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Chargeback Reason Codes Associated with Friendly Fraud

Chargeback fraud is commonly referred to as friendly fraud because the assault comes from a traditionally non-hostile enemy–the merchant’s own customers. A customer contacts the bank to inaccurately report a genuine charge as fraud. Most merchants view this as a form of shoplifting. While there a ......

Chargeback fraud is commonly referred to as friendly fraud because the assault comes from a traditionally non-hostile enemy–the merchant’s own customers. A customer contacts the bank to inaccurately report a genuine charge as fraud.

Most merchants view this as a form of shoplifting. While there are instances where the fraud might have been accidentally committed, consumers often set out with the intention of getting something for free.


The following reason codes are commonly associated with friendly fraud.

VisaMasterCardTitle and ExplanationCauses
304855Services not provided or merchandise not received 

Merchandise or services were not received or not received by the agreed upon delivery date.

  • The cardholder experienced buyer’s remorse, and regretted the purchase.

  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.

  • The cardholder didn’t understand the shipping process and expected delivery prematurely.

414841/4850Cancelled recurring transaction/Installment billing dispute 

A recurring transaction was processed after the cardholder requested termination, the account had been closed, the charge exceeded the predetermined amount, or the merchant failed to notify the cardholder of the upcoming charge.

  • The cardholder failed to withdraw permission to charge the account or cancel a membership fee but didn’t want to pay.

  • The cardholder denies receiving notification of a billing change.

  • The cardholder intentionally canceled a card account to avoid payments.

534853Not as described or defective merchandise 

The merchandise was: damaged or defective upon its arrival, not the same as shown (online) or described (telephone), unsuitable for the intended purpose.

  • The cardholder experienced buyer’s remorse, and regretted the purchase.

  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.

754863Transaction not recognized 

The cardholder doesn’t recognize or remember the transaction.

  • The merchant’s name (billing descriptor) was incorrect or unrecognizable.

  • The cardholder didn’t remember making the purchase.

834837Fraud (card-not-present)/No cardholder authorization 

The cardholder did not authorize the transaction.

  • The cardholder experienced buyer’s remorse and regretted the purchase.

  • The cardholder didn’t want to perform (or didn’t qualify for) a return or exchange in accordance with the merchant’s policy.

  • The cardholder didn’t know someone else with access to the card (child, spouse) had made the purchase.