For: All merchants
Date effective: Clarifications
Merchants may have chargeback protection from “Does Not Recognize” reason codes, as long as the transactions meet certain criteria, as noted below.
Discover has clarified that an issuer has no chargeback rights under Reason Code AA–Does Not Recognize, if the transaction is completed using in-app authentication on a mobile payment device provisioned in a digital wallet and the sale was completed using a Consumer Device Card Verification Method (CDCVM) supported and approved by the issuer, such as PIN entry, fingerprint, or pattern input.
Mastercard limits issuers’ chargeback rights for Reason Code 4863–Cardholder Does Not Recognize. This reason code may not be used for: Properly identified Mastercard SecureCode, Masterpass by Mastercard, and Digital Secure Remote Payment (DSRP) transactions (including any subsequent transaction related to the original DSRP transaction, such as a partial shipment or recurring payment) identified in authorization (DE 48, subelement 42 [Electronic Commerce Indicators], subfield 1 [Electronic Commerce Security Level Indicator and UCAF Collection Indicator], positions 1, 2, and 3) with the values of 211, 212, 215, 221, 222, 225, 241, 242, 245, 911, 912, or 915.
Visa has eliminated their Reason Code 75–Cardholder Does Not Recognize.