Visa Chargeback Reason Code 57 – Fraudulent Multiple Transactions

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

1. Compromised Card Information: The cardholder’s card details were stolen and used for multiple unauthorized transactions.
2. Merchant System Breach: The merchant’s system was hacked, leading to unauthorized access and use of card details.
3. Phishing or Scamming: The cardholder fell victim to a phishing scam, providing their card information to a fraudulent source.
4. Merchant Errors: Mistakes or glitches in the merchant’s billing system causing multiple unauthorized charges.

Ways to Prevent Code 57: Fraudulent Multiple Transactions

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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