You've come up against a chargeback from Discover, marked with the reason code UA02.

But what exactly does this code mean? How do you decipher it accurately? And crucially, what strategies can you employ to safeguard your financial resources?

In this article, we'll explore the essential aspects of Discover chargeback reason code UA02. We'll also provide straightforward guidance on pinpointing the underlying problem and resolving it efficiently.

What is Discover Reason Code UA02?

Discover chargeback reason code UA02 is “Fraud - Card-Not-Present Transaction.” It’s used when a cardholder asserts that they neither authorized nor engaged in a transaction executed using their credit or debit card information.

The cardholder claims the card-not-present transaction occurred without their awareness, permission, or approval. Essentially, this means an unauthorized individual completed the purchase after getting access to the cardholder’s card details and using them either online or over the phone.

What Caused This Dispute?

An issuer can file a reason code UA02 chargeback if any of the following cases apply:

Reason code UA02 can also be applicable even if you got a “Authentication Successful” or “Authentication Attempted” response from Discover ProtectBuy. However, this only applies in select circumstances:

• 4829: Pertaining to money transfers completed at non-financial institutions, such as wire transfers or money orders.
• 5967: Applicable to direct marketing through inbound teleservices.
• 6051: Involves quasi-cash transactions at non-financial institutions, including foreign currency, money orders, and traveler’s checks.
• 6540: Refers to activities with non-financial institutions, like purchasing or loading a stored value card.
• 7801: Related to government-licensed online casinos, facilitating online gambling.
• 7802: Involves government-licensed horse or dog racing activities.
• 7995: Covers betting activities, including sportsbook, fantasy, or social gaming, as long as they are regulated and not classified under other MCCs.

When Does Reason Code UA02 Not Apply?

Reason code UA02 is not applicable in any of the following situations:

How to Respond to Discover Reason Code UA02 Chargebacks

Okay. So, you adhere strictly to all set guidelines, using clear billing descriptors, and maintaining compliance with Discover’s merchant standards. But, you still get hit with a reason code UA02 dispute.

What’s an appropriate response here?

If you believe the chargeback is unwarranted, you’re entitled to contest it. This involves a careful, deadline-driven process known as chargeback representment.

When engaging in representment, you have to compile evidence affirming the legitimacy of the original charge. Your response should be precise and specifically address the reason code in question. However, it's essential to act quickly.

Under Discover rules, you have a 20-day window to prepare and submit your representment package, complete with supporting documents. This period could be shorter, though, subject to your processor's specific rules.

Your finalized representment package is then sent to Discover for review. They will either side with you and reverse the chargeback, or uphold the initial decision.

Learn more about representment

Acceptable Evidence for Discover Reason Code UA02 Responses

Discover is not just going to take your word for it. If you want to submit a response, you’ll need evidence.

You need documentation proving that the transaction in question was not fraudulent. This can include:

• Written exchanges like letters, emails, photographs, or faxes between you and the cardholder
• Receipts or work orders, signed by the cardholder
• A signature, pickup form, or a copy of the buyer’s identification
• Delivery confirmation (or other proof that goods or services were provided as requested)
• Confirmation that the cardholder agreed to electronic delivery of goods or services
• The cardholder's email or IP address
• The date and time of download (for digital goods)
• A description of the goods in question
• Log entries showing the downloaded material was accessed on or after the transaction date

Precise evidence is crucial when presenting your case to Discover. Consider the following practical advice when compiling your representment package:

• Ensure your records are clear and easy to understand.
• Highlight essential details in your documents to streamline verification.
• Properly label and classify each document in your response.
• Include a concise explanation that addresses the evidence pertaining to the reason code.
• Avoid submitting unnecessary or repetitive documents.

How to Prevent Discover Reason Code UA02 Chargebacks

Representment is important. But, it’s even more crucial that you take steps to prevent chargebacks from happening in the first place. Here’s what you can do to prevent Discover reason code UA02 chargebacks:

By taking these preventive measures, you can minimize the likelihood of receiving Discover reason code UA02 chargebacks in the future and protect your business from potential losses.

But, even then, no fraud strategy is foolproof.

At Chargebacks911®, we understand you manage a multitude of challenges. Balancing client satisfaction, optimizing services, and handling expensive chargebacks is difficult. Without expert knowledge and effective systems, your reputation could face serious consequences. Therefore, adopting a proactive stance on chargeback prevention is crucial.

Feeling overwhelmed by the complexities of chargeback management? Turn to Chargebacks911, the leaders in combating chargebacks and managing representment. We offer a complimentary ROI analysis to help you navigate this intricate process.