Reason Codes for VISA VCR Revealed

New VCR Reason Codes for Chargebacks & Disputes

The payments industry is on the brink of a revolution. Nearly everything about chargebacks and disputes will change--including new VCR reason codes.

VCR Reason Codes Explained

In an effort to streamline and simplify processes, Visa is phasing out the use of the 22 old chargeback reason codes with the new Visa Claims Resolution (VCR) initiative.

Now, disputes will be managed with one of two workflows: allocation or collaboration. Within those two workflows, there are a total of four dispute categories. Within each category, the previous 22 reason codes will be updated and replaced with 24 dispute conditions.

The categories “fraud” and “authorization” are managed with the allocation workflow. The categories “processing error” and “consumer dispute” are managed with the collaboration workflow. Each category’s sub-codes, or dispute conditions, help clarify the reason for the dispute.

Allocation

Fraud

  • 10.1 EMV Liability Shift Counterfeit Fraud
  • 10.2 EMV Liability Shift Non-Counterfeit Fraud
  • 10.3 Other Fraud - Card Present
  • 10.4 Other Fraud - Card Absent
  • 10.5 Visa Fraud Monitoring Program

Authorization

  • 11.1 Card Recovery Bulletin
  • 11.2 Declined Authorization
  • 11.3 No Authorization

Collaboration

Processing Error

  • 12.1 Late Presentment
  • 12.2 Incorrect Transaction Code
  • 12.3 Incorrect Currency
  • 12.4 Incorrect Account Number
  • 12.5 Incorrect Amount
  • 12.6 Duplicate Processing/Paid by other Means
  • 12.7 Invalid Data

Customer Dispute

  • 13.1 Merchandise/Services Not Received
  • 13.2 Cancelled Recurring
  • 13.3 Not as Described or Defective Merchandise/Services
  • 13.4 Counterfeit Merchandise
  • 13.5 Misrepresentation
  • 13.6 Credit Not Processed
  • 13.7 Cancelled Merchandise/Services
  • 13.8 Original Credit Transaction Not Accepted
  • 13.9 Non-Receipt of Cash or Load Transaction Value

Note: Reason code 75 Unrecognized has been retired.

VCR Reason Codes: New vs. Old

VCR reason codes--or, more accurately, dispute conditions--are similar, yet different, to the previous chargeback reason codes. The following tables outline how old reason codes map to VCR dispute conditions.

Fraud

Old Reason Codes

  • 62 Counterfeit Transaction
  • 81 Fraud - Card Present
  • 83 Fraud- Card Absent
  • 93 Merchant Fraud Performance

New Dispute Condition

  • 10.1 EMV Liability Shift Counterfeit Fraud
  • 10.2 EMV Liability Shift Non-Counterfeit Fraud
  • 10.3 Other Fraud - Card Present
  • 10.4 Other Fraud - Card Absent
  • 10.5 Visa Fraud Monitoring Program

Authorization

Old Reason Codes

  • 70 Card Recovery Bulletin or Exception File
  • 71 Declined Authorization
  • 72 No Authorization
  • 73 Expired Card
  • 78 Service Code Violation

New Dispute Condition

  • 11.1 Card Recovery Bulletin
  • 11.2 Declined Authorization
  • 11.3 No Authorization

Processing Error

Old Reason Codes

  • 74 Late Presentment
  • 76 Incorrect Currency or Transaction Code
  • 77 Non-Matching Account Number
  • 80 Incorrect Transaction Amount or Number
  • 82 Duplicate Processing
  • 86 Paid by Other Means

New Dispute Condition

  • 12.1 Late Presentment
  • 12.2 Incorrect Transaction Code
  • 12.3 Incorrect Currency
  • 12.4 Incorrect Account Number
  • 12.5 Incorrect Amount
  • 12.6 Duplicate Processing/Paid by other Means
  • 12.7 Invalid Data

Consumer Dispute

Old Reason Codes

  • 30 Services Not Provided
  • 41 Cancelled Recurring Transaction
  • 53 Not as Described or Defective Merchandise
  • 85 Credit Not Processed
  • 90 Non-Receipt of Cash or Load Transaction Value

New Dispute Condition

  • 13.1 Merchandise/Services Not Received
  • 13.2 Cancelled Recurring
  • 13.3 Not as Described or Defective Merchandise/Services
  • 13.4 Counterfeit Merchandise
  • 13.5 Misrepresentation
  • 13.6 Credit Not Processed
  • 13.7 Cancelled Merchandise/Services
  • 13.8 Original Credit Transaction Not Accepted
  • 13.9 Non-Receipt of Cash or Load Transaction Value

Stay Up-to-Date on Visa Programs

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