Guideline of Prevention to Visa Chargeback Reason Code 83

Posted by Apoorv Joshi on December 8th, 2017

Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of the transaction. Card no present transaction can be applied to internet healthcare transactions, mail orders, advance payments, telephone orders, and more. The main reasons for this chargeback are:

• Merchant charged an account which was used fraudulently
• Cardholder wasn’t able to recognized name of merchant on the billing statement

Preventing Chargeback code 83
If you want to prevent it, following practices should be implemented:

• Make sure to obtain an authorized approval for all the e-commerce and recurring transactions regardless of the dollar amount.
• Read back account number, especially for transactions done via phone. Always verify account number so that there are no errors or misunderstandings.
• Identify the type of transaction, such as card-not-present, and use appropriate codes for identifying transactions as e-commerce, telephone order, and Mail order during settlement process and authorization. Usually, this will automatically be done by the processing system, or by indicator button.
• Make sure to use security codes and AVS. These services are designed to help prevent card not the present type of frauds.
• Set your billing descriptor correctly, you can manage the way business name appears on the customer billing statement with the help of a tool known as billing descriptor. It is usually set up so that you can display you are “Doing Business As “(DBA) name, but some processors may use the legal name as per default settings. You can work with your processor to ensure the descriptor is set that will be familiar to future customers. You have to ensure all the information such as internet address, state, city, and phone number are displayed so that customer can identify it.
• Ensure you are protected from Reason code 83 if the transaction has electronic commerce indicator, which indicates a verified by visa transaction. Make sure all transactions are easily identified, and the information is displayed so that customer doesn't have difficulty recognizing it.

Author Section:

This article is written by Chargeback Expertz, provide knowledge for chargebacks and how to fight or reduce chargebacks. Chargeback Expertz is a Detailed Risk Management Company helping Retail and Online Merchants. Chargeback Expertz’s system is designed to defend the eCommerce Business against all types of Fraud and Threats.