Reason Code 83 applies when a cardholder claims a transaction was fraudulent and the card was not present at the point of sale (e‑commerce, mail‑order, or telephone orders).
What Causes Visa Chargeback Reason Code 83?
Compromised credentials: Stolen or leaked card data used without the cardholder’s consent.
Unauthorized purchase: The legitimate cardholder denies authorizing the transaction.
Data‑breach exposure: Card details harvested from a hacked merchant or processor.
Social‑engineering attacks: Cardholder divulges information through phishing or similar scams.
How Do I Respond to and Prevent Card Not Present Fraud Chargebacks?
1. Strengthen Authentication
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Enable 3‑D Secure (e.g., Visa Secure) on every card‑not‑present transaction.
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Add two‑factor authentication wherever possible.
2. Monitor for Fraud in Real Time
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Integrate machine‑learning fraud tools that flag abnormal spending patterns.
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Manually review high‑risk signals such as rapid‑fire orders, unusually large tickets, or new devices and IP addresses.
3. Protect Customer Data
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Maintain full PCI DSS compliance.
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Encrypt all payment data in transit with SSL/TLS.
4. Educate Your Customers
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Urge cardholders to review their statements regularly.
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Provide tips on spotting phishing emails and verifying legitimate merchant communications.
5. Use Transparent Billing Practices
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Adopt clear, recognizable billing descriptors.
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Send prompt, itemized email receipts for every order.
6. Keep Detailed Records
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Securely store IP addresses, device fingerprints, AVS/CVV results, and delivery confirmations.
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Retain these documents for quick retrieval during a dispute.
7. Require AVS and CVV Verification
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Match the billing address through Address Verification Service.
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Always collect the Card Verification Value for card‑not‑present sales.
8. Stay Proactive
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Track emerging threat vectors and update fraud‑screening rules accordingly.
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Schedule periodic security audits and patch vulnerabilities without delay.
Bottom line: Multi‑layer authentication, real‑time analytics, rigorous data security, customer education, and meticulous documentation are your best defenses against Reason Code 83 chargebacks.
