Nomupay acts as the merchant's representative throughout the chargeback and dispute lifecycle.
The procedure that Nomupay follows includes:
- Chargeback Notification: Receiving and notifying the merchant of the chargeback.
- Dispute Chargeback: Providing the merchant with the option to dispute the chargeback.
- Dispute Outcome Notification: Sharing the dispute outcome with the merchant.
Chargeback Notification
Nomupay receives chargebacks from the card scheme or alternative payment provider via dedicated portals, email exchange and settlement files.
Nomupay will notify the merchant of the chargeback by:
- Sending an email including the details of the chargeback.
- Debit the chargeback amount and any associated fees from the merchant funding, and share this with the merchant as a line item in the funding report and via Nomupay's Portal.
Example of the key data shared via Nomupay's Portal in case of a chargeback:
PAYMENT TYPE: Chargeback
AMOUNT: The amount being disputed
PAYMENT METHOD: Visa, Mastercard, etc.
REASON CODE: The reason for the chargeback (e.g. 10.4, 4863)
Each major card network and alternative payment method uses its own unique set of numeric or alphanumeric reason codes to classify chargebacks. You may receive different codes depending on which card the consumer used for the transaction. For an indicative list of the most common Visa and Mastercard reason codes please see Appendix below.
Challenge Chargeback
If the merchant choose to challenge the chargeback it will be required that the merchant submits evidence and fill in dedicated forms to support the case.
The type of evidence will depend on the chargeback reason, the payment method and the stage of the chargeback and disputes lifecycle.
However, merchant provided evidence will usually include
- Receipts: Proof of the original purchase.
- Proof of delivery/shipping confirmation: Tracking information and confirmation that the item was delivered.
- Packing lists: Details of what was included in the shipment.
- Customer communications: Copies of emails or logs of phone calls with the consumer.
- Return policy: A copy of the merchant's policy for returns and cancellations.
The dedicated forms will depend on the chargeback reason, the transaction payment method and the stage of the chargeback and disputes lifecycle.
Nomupay will make sure that the merchant is correctly advices via email of which evidence and forms are to be submitted.
Outcome Of Dispute
Nomupay receives the outcome of the dispute from the card scheme or alternative payment provider via dedicated portals, email exchange and settlement files.
Nomupay will notify the merchant via email of the outcome:
- If the outcome is in the advantage of the merchant, then the transaction amount will the credited in favour of the merchant via the merchant funding.
- If the outcome is in the advantage of the consumer, then the merchant has the option to challenge the decision. For more details see the chargeback and dispute lifecycle. Nomupay will advice you of your options and the procedures via the associated email exchange.
Most Common Chargeback Reason Codes
Visa Chargeback Reason Codes
XX.X format where the first two digits indicate the category (e.g., 10 for Fraud, 13 for Consumer Disputes). The most common reason codes are as follows:| Code | Explanation |
|---|---|
| 10.1 | EMV Liability Shift Counterfeit Fraud: A counterfeit chip card was used in a non-EMV compliant terminal. |
| 10.2 | EMV Liability Shift Non-Counterfeit Fraud: A lost, stolen, or non-received chip card was used without proper chip/PIN verification. |
| 10.3 | Other Fraud - Card-Present Environment: Unauthorised transaction in a card-present situation (e.g., key-entered sale). |
| 10.4 | Other Fraud - Card-Absent Environment: The cardholder claims an online/phone/mail order transaction was unauthorised. |
| 10.5 | Visa Fraud Monitoring Program: Transaction flagged by the Visa Fraud Monitoring Program due to high merchant fraud ratio. |
| 11.2 | Declined Authorisation: A transaction was processed after the authorisation request was declined. |
| 11.3 | No Authorisation/Late Presentment: A valid authorisation was not obtained or the transaction was presented after the authorisation expired. |
| 12.5 | Incorrect Amount: The cardholder was charged an amount different from the agreed-upon total. |
| 12.6 | Duplicate Processing / Paid By Other Means: The same transaction was processed multiple times, or the customer paid via another method as well. |
| 13.1 | Merchandise / Services Not Received: The cardholder claims they never received the purchased goods or services. |
| 13.2 | Cancelled Recurring Transaction: A recurring charge was billed after the cardholder claims to have canceled the subscription. |
| 13.3 | Not as Described or Defective Merchandise / Services: The goods or services received were damaged, defective, or significantly different from the description. |
| 13.6 | Credit Not Processed: The cardholder was promised a refund/credit that never appeared on their account. |
Mastercard Chargeback Reason Codes
| Code | Explanation |
|---|---|
| 4808 | Authorisation-Related Chargeback: Covers transactions processed without valid authorisation, late presentment, or expired authorisation. |
| 4834 | Point-of-Interaction Error: A broad category for various errors like incorrect amounts, duplicate charges, or currency conversion issues. |
| 4837 | No Cardholder Authorisation: A transaction disputed as unauthorised by the cardholder. |
| 4841 | Canceled Recurring or Digital Goods Transactions: Recurring billing dispute where a cancellation was not processed (now often merged into 4853). |
| 4853 | Cardholder Dispute: A general category for various issues, including "not as described," "services not provided," or "credit not processed". |
| 4855 | Goods or Services Not Provided: The cardholder claims non-receipt of items (now often merged into 4853). |
| 4860 | Credit Not Processed: An expected refund did not appear on the cardholder's statement (now often merged into 4853). |
| 4863 | Cardholder Does Not Recognise - Potential Fraud: The cardholder does not recognise the merchant or transaction on their statement. |