Are you among the 31.7 million small business owners in the US? Do you occasionally get a customer who charges a dispute or requests a refund?
If so, you’ve likely come across chargeback reason codes. Maybe you’ve seen them and haven’t even realized what they are, or maybe you’re not sure where to look or how to handle them.
Today we’ve going to take the mystery out of this common practice. Keep reading for your crash course in chargeback reason codes.
What Are Reason Codes?
A chargeback reason code is issued when a customer disputes a charge. They offer understanding into why the customer is disputing the charge for the goods or services they agreed to pay for.
Because there are endless reasons why consumers dispute charges, this system allows for quicker identification and processing of the case. This allows you to build your own case and decide what to do next — accept the dispute, or build a case for why the transaction was valid.
Each merchant has a set chargeback period or window of time when the customer can dispute a transaction. It varies by merchant, but typically it’s around 120 days from the original date of purchase.
Chargeback reason codes appear as two-to-four digit alphanumeric codes provided by the issuing bank or credit card company. Each merchant has its own set of reason codes, which we’ll discuss in more detail next.
Common Chargeback Reason Codes
Let’s look at some of the most common chargeback reason codes you might encounter.
Visa Chargeback Reason Codes
- 10.3 — Other Fraud, Card-Present Environment
- 10.5 — Visa Fraud Monitoring Program
- 11.2 — Declined Authorization
- 11.3 — No Authorization
- 12.3 — Incorrect Currency
- 12.4 — Incorrect Account Number
- 12.5 — Incorrect Amount
- 12.6 — Duplicate Processing, Paid by Other Means
- 13.1 — Merchandise or Services Not Received
- 13.3 — Not as Described, or Defective Merchandise or Services
- 13.4 — Counterfeit Merchandise
- 13.6 — Credit Not Processed
Mastercard Chargeback Reason Codes
- 4807 — Warning Bulletin
- 4808 — Authorization-Related Chargeback for Expired Chargeback Protection Period
- 4808 — Authorization-Related Chargeback for Multiple Authorization Requests
- 4834 — Point-of-Interaction Error – Cardholder Debited More than Once for the Same Goods or Services
- 4834 — Point-Of-Interaction Error – Transaction Amount Differs From Agreed Amount
- 4849 — Questionable Merchant Activity – Global Merchant Audit Program (GMAP)
- 4853 — Cardholder Dispute – Goods or Services Not as Described or Defective
American Express Chargeback Reason Codes
- A01 — Charge Amount Exceeds Authorization Amount
- A02 — No Valid Authorization
- C04 — Goods or Services Returned or Refused
- C08 — Goods or Services Not Received or Only Partially Received
- C18 — “No Show” or CARDeposit Cancelled
Discover Card Chargeback Reason Codes
- 05 — Good Faith Investigation Chargeback
- CD — Credit/Debit Posted Incorrectly
- RG — Non-Receipt of Goods, Services, or Cash
- RM — Cardholder Disputes the Quality of Goods or Services
- UA02 — Fraud: Card Not Present Transaction
Customer Chargebacks: Class Dismissed
There are a number of reasons a customer may dispute a transaction, which is where chargeback reason codes come in. As a business owner, it’s important to understand what each of these codes means so you know the appropriate steps to take.
Bookmark this list and refer back to it the next time you receive a dispute!
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