Fraud Chargeback Reason Codes & What They Really Mean

Fraud is still the #1 reason chargebacks happen—and in 2025, fraudsters are faster, smarter, and more aggressive than ever. But you know what else is powerful? Knowing exactly why a fraud-related chargeback occurred.

That’s where fraud reason codes come in.

At Dispute.com, we help merchants decode these codes, so you can prevent repeat attacks, craft smarter defenses, and protect your revenue. Let’s break it down by card network.

🔵 Visa Fraud Reason Codes

Reason Code	Description
10.1	EMV Liability Shift – Counterfeit Fraud
10.2	EMV Liability Shift – Non-Counterfeit Fraud
10.3	Other Fraud – Card Present Environment
10.4	Other Fraud – Card Absent Environment
10.5	Visa Fraud Monitoring Program (VFMP) Fraudulent Transaction

🔍 Visa’s fraud codes are logic-based and often triggered by their internal fraud monitoring system. Pay attention to card-present vs. card-not-present differences.

🟣 Mastercard Fraud Reason Codes

Reason Code	Description
4837	No Cardholder Authorization
4840	Fraudulent Processing of Transactions
4863	Cardholder Does Not Recognize—Potential Fraud

🔍 Mastercard’s codes often appear when the cardholder denies authorizing the transaction or flags it as unfamiliar. This makes documentation and AVS/CVV matching essential.

🟢 American Express Fraud Reason Codes

Reason Code	Description
F10	Missing Imprint (card-present fraud)
F14	Fraud – No Cardmember Authorization
F24	No Cardmember Authorization (Card Not Present)
F29	Card Not Present – Multiple Fraudulent Transactions

🔍 Amex cardholders tend to be proactive about flagging fraud. If you get repeat Amex disputes, review your checkout UX and device fingerprinting.

🟠 Discover Fraud Reason Codes

Reason Code	Description
UA01	Fraud – Card Present
UA02	Fraud – Card Not Present
UA05	Chip Liability Shift Fraud
UA06	PIN Liability Shift Fraud

🔍 Discover disputes often favor the cardholder, especially for ecommerce merchants. Use BIN analysis, AVS/CVV, and 3DS2 authentication to reduce risk.

🎯 How to Use Fraud Reason Codes Strategically

Knowing the code isn’t just for show—it’s your playbook. Here’s what each type of fraud code helps you do:

✅ Card Present Fraud Improve terminal security. Update to chip or contactless. Capture proper authorization.

✅ Card Not Present Fraud Level up your ecommerce fraud tools: use AVS, CVV, 3DS2, device fingerprinting, and velocity checks.

✅ Authorization Disputes Keep clear, timestamped logs of authorizations, digital receipts, and customer IP/location data.

✅ Recurring Transaction Disputes Use tokenization and clearly disclose recurring terms at checkout. Send renewal reminders.

🧠 Pro Tip from Dispute.com

Dispute fatigue is real. But if you’re seeing repeat codes—especially from the same card network or BIN—something bigger may be at play.

We help you:

Identify fraud trends in real-time
Respond with tailored evidence packs by code

Automate representment to keep disputes from piling up