American Express uses four main categories to organize its reason codes: Authorization, Card Member Disputes, Fraud, and Processing Errors as well as two additional categories, Inquiry/Miscellaneous and Chargeback Programs, to classify just a handful of reason codes. 2 - EMV Liability Shift Non-Counterfeit Fraud. Reason code: Explanation: 10. youtube. Chargeback Reason Codes List for Visa. 10. 1 – EMV Liability Shift Counterfeit Fraud Dispute Code 10. There is a 15-day waiting period for chargebacks on items that were returned but not refunded. Use this report to check the status of all chargebacks disputes and retrieval notifications within the report range. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Discover the latest Visa chargeback codes for 2023. each reason code has been categorized under four categories Dispute Condition – is the description of the Reason Codes. 2 – Declined Authorization 11 . 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. Expired Chargeback Protection Period. 13. [1]. 1 – EMV Liability Shift Counterfeit Fraud: 120 days. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. “CVV2” refers to the fact that it is the second-form deployment of CVV (card verification value) technology. 7 million merchant locations are accepting chip transactions1 –11. 0 is a protocol that allows merchants to securely transmit detailed transaction information to issuing banks, allowing the merchant to take advantage of the bank's more advanced fraud analysis tools. Some of these reason codes are specifically designated to apply to authorization-related issues. The Visa chargeback reason codings system underwent a major overhaul in May 2018 as part of their new Visa Claims Resolution (VCR) initiative. A chargeback reason code is a 2-to-4-digit alphanumeric code provided by the issuing bank involved in a chargeback, which is meant to identify the reason for the dispute. 11. issuers must not initiate chargebacks for any AFD or ATM transactions outside the U. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions ontransactions with a CPD before 1 October 2017. 65 percent chargeback ratio. The U. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. When they do, you’ll be given an. 2 is an updated version of legacy Visa reason code 81, which was phased out under the Visa Claims Resolution initiative. is not 100 percent chip-enabled has brought up many questions about new chargeback reason codes, when to charge back, if a chargeback is valid, and how to mitigate. Learn which strategies to use as you fight and prevent consumer disputes by reason code. Mastercard uses a four-digit numbering scheme for its chargeback reason codes. Since the chargeback process can be costly and time consuming, merchants should consider it an important priority. Remember, you are 100% liable for EMV payments related chargebacks if you don’t adopt the technology. F01. Managing chargebacks, cardholder disputes, copy requests and chargeback reason. Visa Chargeback Reason Codes. issuers must not initiate chargebacks for any AFD or ATM transactions outside the U. 4 In connection with the migration to EMV in the U. , Aug. They are provided to the. For chargebacks due to late delivery, a return must be attempted first. Card Brand Code Description Days to Dispute Dispute Category; Amex: A01: No Valid Authorization/Excessive Amount: 120: Authorization:Networks offer an added program benefit for merchants implementing EMV 3DS – a liability shift on fraudulently reported chargebacks. The most comprehensive guide to chargeback reason codes. American Express Chargebacks / Disputes. 4841 Canceled Recurring or Digital Goods Transactions. Payments. Visa, for example, has reason codes: 11. Below is a list of VISA chargeback codes. without a reason code will be assigned a default code of 1. All chargebacks come with a reason code that gives the cardholder’s justification for disputing the transaction, and the merchant's evidence must directly address that claim. 57 - Transaction Not Permitted to Cardholder. and the implementation of payment network counterfeit and lost/stolen fraud liability shifts, chargeback reason codes were established for (1) counterfeit, and (2) lost/stolen EMV chip card transactions covered by those chip liability shifts. Unfortunately, issuing banks always take the consumer’s word without. Despite that fact, AFD operators — those using merchant category code 5542 (automated fuel dispensers) or 5541 (service station) — were exempted from EMV liability rules for several years. 2 — EMV Liability Shift Non-Counterfeit Fraud; Mastercard Chargeback Reason Code. This code applies when a fraudulent transaction uses a fake chip card at a point-of-sale (POS) terminal that hasn’t been updated to use EMV chip technology. P05 – Incorrect Charge Amount. EMV® is a registered trademark in the U. Simply search for your Visa chargeback reason codes, and learn why the chargeback was issued. A chargeback happens when a customer asks their card-issuing bank to reverse a transaction. ISD pinpoints and evaluates specific chargebacks by their source rather than their reason code. Each of the major card networks—American Express, Discover, MasterCard, and Visa—has its own specific. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Visa Merchant Official Documentation. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to. For most merchants, the EMV liability shift took place in 2015. com. 1% of Visa transactions are chip-on-chip2 •Goal of EMV: Prevent card-present fraud at the retail POS1. Always use the correct cardholder verification method—signature, PIN, etc. About Visa chargeback reason codes. Reason Code Reason Description; 10. 4 – Other Fraud, Card-Absent Environment. How EMV can help avoid potential chargebacks. There are a lot of different. 1 - EMV Liability Shift Counterfeit Fraud: The cardholder claims the transaction you processed was authorised without their knowledge. The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. reasonable and that the transaction did not exceed this amount range. Chargebacks can be a costly part of accepting card payments and entail administrative. Chargeback Reason Codes and Descriptions. Visa Fraud Chargeback Reason Codes 10. 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. 1 – EMV Liability Shift Counterfeit Fraud Dispute Code 10. 102. Reason Code Reason Description; 45:. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37Under Visa’s previous chargeback rules, merchants could contest a reason code 10. 1 – Late Presentment. In connection with the migration to EMV in the U. Come find us at the Traffic & Conversion Summit to learn more about our #EMV #3DS solution or just to link up!. Based on the information provided, Paymentology will investigate the transaction being disputed. Reference these when rebutting cardholder disputes at your small business. Step 4: Inform your customers about the EMV liability shift and its benefits. 101. 3 Other Fraud – Card Present Environment 83(1) 10. Of course, these safeguards were easy to defeat if you had a stolen card. Merchants can analyze the root causes of their chargebacks by examining the reason code of the chargeback and their own records regarding the purchase in question. The most common form of CNP transaction is an online purchase. transactions with a CPD before 1 October 2017. This refers to the software program that controls the operating system and critical functions of the contactless payment terminal. To streamline the process and make things easier, credit card companies have developed chargeback reason codes. The reason for this is that each AFD is a complex machine with a built-in card terminal. Steps to Prevention. Currently chargebacks for fallback transactions can be raised for counterfeit EMV card fraud transactions in Dispute Management System (DMS) under the reason code 'Counterfeit EMV Card Fraud'. Chargeback Code. 4 - Incorrect. The reason codes help merchants understand the reason for particular chargebacks and better tailor their responses to chargebacks. Midigator has created a database of reason codes. Reason Code 04. 1, which covers duplicate processing errors, and 12. When one cardholder initiates a dispute with their issuing bank, a. EMVCo will manage the standard and license it royalty-free. 4:. Some card networks will include “transaction modifiers” with the reason code. [noun]/kän takt ləs pā mənt frôd/. The most comprehensive guide to chargeback reason codes. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. 3 – No Authorization 12 . 10. 51 Pleasant St # 1072, Malden, MA 02148 +1 (888) 901-8653. and other countries, and an unregistered trademark ® is a registered elsewhere. The U. 5 under Visa Claims Resolution). S. 3 – Other Fraud- Card Present Environment. Code 4812 was used for transactions processed against invalid. The customer regrets their purchase. 10. Visa Chargeback Code Condition 10. Card networks provide limits on cash back amounts dependent on region. Careful analysis of your chargeback. Mastercard specifies 21 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, and Cardholder Disputes. 2 – EMV Liability Shift Non-Counterfeit Fraud / Dispute Code. Describes Visa's categorical chargeback codes, including temporary mapping instructions for merchants transitioning from Visa's legacy codes to the new codes, issued by Visa in April, 2018. S. 3: Fraud (10) Other Fraud – Card Present Environment: 10. Like we mentioned above, EMV technology encrypts the card information stored on the chip, substituting a unique token for each transaction. 102. ; Help Center Find answers to common questions about Midigator’s technology,. 1 – Card Recovery Bulletin. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. In essence, the merchant needs to prove that the claim indicated by the reason code is untrue. American Express Merchant Official Documentation. S. Chargeback reason codes identify the general reason behind a chargeback. FR4 Immediate Chargeback Program. About Discover chargeback reason codes. ”. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. In fact, 91. What is a chargeback. The new codes, which can be found in our reason code guide, start with a two-digit number indicating which of Visa's four dispute categories it falls into: 10 — Fraud; 11 — Authorization; 12 — Processing Errors; 13 — Consumer Disputes; The Visa Claims. ”. . 4860 Credit Not Processed. 1 – Card Recovery Bulletin 11 . It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. When a merchant processes a transaction against a counterfeit card in a. EMV. In the distribution industry,. This could happen as a result of fraud or merchant abuse. Is there a difference between chip-PIN and chip-signature transactions?. EMV, Mobile Wallets, and Virtual cards are the next generation payment solutions that are changing the way payment industry works. It was originated from Europe, and it has been used around the globe since then. Visa specifies four dispute categories that encompass its various chargeback reason codes: Fraud, Authorization, Processing Errors, and Consumer Disputes. Mastercard Chargeback Reason Code 71: Disputed Amount. Needless to say, 2020 has had no shortage of events that would qualify under most force majeure clauses, and 2021 may contain its share as well. It’s vital that you know the chargeback’s reason code so you can properly craft your response. instagram. 2. Learn which strategies to use as you fight and prevent consumer disputes by reason code. American Express Chargebacks / Disputes. 3 No Authorization. S. 9 — Non Receipt of Cash or Load Transaction Value. Fraud brings big costs to small businesses. When the chargeback procedure is used legitimately, chargeback reason codes correspond most of the time to the underlying reality, based on the evidence provided by the cardholder and the cardholder’s bank’s analysis. Be aware that Cartes Bancaires chargebacks with reason code 45 are not defendable. Visa chargeback reason code 10. 10. 3 – Other Fraud-Card Present Environment 10 . 10. Chargeback Reason Codes The Visa chargeback reason codes system underwent a major overhaul in April 2018 as part of their new Visa Claims Resolution (VCR) initiative. Additionally, tools like EMV chips and tokenization can provide further security. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. Their use has been declining since EMV mandates went live in the US, but in 2022, researchers observed a sudden spike in skimmer-related scams. ; Help Center Find answers to common questions about Midigator’s technology,. EMV Counterfeit: M01: Chargeback Authorization: P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit:. Preventing Chargebacks under Reason Code 10. Code. Sift’s Visa chargeback reason code guide features. Use fallback options—like manually entering transaction data—as a last resort. migration to EMV chip payments and accompanying fraud liability shifts, new types of chargeback reason codes have been established for both counterfeit and lost/stolen fraud that issuers, acquirers and merchants need to fully understand. Provide exemplary customer service. 4812 Account Number Not On File. J. 1 falls under the “Fraud” category. 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—Questionable10. This equipment is designed to read the chip on a customer's card, which is a more secure way of processing transactions. 3 – No Authorization. UA01 Fraud – Card Present Transaction. If the merchant is not EMV-compliant, the liability for a fraudulent transaction shifts from the card issuer to the actual merchant. Discover is a credit. 3 applies when a cardholder claims a charge—made in a card-present environment—was. American Express Chargeback Codes (2023) American Express functions as a card network and an issuing bank. 101. All the major card networks use chargeback reason codes to convey the reason for a chargeback. 12. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. This is an arguable chargeback code because a merchant. List of Chargeback Reason Codes. Therefore, as a merchant, you need to be careful when and how to initiate a chargeback dispute. Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. For compliant solutions that can be used standalone or integrated,. We have mentioned all the chargeback categories above to explain the Chargeback Reason Codes according to the card networks. If you haven’t upgraded to EMV-compliant terminals and a counterfeit card is used fraudulently, first you must refund the charges to the. F02. 4841 Canceled Recurring or Digital Goods Transactions. There are also third-party tools available to conduct advanced analysis. During this process, the representative of the institution examines the reasons’ list. 3-D Secure 2. Products. Since these disputes come from the issuer, a merchant response is allowed only under certain conditions. Below is a list of Mastercard chargeback codes used in eCommerce. EMV fraud prevention technology is a product of EMVCo. Standard – allows 100 chargebacks and a 0. List and additional information about all reason codes by card brand. S. 5: Visa Fraud Monitoring Program:What is Visa Reason Code 11. George goes to an ice cream place and orders bars for all his friends. If a retrieval request is ignored, it will often result in a chargeback, and the merchant will have given up their right to fight that chargeback by ignoring the request. You could also end up submitting the wrong evidence, which will cost you time, money, and standing with the bank. The decision to accept EMV chip card payments is yours as the owner of your business. American Express chargeback reason code F30 falls under the “Fraud” category. Once filed, the merchant generally has 20. P08 – Duplicate Charge. What if the terminal cannot read the chip on a card? 9. ”. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. Notification of Fraud. No. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Issuers will not have the ability to submit lost/stolen fraud chargebacks for chip-on-chip (contact or contactless) AFD transactions. Reason code 4870 – Chip Liability Shift; Reason code 4871 – Chip & PIN Liability Shift ; How can I actively prevent fraudulent chargebacks? Depending on your workflow or third-party integration use, it may curb chargeback risk to have your guest present payment upon pickup so that it can be processed by the more secure EMV chip. Use the correct CVM (Cardholder Verification Method). As a rule, “Fraud” and “Authorization” disputes enter straight into the “Pre-Arbitration” stage. Like EMV, there will be vendors that struggle to adapt. These reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. It is likely that card “shimmers,” or EMV skimmers, were involved in most of these reported scams. 2: EMV Liability Shift Non-Counterfeit Fraud: Visa: Fraud: 10. How can merchants prevent code 73 chargebacks?. When a customer who's enrolled with 3-D Secure from their bank initiates a purchase, the tool will deploy during the. 2 falls under the “Fraud” category. Prior to the Visa 3-D Secure 2. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Use the correct CVM (Cardholder Verification Method). Dispute Best Practices Guide Overview This guide includes: An overview of authorization and transaction processing An overview of retrievals and chargebacks Reason code guidelines for all. Your chargeback response must include at least one of the following items: Proof the transaction was authorized and the valid card was not an EMV chip card. EMV is a registered trademark in the U. Remember, you are 100% liable for EMV payments related chargebacks if you don’t adopt the technology. 2 - EMV Liability Shift Non-Counterfeit Fraud. That said, the code is still operation, at least for now. 1: EMV Liability Shift Counterfeit fraud; Visa Chargeback Code Condition 10. You’re right. Visa chargeback reason code 75 is filed as an honest mistake. 10. migration to EMV chip payments and accompanying fraud liability shifts, new types of chargeback reason codes have been established for both counterfeit and lost/stolen fraud that issuers, acquirers and merchants need to fully understand. Reason Code Reason. Condition 10. 10. If you do choose to dispute these chargebacks, you are putting yourself at risk of incurring additional fees: Reason code. g. J. American Express chargeback reason code F30 falls under the “Fraud” category. S. The U. What causes code F31 chargebacks? This reason code is supposed to be used only when an EMV chip card has been stolen by a fraudster, and a card-present merchant uses the magnetic stripe or a. Visa Chargeback Reason Codes. Speakers from MasterCard, Vantiv, Visa, Woodforest National Bank . As for card-not-present transactions,. If using any other currency than this, it should be equivalent to the specified amount. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. 1: EMV Liability Shift Counterfeit Fraud: Visa: Fraud: 10. The following table lists critical values used in the fallback compliance/chargeback process by networks participating in the development of this guidance document. If you have already processed a refund for the transaction in question, provide. Acquirer Use of Message Reason Code 7623. Once filed, the merchant generally has 20. If the merchant can provide documentation that the EMV chip was read—and that all of that data was transmitted to Visa—a reversal may be possible. M01 Chargeback Authorization. Reason code 4812 indicates the broad category of “authorization-related chargebacks. 2 – Incorrect Transaction CodeA chargeback is a return of money to a payer of a transaction, especially a credit card transaction. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. By entering your email, you agree to receive marketing emails from Shopify. Counterfeit liability shift likely chargeback outcome tableGoods / Services Damaged or Defective. P04 – Charge Processed as Credit. Code 4870 chargebacks usually occur when a fraudster with a cloned credit card either targets a merchant with POS terminals that can't read EMV chips or convinces a merchant to swipe the card rather than scan it. Reason code: Explanation: 11. Additionally, Amex uses a fifth "Miscellaneous" category. 1 - EMV Liability Shift Counterfeit Fraud Chargeback Reason Codes / Visa / 10. Visa uses four main categories to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. No. Additionally, Amex uses a fifth "Miscellaneous" category. 3 – Other Fraud, Card-Present Environment. Reason code 12. Chargeback reason code 4870 has to do with whether or not the merchant in question has installed and is using terminals that can accept EMV or “chip” payment cards. Some payment service providers like PayPal and Stripe have their own reason codes as well. S. 10. A retrieval request is in some ways more important than a chargeback. However, these chargeback reason codes cannot prevent friendly frauds. Every merchant’s situation is different, and the right combination of tools and methods for one merchant may be less effective for another. 1 : Card Recovery Bulletin : 11. technology. In theory, reason codes help merchants understand why customers dispute purchases. S. NOTE: Domestic Processing Violations are not a covered reason under new Visa chargeback codes. Equally, U. To avoid this, never use the magnetic stripe on a card with an EMV chip. Chargeback Reason Codes Visa. •Significant progress has been made with EMV migration –Over 500 million EMV chip cards have been issued –Over 1. Q. There are dozens of different chargeback reason codes spread across the different card networks, which correspond to hundreds of different chargeback triggers. For this reason, fallback transactions are. Mastercard Chargeback Reason Code 70: Chip Liability Shift. S. Thanks for following the Chargeback Gurus blog. Other Fraud—Card Absent Environment. Reason Code 03. 11. Updated over a week ago. Chargeback Reason Codes; Find Your Merchant Category; Payments Industry Definitions; Contact; Get a Demo; Login; Search for: Payments Industry Definitions Mike Conway 2023-05-18T22:11:30+00:00. Merchants who previously applied legacy codes to chargebacks for the purposes of reporting and rule-writing can continue to refer to the legacy codes. These are only a handful of common Visa chargeback reason codes. 2 Declined Authorization. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. 2. The shorthand description is “EMV Counterfeit. All of Visa’s existing reason codes were condensed into four principal groupers: fraud, authorization bugs, handling errors, and customer. This is an independent consortium drawing its name from the three card brands—Europay, Mastercard, and Visa—that first launched the technology. They were mandated by the Internal Revenue Service in 2004 to facilitate tax. 76 - Incorrect Currency or Transaction Code or * Domestic Processing Violation. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). In connection with the migration to EMV in the U. This claim strongly suggests that the merchant processed a stolen card on a payment. Transaction was approved by the Issuer knowing that the authentication data failed verification and was not reliable Transaction is not eligible for Reason Code 75 or 83: 9List and additional information about all reason codes by card brand. Chargeback Reason Codes Fraud – Card-Not-Present (CNP) Network Reason Code Bank Initiation Timeframe Accel 81 120 calendar days from transaction processing date American Express FR2, F14, F24, F29 120 calendar days from transaction processing date Discover 4752 AA, 7030 UA02 Within 30 calendar days from the close date of the TRRAmerican Express Chargebacks / Disputes. Dispute network reason codes categorization . Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. Instead of storing information on magnetic stripe card. 4 Other Fraud – Card Absent Environment 93(1) 10. AT Authorization Noncompliance. Chargeback reason code description – An explanation which provides the reason of raising a chargeback by the cardholder. Once filed, the merchant generally has 20 days to respond to the. Chargeback Code Chargeback Reason; 10. Thus, the easiest way to prevent chargeback reason code 75 from being filed is. S. chargeback for Reason Code 62 or Interlink Reason Code 2462 for amounts up to $25. The reason for this is that each AFD is a complex machine with a built-in card terminal. 3 – Other Fraud. . Every chargeback has a reason code associated with it. F31:. October 15th of 2021 marked the six-year anniversary of EMV implementation in the US, as well as the fraud liability shift which encouraged it. France saw a drop of roughly 50% during the same period. S. 65 - Withdrawal limit exceeded: The transaction would exceed the maximum. Credit card companies use chargeback codes to classify the reason for a disputed transaction. American Express, Discovering, Visa. Speakers from MasterCard, Vantiv, Visa, Woodforest National Bank Princeton Junction, N. 10. The shorthand description is “EMV Liability Shift Counterfeit Fraud. 00. For example, if: The cardholder no longer wishes to dispute the transaction. message. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. RuPay Card holder Dispute Chargeback Reason Codes: 1) Retrieval Request Reasons and Reason Codes A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy of the original transaction receipt. 3 No Authorization; The most important point to. 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. Steps to Prevention. Recognize. 04. For the most accurate list of reason codes visit the library on our main website here. With the U. 10. Only use EMV-compliant terminals. ” The use of this reason code indicates that. 2 EMV Liability Shift Non-Counterfeit Fraud: Mastercard: 4870 - Chip Liability Shift 4871 - Chip/PIN Liability Shift: Discover: UA05 - Fraud Chip Card Counterfeit 4871 - Fraud Chip and Pin Transaction:Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. Reason Code – 10. These reason codes are a standardized list of reasons that a customer and/or their bank may file credit card chargebacks. Chargeback reason codes vary by the credit card company. MasterCard Chargeback Reason Codes: Authorization Issues (Codes 3000 - 3011) Authorization issues occur when a merchant fails to obtain proper authorization for a transaction or when the transaction amount exceeds the authorized amount. Consumer Disputes: 10. What causes code F31 chargebacks? This reason code is supposed to be used only when an EMV chip card has been stolen by a fraudster, and a card-present merchant uses the magnetic stripe or a manual. S. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. However, when a reason code is used there is generally a surge in consumer retrieval.