Visa reason code 10.5: what it means and how to respond
Visa 10.5 applies when Visa’s Fraud Monitoring Program flags a transaction. See what merchants can submit and which deadlines apply.
What Visa reason code 10.5 means and when it applies
Visa reason code 10.5, “Visa Fraud Monitoring Program,” allows the issuer, the bank that issued the card, to recover a fraud loss tied to a merchant Visa identified as having excessive fraud levels. The case begins with a notice from Visa itself, not a new cardholder claim about the purchase.
For the issuer to file a 10.5 dispute, all of these requirements must be met:
- Visa identified the transaction. Visa notified the issuer that the transaction appeared in the Visa Fraud Monitoring Program (VFMP)This is Visa’s program for identifying transactions linked to merchants with excessive fraud levels. A notice from this program allows the issuer to file reason code 10.5..
- The issuer has not already recovered the amount under another code. It must not have successfully disputed the same transaction under another dispute condition.
- The deadline was met. The issuer must file the case within 120 calendar days of the VFMP report date, not the purchase date.
Source for the requirements and deadline: Visa Core Rules §11.7.6.1, Table 11-32 (ID# 0030258), and §11.7.6.3, Table 11-34 (ID# 0030259).
The table specific to 10.5 lists no additional situation that makes the dispute invalid. This does not remove the three requirements above. The code is also the only exception to the rule against more than one dispute for the same transaction. A transaction that was already disputed can therefore receive a 10.5 dispute, as long as the issuer did not win the earlier dispute under another code.
There is no minimum amount for a 10.5 dispute. Visa excludes this code from the USD 25 minimum, or its local-currency equivalent.
If the concern originated with the cardholder, see codes 10.1, 10.2, 10.3, and 10.4. For 10.5, the trigger is always Visa’s identification of the transaction.
Deadlines for each party under Visa 10.5
1 block represents 10 calendar days.
- IssuerFile the 10.5 disputeThe clock starts when the Visa Fraud Monitoring Program report is issued.Up to 120 calendar days
- AcquirerSubmit a defense path allowed by VisaThe clock starts when Visa processes the dispute.Up to 30 calendar days
- IssuerRespond to the acquirer’s defenseThe clock starts when Visa processes the acquirer’s defense.Up to 30 calendar days
- AcquirerAsk Visa to decide the caseThe clock starts when Visa processes the issuer’s response.Up to 10 calendar days
Who files the dispute and what happens next
The issuer files the dispute in VROLVisa Resolve Online is Visa’s system where the issuer files the dispute and the acquirer, the company that represents the merchant in the card scheme, submits the response and case documents.. Visa sends the notice that starts the case. The merchant does not file or respond directly with Visa.
Code 10.5 follows the Allocation flowThis is the flow in which financial responsibility first moves to the company that represents the merchant in the card scheme. For fraud codes, that company may ask the issuer to reconsider the case without a separate representment of the sale.. When the issuer files the dispute, financial responsibility moves to the acquirer, the company that represents the merchant in the Visa scheme. The acquirer reviews the case and requests the documents from the merchant.
If one of the three allowed defenses exists, the acquirer submits a Pre-Arbitration AttemptThis is the acquirer’s formal request for the issuer to reconsider the dispute before the case goes to Visa for a decision. within 30 calendar days of the Dispute Processing Date. The issuer has 30 calendar days to respond. After that response, the acquirer has 10 calendar days to take the case to Visa Arbitration. Code 10.5 has no separate representment step.
Source for the flow and deadlines: Visa Core Rules §11.2.2, Table 11-1 (ID# 0030212), and §11.7.6.4, Table 11-35 (ID# 0030260).
Before building a defense, check whether this dispute is invalidProving any one condition is enough to challenge the dispute's validity.
- Visa did not notify the issuer that the transaction was identified by the Visa Fraud Monitoring Program; without that notice, the first requirement of the condition is missing.
- The issuer already successfully disputed the same transaction under another dispute condition, which the second requirement of the condition prohibits.
- The merchant already accepted a prior dispute for the same transaction under a condition other than 10.5. A prior acceptance under 10.5 itself does not block another 10.5 because this code is the exception to the one-dispute-per-transaction rule.
- The dispute was filed more than 120 calendar days after the date of the Visa Fraud Monitoring Program report.
Source:Visa Core Rules §11.7.6.1 (Tabela 11-32, ID# 0030258), §11.7.6.3 (Tabela 11-34, ID# 0030259) e §11.2.1 (ID# 0030211) — a tabela de disputas inválidas do 10.5 (§11.7.6.2, ID# 0030626) diz "None"
How to reduce the risk of Visa 10.5 disputes
Code 10.5 does not result from an isolated delivery or authentication failure. It arises because Visa’s program identified a transaction involving a merchant with excessive fraud levels. Delivery confirmation, access history, or purchase authentication therefore does not prevent this code.
Even Visa SecureVisa’s service authenticates cardholders during online purchases, generally through the 3-D Secure protocol. This authentication can shift liability under other codes, but it does not block 10.5. does not prevent the dispute when the merchant has been identified by VFMP. Prevention depends on monitoring fraud notices and fraud levels with the acquirer, investigating where fraudulent transactions originate, and correcting the control that is failing. The public rules reviewed do not state the program entry thresholds; confirm those figures with the acquirer.
If the merchant has already recognized the problem, it may accept the dispute through Rapid Dispute Resolution (RDR)This is Visa’s mechanism for automatically resolving a dispute when it meets rules set by the merchant or acquirer. When the merchant accepts through RDR, there is no Pre-Arbitration Attempt.. If a credit or reversal is processed before the dispute, retain the amount and processing date. That record may support one of the defense paths described below.
Source: Visa Dispute Management Guidelines for Visa Merchants, Condition 10.5, p. 25, and the Visa Secure note, p. 11. RDR source: Visa Core Rules §11.2.2, Table 11-1 (ID# 0030212).
Visa has been consolidating fraud and dispute monitoring into the Visa Acquirer Monitoring Program (VAMP): the thresholds, fees, and effective dates for Brazil are laid out in our guide to VAMP in Brazil.
Evidence the merchant and acquirer need to gather
The merchant cannot defeat a 10.5 dispute merely by proving that the purchase was legitimate. The Compelling EvidenceThis is Visa’s formal category of proof allowed under some fraud codes to establish a link between the cardholder and the purchase. Visa’s table does not make this path available for code 10.5. table covers codes 10.1, 10.3, and 10.4, but not 10.5. Address verification, the card security code, delivery records, authentication, or prior purchases therefore cannot resolve this case.
Source for the exclusion from Compelling Evidence: Visa Core Rules §11.5.1, Table 11-6.
To challenge the dispute, choose exactly one of the three paths below. Within the chosen path, gather all required documents:
- The same transaction already had another accepted dispute. Provide details proving that the issuer filed a prior dispute for the same transaction, the merchant accepted it, and the prior dispute used a condition other than 10.5. A prior acceptance under 10.5 itself does not block another 10.5 dispute.
- The credit or reversal had already been processed. Provide documentation showing the amount and processing date, both tied to the disputed sale. The credit or reversal must predate the dispute and must not have been addressed by the issuer. A Transaction Identifier or Acquirer Reference Number helps link the credit to the sale, but the merchant guidelines do not require it.
- The cardholder no longer disputes the transaction. Provide a letter or email from the cardholder stating this. Verbal confirmation alone does not meet Visa’s documentation requirement.
Source for the three paths and documents: Visa Dispute Management Guidelines for Visa Merchants, Condition 10.5, p. 25. Source for the exception involving an earlier 10.5 dispute and the handling of credits: Visa Core Rules §11.2.1 (ID# 0030211) and §11.2.2, Table 11-1 (ID# 0030212).
The merchant gives the chosen path to the acquirer, which presents it through a Pre-Arbitration Attempt in VROL. If none of the three paths exists, or if required documentation is incomplete, there is no permitted defense for 10.5. The acquirer then accepts the dispute, and financial responsibility remains with the acquirer and merchant.
Frequently asked questions
When does Visa use chargeback code 10.5?
The code identifies the dispute condition "Visa Fraud Monitoring Program." Visa tells the issuer that the Visa Fraud Monitoring Program (VFMP) identified the transaction. The issuer files the dispute to recover fraud losses involving a merchant Visa identified as having excessive fraud levels. This is not a cardholder dispute claiming that a purchase was unauthorized.
Can a merchant prove that a transaction disputed under 10.5 was legitimate?
No. Visa’s Compelling Evidence table (Core Rules §11.5.1, Table 11-6) has columns only for codes 10.1, 10.3, and 10.4; it has no column for 10.5. AVS or CVV results, delivery confirmation, authentication history, and CE3.0 transaction linking cannot reverse a 10.5 dispute. VROL also does not accept a Compelling Evidence package for this code.
Which documents can support a response to a 10.5 dispute?
The Visa Dispute Management Guidelines (Condition 10.5) allow only three documentary paths: details of a prior dispute for the same transaction that the merchant already accepted; documentation of a credit or reversal already processed, including the amount and processing date; or a letter or email from the cardholder stating that they no longer dispute the transaction. These paths are mutually exclusive. The merchant chooses one.
What starts the issuer’s 120-day deadline?
The deadline starts on the date of the Visa Fraud Monitoring Program report. It does not start on the transaction date or the central processing date. Vendor pages that state "120 days from the central processing date" are incorrect for 10.5.
Can code 10.5 apply to a transaction that was already disputed?
Yes, as long as the issuer did not successfully dispute the same transaction under another code. Code 10.5 is the only exception to the rule against more than one dispute for the same transaction (Core Rules §11.2.1, ID# 0030211). A transaction that went through 10.4 without a successful issuer dispute may still receive a 10.5 dispute.
Does a 10.5 dispute have a minimum amount?
No. Core Rules Table 11-5 (ID# 0030219) lists 10.5 among the conditions excluded from the USD 25 minimum, or its local-currency equivalent. No minimum amount applies.
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