Dispute response best practices
When the issuing bank files a dispute on behalf of the shopper, they must select from a set of dispute reason codes. Below, you will find:
- All dispute reason codes with which a dispute can be raised with
- Description on what the dispute reason code means
- Best practices for effective dispute response
The purpose of the best practices section is to highlight the key elements of an effective defence in a dispute response. It is recommended that you review the recommendations and assess whether your dispute response addresses them. If it does not, it is advisable to accept the dispute to prevent further escalation and potential fees.
Fraudulent / unrecognised charges
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 10.4 | Other Fraud-Card Absent Environment |
| Visa | 10.5 | Visa fraud monitoring program |
| Mastercard | 4837 | No cardholder authorization |
| Mastercard | 4849 | Questionable merchant activity / Mastercard rule 3.7 violation for coercion claim |
| Mastercard | 4863 | Cardholder does not recognise — potential fraud |
Description
The shopper believes he/her should be entitled to a complete or partial refund due to having returned or not having fully utilized the purchased product, or the transaction being canceled or not fully completed. The expected refund or a credit has not yet been provided.
Best practices to respond
- Fraud reason code chargebacks can be classified into two types:
- Friendly fraud : The shopper makes a legitimate purchase but claims it is fraudulent for their own benefit.
- Genuine fraud : The shopper card details were compromised and someone has made a fraudulent purchase using them
- You can identify a friendly fraud transaction by looking at your purchase history with the shopper. If you have past purchases from the same shopper which have not been reported as fraudulent then the current claim can be treated as friendly fraud.
- Card brand Visa has defined the compelling evidence workflow to standardize the challenge process on friendly fraud transactions. Same workflow can be used for similar disputes over other card brands as well, however there is no guaranteed dispute reversal in case of other card brands when all the rules are met.
- Compelling evidence workflow rules state that merchants must share data that helps establish a historical footprint of previous purchase history by sharing two previous transactions that meet the below criteria:
- The transactions must be at least 120 days* old but no older than 365 days (calculated from the dispute date).
- The transaction must have no active fraud dispute / report
- At least two of the core data elements (User ID, IP Address, Shipping Address, Device ID / Fingerprint) match between prior transactions and the disputed transaction, and one of the two must be either the IP address or Device ID / Fingerprint.
- Transactions must be from the same merchant.
- Airwallex on web application, identifies a dispute as eligible for compelling evidence workflow when applicable and recommends you to challenge the dispute.
- As part of challenge workflow, you are required to provide below details of matched transactions (at least two transactions)
- Product details : Description, quantity & price
- Shipping details (if it is a physical product)
- Access activity or logs (if it is a digital product)
- Service date (if it is an offline service)
- Start & end dates (if it is a booking or reservation)
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Shopper has a purchasing history with me | You are required to provide below details of matched transactions (at least two transactions) Product details : Description, quantity & price Shipping details Service date (if it is an offline service) Start & end dates (if it is a booking or reservation) | Product details & Access activity or logs | Product details & Service date | Product details & Start and end dates of the booking |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. Shipping address, tracking number, shipping service provider name, shipped date | Product description, quantity, price per item. Customer signature to prove that they have agreed to T&Cs. Access or activity logs | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Service date | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Booking start & end date |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |
Credit not processed / cancelled charges
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 13.6 | Credit not processed |
| Visa | 13.2 | Cancelled recurring |
| Visa | 13.7 | Cancelled merchandise / service |
| Mastercard | 4853 | Credit not processed |
| Mastercard | 4860 | Credit not processed, applicable when both acquirer & issuer are in EEA. |
| Mastercard | 4841 | Canceled Recurring or Digital Goods transactions, applicable when both acquirer & issuer are in EEA. |
| Mastercard | 4853 | Cardholder Dispute of a Recurring Transaction |
Description
The shopper claims that the payment is unauthorized. This can happen if the card was lost or stolen and used to make a fraudulent purchase. It can also happen if the shopper doesn’t recognize the transaction as it appears on the billing statement from their card issuer or this payment may have been processed by a family member without their knowledge.
Best practices to respond
- Review the shopper's claim and validate their expectation.
- In the event that the shopper's expectation is invalid or if it has already been fulfilled, it is recommended that you contact the shopper.
- Please proceed with dispute response only when if you are convinced of your evidence being strong, see below table to understand what can be considered a strong evidence based on combination of your challenge reason and product type
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Shopper not eligible for refund | Refund policy or your terms and conditions - The refund terms should be outlined clearly. Additionally, it would be helpful to clarify why the current payment is not eligible for a refund in order to avoid any confusion or misinterpretations. | Same as physical product | Same as physical product | Same as physical product |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. Shipping address, tracking number, shipping service provider name, shipped date | Product description, quantity, price per item. Customer signature to prove that they have agreed to T&Cs. Access or activity logs | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Service date | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Booking start & end date |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |
Duplicate charge
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 12.6 | Duplicate processing / Paid by other means |
| Mastercard | 4834 | Cardholder debited more than once for the same goods or services |
| Mastercard | 4804 | Multiple processing |
| Mastercard | 4831 | Transaction amount differs, applicable when both acquirer & issuer are in EEA. |
Description
The shopper believes that they were charged multiple times for the same product or service.
Best practices to respond
- Review the shopper's claim and validate their understanding.
- In the event that the shopper's understanding is inaccurate, it is recommended that you contact the shopper.
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Separate product or service | Evidence that each payment is backed by a separate, valid purchase of a product or service. It is recommended to cover : Product description, quantity, price per item Shipping details | Product details & Access activity or logs | Product details & Service date | Product details & Start and end dates of the booking |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. Shipping address, tracking number, shipping service provider name, shipped date | Product description, quantity, price per item. Customer signature to prove that they have agreed to T&Cs. Access or activity logs | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Service date | Product description, quantity, item price. Customer signature to prove that they have agreed to T&Cs. Booking start & end date |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |
Product not received
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 13.1 | Merchandise/ Services Not Received |
| Mastercard | 4853 | Cardholder Dispute : Digital goods purchase of USD 25 or less / “No-Show” hotel charge |
| Mastercard | 4855 | Goods or services not provided, applicable when both acquirer & issuer are in EEA. |
Description
The shopper claims that they have not received the goods / services for which the payment has been made.
Best practices to respond
- Review the shopper's claim and validate.
- In the event that the shopper's claim is inaccurate, it is recommended that you contact the shopper.
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Shopper will receive / have received the goods | Delivery confirmation - Confirmation document from shipping service provider, ideally with signature of recipient. Shipping documentation - Ideally includes delivery address of shopper and scheduled delivery date. Terms & conditions - Ideally covering the estimated delivery duration | Access activity & logs - Ideally should cover the customer IP address and dates of access. Terms & conditions - Ideally should cover terms of cancellation for future dated services | Service receipt - Any document covering the service description, date & customer signature Terms & conditions - Ideally should cover terms of cancellation for future dated services | Service receipt - Any document covering the service description, date & customer signature Terms & conditions - Ideally should cover terms of cancellation for future dated services |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. | Same as physical | Same as physical | Same as physical |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |
Product unacceptable / counterfeit / damaged
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 13.3 | Not as described or defective merchandise / service |
| Visa | 13.4 | Counterfeit merchandise |
| Mastercard | 4853 | Cardholder Dispute: Goods or services were either not as described or defective |
| Mastercard | 4859 | The cardholder was billed for loss, theft, or damage in the same transaction as the underlying initial service (for ex. car rental or hotel stay) |
Description
The shopper claims that they have received a damaged / defective / counterfeit product which is unacceptable.
Best practices to respond
- Review the shopper's claim and validate.
- In the event that the shopper's understanding is inaccurate, it is recommended that you contact the shopper.
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Product not damaged / defective / counterfeit | Terms & conditions - Any document that explains the product condition & covers the refund policy. Please include an explanation on how the dispute is invalid as per terms & conditions agreed and signed by the shopper. | Same as physical product | Same as physical product | Same as physical product |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. Shipping address, tracking number, shipping service provider name, shipped date | Product description, quantity, price per item. Access or activity logs | Product description, quantity, item price. Service date | Product description, quantity, item price. Booking start & end date |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |
General
Dispute reason codes
| Scheme | Code | Description |
|---|---|---|
| Visa | 11.1 | Card listed in card recovery bulletin |
| Visa | 11.2 | Declined authorization |
| Visa | 11.3 | No Authorization / late presentment |
| Visa | 12.1 | Late presentment |
| Visa | 12.2 | Incorrect transaction code |
| Visa | 12.3 | Incorrect currency code |
| Visa | 12.4 | Incorrect card number |
| Visa | 12.5 | Incorrect amount |
| Visa | 12.7 | Invalid data |
| Mastercard | 4808 | Authorization-related Chargeback |
| Mastercard | 4853 | Transaction was not completed |
| Mastercard | 4853 | Credit posted as a purchase |
| Mastercard | 4834 | Transaction amount differs |
| Mastercard | 4834 / 4846 | Currency errors |
| Mastercard | 4834 | Improper merchant surcharge |
| Mastercard | 4834 | Unreasonable amount |
Description
This group is a collection of all other dispute reason codes which cannot be placed under groups described above. These dispute reason codes indicates a fault during the transaction processing or at the time of capture, this could be something simple like a incorrect transaction amount has been used or merchant has indicated it as an incorrect transaction type (purchase when it should be refund).
Best practices to respond
- Review the shopper's claim and validate.
- In the event that the shopper's understanding is inaccurate, it is recommended that you contact the shopper.
Please proceed with dispute response only when if you are convinced of your evidence being compelling, see below table to understand what can be considered compelling evidence based on combination of your challenge reason and product type
Primary evidence
| Challenge reason | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Shopper withdrew dispute | Communication with the shopper - Ideally, the shopper should have confirmed that they have either withdrawn or will withdraw the dispute. | Same as physical product | Same as physical product | Same as physical product |
| Shopper already refunded | Refund evidence - Details of the refund that is already processed, it should ideally cover the Acquirer reference number, refund processed date & refund amount. Please be advised that Airwallex will automatically respond to payment disputes only when a full refund has been issued. In all other cases, where a refund is processed through alternative methods or is only partial, you must provide clear evidence of the refund. | Same as physical product | Same as physical product | Same as physical product |
| Other | Any document that directly addresses the concern raised by the shopper. | Same as physical product | Same as physical product | Same as physical product |
Secondary evidence : Apart from above, please provide below details to increase the effectiveness of the dispute response and to increase your chances of win. Below table is irrespective of your challenge reason.
| Information type | Physical product | Digital product | Offline service | Reservation or booking |
|---|---|---|---|---|
| Order details | Product description, quantity, price per item. Shipping address, tracking number, shipping service provider name, shipped date | Product description, quantity, price per item. Access or activity logs | Product description, quantity, item price. Service date | Product description, quantity, item price. Booking start & end date |
| Shopper details | Customer name, email address, IP address & billing address | Same as physical product | Same as physical product | Same as physical product |