When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. Chargeback Prevention Alerts Resolve customer disputes quickly before they become chargebacks. EMV has been a mostly global standard since 2004. Each chargeback reason has its own, individual prevention techniques. 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. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Then, the crook attempts to trick the victim into disclosing personal account information (account number, routing information, SSN, etc. R04 – Invalid account number. To help you identify what happened, look up the code you received for the dispute below. The Chargeback Reason Codes specifies the fraud, expired card, defective merchandise, differ amount and many others. And according. Ideally, the chargeback reason code will determine the type of evidence you share. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. 1. F01. 1 The chargeback goes under the Reason Code P01: Unassigned Card Number. Amex Processing Errors Chargeback Reason Codes P01 — Unassigned Card Number. Field name: reasonCode. The card provider then processes this information and determines the. 2 EMV Liability Shift. Time Frames by Chargeback Type and Reason Code. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Then you can research the transaction to see if the chargeback appears to be valid or not. To help merchants understand the underlying issue of each chargeback, American Express has created specific chargeback reason codes to help business owners interpret chargebacks. Get your complete guide to the new Visa reason codes, including all the detailed information, chargeback time limits, and other important information you need. The codes for each card brand are listed below along with the recommended documentation to provide. 7 • A transaction has been processed against a card number that is invalid because it does not exist, has not been assigned to an active cardholder account, or is otherwise incorrect. However, they don’t address the reason why that chargeback was issued in the first place. There are five main categories of Visa chargeback reason codes: Fraudulent Transactions, Authorization Issues, Processing Errors, Consumer Disputes, and Other Chargeback Categories. Recurring billing transactions are a frequent source of conflict, disputes, and. 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. 2. Essentially, even a $50 chargeback can become $125 with all the extra fees. many chargeback reason codes that exist today. Chargeback. R02 – Account closed. 4% of all transactions worldwide are made with EMV chip cards, which has led to a precipitous drop in card-present fraud. Below is a list of Mastercard chargeback codes used in eCommerce. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. These codes can help a merchant with an inquiry or chargeback reversal. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. Reason Code 03. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason. 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. A chargeback happens when a customer requests for a transaction to be. Category. . Vendors that do not have a well-drafted shipping and order fulfillment policy are susceptible to this category of Shopify chargebacks. Encrypt transmission of. When one cardholder initiates a dispute with their issuing bank, a. Chargeback reason code 10. Here are some chargeback reason codes by card type. 45. 65% with at least 75 total disputes. 5: Fraud Monitoring Program. There are no format changes to the sales file specification; there are additional values added to the sales file to designate chip card transactions. to research a chargeback or reversal case, which is related to an authorization or fraud related chargeback reason code. Cardholders can dispute digital goods transactions of $25 or less (or the equivalent in local currency) if certain purchase controls were not put. We also included the reason code descriptions and an indication of when the allowable time frame begins. Updated Disputes/Chargeback Policy Coming April 2024• Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Dec 6, 2021 — Betty's bank issued the chargeback for $9. 3 Changed Discover Reason Codes to match what is shown in the UI. MasterCard - 4863 Cardholder Does Not Recognize - Potential Fraud. After twelve months in either the Standard or Excessive programs, Visa may exercise their right to cut off the merchant’s ability to process Visa payments. The way you manage chargebacks depends on your account setup. Reason Code. without a reason code will be assigned a default code of 1. Used when: The merchant processed the transaction more than once, causing the cardholder to be debited twice for the same transaction or the cardholder paid for a transaction using one form of payment and was There are over 80 unique return codes, and each one represents a different type of return. Intelligent Dispute Responses Win better disputes and achieve higher ROI with customized struggling regulations, optimized responses, and economically batch. An invalid chargeback is defined as an unnecessary or non-compliant payment dispute — a chargeback that shouldn’t have happened. One of three things will happen: The issuer rules in your favor: Your representment case validates the original transaction. Chargeback reason codes. Visa’s 22 chargeback reason codes will be merged into client disputes – fraud, authorization, processing errors, and four guidelines. The tickets were held at the box office, and no signature, swipe or imprint of the card was obtained when the tickets were released. What Are the Different Chargeback Reason Codes? There are over 100 chargeback reason codes. Reason Code. ACH Return Codes. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and Miscellaneous. Each code refers to one of the specific rationales that card networks consider legitimate reasons for a customer dispute. Reason. Like traditional chargeback reason codes, an ACH return code indicates why the RDFI initiated the transaction reversal request. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. 4 applies to eCommerce, whereas code 10. 1 What compelling evidence is needed to respond? Your chargeback response must include at least one of the following items: If the card number was correct, provide a copy of the card imprint, a copy of the charge record from the terminal that electronically read the card number, or proof you received an authorization approval. This chargeback occurs when merchants do not adequately provide currency information. Receiving a damaged product. Please note that the most common Chargeback reason code for Allocation disputes is 10. Click “filter orders”. As such, it is limited to merchants in the following merchant category codes (MCCs): MCC 5735 — Record Stores. P03. This does not include an AuthorizationRecent data suggests that total fraud costs in the travel space will exceed $25 billion a year by 2020, and that’s considered a low estimate. 10. 195 Acquirer Use of Message Reason Code 7627-No MAC Provided. They only bill customers during a dispute if there is compelling evidence to show the cardholder’s account is in the wrong. Additionally, Amex uses a fifth "Miscellaneous" category. ” -This reason code is. 1 – EMV Liability Shift 10. Amex. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. Fraudulent Activity. Discover chargeback reason codes are divided into three categories: service disputes, processing errors, and fraud. The following are some examples: Visa Reason Code 13. If the dispute is deemed valid, the bank or credit union proceeds to issue a chargeback to the merchant. Representment Documentation. 1 Late Presentment: P03 Credit Processed as Charge:Chargeback reason codes are one piece of evidence you can use to make your case. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. Also, Ethoca Alerts only notify you of chargebacks that occur within the alert. Europe Region Operations Bulletin No. France saw a drop of roughly 50% during the same period. Spot these types of chargebacks using the below reason codes. Reason Codes Category 4: Processing Errors. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. 75 for every $1. 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:Merchants who believe they have received an invalid chargeback under reason code 12. Credit card chargeback reason codes broken down by Mastercard, Discover and American Express Visa chargeback reason codes. Your firm needs to embrace a customer-centric approach focused on transparency and. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. P01 Unassigned Card Number: IN Invalid Card Number: 4834 Point-of-Interaction Error: 12. Category. There are multiple situations in which this can occur. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. Solution. Chargeback amount is equal to or less than the exceeded limited /authorised amount. Those reasons are explained through the corresponding reason codes. MASTERCARD. A risk department can accurately analyze what the issue is with their merchant by seeing the individual reason code,” Cirone explained. Versions Affected: v5, v6. Amex Dispute Codes Our all-in-one e-commerce fraud prevention solution helps e-commerce companies reduce chargeback overheads while streamlining transactions for legitimate users. Solution. Chargeback Reason Code 62—Counterfeit fraud pertains to the EMV liability shift. 2: 10: Fraud:You can check on the status of your dispute by following these steps: Login to your Chime mobile app. Chargeback reason codes have changed. Status values starting with the letter R are NACHA specification reject and return reason codes that indicate that the consumer portion of the payment has been returned (typically a closed bank account, invalid bank account, insufficient funds, or dispute). ONE reason code is an alphanumeric code selected from a fixed list by the issuing bank to indicate the reason of cardholder gave for requesting a chargeback. related Chargebacks (Reason Codes 4837, 4840, 4849, 4863, 4870, and 4871), Chip/PIN Liability Shift (Reason Code 4871) section. If the conflict can be settled, the acquiring and issuing banks do so. 04/20/13 Visa and MC Retrieval Codes — removed retired codes MC Reason Code 37P01 – Unassigned Card Number. Every time a merchant processes a transaction, they are supposed to send an. 7: Defective goods and services: C32: RM: 13. Ensure that the digits of the. In a traditional payment system, the customer authorizes a payment, and then the merchant submits it for clearing to the issuer—effectively requesting to “pull” money from the customer’s account. Chargebacks can pile up your expenses and can be annoying. It was originally just one facet. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. When a cardholder disputes a charge, their issuing bank will review the transaction and decide if. 5 Removed unused Visa (60) and Discover (4580) Chargeback Codes Added Section 1. In most cases, the bank chooses a course of action based on information the cardholder provides. for chargeback reason code 4863 (Cardholder Does Not Recognize). 10. The shorthand description is “Chargeback Authorization. You have submitted a Charge using an invalid or otherwise incorrect Card Number. If the order was genuinely not as described, then the cardholder has a case. Through 2021, we analyzed chargeback reason codes across various subscription-based verticals. 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 cost of payment card fraud has increased by 60% over the last decade, and is expected to increase significantly post Covid-19. Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. In-Depth Analytics Identity the real reasons for transaction disputes plus solve issues at their citation. Choose the representment amount. You can attempt to work with the customer on a resolution and potentially have the chargeback reversed. Only an issuer can initiate the chargeback process. Processing Errors. Thus, the easiest way to prevent chargeback reason code 75 from being. Upfront Chargeback If we determine we have sufficient information to pursue a Chargeback, we may debit your account up front. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. 1 EMV Liability Shift 10. Learn about chargeback dispute behavior among UK and US consumers. Category. Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2. This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. Also, just like American Express, Discover functions as both a card network and an. 3. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time. chargeback: The buyer filed a chargeback with the credit card issuer. In fact, 91. Credit card chargeback reason code: Type: Varchar; Unique: No; Blanks: Yes; Max length: 64 characters; Unique identifier which distinguishes the nature/reason of credit card chargeback reported. Betty's issuing bank assigned chargeback reason code 10. Depending on the reason for the return, customers may have up to 60 days from settlement to refute an ACH payment. If the order was genuinely not as described, then the cardholder has a case. The aim of CE 3. Reason Code 12: PCI-DSS Non Compliance: The merchant wasn’t compliant with PCI-DSS requirements. Improve chargeback-resolution time. Offer shipment and delivery tracking. 2 Compliance CasesECM monitors first presentment chargebacks regardless of reason code or transaction type. WEX began issuing chip cards in Q4, 2020. The merchant did not receive any returned merchandise. While creating the reason codes, the. Feel free to submit topic suggestions, questions or requests for advice to:. P01 - Unassigned Card Number (All other countries 4523) Reason. Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS). For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support. Transaction not authorised – the Card Issuing Company is stating that an authorisation code was required for the transaction, but it was not obtained. This will put the onus of the chargeback back on the card-issuing bank as opposed to the merchant, for many chargeback reason codes. P22 – Non-Matching Card Number. Depending upon the class, a retailer will have a swift way to offer evidence supporting the claim. Chargeback reason code. American Express chargeback reason code P01 falls under the “Processing Errors” category. com Europe. It depends on the chargeback reason code associated with the dispute. Shopify has four status categories for chargebacks and inquiries: Open: No. 15, 2021. Braintree Support Articles. Additionally, Amex uses a fifth "Miscellaneous" category. With VCR regulations, the risk of breaching fraud-to-sales thresholds increases. American Express chargeback reason code M01 falls under the “Inquiry/Miscellaneous” category. These chargebacks occur to resolve chargeback-related disputes between network members. Scrutinize chargeback additionally alert data by dozens of metrics. 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. might reverse the Chargeback. Reason Code; Ref Number ; Auth Code; For a brief overview of chargeback reason codes, refer to the table below. The business has the chance to refute the chargeback. What are the odds a merchant will “win” the chargeback dispute? The true odds depend on the strength of the compelling evidence and the chargeback reason code itself. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. ”. Company. P03 — Credit Processed as Charge Chargeback reason American Express reason code Discover reason code Mastercard reason code Visa reason code; Cancelled subscription: C28: NF: 4841: 13. There are over 80 unique return codes, each representing a different return type. Each of the major card brands, including Visa, Mastercard, and others, have their own system of reason codes. Chargebacks—Maestro POS Transactions—added information to the section, Proper Use of Intra-European Message Reason Code 4808, about theThe chargeback reason codes below explain why this happened. 102. 4: Fraud—Card-Absent Environment. Region Only) 4855 Goods or Services Not Provided. A Product Not Delivered chargeback means the customer believes they did not receive the goods or services they purchased. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Once filed, the merchant generally has 20 days to respond. Reason code Description; P01: Unassigned Card Number: P03: Credit Processed as Charge: P04: Charge Processed as Credit: P05: Incorrect Charge Amount: P07: Late. Chargeback reason code; Delivery confirmation (if the item was delivered) Accurate transaction dollar amount; When writing a winning chargeback rebuttal letter, it’s important to include one more vital component: the fact that you’re disputing the charge. In this instance, the cardholder claims a misrepresentation of the order they received, such as a defect, damage, counterfeit, or incomplete merchandise. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. If the customer’s story matches. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). Invalid Authorisation (ISO 4521) / Charge amount exceeds Authorisation amount (A01). Code. Save fulfillment costs, stop chargebacks, furthermore improve customer fulfillment. Chargeback Codes (continued) C04 Goods/services returned. Most reason codes apply to any merchant, regardless of what’s being sold. Tap “>” beside the charge to see an accurate timeline view of the disputed transaction. You can see a reason code 11. You must tailor your representment case — including the compelling evidence — to the reason code under. Chargeback fees can start at US$25 and go up from there. Visa Chargeback Reason Codes. Administrative returns (R02, R03, R04): 3%. 4512:There are dozens of reasons why cardholders and issuers dispute transactions. Evidence for Dispute Responses When Under VFMP. Moreover, there are other two categories to handle the Amex chargeback: inquiry and chargeback programs. Listed as American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040, customers file fraudulent chargebacks when they believe fraud has occurred. In some cases, errors can be resolved and reversed, but there is no equivalent to chargeback representment when it comes to ACH. In most cases, though, cardholders have 120 days after the original purchase date to dispute the charge. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. We used 3DS to authenticate this purchase and obtained AVS and CVV match codes at authorization (page 2). Message. P07 – Late Submission. 3: Goods or services were not received: C08: RG: 4855: 13. 60. ”. The most comprehensive guide to chargeback reason codes. “American Express Chargeback Reason Codes | Sift”. This ranges anywhere from roughly 60 to 90 days after purchase. Chargeback reason codes tell merchants the reason the customer is disputing a charge, according to the information they provided to their bank. Have more questions? To learn more about handling and preventing disputes, visit americanexpress. Learn the details, the cause, how to respond and how to prevent American Express Reason Code P01 Unassigned Card Number . MCC 5815 — Digital Goods: Media (Books,. Reason Code Directory. The Time Frame charts in this guide indicate the reason codes, allowable time frames for chargeback processing and type of chargeback. Spot these types of chargebacks using. Categories For Reason Codes. There are several types of chargeback reason codes that can be used, including the following: 1. To obtain additional information, the issuing bank sends a retrieval request to the merchant’s bank. Eventually the existing chargeback reason codes won't be used and will be removed from this guide. There are over 80 unique return codes, and each one represents a different type of return. US and Canada. Chargeback. Most commonly the payer is a consumer. ACH return codes identify the reason an ACH payment was returned by the recipient's bank. 103. Everything You Need to Know (2023) Shopify POS has everything you need to sell in person, backed by everything you need to sell online. Over the last three years, so-called friendly fraud has become the number-one source of fraud as reported by merchants are forced to deal with. P07 – Late Submission. Consider Deadlines. Most Common Chargeback Reason Codes #3: Order Significantly Not as Described. The shorthand description is “Unassigned Card Number. This reason code is used when the cardholder claims that their card was used fraudulently without their permission. 6. The chargeback process can last from one month to six months. P01 UnassignedCard number . The rules which will take effect in April 2023 are meant to reduce the volume of friendly fraud occurring over the card network. Save fulfillment costs, prevent chargebacks, the improve customer satisfaction. The chargeback process starts when a customer (or, less frequently, their issuing bank) challenges a transaction as invalid. Despite concerns about increased friction, every merchant should deploy 3-D Secure at checkout. If you want a more thorough explanation of a given reason code, you can find it in our reason code lookup tool. P22 – Non-Matching Card Number. As soon as a customer requests a chargeback, their bank will reach out to the business’s bank and give them a heads-up that the chargeback has been requested. These symbols stand for reasons why a financial institution may file a credit card chargeback from their client’s name. The credit card number used for a sale is not assigned to a valid account or cardholder. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Chargeback reason codes will usually provide specific information about what kind of evidence is needed to get the chargeback reversed. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback,Visa is planning to shake up the chargeback process with new compelling evidence rules for fraud disputes with Reason Code 10. Overall returns (all codes): 15%. 5. 5 under Visa Claims Resolution). Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andA TC40 data claim occurs when a customer makes a fraud claim against a merchant. The system does not accept Blank as a value, even if it is defined in the UDC table. 1 Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. Accessed October 31, 2022. Using the same link provided above, contact PayPal to report the scam. R06 – Returned due to ODFI’s request. 61 P03 Credit processed as charge. Reason Code Description. ↩ Back to Directory. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. Credit Processed as Charge. Instead, the merchant provides an. Solution Case Studies Partners Company Blog Resources Data & Compliance FAQ See It In Action. Each card issuer follows their own standards for defining reason type, code and its format. Chargeback reason codes are an abbreviated way of offering a basic explanation for the chargeback. 3. Case Studies. Visa chargeback reason codes. 0. The Sift Digital Trust & Safety Platform does what other fraud tools can’t, patented technology delivers. P05 – Incorrect Charge Amount. P04 – Charge Processed as Credit. The number of in-person fraud attacks attempted in the UK has dropped by 69% since 2004. Step 01 | Identify the Reason Code. Acquirer Use of Message Reason Code 7623. Built with a single, intuitive console, Sift’s end-to-end solution eliminates the need for disconnected tools, single-purpose software, and incomplete insights that drain operational resources. 3: Goods or services were not received: C08: RG: 4855: 13. 1 alpha followed by 2 numeric digits. Amex uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. 6, "Chargeback Reasons" Added requirements for each Chargeback Reason code. Select the value “open”. The implication is that the merchant is at fault. However, you’re not alone; they create headaches for many players within the Mastercard ecosystem. Each code has a different timeline. The main chargeback reasons look like this: Malicious fraud. Following the prompts that pop up, inform PayPal of every detail, and include the screenshots of the conversations you had with the scammer. There are tricks you might use to circumvent an undesirable authorization message, such as not requesting authorization at all, or making multiple attempts on a declined card. 6: Duplicate processing/Paid by other means. Reason Code North-America:. Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback thresholds: Reason Code 05: Excessive Fraud: The merchant breached predetermined fraud-to-sales dollar volume thresholds:. All chargebacks start with a customer making a purchase in person, in an app, or online. . 9808 info@chargebacks911. 1 and Note on page 14 Chapters 1 and 2 Chapter 1 1. Dispute. Each credit card network has its own list of reason codes banks must choose from. When customers dispute charges to their accounts, you can incur chargebacks. Description: Reason code for applying handling fee. chargeback management with an easy to use online system. 2. Ready to see. 6 Processing Transactions 7 Processing Transactions Swiping a Card Before swiping, make sure the stripe is facing the reader. American Express is incentivized to keep their customers happy. 2. About. Late Submission. American Express Chargeback Reason Codes have four main categories, those are Fraud, Authorization, Processing Error, Card Member Disputes and Miscellaneous. The cardholder alleges they never received the products or services. Chargeback prevention strategies vary based on the reason for the. Reason codes differ by card brand (Visa, Mastercard); a complete list can be found here. Reversal. MASTERCARD Reason Code Description 01 Requested Transaction Data Not Received. CE 3. Chargebacks were introduced as a form of consumer protection against. The issuer investigates. Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction. 6. 4860 Credit Not Processed. P08 – Duplicate Charge. Try Shopify free for 3 days, no credit card required. Take the time to note the following dispute reason codes for Visa. People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. Here are the two possible scenarios: 1. 0) Digital usage logs; ContractsStep 1: The cardholder disputes a charge.