Chargeback Reason Code 57: Fraudulent Multiple Transactions

Chargeback Reason Code 57 is issued when the card issuer receives a written claim from the cardholder, acknowledging participation in at least one transaction at the merchant outlet but disputing participation in the remaining transaction. The cardholder also states the card was in his or her possession at the time of the disputed transactions. This chargeback does not apply to recurring payments or to mail order, telephone order, or eCommerce transactions. Most often a Reason Code 57 chargeback occurs when the merchant fails to void multiple transactions or attempts to process a fraudulent transaction. Merchant Actions.

• Back-Office Staff Actions. If the appropriate credit has been processed to the cardholder's account on one or all of the disputed transactions, the merchant should send to their merchant bank evidence of the credits. If the cardholder did participate in more than one valid transaction, the merchant should provide appropriate documentation, such as sales receipts, invoices, etc. If appropriate credit has not yet been processed on the disputed transaction, the merchant should accept the chargeback. The merchant should not process a credit since the chargeback has already performed this function.
• Owner Actions. Owners and managers should immediately investigate such chargebacks. This type of chargeback may indicate potential fraud occurring at the point of sale. It also may simply be the result of a mistake by point-of-sale staff.