Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. Understanding the specific reason for a chargeback can help merchants identify areas where they can improve their business practices to prevent future chargebacks.
Overall, reason codes play a crucial role in the chargeback process and are an important tool for both merchants and card issuers to manage disputes and maintain trust in the payment system. Below you can find details and classification of these codes for the 4 major card schemes.
It is important to check the time limit in chargeback reason codes because it determines how long a cardholder has to initiate a chargeback after a transaction has taken place. Each card scheme has its own time limits for chargeback disputes, which can range from 60 to 120 days from the transaction date. If a chargeback is initiated outside this time frame, the issuing bank may reject the dispute and the merchant may be able to keep the funds from the transaction.
Visa
Visa’s Reason Codes follow a format of two digits, a period, and a third digit. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. The third digit indicates the specific reason within this category.
Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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10.1 | EMV Liability Shift Counterfeit Fraud The cardholder is claiming that they did not authorize or participate in a transaction that you processed. |
The cardholder has a chip card and someone has made a counterfeit copy of it. They made a transaction with a counterfeit card at a non-EMV terminal instead of using a chip reader that can detect fraud. Now the cardholder claims the purchase was unauthorized. |
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10.2 | EMV Liability Shift Non-Counterfeit Fraud The cardholder is claiming that they did not authorize or participate in a transaction that you processed. |
The cardholder has a PIN-preferring chip card, but you didn’t use a chip-reading device to process the transaction or used a chip-reading device that wasn’t PIN compliant. Now, the cardholder claims the purchase was unauthorized. |
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10.3 | Fraud – Card-Present Environment The cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment. |
Merchant did not ensure that the card was either swiped or that the chip was read; merchant did not obtain manual card imprint on a key-entered transaction; a card-not-present transaction was not identified as such. |
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10.4 | Fraud – Card-Absent Environment The cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.) |
In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) the cardholder believes the transaction to be fraudulent due to an unclear or confusing merchant descriptor. |
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10.5 | Visa Fraud Monitoring Program Visa notified the cardholder’s bank that the Visa Fraud Monitoring Program (VFMP) identified the transaction and the cardholder’s bank has not successfully disputed the transaction under another dispute condition. |
For merchants in the Visa Fraud Monitoring Program only: Visa identifies a potentially fraudulent transaction and informs the issuer, AND the issuer has not successfully filed a chargeback under another reason code. |
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Time limit - 75 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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11.1 | Card Recovery Bulletin The merchant apparently did not get authorization for the transaction through an account number listed in the Card Recovery Bulletin. |
A transaction is processed for an amount beyond the merchant’s floor limit, and despite the account number being listed in the Card Recovery Bulletin for that day and region. |
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11.2 | Declined Authorization An Authorization Request received a Decline Response and the merchant completed the transaction. |
The merchant does not request authorization; the merchant makes multiple attempts on a card that is declined, or otherwise attempts to force, circumvent, or override a declined authorization. |
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11.3 | No Authorization Correct and valid authorization was not obtained by the merchant. |
The merchant does not request authorization; the merchant waits a day or more before requesting authorization; the merchant requests authorization for one amount, then adds a tip to the total before processing. |
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Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Note, 12.7 Invalid data - 75 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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12.1 | Late Presentment The transaction was not sent to Visa within the timeframe required. |
The merchant does not process a transaction in a timely manner; the account was no longer in good standing at the time of processing. | Make sure you send completed transactions to your payment processor within the timeframe specified in your merchant agreement. A good practice is to submit transactions on the day of the sale or as soon as possible. |
12.2 | Incorrect Transaction Code A cardholder claims the converted amount of charge on an international transaction is incorrect. |
The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization. |
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12.3 | Incorrect Currency The merchant made one or more errors related to the transaction currency. |
The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur. |
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12.4 | Incorrect Account Number The account number in the authorization does not match the account number used in the transaction. |
The transaction was processed to an incorrect account number; the adjustment was processed more than 45 days from transaction date; an adjustment was posted to a “closed” or “non-sufficient funds” account more than 10 days after the transaction date; an adjustment was processed more than once for the same transaction; the cardholder disputes the validity of the adjustment. |
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12.5 | Incorrect Amount The cardholder claims that the amount they agreed to pay differs from the amount charged. |
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12.6.1 | Duplicate Processing A single transaction was processed two or more times. |
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed, but the cardholder paid for the same merchandise or service by other means. |
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12.6.2 | Paid By Other Means A single transaction was processed two or more times. |
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed but the cardholder paid for the same merchandise or service by other means. |
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12.7 | Invalid Data An authorization was obtained using invalid or incorrect data. |
The merchant submits an authorization request containing an incorrect transaction date, MCC, merchant or transaction type indicator, country or state code, or other required field. |
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Time limit - 120 days for ISSUER/CARDHOLDER and 30 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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13.1 | Merchandise/Services Not Received The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up) |
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13.2 | Cancelled Recurring A recurring transaction was processed after it cancelled or that the cardholder’s account was closed. |
The cardholder withdraws permission to charge the account or cancels payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder’s account was closed. | Provide documentation to prove that the service was not cancelled or to show that neither you nor the acquirer were notified that the account was closed. In all regions excluding Europe, you may also provide documentation to prove that the transaction was not previously charged back. |
13.3 | Not as Described or Defective Merchandise/Services The cardholder claims the goods were not as described or disputes the quality of the merchandise or services. |
The merchandise was damaged in transit; the merchandise does not match the merchant’s description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged. (Note: Merchant may not direct the customer to the manufacturer for resolution. Also, this reason code supersedes merchants’ return policy.) | You need to provide documentation to prove that the goods or service matched what was described, a rebuttal addressing the cardholder’s claims, and if applicable, documentation to prove that the cardholder did not attempt to return the merchandise. |
13.4 | Counterfeit Merchandise The merchandise was identified as counterfeit by a third party. |
The merchant is unaware of the counterfeit merchandise; the customer fraudulently claims the goods are not genuine. (Note: This reason code supersedes merchants’ return policy.) | Provide proof that the purchased merchandise is authentic, and that the cardholder knew of its quality during the transaction. |
13.5 | Misrepresentation The cardholder’s bank received a notice from the cardholder claiming that the terms of the sale were misrepresented. |
The merchant’s product descriptions are vague, inaccurate, or insufficient. Examples of typical merchant types for this dispute include: timeshare reseller, debt consolidation, credit repair, foreclosure relief services, investment products, and the like. (Note: This reason code supersedes merchants’ return policy.) |
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13.6 | Credit Not Processed The cardholder’s bank received a notice from the cardholder claiming that they received Authorization,credit or voided transaction receipt that has not been processed. |
The merchant didn’t credit the account; the merchant issued the credit but not in time to be posted to the customer’s most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided. | You need to provide either the transaction receipt or other records to prove that the merchant properly disclosed a limited return or cancellation policy at the time of the transaction, or evidence to demonstrate that the cardholder received the merchant’s cancellation or return policy and did not cancel according to the disclosed policy. |
13.7 | Cancelled Merchandise/Services The cardholder’s bank received a notice from the cardholder stating that they returned merchandise or cancelled services, but the credit has not appeared on the cardholder’s Visa statement. |
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13.8 | Original Credit Transaction Not Accepted The original credit was not accepted. |
Either the cardholder does not accept the credit, or the issuer does not allow Original Credit Transactions (OCT’s) on certain types of cards due to local law. | You need to provide either the transaction receipt or other records to prove that the merchant properly disclosed a limited return or cancellation policy at the time of the transaction, or evidence to demonstrate that the cardholder received the merchant’s cancellation or return policy and did not cancel according to the disclosed policy. |
13.9 | Non-Receipt of Cash or Load Transaction Value Cardholder did not receive the full cash withdrawal at an ATM. |
The cardholder claims not to have received cash or only received a partial amount from an ATM withdrawal. Or, the cardholder did not receive the correct load transaction value. | Provide a copy of the ATM cash disbursement transaction or load transaction record containing at least an account number, transaction time or sequential number identifying the individual transactions, and an indicator that confirms that the ATM cash disbursements or load transaction values were successful.
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Mastercard
Instead of having a different code for each individual reason like the other card networks, Mastercard uses a single code for all Authorization-Related Chargebacks, one for all Point of Interaction Error chargebacks, and one for all Cardholder Disputes chargebacks. Mastercard’s reason codes are listed as four-digit numbers, with all initial chargebacks received by the merchant beginning with 48. For transactions processed through the Single Message System, the 48 is omitted, leaving only the two digits that indicate the reason code.
Time limit - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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4837 | No Cardholder Authorization The cardholder states that neither he, she, nor anyone authorized by him or her engaged in the transaction. |
The transaction was made by someone who had fraudulently obtained the account information; the cardholder didn’t recognize the transaction (billing descriptor) on the card statement; a family member used the account without the primary cardholder’s knowledge. |
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4840 | Fraudulent Processing of Transactions The cardholder claims that a fraudulent purchase was made while the card was in the cardholder’s possession at the time of the transaction. |
The cardholder claims to have authorized one card-present transaction with you, but one or more additional transactions conducted in the next 15 minutes were not authorized. |
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4849 | Questionable Merchant Activity The acquirer processed a transaction for the merchant that later was listed in a MasterCard Global Security Bulletin for violating GMAP, QMAP, or reported to SAFE. |
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You can respond to this chargeback by showing that you were not listed in the MasterCard Global Security Bulletin or that the transaction did not occur when you were listed on the MasterCard Global Security Bulletin.
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4863 | Cardholder Does Not Recognize-Potential Fraud The cardholder claims that they do not recognize the transaction and states that they did not authorize the charge to their card. |
The cardholder claims not to recognize a card-not-present transaction. |
Provide the authorization or clearing message that would help identify the transaction and any additional information not included in those messages that would help the cardholder recall the transaction.
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4870 | Chip Liability Shift The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount. |
The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized. |
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4871 | Chip/PIN Liability Shift The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount. |
The cardholder claims they were in possession of a valid card on the date of transaction or they did not authorize or participate in the transaction. For counterfeit transactions only, the liability will remain with the party that does not invest in chip technology, regardless of transaction amount. |
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Time limit - 90 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note, 4808 Legacy 4807 Warning Bulletin File, 4812 Account Number Not On File - 45 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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4808 Legacy 4807 |
Warning Bulletin File Correct and valid authorization was not obtained by the merchant. |
Mastercard is in the process of updating chargeback management regulations. Issuers are currently allowed to use reason code 4807, however, this code will soon be eliminated. It will be incorporated into code 4808. | You can respond to this chargeback by providing the date and time of original sale where an authorization code was obtained or evidence that a credit was issued. This code, while currently functional, is being consolidated into 4808, and therefore should not be used. |
4808 | Authorization-Related Chargeback Correct and valid authorization was not obtained by the merchant. |
A transaction where authorization was required, but not obtained. It can also occur for transactions where the primary account number (PAN) does not exist. And, also in Card Not Present transactions declined by the issuer and subsequently approved through stand-in processing or X-Code with an approval response as specified in the Authorization Manual. | Prove the transaction was presented within seven calendar days of the pre-authorization or authorization approval date and the pre-authorization or authorization was not reversed. You can also provide evidence that the issuer has not permanently closed the account or to prove that the transaction was either approved online by the issuer or offline by the chip.
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4808 | Authorization-Related Chargeback-Required Authorization Not Obtained The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing. |
The merchant was required to request authorization for the transaction, but did not. |
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4808 | Authorization-Related Chargeback-Expired Chargeback Protection Period The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing. |
The merchant waited too long to settle the transaction. |
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4808 | Authorization-Related Chargeback-Multiple Authorization Requests A card-not-present transaction was declined by the issuer, but later approved using Stand-In processing or X-Code. |
The original attempt at authorization was not approved, but the merchant swiped over and over to receive authorization. An alternative authorization method was used (key entering, voice authorization). |
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4808 | Authorization-Related Chargeback-Cardholder-Activated Terminal (CAT) 3 Device Unauthorized transactions processed at a cardholder-activated terminal (CAT). |
The amount of a CAT 3 transaction exceeded the acceptable limit; a card used in a CAT 3 transaction was not valid at the time. |
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4812 | Account Number Not On File Account number does not correspond to the account numbers the issuer has on file for this cardholder. |
The issuer receives a transaction with an account number that does not match any account numbers on file for the cardholder. An issuer may continue to use reason code 4812, however, MasterCard will eventually eliminate 4812 as a valid reason code. 4808 will be used instead. | Provide evidence that the account number on the transaction receipt is correct and matches cardholder information. This code, while currently functional, is being consolidated into 4808, and therefore should not be used. |
Time limit - 90 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note
- 4834 Point-Of-Interaction Error - ATM Disputes, 4834 Point-Of-Interaction Error - Duplication/Paid by Other Means - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
- 4850 Installment Billing Dispute, 4999 Domestic Chargeback Dispute (Europe Region Only) - 45 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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4834 | Point-of-Interaction Error A single transaction was processed more than one time. |
The cardholder paid twice for the same transaction using two different forms of payment. OR The cardholder’s account has been debited more than once for the same transaction using the same form of payment. | Your response to this chargeback can include evidence that both transactions were valid and were authorized by PIN, a credit was issued, documentation indicating the two separate transactions and that they were valid, or that the chargeback is invalid because the issuer failed to provide the original ARD in Data Record.
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4834 Legacy 4831 |
Point-of-Interaction Error - Transaction Amount Differs The amount the cardholder was charged doesn’t match what’s on the receipt. |
The merchant made an error when calculating the transaction amount; the merchant increased or otherwise altered the amount after the transaction was completed (without the cardholder’s permission). | Respond to this chargeback by providing documentation and a written explanation showing two separate transactions were correctly processed. If this is an unreasonable amount of dispute, provide documentation showing that the cardholder agreed to an amount range as reasonable and that the transaction did not exceed this amount of range.
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4834 Legacy 4842 |
Point-of-Interaction Error - Late Presentment The transaction was not deposited within 30 days of the date a valid authorization code was obtained. |
The transaction wasn’t processed in a timely fashion and the account has since been closed; transaction was posted after 180 days of the original transaction date. | Provide evidence showing that the transaction date was not more than 7 calendar days prior to the central processing date of the central processing date of the presentment.
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4834 Legacy 4846 |
Point-of-Interaction Error - Correct Transaction Currency Code Not Provided (Dynamic currency) A cardholder claims the converted amount of charge on an international transaction is incorrect. |
The transaction currency differs from the currency transmitted through Mastercard; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur. | Prove that the correct transaction amount was processed in the country where the transaction originally took place, or evidence that a credit was issued.
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4834 | Point-Of-Interaction Error - ATM Disputes The cardholder charges that an inaccurate amount of cash was dispensed by an ATM, or that the ATM withdrawal had been debited to the account multiple times. |
ATM issues. |
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4834 Legacy 4859 (Addendum, No-show, or ATM Dispute) |
Point-Of-Interaction Error - Loss, Theft, or Damages The cardholder claims an unauthorized charge for loss, theft, or damage was added to the transaction up front. |
The merchant processed a transaction which included an upfront charge for loss, theft, or damage, without the cardholder’s approval. |
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4834 | Point-Of-Interaction Error - Duplication/Paid by Other Means A single transaction was processed more than one time. |
The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times on same card or to another payment method. |
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4850 | Installment Billing Dispute The cardholder claims an installment charge to their account was made incorrectly. |
The merchant charged the cardholder prematurely; the merchant charged the cardholder the incorrect amount, or the transaction was not an installment. | Provide either a copy of the TID or other documentation showing that the cardholder agreed to the number of installments processed or proof that the acquirer corrected the discrepancy that led to the dispute.
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4999 | Domestic Chargeback Dispute (Europe Region Only) A centrally acquired domestic transaction, or a domestic transaction processed through the Masterсard Network, where a chargeback is available according to the applicable domestic rule, but cannot be processed under a different message reason code. |
A chargeback that occurs when a customer states the transaction should have been a credit to the account but was processed as a sale. | Responses to these disputes are varied based on the details provided from the cardholder and issuer. |
Time limit - 120 days for ISSUER/CARDHOLDER and 45 days for ACQUIRER/MERCHANT
Note 4853 Legacy 4855 Goods or Services Not Provided - The timeline may vary based on the start date:
Unspecified delivery date or service performance date: Issuer must wait a minimum of 30-but no more than 120-calendar days past the transaction processing date to initiate a chargeback; this 30-day waiting period may be waived if the merchant has gone out of business.
Delivery/service date was specified but has passed: The chargeback must be initiated no later than 120 calendar days past the transaction processing date.
Terminated ongoing services: The chargeback must be initiated within 120 calendar days past the date services ended (not to exceed 540 days of the original transaction processing date). Prepaid gift cards where the merchants have since gone out of business: In these situations, the chargeback must be initiated within 120 calendar days of the card’s expiration date if the card has no expiration date, the chargeback must be initiated within 540 calendar days of the transaction processing date. For ACQUIRER/MERCHANT - 45 calendar days.
Reason Code | Reason | Typical causes | Prevention steps |
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4841 | Cancelled Recurring or Digital Goods Transactions A recurring transaction was processed after it cancelled or that the cardholder’s account was closed. The cardholder states they shouldn’t have been charged because they already cancelled the transaction. An issuer may continue to use reason code 4841, however, MasterCard will eventually eliminate 4841 as a valid reason code. 4853 will be used instead. |
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Show that the chargeback is either remedied or invalid. Either by displaying that the transaction was not a recurring transaction, the transaction was recurring and the cardholder failed to meet the cancellation terms of the signed contract, documentation that services are being provided to and used by the cardholder after the cancellation date, or documentation that proper disclosure of entering into the recurring transaction was provided to and accepted by the cardholder. |
4853 Legacy 4841 |
Cardholder Dispute Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder. |
The merchant sent the wrong item; the item was damaged during shipping; the merchant inaccurately described the products or services; the merchant didn’t perform the services as described; the merchant did not accept a product return; the merchant sold counterfeit products; the quality of goods or services wasn’t adequate. | This chargeback may be reversed by supplying proof that the cardholder received the goods which fit the description at the time of the purchase. Specific compelling evidence based on applicable modifiers can be found in the modifiers section.
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4853 Legacy 4855 |
Goods or Services Not Provided The cardholder claims that merchandise or services that they ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up). |
The merchant failed to provide goods or services; the merchant has gone out of business or can no longer provide the goods or services for some other reason. | If you have already issued a credit to the cardholder’s MasterCard account, you Do not need to submit a response to this chargeback. If you processed the credit by other means, provide compelling evidence displaying the credit occurred.
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4853 Legacy 4859 |
Addendum, No-show, or ATM Dispute The cardholder claims an additional, unauthorized charge was added after a valid transaction without their consent. |
The cardholder claims they are not responsible for an addendum, no-show, or ATM dispute. | Provide evidence showing that the cardholder participated in and authorized the addendum or no-show transaction, or is response for said transaction based on agreement to your merchant policies.
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4853 Legacy 4860 |
Credit Not Processed The cardholder claims they are due a credit from an establishment that has not been processed. |
The merchant did not acknowledge the return or cancellation; the merchant failed to process the credit or reversal; the merchant failed to fully explain the return/cancellation policy. | In your response, you need to either show that the merchandise was never returned, that the cancellation was not accepted, or that a credit or a reversal was processed.
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4853 | Goods/Services not as Described or Defective The cardholder claims goods or services provided didn’t match the description listed or verbally provided at the time of purchase, were defective or damaged, or the quality wasn’t what was expected. |
The merchant shipped the wrong merchandise to the cardholder; the merchandise was damaged during shipment due to improper packing; the merchandise was defective in some way before shipping; the merchant inaccurately described the merchandise or services; the merchant did not perform the services as described. |
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4853 | Digital Goods $25 or less The cardholder claims that card information used to create an account for digital purchases lacked necessary purchase controls, leading to unauthorized purchases. |
The merchant did not ensure that sufficient purchase controls were in place for the account, and digital goods were purchased (valued at less than $25). |
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4853 | Counterfeit Goods The cardholder received counterfeit merchandise. |
The merchant knowingly or unknowingly shipped goods that were not what they were claimed to be. |
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4853 Legacy 4855 |
Transaction Did Not Complete Merchandise or services were not used by the purchaser, who believed the transaction was not actually processed. |
The cardholder believed that goods or services were not provided (and therefore were not used) because the transaction was never processed. | Always confirm transactions via text or email |
4853 Legacy 4860 |
Credit Posted as a Purchase A credit was processed as a debit. |
The merchant knowingly or unknowingly processed a sale which should have been processed as a credit. | Train staff on the proper procedures for processing credits. |
4854 | Cardholder Dispute - Not Elsewhere Classified (U.S. Region Only) The cardholder claims they are unhappy with the goods or services provided and that they have been unable to resolve the situation with the merchant. |
The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant. | Respond by providing an assertion based on the documentation that you corrected the deficiency that led to the chargeback or otherwise resolved the complaint. You may also provide proof that the chargeback was invalid because the cardholder paid the disputed amount before contracting the merchant or issuer about the dispute. |
American Express
American Express has a slightly longer list of reason codes than the other card networks. These reason codes consist of a letter followed by two numbers. The letter indicates the category the Reason Code falls into: A for Authorization, C for Card Member Dispute, F for Fraud, and P for Processing Errors. The two codes that refer to the merchant’s response (or lack thereof) to a request begin with R, and the code that indicates that the merchant authorized the chargeback begins with M. The two-digit number indicates the specific reason for the chargeback. The reason code is used for North America, Canada, and the United States of America; there may be a different identifier for the rest of the world.
Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps | |
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FR2 All other countries 4763 |
Fraud Full Recourse Program The cardholder denies authorizing the charge and your business has been placed in the Fraud Full Recourse Program. |
Merchant falls under high-risk category; The issuer receives an unusual number of inquiries and chargebacks compared to processing history; merchant account has been disabled or cancelled due to suspicious activities or violation of the agreement. | To respond, provide proof that you had not been placed in the Fraud Full Recourse Program at the time of the chargeback, or proof that a credit which directly offsets the disputed charge has already been processed.
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FR4 | Immediate Chargeback Program The cardholder has disputed the charge, and you have been placed in the Immediate Chargeback Program. |
Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry. | Provide proof that you had not been placed in the Immediate Chargeback Program at the time of the chargeback, or prove that a credit which directly offsets the disputed charge has already been processed.
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FR6 | Partial Immediate Chargeback Program The cardholder has disputed the charge and the merchant has been placed in the Partial Immediate Chargeback Program by American Express. |
Merchant enrolled himself in this program to avoid receiving inquiries and disputes; Amex put the merchant in the program due to odd number of disputes; merchant’s business falls under high chargeback ratio industry. | Prove that you had not been placed in the Partial Immediate Chargeback Program at the time of the chargeback, or show that a credit which directly offsets the disputed charge has already been processed.
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F10 | Missing Imprint Cardholder did not participate in a purchase and was not provided a copy of the card imprint (card-present environments only). |
The cardholder claims they did not participate in this charge and you have not provided a copy of an imprint of the card. Note: Not applicable to Card Not Present charges or charges that qualify under the Keyed No Imprint Program. | Send proof that the charge qualifies under the Keyed No Imprint Program, or proof that this was a Card Not Present charge.
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F14 | Missing Signature The cardholder claims not to have been involved in a transaction that was processed (card-present environments only). |
The merchant neglected to give the cardholder a copy of the signed receipt; signature on the receipt is invisible or not prominent due to light ink, ribbed or colored paper, or fading; the original order receipt is mishandled or is scanned at a smaller size. |
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F24 All other countries 4534 |
No Cardholder (Card Member) Authorization The cardholder claims they did not participate in this charge, and the merchant submitted the payment, but the change was not authorized, was declined, or was submitted with an expired authorization. |
The merchant processed an invalid account number; a family member ordered from the primary cardholder’s account without permission; the cardholder is not able to recognize purchase on the billing statement; criminal fraud was committed. | Provide proof that you’ve processed a credit which directly offsets the disputed charge.
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F29 All other countries 4540 |
Card Not Present The cardholder’s bank received a complaint from the cardholder indicating an unauthorized card-not-present transaction. |
In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) Due to an unclear or a confusing merchant name the cardholder believes the transaction to be fraudulent. | You’ll need to provide proof that the cardholder participated in the charge (e.g., billing authorization, usage details, proof of delivery to the cardholder’s billing address, contract) or proof that the transaction contains a shipping address that matches a previously used shipping address from an undisputed transaction. You may also supply proof that you attempted to validate the CID and you did not receive a response, or you received an “unchecked” response. Similarly, you can provide proof that you validated the address via authorization and shipped goods to the validated address.
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F30 All other countries 4798 |
EMV Counterfeit The cardholder denies participation in the charge and a counterfeit chip card was used at a POS system where the transaction was not processed as a chip transaction because either: the POS system was not an enabled chip and-PIN POS system, or the transaction was manually keyed. Note: Not applicable for contactless transactions and Digital Wallet payments. |
The POS system was not an enabled for chip, or the transaction was manually keyed; the merchant’s card processor did not transmit the full chip data to Visa; a chip-reading terminal was not actually used. | Provide proof that this was a Card Not Present charge or proof that the POS system processed a chip card transaction.
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F31 All other countries 4799 |
EMV Lost/Stolen/Non-Received The cardholder denies participation in the charge and chip card with PIN capabilities was lost/stolen/non-received and was used at a POS system where the transaction was not processed as a chip card transaction with PIN validation because either: the POS system is not an enabled chip-and-PIN POS system, or the transaction was manually keyed. Note: Not applicable to contactless transactions and Digital Wallet payments, and charges that qualify under the No Signature/No PIN Program. |
Merchant did not ensure that the card was either swiped or that the chip was read; merchant did not obtain manual card imprint on a key-entered transaction; a card-not-present transaction was not identified as such; fraud was committed. | Either provide proof that this was a Card Not Present charge, proof that the POS system processed a chip card transaction with PIN validated, or proof that a credit which directly offsets the disputed charge has already been processed.
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Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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A01 | Charge amount exceeds authorization amount The merchant has submitted a transaction that was of an amount greater than the authorized approval. |
A transaction is processed for an amount beyond the merchant’s floor limit; an error was made entering numbers manually. | Provide proof that a valid authorization approval was obtained for the full amount of the charge in accordance with the agreement (unless exceptions apply).
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A02 All other countries 4521 |
No Valid Authorization No authorization was requested by the merchant, the card has expired, or the card was declined. |
Transaction was made after the authorization code and transaction date; the limited authorization index was present in the authorization request; the transaction amount exceeds the amount in the limited authorization response; the vendor did not exclude the tip in the authorization amount; the card was expired and/or the account was closed. | Provide proof that a valid authorization approval was obtained in accordance with the agreement. For an expired or not yet valid card, you should provide proof that the charge was incurred before the expiration date or within the valid dates on the card.
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A08 | Authorization Approval Expired Transaction submission was made after the authorization approval had expired. |
The transaction was not approved; the transaction was submitted after the expiration of the authorization approval; the authorization request was denied; or the transaction was made using an expired card. | Provide proof that a valid authorization approval was obtained in accordance with the agreement, or that a credit offsetting the disputed charge has already been processed.
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Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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P01 All other countries 4523 |
Unassigned Card Number The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder. |
The merchant erred, either in entering or calculating information; the cardholder supplied an incorrect or invalid card number. | To respond to this chargeback, provide a copy of the imprint that confirms card number, proof that you obtained an authorization approval for such card number, or a copy of the charge record from the terminal that electronically read the card number.
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P03 All other countries 4752 |
Credit Processed as Charge The merchant processed a credit as a charge. |
The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization. | Respond by providing proof that the charge was submitted correctly, or proof that a credit which directly offsets the charge has already been processed.
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P04 All other countries 4752 |
Charge Processed as Credit Merchant needed to charge an account, but instead processed it as a credit. |
The merchant processed a credit instead of a debit, or in some other way processed a transaction that differed from the obtained authorization. | Respond by providing proof that the credit was submitted correctly, or proof that a credit which directly offsets the charge has already been processed.
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P05 All other countries 4507 |
Incorrect Charge Amount The cardholder claims the charge amount the merchant submitted differs from the agreed amount. |
The merchant erred, either in entering or calculating information; the merchant changed the amount of the transaction for some reason, such as adding a tip; exchanged the amount post-transaction without cardholder permission. | Provide proof that the cardholder agreed to the amount submitted, proof that the cardholder was advised of and agreed to pay for any additional or delayed charges using the card the charge was submitted to, an itemized contract or documentation substantiating the charge amount submitted, or proof that a credit which directly offsets the disputed charge has already been processed.
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P07 All other countries 4536 |
Late Submission The charge was not submitted within the required timeframe. |
The transaction wasn’t processed in a timely fashion and the account has since been closed; transaction was posted after 181 days of the original transaction date. | Prove that the charge was submitted within the required timeframe, or that a credit which directly offsets the disputed charge has already been processed.
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P08 | Duplicate Charge An individual charge was submitted more than once. |
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed but the cardholder paid for the same merchandise or service by other means. | Provide documentation showing that each charge is valid, or proof that a credit which directly offsets the disputed charge has already been processed.
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P22 | Non-Matching Card Number The card number used for the transaction is not assigned to a valid account, or not assigned to the cardholder. |
The processed the transaction to an incorrect account number; The merchant did not authorize the transaction and it was processed to an account number not on the issuer’s master file. | Send a copy of the card imprint confirming the card number, or copy of the charge record from the terminal that electronically read the card number as your response.
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P23 | Currency Discrepancy The merchant made one or more errors related to the transaction currency. |
The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur. | Provide evidence that a credit which directly offsets the disputed charge has already been processed.
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Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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M01 | Chargeback Authorization American Express received merchant authorization to process a chargeback for the charge. |
The merchant authorized the chargeback. | Since you indicated acceptance of the chargeback, you likely won’t need to respond to these disputes. If you do, supply proof that a credit has already been processed.
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M10 | Vehicle Rental – Capital Damages The cardholder claims the merchant incorrectly billed for capital damages. |
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Submit proof that the charge submitted was within the specific estimate of the damages agreed in writing by the cardholder, plus 15%. Or submit proof that can refute the cardholder’s claim that they were covered by insurance. Or show that the charge was valid and not for theft or loss of use.
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M49 | Vehicle Rental - Theft or Loss of Use The cardholder claims to have been incorrectly charged for theft or loss of use of a rental vehicle. |
The merchant bills the cardholder for AMX-covered costs. |
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R03 | Insufficient Reply Complete support and/or documentation were requested but not provided. |
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R13 | No Reply American Express did not receive a response to an inquiry within the specified timeframe. |
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Time limit - not applicable for ISSUER/CARDHOLDER and 20 days for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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C02 | Credit Not Processed The authorization has expired before the transaction was submitted. |
The merchant didn’t credit the account; the merchant issued the credit but not in time to be posted to the customer’s most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided. | If no credit (or only partial credit) is due, provide a written explanation of why credit is not due with appropriate documents to support your position, or proof that a credit which directly offsets the disputed charge has already been processed.
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C04 | Goods/services returned or refused The cardholder has provided proof that merchandise was returned. |
Cardholder refused delivery of goods or services and has not yet received a credit; cardholder returned goods and has not yet received a credit. | Supply a written explanation refuting the cardholder’s claim that goods were returned. If the items were returned, provide a copy of your return policy, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the return policy, or a copy of the charge record indicating the terms and conditions of the purchase with details explaining how the cardholder did not follow the policy. If goods/services refused, provide proof that they were accepted.
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C05 | Goods/services cancelled The cardholder claims that the order for goods or services was cancelled. |
The cardholder claims that the goods or services ordered were cancelled, but you didn’t provide a refund. | Respond to this chargeback by providing a copy of your cancellation policy or terms and conditions, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the cancellation policy or terms and conditions. If you’ve already issued a credit, include proof that a credit which directly offsets the disputed charge has already been processed. |
C08 All other countries 4554 |
Goods/Services Not Received or Only Partially Received A charge represents merchandise that was not received by the cardholder. American Express cannot bill the cardholder for merchandise not in their possession. |
Merchant did not ship the goods/service by the agreed delivery date or shipped only a partial order; merchant did not clearly explain the expected shipping/arrival date; merchant billed the cardholder before delivery of merchandise; merchant did not make order available for pick-up. | For goods, provide proof of delivery; including delivery date and full shipping address. For services, provide proof that the services were provided and the dates the services were provided, or a signed completion of work order showing the cardholder received the services and dates that the services were used/provided. You can also prove a direct connection between the person who received the goods and services and the cardholder (e.g., photographs, emails).
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C14 All other countries 4515 |
Paid by Other Means The cardholder has provided American Express with proof of payment by another method. |
The merchant didn’t void multiple transactions; the transaction was processed but the cardholder paid for the same merchandise or service by other means. | Provide documentation showing that the cardholder’s other form of payment was not related to the disputed charge, or proof that the cardholder provided consent to use the card as a valid form of payment for the disputed charge.
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C18 | “No Show” or Card Deposit Canceled The cardholder’s account was charged for a “no-show” billing, despite cancelling the reservation. The cardholder has obtained a cancellation number. This number will be listed. |
Cardholder was billed for lodging services that were allegedly cancelled. | Either supply documentation supporting the validity of the “no show” reservation or CARDeposit charge.
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C28 All other countries 4544 |
Canceled Recurring Billing A charge has been submitted after the merchant was advised to discontinue all future billing. |
The cardholder withdraws permission to change the account, or cancelled payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder’s account was closed. | Provide a copy of your cancellation policy, an explanation of your procedures for disclosing it to the cardholder, and details explaining how the cardholder did not follow the cancellation policy. Alternatively, you can provide proof that the cardholder has not cancelled and continues to use the service or receive the goods.
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C31 | Goods/Services Not as Described The cardholder claims to have received goods or services that are different than the written description provided at the time of the charge. |
The merchandise was damaged upon its arrival; the merchandise does not match the merchant’s description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged or not as described. | You may provide proof refuting the cardholder’s claim that the written description differs from the goods/services received, or proof that the cardholder agreed to accept the goods/services as provided or “as is”, or proof that goods/services matched what was described. For goods/services that were received in a damaged or defective state, show that an attempt was made to repair/replace goods, or to replace services. If the goods/ services were returned, state how the cardholder did not comply with your clearly documented cancellation/return policy or applicable law and regulations.
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C32 | Goods/Services Damaged or Defective The cardholder’s bank received a claim from the cardholder stating that the goods were shipped to the cardholder, but were damaged or defective. |
The merchandise was damaged upon its arrival; the merchandise does not match the merchant’s description; the cardholder fraudulently claims the merchandise is damaged. | Supply proof refuting the cardholder’s claim that the goods/services were damaged or defective (provided that they were not returned ), or proof that the cardholder agreed to accept the goods as delivered, or proof that the goods/services were not returned.
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Discover
Unlike the other card networks, Discover’s reason codes do not follow any particular pattern. Most are two-character codes, but there are some exceptions to this pattern. In particular, all reason codes in the fraud category begin with UA (for unauthorized) followed by a two-digit number. For many of these two-digit codes, you can see the meaning at a glance, e.g., NA for No Authorization or EX for Expired Card. Unfortunately, this is not the case everywhere. For example, the reason code for a changed amount is not AA, but AW. The reason code AA instead means Cardholder Does Not Recognize.
Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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UA01 | Fraud - Card Present Environment A fraudulent transaction was made using the actual card, according to the cardholder. |
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Show that the transaction isn’t fraudulent by providing a valid, legible transaction receipt, or evidence that the cardholder was present at the time of the card transaction or otherwise participated in or approved the card transaction or a valid, legible transaction receipt that displays a complete, legible imprint of all security features required to be embossed on the card. |
UA02 | Fraud – Card Not Present Transaction The cardholder claims that they did not approve or participate in a Card Not Present (CNP) transaction |
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Prove that the items were delivered and that you used the Address Verification Service to validate the numeric portion of the cardholder’s billing address, including street address and ZIP code, or that the response to an Address Verification request indicated that the cardholder’s address is not verified because the card is issued outside the United States. |
UA05 | Fraud – Chip Counterfeit Transaction The cardholder alleges that a counterfeit card was used to conduct a card sale or cash advance, and a Contact Chip Payment Device was issued. |
The merchant’s card processor did not transmit the full chip data; a chip-reading terminal was not actually used; a transaction was made fraudulently by an unauthorized person. | Respond by showing your POS Device was enabled to support chip card transactions using EMV technology or that your POS Device completed the card transaction using magnetic stripe data and the card transaction was identified as Fallback in the Authorization Request. |
UA06 | Fraud – Chip and PIN Transaction The cardholder alleges fraud relating to a Card Present chip card transaction, including a cash advance, involving a card account on which a PIN-preferring Contact Chip Payment Device was issued, the card was reported as lost or stolen at the time of the card sale or cash advance, and the card transaction was conducted at a POS Device that does not support chip card transactions with PIN preferring Contact Chip Payment Devices. |
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To respond to this chargeback, you need to show that either the chip card transaction was completed with PIN entry on a chip card terminal, a Fallback transaction was properly identified in the Authorization request, the card transaction was not Card Not Present, track data in the Authorization Request indicated that the card sale was not conducted with a Contact Chip Payment Device as required by the Technical Specifications, or that the card transaction was a cash advance at an ATM. |
UA10 | Request Transaction Receipt (swiped card transactions) Issuer requests documents for a transaction the cardholder claims was fraudulent (card-present.) |
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UA11 | Cardholder claims fraud (swiped transaction, no signature) The cardholder claims this activity was fraudulent (card-present). |
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Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps | |
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AT | Authorization Noncompliance The merchant did not obtain a valid Authorization Response, and the issuer cannot collect the card sale amount from the cardholder. |
The transaction was processed without a positive authorization response and/or contains an authorization response beyond the card’s expiration date. Transaction was processed without electronic authorization, voice approval, or account verification; the transaction was forced after initially being declined. | Provide evidence of a positive Authorization Response from the issuer for the card sale, which can be validated in the issuer’s records, and show that the amount of the card sale matches the Authorization amount.
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DA | Declined Authorization A declined transaction is presented for processing. |
The merchant does not request authorization; the merchant makes multiple attempts on a card that is declined, or otherwise attempts to force, circumvent, or override a declined authorization. |
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EX | Expired Card The cardholder challenges the validity of a transaction because the card had expired at the time. |
Card expired before the transaction date; the merchant processed the transaction without authorization; the card was valid at the time of transaction but expired before the transaction was processed. |
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NA | No Authorization The transaction was processed without authorization. |
The merchant does not request authorization; the merchant waits a day or more before requesting authorization; the merchant requests authorization for one amount, then adds a tip to the total before processing. |
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Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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IN | Invalid Card Number The card number provided by the merchant is not valid. |
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Provide transaction documentation showing three things: the card number is accurate and was not listed on the Negative File at the time that Downtime Authorization Services were used to obtain an Authorization Response for the card transaction; the receipt of a positive Authorization Response; and the cardholder’s signature (if required). |
LP | Late Presentment Sales data was submitted for the card sale later than the number of calendar days permitted for timely sales data submission. The card sale was also not for a delayed delivery card sale. |
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Provide evidence of compliance with delayed delivery requirements and receipt of a valid Authorization Response within the applicable number of calendar days of the ship date, expected delivery date or processing attempt. Or show that the cardholder approved the submission of sales data after the applicable number of calendar days. |
Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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NC | Not Classified Any claims of invalid transactions which do not fall under any other classification. |
The merchant’s attempts to resolve the issue were unsuccessful; other reasons specific to the claim. | Provide transaction documentation showing three things: the card number is accurate and was not listed on the Negative File at the time that Downtime Authorization Services were used to obtain an Authorization Response for the card transaction; the receipt of a positive Authorization Response; and the cardholder’s signature (if required). |
Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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EX | Expired Card Any claims of invalid transactions which do not fall under any other classification. |
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Time limit - 120 days for ISSUER/CARDHOLDER and not applicable for ACQUIRER/MERCHANT
Reason Code | Reason | Typical causes | Prevention steps |
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05 | Good Faith Investigation The merchant accepted responsibility in response to a Good Faith Investigation Ticket Retrieval Request. |
The merchant accepted responsibility in response to a Good Faith Investigation Ticket Retrieval Request. | Evidence may be submitted to Discover that the cardholder received duplicate credits, if you’ve applied a credit to the card account in response to a Good Faith Inquiry and a chargeback was also processed because you accepted responsibility for the card transaction. In all other cases, this chargeback is final and non-appealable. |
AA | Does Not Recognize The cardholder claims that their account was charged or credited for a card transaction (other than an ATM transaction) that they do not recognize. |
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Provide evidence that the cardholder received the goods or services related to the disputed transaction and that the transaction was completed in accordance with the Agreement and Operating Regulations, as applicable. You can also provide transaction documentation including an imprint of the card and/or signature or PIN entry. |
AP | Recurring Payments The cardholder challenges the validity of recurring payments card sales after expiration or cancellation of the recurring payments plan agreement. |
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Provide evidence that the cardholder did not cancel the recurring payments plan in accordance with your policy. Or that the cardholder did not cancel at least 15 calendar days prior to the posting of the disputed card sale(s). You can also show that the cancellation number provided by the cardholder or issuer was processed correctly as well as any terms stating cardholder requirement to pay disputed amounts. |
AW | Altered Amount The cardholder claims that the amount of a card transaction was altered without their consent or direction. |
The system posted a different amount to the cardholder’s account; ATM dispensed an amount different from the amount charged to the account (less any set fees or service charges); cardholder approved the for a cash advance or ATM transaction, but a different amount was dispensed/charged to the account; cardholder did not request cash over, but cash over was charged to the account. | Either provide evidence of a credit or card sale in the correct amount issued to the account to correct the error or evidence that the cardholder is responsible for the disputed amount. |
CD | Credit Posted as Card Sale The cardholder challenges the validity of a card transaction because the transaction should have resulted in a credit rather than a card sale or the transaction should have resulted in a card sale rather than a credit. |
The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization. | You must provide either transaction documentation signed by the cardholder indicating agreement to the transaction, a transaction receipt or other record that indicates the transaction was posted correctly, or evidence that a credit was issued to the account to correct the error as permitted by Discover’s Operating Regulations. |
DP | Duplicate Processing The cardholder claims that a single card transaction was applied more than once to the account. |
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant’s system; the transaction was processed but the cardholder paid for the same merchandise or service by other means. | Provide separate transaction documentation, either signed or authorized by the cardholder for the amount of each transaction, or evidence that you or the acquirer issued a credit(s) for each duplicate card sale, as applicable and permitted by Discover’s Operating Regulations. |
IC | Illegible Sales Data A requested sales receipt was provided, but was not legible. |
The receipt is unreadable due to light ink, ribbed or colored paper, or fading; the original order receipt is mishandled or is scanned at a smaller size. |
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NF | Non-Receipt of Cash from ATM The cardholder claims an ATM Cash Disbursement was charged to an account, but cash was not dispensed by the ATM. |
Cardholder did not receive the full cash withdrawal at an ATM. | Either provide evidence that the cardholder received cash or show that you’ve issued a credit to the account to correct the error where permitted.
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PM | Paid by Other Means The cardholder claims their account was charged for a card sale where the transaction was conducted using another form of payment. |
Cardholder was charged for a transaction that was processed using an alternate form of payment. The merchant didn’t void multiple transactions. | Prove that a credit(s) has been issued to the account for the amount(s) subject to dispute, or supply transaction documentation signed by the cardholder indicating agreement to the card sale.
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RG | Non-Receipt of Goods, Services, or Cash The cardholder challenges the validity of a transaction due to non-receipt of goods or services. |
The merchant delays delivery; the merchant charges the cardholder before shipping or delivery; the merchant ships on time or has the product available for pick-up but does not inform the customer; the cardholder fraudulently claims the goods or service did not arrive. | Provide proof, like receipts, work orders, signed documents, and proof of delivery, to display that the goods or services were delivered by you as directed by the cardholder. You can also provide written correspondence between you and the cardholder to establish receipt of goods or services. |
RM | Cardholder Disputes Quality of Goods or Services The cardholder claims the goods or services delivered by the merchant were not of the quality or condition agreed-upon. |
The merchandise was damaged upon its arrival; the merchandise does not match the merchant’s description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged. | Prove that the cardholder approved of the quality of the goods or services at the time of the transaction, either through signed documentation or written correspondence. If applicable, you can also show that your attempts to correct the cardholder’s issues have been rejected, or that the cardholder never cancelled or rejected the goods and maintains possession of them. In addition, you can provide the terms agreed upon with the cardholder refuting the allegation of misrepresentation. |
RN2 | Credit Not Processed The cardholder claims that an expected credit from the merchant was not received. |
Cardholder refused delivery of goods or services and has not received a credit; Cardholder returned goods and received a promise of credit that was not received; merchant does not accept returns. | Provide evidence that shows why a credit is not due to the cardholder as stated in agreed upon terms and conditions or return policies. Or show that you’ve issued an in store credit or correction to their account to address the dispute.
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Reason Code | Reason | Prevention steps |
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DC | Dispute Compliance The acquirer or merchant did not comply with the applicable Operating Regulations. |
Provide any supporting documentation relating to the underlying card transaction to Discover. Failure to do so within the time limit may result in Discover resolving the Dispute Compliance claim against the merchant or acquirer. |