a transaction. The format of the Code 10 call is designed to be discreet, so that it can be made in front of the customer, but they can be lengthy. . Here’s how your store can prevent and deal with chargebacks. 2023 Consumer Attitudes Towards Chargebacks. Mastercard Chargeback Reason Code 70: Chip Liability Shift. Step #2 | Report the Scam to PayPal. SECTION 4: Chargeback Reason Codes . A chargeback is a cancellation of a transaction. It’s indeed fortunate that there are many rules and laws that. 2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Solutions. Reason code 04 pertains to your chargeback-to-transaction ratio and is the most common reason for being MATCHed. A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments. . Reason Codes Category 4: Processing Errors. Required Authorization Not Obtained. 1 = EMV-Liability Shift counterfeit. Chargebacks911® offers the industry’s only data-driven, fully managed solution for chargebacks. Fortunately, chargeback reason codes make it easy for merchants to understand the cause of chargebacks. There are several different methods for obtaining a credit card payment reversal. Other Fraud—Card Present Environment. chargeback. Claim. Chapter 6: Visa Chargeback Reason Codes; Chapter 7: Chargeback responses; Chapter 8: Chargeback response templates; Chapter 9: Chargeback accounting; Chapter 10: Arbitration; Chapter 11: Fraud filters; How to Create the Best Chargeback Responses. In Oracle Receivables you can create a chargeback against transactions to which you are applying a receipt. Code. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. Below is a list of Mastercard chargeback codes used in eCommerce. So don’t spend another second worrying about chargebacks. 11/03/15 Updated these MasterCard. 4 spec (Section 8. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Chargebacks are the result of a customer questioning or disputing a transaction with their issuing bank. Each card issuer follows their own standards for defining reason type, code and its format. The most comprehensive guide to chargeback reason codes. You must designate the write-off reason code for the system to use when you activate the automatic write-off feature. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Take the time to note the following dispute reason codes for Visa. 7: Defective goods and services: C32: RM: 13. 0: Changed report name from Downloadable Dispute Report to Case Report. Reason codes are created by the major. This chargeback occurs when merchants do not adequately provide currency information. Chargeback fees typically cost $15-$25 per incident. Administrative returns (R02, R03, R04): 3%. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. Not only do you need to know how long the timeline is, but you also need to know when the clock. The list of chargeback reason codes in this article is organized by card brand and type of dispute. 1. 4846. Card brand definitions for “excessive” vary, but as an example, Mastercard requires acquirers to submit your business to MATCH if: Your number of Mastercard chargebacks exceed 1% of Mastercard sales transactions in a. The chargeback process can last from one month to six months. The most popular type of disputes of the chargeback category. Company. VCR tables (Figures 1 and 2) map the old Reason Code to its new Reason Code. Understanding these codes can help merchants understand why chargebacks are being filed and how to prevent them in the future. M49 Vehicle Rental – Theft or Loss of Use. Thus, the easiest way to prevent chargeback reason code 75 from being. You may have to pay the chargeback fees if the dispute is successful, ranging from $15 to $100. Reason Code 53 Re-presentment Conditions. The standards for what constitutes compelling evidence will vary according to the reason code of the chargeback being contested. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. 502 DM-REFUSED DEBIT VENDOR-DOCK REFUSAL AP Forms, Invoice Shortage Dispute 503 DM-PAY/CAN BOOK INV IN & OUT PO CANCEL AP Forms, Invoice Shortage Dispute 504 DM-DUP INV DM-DUPLICATE INVOICE AP Forms, Invoice Shortage Dispute 505 DM-T. Chargeback Reason Codes; BIN Lookup; ROI Tool; Company. 1 Interchange Reimbursement Fee (IRF) Determination and Payment 127First, let’s start by establishing why chargebacks happen in the first place. Now, compliance cases go through Visa Resolve Online (VROL). The Guide Gain a better understanding of the nature of your chargebacks and effectively manage them. All 1. 2. Be sure to communicate with the customer and their bank professionally and courteously. Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive . If you leave this processing. The card network then notifies the merchant’s acquiring bank about the chargeback and passes along all the collected information. The third digit indicates the specific reason within that category. 10. When every chargeback comes with a separate fee and an incremental uptick to your chargeback rate, several $1 chargebacks can be a lot worse than a single chargeback. Visa Chargeback Reason Codes. This extra step can be frustrating for Card Members and lead to lost sales. Code 12 . MDR removed some reason codes completely, including code 4863 – Cardholder Does Not Recognize. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. 3. Usually, the reason codes will fall. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. If you receive a chargeback under Reason Code 85, you will need to provide evidence that the credit was processed in order to dispute the chargeback. ACH disputes pertain to various parties involved in an ACH transaction, which is an electronic funds transfer facilitated. 4860 Credit Not Processed. That’s why you need to kick chargeback mitigation into high-gear. txt) or read online for free. Instead of relying on individuals within your organization to route paper or emailed invoices to the appropriate AP desk, an automated solution would scan the invoice. 10. Chargeback companies can assist merchants in navigating these processes, and work with them to develop a comprehensive chargeback prevention strategy. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases. Despite all the rules and guidelines, the outcomes of the chargeback process can be, at times, subjective, and can vary based on the scenario, merchant payment. It’s just what it sounds like—the reason they’re fighting the charges, which can range from fraud and non-delivery of services to processing errors—and the codes for each problem differ between card networks. Blog and Featured; Success Stories; Chargeback Reasoning Codes; BIN Look-up; eGuides and Reports;. Reason . If the merchant has a signature showing that the order was delivered, or evidence that the. There are two parts to this. Poor order shipping: Not shipping goods or delivering services as promised, shipping to the wrong address, or not making the goods available. 75 for every $1. Examples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof that the cardholder authorized each of the. Fight; Hinder; Recover; Resources. This Chargeback Reason Code has to do with all. This means that if a merchant issues a refund in response to an alert, and it still results in a chargeback, the management company will refund the alert fee. This code is used when a cardholder claims that a fraudulent transaction occurred in a face-to-face environment, such as a retail store. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the. If the order was genuinely not as described, then the cardholder has a case. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. While you obviously don’t want customers to cancel their service, a cancelation is far better than a chargeback. Otherwise, the Discover card chargeback time limit starts at the transaction processing date. If your business falls into the "normal" risk profile, meaning you have a chargeback ratio of less than 1%, the chargeback fee levied by banks or payment. AP Asia Pacific (AP) CEMEA Central Europe, Middle East, and Africa (CEMEA)Updated August 23, 2023. At Visa they used to receive reason code 98. Knowing these codes can help you dispute chargebacks more effectively. These codes are broken down into five different category. What Are the Time Limits for Mastercard Chargeback Arbitration? Starting from the date the chargeback representment was filed, issuing banks have 45 calendar days to file a pre-arbitration. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. ”. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization Fraudulent transaction chargebacks happen when a cardholder does not. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. The issuer reviews the case, assigns a reason code, and initiates the chargeback. Try Shopify free for 3 days, no credit card required. Codes are not often shared between issuers which means it can be difficult to remember the details of each. Once you know the reason code, you can investigate the transaction to determine whether. Banks may issue a credit to an account holder at their discretion. Other Ineligible Transactions Under Reason Code 62, Condition 2 . If you're contesting a chargeback, you'll need solid evidence. The assigned chargeback reason code outlines why a customer submitted the dispute. Because it’s so easy for customers to initiate a chargeback, retailers are bound to experience a request at some. All of Visa’s existing reason codes were condensed into four key groupings: fraud, authorization errors, processing errors, and customer disputes. 2? Visa chargeback reason code 12. Merchants who believe they have received an invalid chargeback under reason code 12. In the case of friendly fraud, that reason could be completely invalid and. Solutions. However, Visa is the largest card brand in both the United States and the world. Fight; Prevent;. Verify that the processing options are set up appropriately for discounts, chargebacks, write-offs, and deductions, as well as for any type input codes that you allow. It gets worse. Code 64: Early Shipment. Chargeback Reason Codes by Network - 2023 Orientation. Technical. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Chargeback. For example, if a store or distribution center receives 40 cases but the invoice is for 45 cases, a Code 22 will be issued for the 5 outstanding cases. Review your credit card processor’s policies to understand its chargeback dispute process. The claim often, but not always, involves automated teller machines (ATMs). The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. Review the code to learn the reason for the chargeback and any other pertinent details. In fact, for every dollar lost to chargebacks in 2019, the average merchant lost an additional $2. By entering your email, you agree to receive marketing emails from Shopify. 6 General update and rebranding. Capturing a customer's original reason code and automatically converting it to an internal reason code can make claim. As we touched on earlier, chargebacks can happen due to technical errors. *These networks do not have specific reason codes assigned to dispute; however, any retrieval that is received without a reason code will be assigned a default code of 1. The process is often troublesome; most times, reason codes do not show the actual basis why customer is disputing a transaction. 4853 Cardholder Dispute. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. . CLAIM DEBIT VNDR-AP APPLIED CARRIER CLAIM AP Forms,. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. A chargeback report is a periodic report that compiles key chargeback stats to track trends and identify correlations between disputes and other business data. . A chargeback happens when a customer requests for a transaction to be reversed. Merchants can find a. AP-Automatic Payment:. 0 etc. If the merchant attempts to force a transaction through after the presentment window, the bank may respond with a “late presentment” chargeback. It is associated with a chargeback reason code, and it is specific per Card Scheme. In simple terms, VCR introduced five definitive. Using the same link provided above, contact PayPal to report the scam. . As its name suggests, Code 22 is issued when Walmart does not receive all the items it is billed for on the invoice. Chargeback Reason Key by Network - 2023 Guide. These are only a handful of common Visa chargeback reason codes. RMA:. If they succeed, the issuing bank will reverse the chargeback and return. We’ve all been there as an eCommerce owner: you excitedly ship out a $1,500 order to a customer, and then a few weeks later you’re notified that the customer has opened a chargeback dispute. AP Asia Pacific (AP) CEMEA Central Europe, Middle East, and Africa (CEMEA)About American Express chargeback reason codes. The shorthand description is “Transaction Not Recognized. 00 in chargebacks. Every friendly fraud chargeback will come bearing a reason code that specifies the nature of the cardholder’s claim. There are multiple situations in which this can occur. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. For example, if a customer disputes a credit or debit card transaction with code 4837 (Mastercard’s code for “Fraudulent Multiple Transactions”), then the merchant should review their fraud. Retail chargebacks occur when consumers dispute credit card transactions that were used to pay for retail goods. Reason Codes: 08 / 20 / 71 / 72 A card was used either before or after its valid date Never process a transaction on a card prior to, or after, the valid date. Merchants who believe they have received an invalid chargeback under reason code 13. All chargebacks start with a customer making a purchase in person, in an app, or online. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. But cardholders and merchants have different time limits. You’ll put that reason code, the transaction amount and authorization number, and state that the. When a cardholder makes a purchase, but regrets it later, they may file a chargeback to recoup their money. 7. 00/DE for discount reason codes. 196Chargeback reason codes can change with new information. Based on this, you can. Chargeback Reason Codes > Chip Liability Shift > Issuer Chargeback > Chip Liability Shift Program for Domestic and Intraregional Transactions Chapter 5—Compliance Case Filing Incorporated the changes announced in “AN 1677—Revised Standards—QuestionableChargeback guarantees usually carry some fine print—they may only cover certain chargeback reason codes, or only cover costs up to a certain dollar amount. Blog. However, don’t expect to eliminate it altogether. 3. 3 Changed Discover Reason Codes to match what is shown in the UI. AP. Q. Date Option. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. Verification codes (AVS, 3D Secure 2. 29 Reason Code 30: Services Not Provided or Merchandise Not. Our Most Important Advice for Scam Victims is that to Get Your Money Back You Must File a Chargeback Request Correctly! Here’s more advice for scam victims: If you paid by credit or debit card, it is imperative to understand your rights and the power that’s in your hands. most common reason codes for recurring merchants include: 7. M01 Chargeback Authorization. The shorthand description is “Warning Bulletin File.