The Visa chargeback reason code 57 – Fraudulent Multiple Transactions indicates that the cardholder claims multiple fraudulent transactions were made using their card without their authorization. This typically arises when several unauthorized charges appear on a cardholder’s statement, suggesting either the card details were compromised or the merchant’s system was exploited.
Causes of Chargeback Reason Code 57 – Fraudulent Multiple Transactions
- Compromised Card Information: The cardholder’s card details were stolen and used for multiple unauthorized transactions.
- Merchant System Breach: The merchant’s system was hacked, leading to unauthorized access and use of card details.
- Phishing or Scamming: The cardholder fell victim to a phishing scam, providing their card information to a fraudulent source.
- Merchant Errors: Mistakes or glitches in the merchant’s billing system causing multiple unauthorized charges.
Ways to Prevent Code 57: Fraudulent Multiple Transactions
- Enhanced Security Measures:
- PCI DSS Compliance: Ensure your payment system is compliant with the Payment Card Industry Data Security Standard (PCI DSS).
- Encryption and Tokenization: Use encryption to protect card details and tokenization to replace sensitive data with unique identifiers.
- Regular Security Audits: Conduct regular security audits to identify and fix vulnerabilities in your system.
- Fraud Detection Tools:
- Advanced Fraud Detection Software: Implement robust fraud detection and prevention tools that use machine learning and AI to identify suspicious activities.
- 3D Secure Authentication: Utilize 3D Secure (e.g., Visa Secure) to add an extra layer of authentication during the transaction process.
- Monitoring and Alerts:
- Real-Time Monitoring: Monitor transactions in real-time to quickly identify and respond to suspicious activities.
- Alerts and Notifications: Set up alerts for unusual transaction patterns or multiple transactions from the same card.
- Customer Education:
- Awareness Campaigns: Educate customers about phishing scams and how to protect their card information.
- Secure Practices: Encourage customers to use secure passwords and avoid sharing card details online.
- Transaction Limits and Verification:
- Transaction Limits: Set limits on the number and amount of transactions that can be processed within a certain period.
- Manual Verification: For high-risk transactions, use manual verification processes to confirm the legitimacy of the purchase.
- Regular Account Review:
- Review Merchant Accounts: Regularly review your merchant accounts for any signs of unusual activity.
- Chargeback Analysis: Analyze chargeback data to identify patterns and take proactive measures to mitigate future risks
