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November 9, 2016

Discover Chargeback Codes

chargeback

There is probably nothing more frustrating in business than to learn that a customer has initiated a chargeback without calling you to discuss why or what you might be willing to do to remedy a problem. You might become even more frustrated as credit card companies use codes to determine the reason for the chargeback. It should be noted that Discover uses multiple codes to indicate the same conditions. Use this handy guide to determine why a customer has initiated a chargeback through Discover.

 

Code 7 – Discover Reason Code 7 represents a chargeback where authorization, for whatever reason, was declined.

Code 16 – Discover Reason Code 16 occurs when a merchant fails to issue a receipt for goods or services rendered. If the merchant cannot produce the proper documentation, Discover will proceed with the chargeback.

Code 3041 – Discover Reason Code 3041 is a retrieval request from an issuer to a merchant requesting evidence of the sales receipt bearing the cardholder’s signature in the form of a film cartridge.

Code 4534 – Discover Reason Code 4534 represents the occurrence of duplicate processing by the merchant to the customer’s credit card account. When the customer sees this double charge, she contacts her bank to initiate a chargeback.

Code 4541 – Discover Reason Code 4541 refers to a continuation of automatic billing by a merchant to a customer’s account, even though the customer has discontinued the recurring good or service.

Code 4553 – Discover Reason Code 4553 is used when a customer believes he was misinformed of the good or services’ quality. Typically, poor product descriptions are the culprit when this dispute occurs.

Code 4555 – Discover Reason Code 4555 indicates a chargeback due to a dispute relating to transactions not posting to the cardholder’s account as expected. The customer is disputing a credit, typically seeking a larger amount.

Code 4752 – Discover Reason Code 4752 refers to a chargeback that occurs when a customer does not recognize the transaction and is stating that he did not authorize the charge to their credit card by the merchant.

Code 4755 – Discover Reason Code 4755 is a chargeback that occurs due to a dispute relating to the cardholder not receiving the merchandise or services. Merchants need to supply documentation of delivered goods to resolve this dispute.

Code 4866 – Discover Reason Code 4866 represents a claim by the cardholder that he were in possession of a valid card on the date of transaction or he did not authorize or participate in the transaction.

Code 5621 – Discover Reason Code 5621 refers to a chargeback that occurs when a merchant is unable to present a copy of a signed sales receipt or other suitable documentation to the issuing bank to prove a transaction was valid.

Code 6005 – Discover Reason Code 6005 represents a chargeback where the cardholder’s bank requests a copy of the receipt for fraud analysis. Here, the bank is investigating a suspicious charge to a cardholder’s account.

Code 6021 – Discover Reason Code 6021 represents a dispute initiated by a customer who does not recognize the transaction on his statement, therefore contacts his bank to dispute the charge present.

Code 6040 – Discover Reason Code 6040 is seen by merchants receiving a chargeback based on the potential for a fraudulent transaction. The cardholder provided no authorization for the charge to be processed by the merchant.

Code 6041 – Discover Reason Code 6041 refers to the retrieval request from the cardholder’s bank. In this case, the bank is requesting a copy of the receipt from the merchant in order to carry out a fraud analysis.

Code 7010 – Discover Reason Code 7010 represents a chargeback initiated by the cardholder because he does not recall providing authorization for a transaction to occur.

Code 7030 – Discover Reason Code 7030 refers to an unauthorized purchase. The bank receives a complaint from the cardholder indicating a possible card-not-present transaction that was not authorized.

Code 8002 – Discover Reason Code 8002 represents a chargeback where the credit provided by the cardholder could not be processed by the merchant’s payment processor.

Code AA – Discover Reason Code AA occurs when a customer does not recognize the transaction and is stating to the bank that she did not authorize the charge to her credit card by the merchant.

Code AL – Discover Reason Code AL occurs because of a dispute on an airline sale involving allegedly fraudulent card transactions. This reason code is accompanied by a fraudulent reason code (UA).

Code AP – Discover Reason Code AP represents when the cardholder has transactions posting to their account after he cancelled the automatic payment agreement with the merchant.

Code AW – Discover Reason Code AW is utilized in the situation where the cardholder alleges that the amount of a card transaction was altered by the merchant without the cardholder’s consent or direction.

Code C08 – Discover Reason Code C08 is utilized when a customer contacts a bank to dispute a charge based on the fact that merchandise purchased was never received from the merchant.

Code CA – Discover Reason Code CA refers to a cardholder’s claim that the cash advance or case over amount was not completed by the cardholder, and instead was carried out fraudulently.

Code CD – Discover Reason Code CD is when the cardholder challenges the validity of a card transaction because the transaction should have resulted in a credit rather than a card sale.

Code CR – Discover Reason Code CR is seen in the situation when the cardholder challenges the validity of a card transaction because the cardholder cancelled the underlying reservation with the merchant.

Code DA – Discover Reason Code DA is used to represent a chargeback due to a dispute relating to transactions that received declined authorization from the cardholder to the merchant.

Code DP – Discover Reason Code DP represents a dispute relating to transactions posting to the cardholder’s account multiple times. These duplicate transactions can have no more than a 20% difference.

Code DP1 – Discover Reason Code DP1 is used when the cardholder alleges that she was charged twice for the same Discover Network ATM transaction. Essentially, the cardholder’s account had two withdrawals of the same amount.

Code EX – Discover Reason Code EX is utilized when the cardholder or issuer challenges the validity of a card sale because the card had expired at the time the card Sale was processed by the merchant.

Code IC – Discover Reason Code IC refers to a cardholder or issuer disputing a card sale because transaction documentation received in response to a Ticket Retrieval Request is rather illegible or is missing a valid legible card.

Code IN – Discover Reason Code IN is used when a chargeback is originated due to transactions being submitted by merchants on accounts that are not assigned to the cardholder.

Code IS – Discover Reason Code IS represents a chargeback where the cardholder or issuer disputes a card sale because transaction documentation received in response to a Ticket Retrieval Request does not include a valid legible cardholder signature.

Code LP – Discover Reason Code LP is a chargeback that occurs because the transactions posting to the cardholder’s account are doing so more than 60 days after the date of the card sale.

Code N – Discover Reason Code N is used to represent the situation where the cardholder alleges that he was present at the ATM but received no funds from the machine after requesting them to dispense.

Code NA – Discover Reason Code NA represents a chargeback where the issuer disputes a card sale because the merchant did not obtain a positive authorization response and the issuer cannot collect the card sale amount from the cardholder.

Code NC – Discover Reason Code NC represents a chargeback that occurs due to a dispute relating to transactions that the cardholder is claiming as invalid and cannot be classified under any other reason code.

Code RG – Discover Reason Code RG is a chargeback that occurs due to a dispute relating to the cardholder not receiving the merchandise or services from the merchant. If the merchant can prove the product was delivered, the dispute can be resolved.

Code RM – Discover Reason Code RM occurs due to a dispute relating to transactions that do not meet the quality requirements for the agreement between the cardholder and the merchant.

Code RN – Discover Reason Code RN occurs due to a dispute relating to transactions not posting to the cardholder’s account as expected. Essentially, the charge to the customer’s account was more than agreed upon with the merchant.

Code SV – Discover Reason Code SV refers to a cardholder or card issuer disputing a prepaid gift card transaction because the merchant did not obtain a positive authorization response for the total amount of the disputed card sale.

Code TF – Discover Reason Code TF is where Discover Network initiates a chargeback of a card transaction because the acquirer or merchant did not comply with the applicable operating regulations and Discover Network identified such noncompliance after receiving the response to a View Insight and Examples

Code TNM – Discover Reason Code TNM refers to a chargeback where the cardholder challenges the validity of the cash advance because the cardholder does not recognize the transaction billed to the account.

Code P – Discover Reason Code P refers to a dispute where the cardholder challenges the location at which a cash advance took place or the amount of cash dispensed. The cardholder doesn’t recognize the location of the ATM or the amount withdrawn.

Code RN2 – Discover Reason Code RN2 represents a chargeback that occurs due to a dispute relating to a transaction that was not credited as promised by the merchant to the cardholder.

Code UA01 – Discover Reason Code UA01 indicates that the cardholder or issuer is challenging the validity of a card sale because no authorization request was attempted by the merchant.

Code UA02 – Discover Reason Code UA02 refers to a cardholder or issuer challenging the validity of a card sale because the issuer provided a declined authorization response.

Code UA03 – Discover Reason Code UA03 is used when the cardholder or issuer challenges the validity of a card sale because the amount billed to the cardholder exceeds amount authorized by the issuer.

Code UA05 – Discover Reason Code UA05 represents when the cardholder claims she was in possession of a valid card on the date of transaction or she did not authorize or participate in the transaction.

Code UA10 – Discover Reason Code UA10 is a chargeback that occurs due to a dispute relating to swiped transactions in which the cardholder claims fraud.

Code UA11 – Discover Reason Code UA11 occurs due to a dispute relating to swiped transactions in which the cardholder claims fraud and a signature was not obtained.

Code UA12 – Discover Reason Code UA12 is seen due to a dispute relating to swiped transactions in which the cardholder claims fraud and a signature does not match what was on the back of the card.

Code UA20 – Discover Reason Code UA20 represents a dispute relating to keyed transactions in which the cardholder claims fraud to the issuer.

Code UA21 – Discover Reason Code UA21 is a dispute relating to keyed transactions in which the cardholder claims fraud and that a signature was not obtained.

Code UA22 – Discover Reason Code UA22 refers to a keyed transactions in which the cardholder claims fraud and a signature does not match what was on the back of the card.

Code UA23 – Discover Reason Code UA23 represents a keyed transactions in which the cardholder claims fraud and the imprint is not legible and/or does not contain all required embossed security features.

Code UA28 – Discover Reason Code UA28 represents the situation where the cardholder claims fraud and the previous ticket retrieval request showed illegible information.

Code UA30 – Discover Reason Code UA30 is seen when a dispute relating to transactions the cardholder claims to be fraud and no proof of delivery was provided.

Code UA31 – Discover Reason Code UA31 represents a dispute relating to transactions the cardholder claims to be fraudulent and no valid proof of delivery was provided.

Code UA32 – Discover Reason Code UA32 occurs due to a dispute relating to transactions in which the merchant did not attempt to complete verification using AVS.

Code UA38 – Discover Reason Code UA38 refers to a dispute relating to transactions in which the cardholder claims fraud and the merchant has provided illegible information.

Code UA99 – Discover Reason Code UA99 occurs when a dispute relating to transactions that were not in compliance with the operating regulations and can’t be classified under any other sub-reason code.

 

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