What is a Dispute?

A "dispute" provides an issuer with a way to return a disputed transaction. Disputes resolved in favor of the Customer may result in reversal of the disputed Transaction, regardless of state. The general chargeback period for cardholder disputes is 270 days from date of transaction, however it can extend to 540 days when a consumer claims payment was for future delivery of goods. Bank issued chargebacks (i.e., when a consumer's card issuing bank automatically disputes charges for ex. due to a forced authorization sale, or capture amount greater than authorized amount) can technically come in at any time with no limit. Therefore our maximum exposure at date of account closure (or on any given day) is the total amount processed by merchants in the last 270 days (and possibly the last 540 days, or more, for bank issued chargebacks). If a referrer has partial or full liability on a merchant account that has rejected for any reason (chargebacks, refunds, other fees) we would generally move to transfer the balance or debit the referrer on the date the loss was incurred.

When a cardholder disputes a transaction, the issuer may request a detailed explanation of the problem from the cardholder. Once the issuer receives this information, the first step is to determine whether a dispute situation exists. There are many reasons for disputes—those reasons that may be of assistance in an investigation include the following:

  • Merchant failed to get an authorization

  • Merchant failed to obtain card imprint (electronic or manual)

  • Merchant accepted an expired card

When a dispute right applies, the issuer sends the transaction back to the acquirer and disputes the dollar amount of the disputed sale. The acquirer then researches the transaction. If the dispute is valid, the acquirer deducts the amount of the dispute from the merchant account and informs the merchant. Under certain circumstances, a merchant may respond to a dispute to its acquirer. If the merchant cannot remedy the dispute, it is the merchant's loss. If there are no funds in the merchant's account to cover the disputed amount, the acquirer must cover the loss.


Although merchants cannot avoid disputes completely, they can take steps to reduce or prevent them. Many disputes result from avoidable mistakes, so the more they know about proper transaction-processing procedures, the less likely the merchant will be to inadvertently do, or fail to do, something that might result in a dispute. Note, a merchant can't deny a cardholder the ability to dispute based on Fair Credit laws and Cardbrand rules.

How a chargeback works:

From the merchant's perspective there are just three stages:

  • Retrieval - The initial request for merchant input/information.

  • Chargeback - Full dispute/Pre-Arbitration, Merchant must submit documents.

  • Resolution - The cardholders/merchant receive full, partial or none of the refund respectively.

A chargeback begins when a cardholder initiates the process by contacting the Card issuer. In certain cases, the issuer may initiate the dispute directly. This opens the case and a conditional refund is issued to a cardholder, the merchant's account is then debited for the same amount. The issuer provides a reason code and comments about the dispute. At this point, Benchmark sends a merchant alert to advise the merchant of the situation using the fields below.

Chargeback Handling:


Documents must include Case Number and the relevant documentation for review. Relevant documentation includes but is not limited to:

  1. Signed credit card receipt

  2. Completed credit card authorization form

  3. Corresponding Invoice with cardholder contact information

  4. Proof of delivery or Satisfactory Services

Note: If the merchant doesn't submit a response the chargeback is ruled in the cardholder's favor and the cardholder retains the case amount.

Cardbrand Suggested Receipt and/or Invoice Requirements:

Card Present: The following are the Visa requirements for all transaction receipts generated from electronic point-of-sale terminals (including cardholder-activated terminals). It is recommended that merchants provide itemized receipts when possible.
Card-not-Present Transaction Receipt Requirements: The following are the Visa requirements for all manually printed transaction receipts in the card absent environment.

Credit Card Authorization Documentation:

Cardbrands also consider the following acceptable ways of documenting a cardholder's approval for a transaction:

  • For a Mail/Phone Order Transaction a signed order/authorization form

  • Copy of identification presented by the Cardholder

  • Details of identification presented by the Cardholder

  • Evidence that the Transaction was completed by a member of the Cardholder's household or family if not by the cardholder.

Proof of Delivery or Satisfactory Services:

Getting a confirmation from the Cardholder of receipt or rendering of satisfactory services and goods is one of the best protections a merchant can have. Some of the best details are indicated below:

  • Evidence, such as photographs or emails, to prove a link between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services.

  • Cardholder signature on a pick-up form.

  • For a Card-Absent Environment Transaction in which the merchandise is delivered, documentation (evidence of delivery and time delivered) that the item was delivered to the same physical address for which the Merchant received an AVS match of Y or M. A signature is not required as evidence of delivery.

  • There may be instances where you will need to obtain a neutral third-party opinion to help corroborate your claim against the cardholder.

Minimizing Disputes

Rules for Returns, Exchanges and Cancellations:

Merchants are responsible for establishing their merchandise return and refund or cancellation policies. Clear disclosure of these policies can help them avoid misunderstandings and potential cardholder disputes. Visa will support merchant's policies, provided they are clearly disclosed to cardholders. For face-to-face or eCommerce environment, the cardholder must receive the disclosure at the time of purchase. For guaranteed reservations made by telephone, the merchant may send the disclosure after by mail, email or text message.

Disclosure for Card-Present Merchants:

For card-present transactions, Visa will accept that proper disclosure has occurred before a transaction is completed if the following (or similar) disclosure statements are legibly printed on the face of the transaction receipt near the cardholder signature area or in an area easily seen by the cardholder. If the disclosure is on the back of the transaction receipt or in a separate contract, it must be accompanied by a space for the cardholder's signature or initials. Merchant's policies should be pre-printed on merchant's transaction receipts; if not, write or stamp merchant's refund or return policy information on the transaction receipt near the customer signature line before the customer signs (be sure the information is clearly legible on all copies of the transaction receipt). Failure to disclose merchant's refund and return policies at the time of a transaction could result in a dispute should the customer return the merchandise.

Disclosure Statement

What It Means

No Refunds or Returns or Exchanges

Merchant's establishment does not issue refunds and does not accept returned merchandise or merchandise exchanges.

Exchange Only

Merchant's establishment is willing to exchange returned merchandise for similar merchandise that is equal in price to the amount of the original transaction.

In-Store Credit Only

Merchant's establishment takes returned merchandise and gives the cardholder an in-store credit for the value of the returned merchandise.

Special Circumstances

Merchant and the cardholder have agreed to special terms (such as late delivery charges or restocking fees). The agreed-upon terms must be written on the transaction receipt or a related document (e.g., an invoice). The cardholder's signature on the receipt or invoice indicates acceptance of the agreed-upon terms.

Timeshare

Merchant's must provide a full credit when a transaction receipt has been processed and the cardholder has cancelled the transaction within 14 calendar days of the transaction date.

Disclosure for Card-not-Present Merchants:

Phone Order
For proper disclosure, merchant's refund and credit policies may be mailed, emailed, or texted to the cardholder. As a reminder, the merchant must prove the cardholder received or acknowledged the policy in order for the disclosure to be valid. 


Internet or Application
Merchant's website must communicate its refund policy to the cardholder in either of the following locations:

  • In the sequence of pages before final checkout, with a "click to accept" or other acknowledgement button, checkbox, or location for an electronic signature.

  • On the checkout screen, near the "submit" or click to accept button. The disclosure must not be solely on a link to a separate web page.

Suggested Merchant Best Practices:

Most disputes can be attributed to improper transaction-processing procedures and can be prevented with appropriate training and attention to detail. The following best practices will help merchants minimize disputes.

Card-Present Merchants

Declined Authorization:

  • Do not complete a transaction if the authorization request was declined.

Expired Card:

  • Do not accept a card after its "Good Thru" or "Valid Thru" date. A chip card and the chip-reading device work together to determine the appropriate cardholder or verification method for transaction (either signature, PIN or CDCVM). If the transaction has been PIN verified, there is no need for signature.

Card Imprint for Key-Entered Card-Present Transactions:

  • If, for any reason, merchant must key-enter a transaction to complete a card-present sale, make an imprint of the front of the card on the transaction receipt, using a manual imprinter. Do not capture an impression of the card using a pencil, crayon, or other writing instrument. This process does not constitute a valid imprint. Even if the transaction is authorized and the receipt is signed, the transaction may be disputed back to merchant if fraud occurs and the receipt does not have an imprint of the account number and expiration date. This applies to all card-present transactions, including key-entry situations where the card presented is chip and the terminal is chip-enabled. When a merchant key-enters a transaction, an imprint is required regardless of the type of card and terminal capability.

Legibility:

  • Ensure that the transaction information on the transaction receipt is complete, accurate, and legible before completing the sale. An illegible receipt, or a receipt which produces an illegible copy, may be returned because it cannot be processed properly. The growing use of electronic scanning devices for the electronic transmission of copies of transaction receipts makes it imperative that the item being scanned be very legible.

Fraudulent Card-Present Transaction:

  • If the cardholder is present and has the account number but not the card, do not accept the transaction. Even with an authorization approval, the transaction can be disputed and sent back to merchant if it turns out to be fraudulent.

Card-Absent Merchants:

  • Merchants should be using Address Verification Service (AVS) and Card Verification Value 2 (CVV2) Dispute Protection.

AVS:

  • Merchant received an AVS positive match "Y" response in the authorization message and if the billing and shipping addresses are the same. Merchant will need to submit proof of the shipping address and signed proof of delivery.

    • Merchant submitted an AVS query during authorization and received a "U" response from a card issuer. This response means the card issuer is unavailable or does not support AVS.

CVV2:

  • Merchant submitted a CVV2 verification request during authorization and received a "U" response with a presence indicator of 1, 2, or 9 from a card issuer. This response means the card issuer does not support CVV2.

    • Merchant submitted a CVV2 verification request on a Mail/Phone Order Transaction or an Electronic Commerce Transaction during authorization and received an "N" response with a presence indicator of 1 from the card issuer. The issuer approved the transaction with the no match response

Note, a merchant can't deny a cardholder the ability to dispute based on Fair Credit laws and Cardbrand rules.

Sales-Receipt Processing:

One Entry for Each Transaction:

  • Ensure that transactions are entered into point-of-sale terminals only once and are deposited only once. Merchant may get a dispute for duplicate transactions if merchant:

    • Entered the same transaction into a terminal more than once.

    • Deposit both the merchant copy and bank copy of a transaction receipt with merchant's acquirer.

    • Deposit the same transaction with more than one acquirer.

Proper Handling of Transaction Receipts:

  • Ensure that incorrect or duplicate transaction receipts are voided and that transactions are processed only once.

 Depositing Transaction Receipts:

  • Deposit transaction receipts with merchant's acquirer as quickly as possible, preferably within one to five days of the transaction date; do not hold on to them.

 Timely Deposit of Credit Transactions:

  • Deposit credit receipts with merchant's acquirer as quickly as possible, preferably the same day the credit transaction is generated.

General Customer Service:

Prepayment:

  • If the merchandise or service to be provided to the cardholder will be delayed, advise the cardholder in writing of the delay and the new expected delivery or service date.

 Item Out of Stock:

  • If the cardholder has ordered merchandise that is out of stock or no longer available, advise the cardholder in writing. If the merchandise is out of stock, let the cardholder know when it will be delivered. If the item is no longer available, offer the option of either purchasing a similar item or cancelling the transaction. Do not substitute another item unless the customer agrees to accept it.

 Ship Merchandise Before Depositing Transaction:

  • For card-not-present transactions, do not deposit transaction receipts with merchant's acquirer until merchant has shipped the related merchandise. If customers see a transaction on their monthly Visa statement before they receive the merchandise, they may contact their card issuer to dispute the billing. Similarly, if delivery is delayed on a card-present transaction, do not deposit the transaction receipt until the merchandise has been shipped.

  •  Requests for Cancellation of Recurring Transactions:

    • If a customer requests cancellation of a transaction that is billed periodically (monthly, quarterly, or annually), cancel the transaction immediately or as specified by the customer. As a service to merchant's customers, advise the customer in writing that the service, subscription, or membership has been cancelled and state the effective date of the cancellation.

How to Handle Various Dispute Types

Fraud Disputes

EMV Counterfeit Fraud:

Why did I get this notification?

A cardholder is claiming that they did not authorize or participate in a transaction that merchant processed. The cardholder's bank determined all of the following things occurred:
The transaction was completed with a counterfeit card in a card-present environment, The card is a chip card, and Either of these things occurred:

  • The transaction did not take place at a chip-reading device.

  • The transaction was chip-initiated and, if the transaction was authorized online, merchant's card processor did not transmit the full chip data to Visa in the authorization request.

What caused the dispute?

The cardholder has a chip card, but the transaction did not take place at a chip terminal or was not chip read.

How should I respond if:

  • The transaction took place at a chip terminal?

    • Provide documentation to support that the transaction was chip read and evidence that the full chip data was transmitted.

  •  Merchant agree the transaction did not take place at a chip terminal?

    • Accept the dispute.

  •  Merchant has already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed. 

  • The cardholder no longer disputes the transaction?

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Make sure merchant's terminal is EMV-compliant and the correct Cardholder Verification Method (CVM) was obtained. For example: signature, PIN, etc.

  • Obtain an imprint (either electronic or manual) for every card present transaction.

  • Train merchant staff on the proper procedures for handling terminal issues.

EMV Non-Counterfeit Fraud:

Why did I get this notification?

The cardholder's bank received a call from their cardholder who is insisting that they did not authorize or participate in a transaction that merchant processed. The cardholder's bank determined all of the following occurred:


The transaction was completed in a card-present environment with a card that was reported lost or stolen, the transaction qualifies for the EMV liability shift, the card is a PIN-preferring chip card, and one of these actions transpired:

  • The transaction did not take place at a chip-reading device.

  • A chip-initiated transaction took place at a chip-reading device that was not EMV PIN-compliant.

  • The transaction was chip-initiated and, if the transaction was authorized online, merchant's card processor did not transmit the full chip data to Visa in the authorization request.

What caused the dispute?

The most common cause of this dispute is that a PIN-preferring chip card was used either at a non-EMV terminal or a chip transaction was initiated without full chip data.

How should I respond if:

  • The transaction took place at an EMV PIN compliant terminal?

    • Provide documentation to support that the transaction took place at an EMV PIN compliant terminal.

  • Merchant agree the transaction was not completed at an EMV PIN-compliant terminal?

    • Accept the dispute.

  • Merchant has already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed.

  • The cardholder no longer disputes the transaction

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Make sure merchant's terminal is EMV-compliant and the correct Cardholder Verification Method (CVM) was obtained. For example: signature, PIN, etc.

  • Obtain an imprint (either electronic or manual) for every card present transaction.

  • Train merchant staff on the proper procedures for handling terminal issues.

Other Fraud Card Present Environment / Condition

Why did I get this notification?

A cardholder is claiming that they did not authorize or participate in a key-entered or unattended transaction conducted in a card-present environment.The transaction was completed in a card-present environment with a card that was reported lost or stolen.

What caused the dispute?

The most common causes of this type of dispute are that merchant:

  • Did not ensure that the card was either swiped or that the chip was read.

  • Did not make a manual imprint of the card account information on the transaction receipt for a key entered transaction.

  • Completed a card-absent transaction, but did not identify the transaction as an internet or mail order/ phone order.

How should I respond if:

  • The card was chip-read or swiped and the transaction was authorized at the point of sale?

    • Provide a copy of the authorization record as proof that the card's magnetic stripe or chip was read.

  • A manual imprint was obtained at the time of sale. (Does not apply to the Europe region)

    • Provide a copy of the manual imprint.

  • Merchant agrees the transaction was not chip-read, swiped or manually imprinted?

    • Accept the dispute.

  • Merchant has already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed. •

  • The cardholder no longer disputes the transaction?

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Make sure all card-present transactions are either chip-read or magnetic stripe-read.

  • If merchants are unable to swipe or read the chip, make a manual imprint of the card.

Other Fraud Card-Not-Present Environment / Condition:

Why did I get this notification?

The cardholder's bank has filed a dispute stating that their cardholder did not authorize or participate in a transaction conducted in a card-absent environment (i.e., internet, mail-order, phone-order, etc.).

What caused the dispute?

The most common causes of this type of dispute are that merchant:

  • Processed a card-absent transaction from a person who was fraudulently using an account number.

  • Cardholder had their account number taken by fraudulent means.

  • Due to an unclear or a confusing merchant name the cardholder believes the transaction to be fraudulent

How should I respond if:

  • The transaction was verified using AVS, CVV2 and other tools?

    • Provide a copy of the authorization record as proof.

  • Merchant have already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed.

  • The cardholder no longer disputes the transaction?

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • For card-absent transactions, consider using all available Visa tools such as Verified by Visa, CVV2 and the Address Verification Service (AVS) to help reduce fraud. Contact merchant card processor for more information on these important risk-management tools.

  • Always request authorization for mail order, telephone order, internet, and recurring transactions, regardless of the dollar amount.

  • Always make sure Merchant properly identify card present and card absent transactions.

Authorization Disputes:

Why did I get this notification?

Merchant processed a transaction where Merchant received No Authorization, Decline, late usage of an Authorization or a Pickup response, but merchant completed the transaction anyway.


What caused the dispute?
The most common causes for this type of dispute is the merchant did not obtain any authorization, late Authorization settlement of an authorization or an insufficient authorization to cover the amount of the transaction.

How should I respond if:

  • Merchant obtained an authorization?

    • Provide a copy of the authorization record as proof.

  • Merchant have already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed?

  • The cardholder no longer disputes the transaction?

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Always authorize every transaction in accordance with the Cardbrand Rules.

  • Train staff on the proper procedures for handling terminal issues.

  • Keep records of transactions.

Merchant Processing Errors:

Why did I get this notification?

Cardholder disputes transaction or payment details.

What caused the dispute?

  • Cardholder claims the transaction was sent with an incorrect transaction code. i.e. a sale that should of been a refund.

  • Cardholder claims they were charged in an incorrect currency amount or did not agree that Dynamic Currency Conversion (DCC).

  • Cardholder claims it was charged on an incorrect account number.

  • Cardholder claims they were charged an incorrect amount.

  • Cardholder claims they were charged multiple times.

  • Cardholder claims they paid by other means. i.e. check or cash.

How should I respond if:

  • The transaction was properly processed according merchant's systems or terminal?

    • Provide a copy of the authorization record or records and any additional transaction documentation.

  • The transaction was processed incorrectly?

    • Accept the dispute.

  • Merchant has already processed a credit or reversal for the transaction?

    • Provide documentation of the credit or reversal; include the amount and the date it was processed.

  • The cardholder no longer disputes the transaction?

    • Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Always authorize every transaction in accordance with the Cardbrand Rules.

  • Recommendation that all transactions be chip read.

  • Train staff on the proper procedures for handling terminal issues.

  • Keep records of transactions especially when circumstances such as different currency rates are involved.

Customer Disputes

Goods/Service Qualities or Payments:

Why did I get this notification?

Cardholder disputes details regarding services rendered or quality of the goods.

What caused the dispute?

  • Cardholder claims the merchandise or services were not received.

  • Cardholder claims they were charged for a subscription, service or good that was already cancelled.

  • Cardholder claims that merchandise or services were defective/unsatisfactory quality.

  • Cardholder claims they received counterfeit merchandise.

  • Cardholder claims they have not received Cash, Gift Card or other Transaction Value.

How should I respond:

  • Provide a copy of the authorization record or records and any additional transaction documentation such as proof of services or delivery.

  • Specified delivery date has not yet passed; provide documentation to support the expected delivery date or provide documentation to support you were able to provide merchandise or service and that the cardholder cancelled prior to the delivery date.

  • Provide specific information (invoice, contract, etc.) to refute the cardholder's claims. Quality disputes are where the customer does not agree with the condition of merchandise or service received (e.g., a car repair situation or quality of a hotel room). There may be instances where you will need to obtain a neutral third-party opinion to help corroborate your claim against the cardholder. Provide as much specific information and documentation as possible to refute the cardholder's claims. It is recommended that you address each point that the cardholder has made.

  • Advise that you have not received the returned merchandise and the cardholder never attempted to return or cardholder has not cancelled services. However, double check your incoming shipping records to verify prior to response.

  • Evidence of repairing or replacing the issue.

  • If the customer claimed they were billed after the services were cancelled, supply proof that the bill in question covered services used by the customer between the date of the customer's prior billing statement and the date the customer cancelled.

Merchant has already processed a credit or reversal for the transaction?

Provide documentation of the credit or reversal; include the amount and the date it was processed.

The cardholder no longer disputes the transaction?

Provide a letter or email from the cardholder stating that they no longer dispute the transaction.

How to avoid this dispute in the future:

  • Always authorize every transaction in accordance with the Cardbrand Rules.

  • Recommendation that all transactions be chip read.

  • Train staff on the proper procedures for handling terminal issues.

  • Keep records of transactions including proof of delivery, documentation/confirmation of satisfactory completion.

  • Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that were not disputed.

VISA Chargeback Codes:

Visa has four dispute categories : Fraud, Authorization, Processing Error, Customer Dispute.

Fraud:

  • 10.1 EMV Liability Shift Counterfeit Fraud

  • 10.2 EMV Liability Shift Non-Counterfeit Fraud

  • 10.3 Other Fraud: Card-Present Environment / Condition

  • 10.4 Other Fraud: Card-absent Environment / Condition

  • 10.5 Visa Fraud Monitoring Program

Authorization:

  • 11.1 Card Recovery Bulletin

  • 11.2 Declined Authorization

  • 11.3 No Authorization

Processing Errors:

  • 12.1 Late Presentment

  • 12.2 Incorrect Transaction Code

  • 12.3 Incorrect Currency

  • 12.4 Incorrect Account Number

  • 12.5 Incorrect Amount

  • 12.6 Duplicate Processing / Paid by Other Means

  • 12.7 Invalid Data

Customer Disputes:

  • 13.1 Merchandise / Services Not Received

  • 13.2 Canceled Recurring Transaction

  • 13.3 Not as Described or Defective Merchandise / Services

  • 13.4 Counterfeit Merchandise

  • 13.5 Misrepresentation

  • 13.6 Credit Not Processed

  • 13.7 Cancelled Merchandise / Services

  • 13.8 Original Credit Transaction Not Accepted

  • 13.9 Non-Receipt of Cash or Load Transaction Value

Mastercard Chargeback Codes:

Authorization

  • 4807 Warning Bulletin File

  • 4808 Authorization-Related Chargeback

  • 4812 Account Number Not on File

  • Cardholder Dispute

  • 4841 Canceled Recurring or Digital Goods Transactions

  • 4853 Cardholder Dispute

  • 4854 Cardholder Dispute - Not Elsewhere Classified

  • 4855 Goods or Services Not Provided

  • 4859 No Show / Addendum / ATM Dispute

  • 4860 Credit Not Processed

Fraud

  • 4837 No Cardholder Authorization

  • 4840 Fraudulent Processing of Transactions

  • 4849 Questionable Merchant Activity

  • 4863 Cardholder Does Not Recognize / Potential Fraud.

  • 4870 Chip Liability Shift

  • 4871 Chip / PIN Liability Shift--Lost / Stolen / Never Received Issue (NRI) Fraud

Point-of-Interactions Errors

  • 4831 Transaction Amount Differs

  • 4834 Point of Interaction Error

  • 4842 Late Presentment

  • 4846 Incorrect Currency Code

AMEX Chargeback Codes:

Authorization

  • A01 Charge amount exceeds authorization amount

  • A02 No valid authorization

  • A08 Authorization approval expired

Cardmember Dispute

  • C02 Credit not processed

  • C04 Goods / services returned or refused

  • C05 Goods / services canceled

  • C08 Goods / Services Not Received or Only Partially Received

  • C14 Paid by Other Means

  • C18 "No Show" or CARDeposit Canceled

  • C28 Canceled Recurring Billing

  • C31 Goods / Services Not as Described

  • C32 Goods / Services Damaged or Defective

  • M10 Vehicle Rental - Capital Damages

  • M49 Vehicle Rental - Theft or Loss of Use

Fraud

  • FR2 Fraud Full Recourse Program

  • FR4 Immediate Chargeback Program

  • FR6 Partial Immediate Chargeback Program

  • F10 Missing Imprint

  • F14 Missing Signature

  • F24 No Cardmember Authorization

  • F29 Card Not Present

  • F30 EMV Counterfeit

  • F31 EMV List / Stolen / Non-received Inquiry / Miscellaneous

  • R03 Insufficient Reply

  • R13 No reply

  • M01 Chargeback Authorization

Processing Errors

  • P01 Unassigned Card Number

  • P03 Credit Processed as Charge

  • P04 Charge Processed as Credit

  • P05 Incorrect Charge Amount

  • P07 Late Submission

  • P08 Duplicate Charge

  • P22 Non-Matching Card Number

  • P23 Currency Discrepancy

Discover Chargeback Codes:

Cardholder Dispute

  • AA Cardholder Does Not Recognize

  • AP Canceled Recurring Transaction

  • AW Altered Amount

  • CD Credit Posted as Card Sale

  • DP Duplicate Processing

  • IC Illegible Sales Data

  • NF Non-Receipt of Cash from ATM

  • PM Paid by Other Means

  • RG Non-Receipt of Goods or Services

  • RM Quality Discrepancy

  • RN2 Credit Not Received

Authorization

  • AT Authorization Non-compliance

  • DA Declined Authorization

  • EX Expired Card

  • NA No Authorization

Processing Errors

  • IN Invalid Card Number

  • LP Late Presentment

Not Classified

  • NC Not Classified

Fraud

  • UA01 Fraud / Card Present Environment

  • UA02 Fraud / Card-Not-Present Environment

  • UA05 Fraud / Counterfeit Chip Transaction

  • UA06 Fraud / Chip-and-Pin Transaction

  • UA10 Request Transaction Receipt (swiped card transactions)

  • UA11 Cardholder claims fraud (swiped transaction, no signature)