Depending on the reason code, chargeback disputes may have different time limits. The claim often, but not always, involves automated teller machines (ATMs). FAQ: What is Chargeback Representment?. Duplicate Processing - 81About Discover chargeback reason codes. Chargebacks from all three categories can show . Which fraud reason codes will be included in EMV Liability Shift? How are Lost/Stolen transactions affected? A. Response to retrieval request: Based on the information provided, the acquiring and issuing banks resolve the dispute, if possible. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. A chargeback reason code is a 2-to-4-digit alphanumeric code given by the issuing bank tangled in a chargeback. All ACH return reason codes consist of the letter “R” followed by two. The issuing bank will evaluate the evidence provided and, if they find it compelling, reverse the chargeback. Visa, MasterCard, and American Express all list compelling evidence by reason code. 1001 - Cardholder does not recognize the transaction. The business has the chance to refute the chargeback. Merchants who believe they have received an invalid chargeback under reason code 12. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some. 800. 3 falls under the “Authorization” category. Home; About Us; Services. Batch chargeback process. Reason code 4853 falls under the broad category “Cardholder Dispute,” meaning the cardholder is saying something about the transaction is wrong. A false decline on a credit card or debit transaction occurs when a legitimate card purchase is rejected by mistake. Otherwise, the acquiring bank sends a chargeback notification. The chargeback transfers funds from the acquirer to the issuer. The chargeback period, or the time limit for filing a chargeback, depends on the card scheme and the chargeback reason code. AT. Different card networks have different reason code systems. compliance process depending on whether a chargeback right exists. pdf), Text File (. 5158. You must tailor your representment case — including the compelling evidence — to the reason code under. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. Linda ordered a laptop and got transaction authorization code. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 4846 — Incorrect Currency Code. Take, for example, a reason code 4853 chargeback claiming that merchandise or services ordered were not received. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. 800. Thanks for following the Chargeback Gurus blog. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. You should be. Retrieval Request/ Copy request Reason Codes. The assigned chargeback reason code outlines why a customer submitted the dispute. 2. Click on “report a problem” and select the transaction in question. UA05 – Fraud: Chip Card Counterfeit Transaction UA06 – Fraud: Chip and PIN TransactionWhat are the reason codes for chargebacks related to duplicate processing? What do I do if the reason code is not legitimate? Which chargebacks are EMV-related? Why are AmEx. 4853 – Cardholder Dispute – Credit Not Processed. Merchants who believe they have received an invalid chargeback under reason code 11. This reason code is used when a cardholder claims that the merchant charged them for a different amount than what they agreed to pay. Products. F02. Fraud/Chip-and-Pin. 1? Chargeback reason code 11. Blog and Articles; Success Stories; Chargeback Reason Codes;. Visa groups its chargeback codes into four main categories—fraud, authorization, processing errors, and customer disputes. To be labeled with reason code 10. 1: EMV Liability Shift Counterfeit Fraud:. S. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. Processing Errors involve chargeback and disputes revolving around processing issues, late presentment, credit processed as charge, invalid card numbers, no show errors, incorrect charge amounts. Based on the information provided, Paymentology will investigate the transaction being disputed. The cardholder may also claim that a counterfeit card authorized a transaction from his or her account. Card networks send these codes to merchants to indicate why a chargeback has been filed. 1 Card Recovery Bulletin or Exception File. Take, for example, a reason code 4853 chargeback claiming that. Blog. Thus, the easiest way to prevent chargeback reason code 75 from being. 2 falls under the “Fraud” category. The merchant did not receive any returned merchandise. The merchandise was as described or was not defective. Code 13. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. One might almost consider this chargeback a technicality, as it only exists when the merchant explicitly agrees to take liability for a dispute and accept a chargeback. Most chargebacks begin with the cardholder contacting their bank to dispute a charge on their account. 5: 4870: Card not present at the time of transaction: F29: UA06: 10. 1 Quick Reference Lead. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. 60. These are only a handful of common Visa chargeback reason codes. 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. Using the same link provided above, contact PayPal to report the scam. Now, compliance cases must be submitted through Visa Resolve Online (VROL). It is not what described, the transaction receipt and the product. The following is a full list of Chargeback Reason Codes for the card schemes that Zai supports. The transaction amount and authorization number (ARN. AT Authorization Noncompliance. Once filed, the merchant generally has 20 days to respond. How many chargeback reason codes exist? There are 151 reason codes across the four major card networks. Primary Menu. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. Proof you used Address Verification Service to validate. You cannot effectively fight chargebacks until you identify which of these three things is actually responsible. An illegible receipt can be caused by low ink, colored paper, or problems with the printer. 65% with at least 75 total disputes. Linda ordered a laptop and got transaction authorization code. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. Chargeback Reason Codes by Network - 2023 Guide. The issuing bank collects evidence from the customer and categorizes the chargeback using the appropriate, card network-specific, reason code. 6? Visa chargeback reason code 13. Reason Code. ↩ Back to Directory. About Discover chargeback reason codes. Chargeback Reason Key by Network - 2023 Guide. Visa. Visa chargeback reason code 10. Chargeback Reason Codes 53 and 4853 may be issued for one of the following reasons: The merchant sent the wrong merchandise to the customer. The issuer investigates. UA05. American Express chargeback reason code M01 falls under the “Inquiry/Miscellaneous” category. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. The actual underlying cause of this chargeback may be true fraud, friendly fraud, or merchant error. Reason Code 11. . The actual underlying. You can learn more about each one by visiting the Mastercard Chargeback Guide. Jan 2020_Chargeback Reason Code Encyclopedia - Free download as PDF File (. chargeback management with an easy to use online system. In simple terms, VCR introduced five definitive changes to the dispute resolution process: The timeframe for merchant response was shortened from 45 days to 30 days. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,2. C04 – Goods or Services Returned/Refund C05 – Goods or Services Canceled C08 – Goods or Services not Received/Partially Received C14 – Paid by Other. 17%) Search for: Recent Posts. For example, you might get a chargeback on a Mastercard purchase where the reason code is "4853: Goods or services not provided. 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—QuestionableExamples of compelling evidence that you may submit in response to a chargeback with this reason code include: Proof you submitted the card security code with the authorization request and the issuer authorized the transaction, even if the code was a mismatch or the code wasn’t verified. Get your complete guide to Mastercard reason codes, including all the detailed information, chargeback time limits, and other important information you need. ) A no-nonsense summary of evidence that proves transaction is legit. Goods / Services Damaged or Defective. Updated Disputes/Chargeback Policy Coming April 2024Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. The newer system is designed to. The shorthand description is “EMV Liability Shift Non-Counterfeit Fraud. . Discover Chargebacks / Disputes. So the company has more incentive to side with customer during cardholder disputes. 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. The sales receipt and/or date and amount of the authorization if other than the transaction date. . Read the Chargeback Advice letter carefully. 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 is valid. A service chargeback is filed by a customer, which means that you need to note the card type and dispute reason code so that you can determine which types of information to submit if you dispute the claim. 5158. UA06. 4. Specifically, these updates only pertain to transactions that are charged back after Oct. WEX began issuing chip cards in Q4, 2020. ECM monitors first presentment chargebacks regardless of reason code or transaction type. reason code information. 4 Ways to Fight Chargebacks: Gather compelling evidence. IN. A chargeback happens when a customer requests for a transaction to be. See the list of reason codes below: Card Network. UA05. The most comprehensive guide to chargeback reason codes. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Other reason codes address entirely understandable reasons for cutting a merchant off from their credit card processor, like participating in money-laundering schemes, colluding with other merchants to fix prices or. About American Express chargeback reason codes. 195 Acquirer Use of Message Reason Code 7627-Face-to-Face or CAT Level 2 Transac tion. reasonable and that the transaction did not exceed this amount range. 4: 4863 101. Chargeback reason code 10. During this process, the representative of the institution examines the reasons’ list. Below you can find out what the reason of the chargeback in question is by the card brand. Visa assesses the following fines, as specified in the table below, to a U. Reason Code. Here finalizing user includes the chargeback reason codes from either of the foursome major card networks. Be sure you understand the cardholder’s claim. It is one of the most common and general decline messages for transactions that the issuing bank has blocked. Get which strategies to use as you struggling the impede consumer disputes to reason code. She later changes her mind and cancels her order for which she didn’t receive the code. STEP #7: Bank Review & Decisioning. Visa Chargeback Reason Codes. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. UA05 Fraud: Chip Card Counterfeit Transaction . 1: Use the corresponding dates from the invoice that is used to generate the chargeback. American Express chargeback reason code C02 falls under the “Card Member Disputes” category. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Discover Chargeback Reason Code UA30: Request Transaction Documentation for Card Not Present Card Transaction Description. Chargeback Reason Codes. Card Member cancelled, refused or returned goods and/or. 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. Updated Visa Reason Codes. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Automate Tasks & Streamline Processes Let Midigator remove complexities and improve the efficiency of your chargeback management strategy. Additionally, Discover uses a fifth "No Classified" category. Be sure you understand the cardholder’s claim. 9% with at least 100 total disputes. This code applies when a cardholder claims a charge was unauthorized, and the issuer determined that ALL of the following conditions were met: The transaction took place in a card-present environment. Discover Chargeback Reason Codes Fraud UA01 Fraud – Card Present Transaction UA02 Fraud – Card Not Present Transaction UA05 Fraud – Chip Counterfeit Transaction UA06. If the conflict can be settled, the acquiring and issuing banks do so. Get definitive guide includes the chargeback reason codes from all of the to majority card networks. 1: goods not received. The cardholder may be the customer or the someone who lent their card to a friend or relative. Specify the invoice date and net due date to assign to chargebacks. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. UA01 Fraud: Card Present Transaction. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. ”. About American Express chargeback reason codes. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. The merchant didn’t seek an authorization request before completing the transaction. UA05 - Fraud – Chip Counterfeit. 2 chargebacks are frequently caused by customers forgetting to cancel a subscription before the next billing and then going to their bank to try to get their money back. The standard chargeback process involves eight steps: Retrieval request: The card-issuing bank requests that the acquiring bank provide additional information for a given transaction. Category. 1. For all card-present transactions, disclose the cancelation policy on the sales receipt. 3. Reason Code 03. 4: Counterfeit Europay, Mastercard, or Visa (EMV) card: F30: UA05 or UA06: 10. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. Visa, Mastercard, and other leading card companies each have their own respective set of codes for this purpose. Early Warning: Reaching a chargeback ratio of 0. Find explanations for the major credit card issuers dispute reason codes in the Cardholder Dispute Reason Code EncyclopediaWe’ll Handle the Chargebacks. Step 2: Customer initiates the chargeback. Take the time to note the following dispute reason codes for Visa. Fraud. Chargeback representment is the process through which merchants can submit evidence to prove that a chargeback is illegitimate. The networks even created new chargeback reason codes specifically for this type of fraud: Visa Chargeback Reason Code 10. Code. Chargeback Reason Codes Reason code are the first key to understanding the root causes . CB CD (chargeback reason code) Enter the code that identifies the reason that a chargeback was generated for an invoice during receipt entry. If you get a chargeback,. for chargeback reason code 4863 (Cardholder Does Not Recognize). Visa reason code 53 is used for Chargeback for Defective/Not as Described, and reason code 85 is used for Credit Not Processed. For first chargebacks, Mastercard currently only has 9 reason codes in use, with a few others in the process of being phased out. 1. Mastercard Chargeback Reason Code 73: Duplicate Transaction. This definitive guide includes the chargeback reason codes from each of the four major card networks. The cardholder initiates contact with their bank or credit union to file a dispute. 3 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. SP: Short payment. Visa chargeback reason codes are used to categorize the reasons for a chargeback. The sales person accidently approves the transaction without. Hence, she disputes the merchant under the Reason Code UA02: Declined Authorization. When the customer disputes a charge, the issuing bank then begins the chargeback process. This reason code is initiated by an issuer for ticket retrieval request to a Card-Not-Present card transaction. Once filed, the merchant generally has 20. Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with 53’s name change Chapter 4 Added invalid chargeback note for AFD for MCC5542 Chapter 4 Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with 53’s name change Chapter 4 Changed the name to reason code 53 and 59 Chapter 4Code 4807: Fraudulent Card-Present Transaction. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. This code indicates an unauthorized charge was made to a chip-and-PIN card in a card-present transaction. 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. 5. Only an issuer can initiate the chargeback process. Despite being one of the smaller players among major credit card companies, Discover offers a wide range of chargeback reason codes. 10. Category. Betty's issuing bank assigned chargeback reason code 10. Issuers must not initiate a chargeback for magnetic-stripe (POS Entry Mode value of 90 or 02) transactions on non-chip enabled cards. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. ”. 15, 2021. Visa Claims Resolution is a Visa-specific platform that seeks to declutter and streamline the consumer dispute and chargeback resolution process. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2. Retrieval Request/ Copy request Reason Codes. As a merchant, your focus should be on finding and retaining customers--not chargebacks. 4865 PM 4864 NF Non-Receipt of Case from ATM-Cancelled Recurring Digital Goods Transaction Cardholder Dispute 4866 UA05 4867 UA06&Fraud Chip Card Counterfeit Tranaction Fraud Chip and. Values are: Blank: Use the receipt G/L date. chargeback management with an easy to use online system. It’s a 3-digit alphanumeric shorthand attached to a returned ACH transaction explaining why an ACH transfer is reversed. The Fintech Times. Solution. FAQ: What remains Chargeback Representment? TIPS. Reason code 53 is typically used when a cardholder received merchandise or service that was defective, damaged, or not as described, while reason code 85 is used when credit was not processed to the. Discover: Reason Code 4755 Non-receipts of goods or services. 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. Signifyd’s Revenue Protection solution offers fraud screening services to help merchant subscribers protect against fraudulent or unauthorized activity with respect to certain e-commerce transactions, as classified by the applicable card processor’s chargeback. A reason code is how banks categorize the reason for a chargeback. 4866 UA05: Fraud Chip Card Counterfeit Transaction: 120. The cardholder is claiming that they did not authorize or participate in the transaction. The good news is that most of these invalid claims are disputable by the merchant. PCI DSS v3. Reason codes are important to help merchants address recurring. UA05. Chargeback Reason Codes / Discover / UA05 – Fraud: Chip Card Counterfeit Transaction Reason Code UA05 Category Fraud Dispute DESCRIPTION Why did I receive this. Chargeback reason American Express reason code Discover reason code Visa reason code Mastercard reason code; Card wasn't present at the time of transaction: F29: UA01: 10. Under certain circumstances, Mastercard may allow consumers to reverse a payment card transaction by filing a chargeback. View the entire list of reason codes below or search. 103. The merchant didn’t seek an authorization request before completing the transaction. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. Learn which strategies to use as you fight and prevent consumer disputes for reason id. Here’s a look at the reason codes for the same scenario from the major credit card companies: Visa: Reason Code 30 Services not provided or merchandise not received. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. Discover is a credit card network and an issuing bank—just like American Express. Visa chargeback reason code 83 is a fraud chargeback reason code that falls under the "Fraud" category. For more information on these and other updates, check out our complete chargeback reason. 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 is validThis chargeback reason code can be avoided by ensuring that returns are processed promptly and accurately, and that the customer is informed of any credits issued. 1002 - Cardholder disputes billed amount. 3: Not as described or defective merchandise: VCR Dispute Reason Code 13. 3 Fraud – Card-Present Environment. Accessed October 17, 2022. The post below contains legacy information pertaining to the formerly-common Visa chargeback reason code 75. What Are Chargeback Reason Codes?. 10. This chargeback reason code is also referred to as “Point-of-Interaction” Errors. FR2 Fraud Full Recourse Program. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. American Express chargeback reason code C42. Upon confirmation of the amount and pin request, he simply hits OK. The transaction took place in a "card-present" environment using a counterfeit EMV (chip) card. According to Nilson, 56% of global card transactions were done on Visa in 2015. The cardholder received a credit or voided transaction. The transaction took place in a "card-present" environment using a counterfeit EMV (chip) card. 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. Code 12. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. Merchants who receive a chargeback for a transaction placed with an American Express card may encounter reason code FR2, which indicates an unauthorized charge that the cardholder does not believe they should be responsible for paying. Code Reason; 01: Requested Transaction Data Not Received: 02: Requested item illegible: 07: Warning Bulletin File: 08: Requested/Required Authorization Not Obtained: 12: Account Number Not on File: 31: Transaction Amount Differs: 34:A dispute often has a reason code associated with it. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. While the updates have been published, they do not go into effect until Oct. Offer shipment and delivery tracking. Upgrade to EMV-compliant terminals. Identity theft and account breaches in which the merchant is the victim, for example, fall under reason codes 01, 02, and 14. By entering your email, you agree to receive marketing emails from Shopify. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the. Mastercard has plans to follow suit. Fraud. 2. Discover. 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. 1 EMV Liability Shift. A fraudster completed a transaction using stolen account or payment credentials. 0, these guidelines guarantee merchant protections from certain categories of disputes. 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. The merchant makes several attempts on a declined card or tries to circumvent, override or force a declined authorization request. There are four primary phases to a Visa dispute: After Visa adopted VCR processes, most card networks altered their dispute cycles to be more in line with that used by Visa. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. The reason_code will be one of the following values: chargeback_reimbursement: The gross shows positive if the chargeback was resolved in the seller's favor, and the seller gets a refund. Codes are not often shared between issuers which means it can be difficult to remember the details of each. For online transactions, make the cancelation policy easy to find and clear. As part of its move to support card-not-present merchants and airlines, Visa made changes to the compelling evidence requirements for four key reason codes: Reason Code 30: Services Not Provided or Merchandise Not Received. The shorthand description is “Insufficient Reply. The transaction amount is re-charged to the cardholder’s account, and the funds go back into your bank account. The list of chargeback reason codes in this article. Accessed October 17, 2022. However, it is important to note that this reason code is based on the reason given by the customer to their bank. This code applies when a cardholder disputes a charge, and the merchant is informed by the processor that the transaction was submitted with an. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. It’s even more frustrating if you don’t understand what the chargeback code means. 2 – EMV Liability Shift Non-Counterfeit Fraud. Visa Chargeback Reason Codes; MasterCard. 3 No Authorization. CARDeposit is a long-running American Express program. Multiple Authorization Requests. On that note, below are some vendor missteps that could result in Visa reason code 13. The following chargeback reason codes are related to EMV: Visa: 10. 2 may be able to represent the transaction and reverse the chargeback with the right compelling evidence. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. UA02 Fraud: Card Not Present Transaction. View the entire list or search for any chargeback reason code. At Visa they used to receive reason code 98. prenotification of chargeback, depending on the chargeback reason code, to the agency requesting additional documentation to properly dispute and remedy the chargeback. Switch to Visa MasterCard American Express. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 3 is the less common version for card-present transactions. That definitive guide included the chargeback reason codes from each of the quad larger card connectivity. UA06. As we touched on earlier, chargebacks can happen due to technical errors. The code can be used in multiple specific situations; when necessary, an additional message will be provided along with the reason code to inform the merchant which particular type of chargeback. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. During this process, the representative of the institution examines the reasons’ list. ”. The largest extensive guide in chargeback motive codes. Although, this fraud detection tool works after the transaction has come completed. If the customer’s story matches. To subscribe and learn more about the free online chargeback management system, or contact Chase Paymentech Client Services at 1. linkedin. About Visa chargeback reason codes. Here cardholder asks for a valid Proof of Delivery showing shipping of goods and/or services as per the. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. View the entire list or search for any chargeback reason code. Standard Threshold: Reaching a chargeback ratio of 0. Discover uses unique codes to explain those reasons to merchants. 265. Contact us here or call us at 1. There are dozens of reasons why cardholders and issuers dispute transactions. 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 is validStep #2 | Report the Scam to PayPal. American Express chargeback reason code P05 falls under the “Processing Errors” category.