Rupay chargeback Excerpt

RuPay Card Chargeback System and Reason Codes Explained:

A chargeback is a process whereby a customer can dispute a credit or debit card transaction and
have the charge reversed. The cardholder contacts their card issuer and requests a chargeback, and
the issuer debits the merchant’s account for the full amount of the transaction. The merchant then
can present evidence that the transaction is valid, or the chargeback will be sustained.

A chargeback reason code is a numerical code that indicates the reason why a customer has disputed
a charge on their statement. The chargeback reason code is associated with a brief description that
provides the merchant with more information about the dispute.

RuPay is a domestic card payment network launched by the National Payments Corporation of India
(NPCI) in 2012. It is the Indian version of international payment networks like Visa and Mastercard. If
you get a chargeback from RuPay, you can use this guide as a quick resource to identify the reason.

RuPay clears the card transactions through RuPay Global Clearing and Settlement System (RGCS)
designed to process, clear and settle online transactions passing through NPCI’s central switch and to
facilitate the RuPay members(Issuing/Acquiring) in raising and resolving a dispute on a transaction
which had previously been cleared by RuPay it has defined the rules and guidelines for the dispute
management process and facilitates this process through RGCS system(Web UI/File staging) for card
transactions and URCS (UPI Real time Clearing & Settlement) for UPI Chargebacks dispute resolution.

RuPay Card holder Dispute Chargeback Reason Codes:

1) Retrieval Request Reasons and Reason Codes

A dispute or chargeback retrieval request is a request from a cardholder to the card issuer for a copy
of the original transaction receipt. The request is usually made when the cardholder is disputing a
charge on their credit card statement. The request is made to the card issuer, who then contacts the
merchant to obtain the receipt. The card issuer then forwards the receipt to the cardholder.

Retrieval Request/ Copy request Reason Codes

1001- Cardholder does not recognize the transaction

1002- Cardholder disputes billed amount

1003- Transaction Supporting Document (TSD) needed for cardholder’s personal records expense
reporting

1004- For fraud /dispute investigation or legal/ regulatory issues

2) Goods & Services Related Issues

1061 - Credit not processed for cancelled or returned goods and services
This code is issued when a customer has returned goods or services, and the merchant has not
credited the customer's account. The merchant must issue a credit to the customer's account in
order to resolve the issue.

1062 - Goods and services not as described or cardholder received defective goods or services

Cardholders may submit a chargeback to indicate that the goods or services purchased with a Rupay
card were not as described, or the cardholder received defective goods or services.

1063 - Paid by other means or card account was also billed for the same transactions

Cardholders can raise a chargeback if they paid for goods or services using another mode of payment
(e.g., cash, vouchers, cheque), yet their card was still charged in addition to the original transaction.
This often happens when the cardholder initially chooses to pay with cards but then changes their
mind and selects an alternate payment option; however, merchants fail to void out the previously
created card transaction which subsequently results in two payments being taken from both options.

1064- Goods or services not provided/not received-Services were not provided or goods not
received by cardholder

This chargeback can be raised under any of the following conditions: 1. Merchant Establishment was
unable or unwilling to provide goods or services. 2. Cardholder or authorized representative did not
receive goods or services at the agreed upon location or by the agreed upon date.

3) Processing Error Related Issues

1081 - Transaction not settled within the specified timeframes

This chargeback is the result of a transaction settling more than seven days after its initial date, as
well as not being processed within required timelines and an account in bad standing on processing
day.

1082 - Credit posted as debit

The chargeback arises from a mismatch between the transaction code or keying error and what
actually occurred - such as when Merchant Establishment credited an account instead of making a
purchase.

1083 - Transaction detail incorrect - The account number or transaction amount unutilized in the
transaction was incorrectly entered

When an incorrect transaction amount is calculated, a change to the original figure is made without
cardholder consent or transactions are processed with an inaccurate account number - all of these
can lead to chargeback scenarios.

1084- Duplicate Processing

4) Copy request related Issue

1101 - Illegible Fulfillment

If the issuing institution is unable to retrieve legible documentation when requested, they may raise
a chargeback against you.

1102 - Retrieval Request not fulfilled

A chargeback may be initiated if the acquiring institution fails to address a retrieval request within its
allotted timeframe or responds with an unfavourable outcome.

1103 - Invalid fulfillment

Consumers can raise a chargeback if they receive invalid documents in response to their retrieval
request, or the applicable response code conditions were not met.

1104- Cardholder does not recognize the transaction

The cardholder does not recognize the transaction appearing on the cardholder’s statement.
Additional information is required by cardholder in identifying the transaction.

5) Authorization Related Issues

1121- Transaction received declined authorization response

This chargeback can be raised by the issuing institution if the Merchant Establishment completed a
transaction after an authorization request received a decline or pickup response.

1122 - Transaction not authorized

Credit card institutions may initiate a chargeback when the merchant establishment fails to acquire
required authorization, uses improper data for processing approval, or processes offline transactions
with an expired card.

1123 - Transaction was processed with invalid card number and authorization was not obtained or
credit is processed with invalid card number

When a transaction is not authorized or the account number does not match with one that exists on
an issuing institution's master data file, it may be met with a chargeback by said issuer. To ensure
accuracy and enhance security measures, double-checking against any discrepancies in authorization
status and records within their system should always be practiced.

6) Fraud Related Issues

1141 - Fraudulent card present transactions

1142 - Fraudulent card not present transactions

Issuing institutions may consider raising a chargeback if there are signs of unauthorized or fraudulent
activity, such as an invalid account number being used for 'Card Not Present' transactions.
Furthermore, any suspected absence of cardholder authorization in these scenarios could be
grounds to justify the action.

1142 - Fraudulent multiple transactions

The issuing institution can raise a chargeback if multiple transactions have been made with the same
card at the same Merchant Establishment outlet without explicit permission from the cardholder. For
this to be applicable, all requirements must met: that all disputed transactions occurred in one
location; that it is accepted by both parties (the cardholder and merchant) that there was
participation of some kind on behalf of said holder for one transaction; as well as their denial when it
comes to other contested ones; finally offering proof such activity took place while they were in
possession of said physical device.

Disclaimer:

Chargeback disputes can be a hassle, but they are unfortunately inevitable for every merchant that
processes credit card transactions. To make sure you handle them correctly and move forward
quickly with as few headaches as possible, it is essential to identify root cause of these the Rupay
chargeback reason code first – then dispute or prevent any similar scenarios from happening down
the road.

Chargebacks have a range of causes, from malicious criminal activity to simple customer confusion.
True fraud is when stolen payment credentials are used by an unauthorized third party, while friendly
fraud occurs when a consumer disputes valid charges as false or incorrect. Additionally, chargeback
risks can arise due to merchant errors such as inadequate customer service and failure in sufficient
preventive measures against fraudulent transactions.