4 - Visa

4.1 - Visa process

Visa has four dispute categories. Each category is further divided into dispute conditions. There are two paths, Allocation for fraud and authorization related disputes and Collaboration for processing error and consumer related disputes.

Visa process

4.1.1 - Allocation (Fraud and Authorization)

The Issuer raises a dispute (CHABAC³) The Acquirer files a pre-arbitration (REPR00) to the Issuer and either:

The Issuer accepts (CBRV35 and CHBWON) or
The Issuer declines
The Acquirer evaluates whether chargeback has to be accepted (CBLOST) or
The Acquirer files an Arbitration case (ARBREW)
Depending on the final ruling from Visa, the resolution of the case will be either
Chargeback won (CBRV35 and CHBWON)
Chargeback lost (CBLOST)

4.1.2 - Collaboration (Processing error and Consumer dispute)

The Issuer raises a dispute (CHABAC) The Acquirer sends a dispute response to the Issuer (REPR05) and either

The issuer accepts the case (CHBWON) or
The Issuer files a Pre-arbitration to the Acquirer (PREARB) and either
- The Acquirer accepts and funds are returned to the issuer (OUFE20, CBLOST)
- The Acquirer declines (PADECL)
  - The issuer evaluates the declined case and
    - Accepts the case (CBWON)
    - Or files an Arbitration case (ARBREW) to Visa if conditions are met.
      - Depending on the final ruling from Visa, the resolution of the case will be either
        
        Chargeback won (CHBWON) or
        
        Chargeback lost (CBLOST and OUFE20)

Dispute life cycle

4.2 - Visa dispute conditions

List of Visa reason codes

Dispute condition	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
11.1	Card recovery bulletin
11.2	Declined authorization
11.3	No authorization
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
13.1	Merchandise/services not received
13.2	Cancelled recurring transaction
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

4.3 - Supporting documents needed for a valid Visa representment

4.3.1 - Visa Table

Category	RC	Comment	Documents required
10. Fraud	10.1	EMV Liability Shift Counterfeit Fraud	Acquirer will evaluate whether the chargeback is valid or not based on the merchant's terminal capability and the input of the card. (How the card was read).
10. Fraud	10.2	EMV Liability Shift Non-Counterfeit Fraud	Acquirer will evaluate whether the chargeback is valid or not based on the merchant's terminal capability and the input of the card. (How the card was read).
10. Fraud	10.3	Other Fraud-Card Present Environment	Proof of card presence (pin, signature, valid imprint). Evidence that the transaction occurred during the same stay, trip or rental period. Compelling evidence for cardholder participation, any personally identifiable information like name, address, email etc. All available communication with customer.
10. Fraud	10.4	Other Fraud-Card Absent Environment	Compelling evidence for cardholder participation in the transaction, any personally identifiable information like name, address, email etc. All available communication with customer.
10. Fraud	10.5	Visa Fraud Monitoring Program	Can only be disputed if previous credit was issued by the merchant.
11. Authorization	11.1	Card Recovery Bulletin	Evidence that the transaction was authorized by the issuer.
11. Authorization	11.2	Declined Authorization	Evidence that the transaction was authorized by the issuer.
11. Authorization	11.3	No Authorization	Evidence that the transaction was authorized by the issuer.
12. Processing Errors	12.1	Late Presentment	Provide a copy of the receipt to support the transaction date.
12. Processing Errors	12.2	Incorrect Transaction Code	Proof that transaction code or currency code is correct. Explanation of why a credit transaction was processed instead of a reversal.
12. Processing Errors	12.3	Incorrect Currency	Merchant must provide evidence that the currency was correct and specifically accepted by the cardholder.
12. Processing Errors	12.4	Incorrect Account Number	Merchant must provide evidence that the account number was correct.
12. Processing Errors	12.5	Incorrect Amount	Merchant must provide evidence that the transaction amount was correct. Transaction receipt was not altered, or cardholder agreed to alteration, or merchant is permitted or required to alter the amount.
12. Processing Errors	12.6	Duplicate Processing/Paid by Other Means	Acquirer must provide separate transaction receipts or other record/details to prove two separate transactions were processed. Evidence to prove that the Merchant did not receive payment by other means for the same merchandise or service.
12. Processing Errors	12.7	Invalid Data	Acquirer will evaluate whether the chargeback is valid or not.
13. Consumer Disputes	13.1	Merchandise/ Services Not Received	Proof of delivery, tracking number and carrier and a screenshot of the carrier's delivery report with the address the merchandise was delivered to and customer's signature if available. Proof that services have been used.
13. Consumer Disputes	13.2	Cancelled Recurring	Cardholder requested cancellation for different date and services were provided until this date. Merchant posted charges after services were provided and cardholder received services until cancellation date.
13. Consumer Disputes	13.3	Not as Described or Defective Merchandise/Services	Merchandise or service was as described (must be the same as described on the original transaction receipt or accompanying sales documents). Merchant did not receive the returned merchandise or has evidence to show that the cardholder did not attempt to return the merchandise. Merchandise was not defective (proof).
13. Consumer Disputes	13.4	Counterfeit Merchandise	Merchant must provide evidence that merchandise was not counterfeit, either by providing proof that they are an authorized dealer for the goods or providing expert opinion.
13. Consumer Disputes	13.5	Misrepresentation	Merchant can submit a dispute response with evidence that the terms of the sale of the merchandise or services were not misrepresented and made clear to the customer prior to purchase.
13. Consumer Disputes	13.6	Credit Not Processed	Provide documentation of the credit or reversal; include the amount and the date it was processed or provide proof that credit was not due.
13. Consumer Disputes	13.7	Cancelled Merchandise/Services	Transaction receipt or other record to prove merchant properly disclosed a limited return or cancellation policy at time of transaction. Prove that the cardholder received merchant's cancellation or return policy and did not cancel according to disclosed policy.
13. Consumer Disputes	13.8	Original Credit Transaction Not Accepted	No dispute right. Merchant must find another way of crediting the customer.
13. Consumer Disputes	13.9	Non-Receipt of Cash or Load Transaction Value	A copy of the ATM Cash Disbursement Transaction or Load Transaction record. Indicator that confirms that the ATM Cash Disbursement or Load Transaction value was successful.

4.3.2 - Compelling Evidence

An Acquirer may submit Compelling Evidence with a Dispute Response or pre-Arbitration attempt, as follows:

4.3.2.1 - Visa table for allowable compelling evidence

Item #	Allowable compelling evidence	Dispute Condition
1	Evidence, such as photographs or emails, to prove a link between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services.	13.1
2	For a Card-Absent Environment Transaction in which the merchandise is collected from the Merchant location, any of the following: l Cardholder signature on the pick-up form l Copy of identification presented by the Cardholder l Details of identification presented by the Cardholder	13.1
3	For a Card-Absent Environment Transaction in which the merchandise is delivered, evidence that the item was delivered to the same physical address for which the Merchant received an AVS match of Y or M. A signature is not required as evidence of delivery.	13.1
4	For an Electronic Commerce Transaction representing the sale of digital goods downloaded from a Merchant’s website or application, description of the merchandise or services successfully downloaded, the date and time such merchandise or services were downloaded, and 2 or more of the following: l Purchaser’s IP address and the device geographical location at the date and time of the Transaction l Device ID number and name of device (if available) l Purchaser’s name and email address linked to the customer profile held by the Merchant l Evidence that the profile set up by the purchaser on the Merchant’s website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction Date l Evidence that the Merchant’s website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date l Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed.	10.4, 13.1
5	For a Transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery.	10.4, 13.1
6	For a Mail/Phone Order Transaction, a signed order form	10.4
7	For a passenger transport Transaction, evidence that the services were provided and any of the following: l Evidence that the ticket was received at the Cardholder’s billing address l Evidence that the ticket or boarding pass was scanned at the gate l Details of frequent flyer miles relating to the disputed Transaction that were earned or redeemed, including address and telephone number, that establish a link to the Cardholder l Evidence of any of the following additional Transactions related to the original Transaction: purchase of seat upgrades, payment for extra baggage, or purchases made on board the passenger transport.	10.4, 13.1
8	For Transactions involving a Europe Member, for an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and matches the name provided on the purchased itinerary.	10.4
9	For a T&E Transaction, evidence that the services were provided and either: l Details of loyalty program rewards earned and/or redeemed including address and telephone number that establish a link to the Cardholder l Evidence that an additional Transaction or Transactions related to the original Transaction, such as the purchase of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed.	10.4, 13.1
10	For a virtual Card Transaction at a Lodging Merchant, evidence of the Issuer’s payment instruction sent through Visa Payables Automation, containing all of the following: l Issuer statement confirming approved use of the Card at the Lodging Merchant l Payment Credential l Guest name l Name of the company (requestor) and either their phone number, fax number, or email address.	10.4
11	For a Card-Absent Environment Transaction, evidence that the Transaction used an IP address, email address, physical address, and telephone number that had been used in a previous, undisputed Transaction.	10.4
12	Evidence that the Transaction was completed by a member of the Cardholder’s household or family.	10.4
13	Evidence that the person who signed for the merchandise was authorized to sign for the Cardholder or is known by the Cardholder	13.1
14	Evidence of one or more non-disputed payments for the same merchandise or service	10.4
15	For a Recurring Transaction, evidence of all of the following: l A legally binding contract held between the Merchant and the Cardholder l The Cardholder is using the merchandise or services l A previous Transaction that was not disputed.	13.1
16	In the Europe Region: Evidence that the Cardholder has been compensated for the value of the merchandise or services through another method.	13.1
17	In the Europe Region: Evidence that the initial Transaction to set up a wallet was completed using Visa Secure but any subsequent Transaction from the wallet that was not completed using Visa Secure contained all wallet-related Transaction data.	10.4

4.4 - Visa Fraud report

4.4.1 - Visa Fraud reporting reason codes

Fraud Type Code	Description
0	Lost — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim by the cardholder that the card was lost.
1	Stolen — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim by the cardholder that the card was stolen.
2	Card not received as issued (NRI) — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that the cardholder did not receive the issued card, although the issuer confirms it was sent to the cardholder (through any delivery method).
3	Fraudulent application — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that the cardholder never applied for the card OR the issuer confirms that information given on the application was falsified.
4	Issuer-reported counterfeit - Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that the cardholder did not knowingly participate in a transaction OR the issuer confirms that such an account was never issued (in the absence of a cardholder) and the issuer confirms that the card or magnetic stripe used in a Card Present environment has been unlawfully altered or duplicated.
5	Miscellaneous/Account takeover — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that a transaction was not authorized by the cardholder but cannot be categorized under another Fraud Type category, such as but not limited to: Multiple draft imprints obtained unlawfully from a legitimate card. Unauthorized alterations to a sales draft. U.S. only: Account takeover—Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that a transaction was not authorized by the cardholder and the issuer confirms that another party has unlawfully represented itself as the cardholder.
6	Fraudulent use of account number — Issuer confirms a transaction is fraudulent on a Visa account as a result of a claim that a transaction was not authorized by the cardholder OR the issuer confirms that such an account was never issued (in the absence of a cardholder) and the account number has been fraudulently used in a Card Not Present environment (for example, for MOTO or Internet transactions).
9	Acquirer-reported counterfeit — Acquirer confirms that the transaction involved has an unissued or invalid BIN.
A	Incorrect Processing - Fraudulent transaction was made possible due to incorrect processing. This type identifies situations in which lack of validating a security element was the factor that enabled fraud to occur. For example: Fraudulent EMV transaction resulting from lack of cryptogram validation. Vulnerabilities in the implementation of EMV may allow fraudsters to use a chip cards with fake cryptograms. Fraudulent transaction on a magnetic stripe transaction resulting from lack of Card Verification Value (CVV) validation
B	Account or Credential takeover - Fraud resulted from fraudsters taking over an account or credentials from a legitimate client. Examples may include: Use of personally identifiable information (PII) to circumvent the issuer's authentication process or cardholder's stolen credentials for requesting a new bank-issued card for fraudulent use. Fraudulent use of card data and PII to circumvent the issuer's authentication process and enable provisioning of the payment card onto a mobile device / digital wallet, which is subsequently used for fraudulent purchases. Fraudulent use of the cardholder's digital wallet via stolen user credentials (i.e., mobile passcode, wallet login information).
C	Merchant misrepresentation - A merchant fraudulently selling items that are not as they seem or are sub-standard, charging more than anticipated or for a longer term, or charging for a service that the consumer can get for free through another channel.
D	Manipulation of Account Holder - Fraud resulting from a merchant manipulating an account holder into completing what they believe to be a legitimate transaction. This fraud type was added to support Visa Direct and the European Payment Services Directive 2 (PSD2) regulations. Examples may include: Account holder manipulated into sending funds to a fraudulent beneficiary when the sender believes they will gain fictitious riches or help an individual in distress or a struggling business, or to pay medical fees. A fraudster contacting the sender to impersonate a known supplier, trusted organization, or business in order to request a change of payment details for a transaction or to request a payment to a fraudulent account.