Fraud Full Recourse (4763)

Owned by Jacob Harris
Last updated: Jun 21, 2021 by Suzanne JohnsonVersion comment
2 min read

Chargeback Reason

The Card Account is closed or the Card is cancelled at the time of the Transaction or, the Cardmember denies participation in the Transaction and the merchant is listed on the High Risk merchant list.
The Fraud Full Recourse Chargeback allows Issuers the right to transfer liability of all fraud types, including counterfeit Cards, to the Acquirer for any merchant subject to this Chargeback.

Description

Processing under this reason code requires that the merchant  was listed on the High Risk merchant list at the time of the Chargeback under one (1) of the following categories:

  • A Fictitious and/or Collusive merchant who is listed on the High Risk merchant  list with a risk indicator of “S”, or
  • A prohibited or illegal industry merchant  who is listed on the High Risk merchant  list with a risk indicator of “I”, or
  • A high Fraud to Gross (FTG) sale volume ratio merchant who is listed on the High Risk merchant  list with a risk indicator of “F”, or
  • An Internet Electronic Delivery merchant  who is listed on the High Risk merchant  list with a risk indicator of “T”, or
  • Merchant was cancelled for derogatory reasons and was listed on the High Risk merchant  list with a risk indicator of “X”

Conditions

The Issuer must meet all the following conditions:

  • May be used even if the Transaction was Authorized.
  • Amount to be charged back is the full Transaction amount.
  • Before filing this Chargeback, the Issuer must manually enter the fraud Transaction into the WFIS or electronically transmit it into the GNS Fraud Repository.
  • For Final Chargeback - This Chargeback is only applicable if the First Chargeback was either a fraud type or one of the following:
    • 4512 - Multiple Processing
    • 4516 - Request for Support Not Fulfilled
    • 4517 - Request for Support Illegible/Incomplete
    • 4754 - Local Regulations/Legal Dispute

Timeframes

120 days from the Network Processing Date of the Presentment

Dependencies

  • Before filing this Chargeback, the Issuer must manually enter the fraud Transaction into the WFIS or electronically transmit it into the GNS Fraud Repository

Validations

ValidationValueLogicAssociated Rule(s)
Within association window for submitting the chargebackTrue120 days from the Network Processing Date of the PresentmentHasChargebackWindowExpired

Is Eligible for 4763 Fraud Full Recourse

  • Is a POS transaction
  • Is a high risk merchant
True
  • IsPOSTransaction_A = true AND
  • IsHighRiskMerchant_A = true
Is4763EligibleCheck_A
A Fallback TransactionFalse

Card Data Input Mode = 9

 IsFallbackTransaction_A
A transaction where a Transaction Certificate is provided in the First PresentmentFalse

Cardmember Authentication Entity Code = 1 And Bit 55 =1 ""

IsChipTransactionCertified_A

A SafeKey TransactionFalse

Program Indicator Code = 04

IsSafeKeyTransaction_A

A Expresspay Transaction of less than or equal to the Cumulative Spend
Protection defined.		False
  • Card present = X AND
  • Transaction Amount <= Cumulative Spend Protection 
 IsLowDollarExpressPay_A
A Merchant-Presented Quick Response (MPQR) Transactions.False

  • Card present = 8 AND

  • Card Capture Capability Code = 7

IsMPQRTransaction_A

A gambling transaction.

False

MCC = 7801, 7802, 7995

IsGamblingMCC_A

Related Questionnaires

Fraud Questionnaire