The cardholder is entitled to object to the invalid payment, and the merchant is entitled to object to the illegal refund. This process is called chargeback representment:
Issuers will be held liable for a
Visa’s Reason Codes follow a format of two digits, a period, and a third digit. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. The third digit indicates the specific reason within this category. 10.4 (Fraud – Card Absent Transaction) dispute when the following information is provided by the Merchant via Order Insight and the conditions are met:
- Minimum of two “historical” transactions for the same PAN settled more than 120 days and less than 365 days prior to the dispute date.
- At least two of the following data elements are the same in the disputed and historical transactions:
- Customer Account ID
- IP address
- Delivery address
- Device ID
- Device fingerprint
- One of the two data elements must be either IP Address or Device ID or Device Fingerprint.
- No prior fraud was reported on the historical transactions. Historical transactions may have been disputed but not for any Fraud reason code.
- Product description for each item purchased is provided by the merchant on the disputed and historical transactions.