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Discover Reason Codes Explained

Discover Reason CodesSimilar to American Express, Mastercard, and Visa, Discover has its own group of chargeback reason codes. Whereas the Discover chargeback programs are similar to the other three card networks, Discover’s reason codes are unique.

Distinctive Traits of Discover Chargebacks

Merchants need to understand what makes Discover chargebacks so different from other card network transactional disputes. Be sure to check out our article--Merchant 101: Introduction to the Discover Network--to get a broader understanding about their procedures.

Each Discover chargeback reason code comes with a list of documentation that can be utilized to request a chargeback reversal. Without this documentation, the chargeback will stand and the dispute will be found in the cardmember’s favor.

Merchants should remember that Discover is two entities in one. It is an issuer and a card network, utilizing a bank identification number in a range between 60**** and 65****. Visa and Mastercard are card networks only and impose strict debit and credit card chargeback time-limits for their cardholders. As an issuer, though, disputes won by cardholders are in Discover's best interest. The company recommends that cardholders file disputes within 120 days of the purchase—but it does not impose a strict time-limit.

Understanding Discover Chargeback Reason Codes

The following charts outline the Discover chargeback reason codes. They have been divided into 8 categories.

Chargeback Category: Authorization Issue
Reason Code Explanation
7010 No Authorization
DA Authorization Declined
NA No Authorization Response
SV No Gift Card Authorization Response
UA01 No Authorization Request-- Sale Invalid
UA02 Declined Authorization Response
Chargeback Category: Processing Error
Reason Code Explanation
4534 Processed Twice
8002 Credit Not Given
DP Duplicate Changes
DP1 ATM Duplicate Changes
IN Invalid Card Number
Chargeback Category: Cardmember Dispute
Reason Code Explanation
4553 Quality Discrepancy
7030 Purchase Unauthorized
AL Invalid Airline Card Sale
AP/4541 Automatic Payments After Expiration/Cancellation
AW Charge Amount Altered
CA Cash Transactions Invalid
CR Canceled Reservation
EX Charged After Expired
LP Late Presentment
N No Funds Received - ATM
NC Invalid Charge
P Location/Amount - Cash Advance
RG/4755 Good Not Received
RN/4555 No Credit Given
RM Merchandise Quality
TNM Invalid Cash Advance
UA03 Authorized Amount Exceeded
UA99 Non Compliance
Chargeback Category: Fraud
Reason Code Explanation
RN2 No Credit Given
TF Regulations Not Followed
UA05/4866 Counterfeit Chip Card
Chargeback Category: Keyed Card
Reason Code Explanation
UA20 Transaction Documentation
UA21 Missing Signature
UA22 Invalid Signature
UA23 Card Imprint Invalid
UA23 Documentation Illegible
Chargeback Category: Swiped Card
Reason Code Explanation
UA10 Receipt Request
UA11 No Signature
UA12 Signature Invalid
UA18 Receipt Illegible
Chargeback Category: Card Not Present
Reason Code Explanation
UA30 Transaction Documentation
UA31 Proof of Delivery Invalid
UA32 Failure to Verify Address
UA38 Documentation Illegible

Chargeback Category: Documentation Requests
Reason Code Explanation
6005 Documentation of Transaction
IC Illegible Documentation
IS Illegible Signature on Documentation
UA10 Receipt Request
UA18 Receipt Illegible

These codes help explain why a transaction was disputed.

A Warning about Chargeback Reason Codes

Chargeback reason codes were created in a pre-Internet era, and since the inception of the chargeback process, there have been very few updates. The system simply isn’t equipped to handle modern issues, like family fraud.

Sadly, shrewd consumers are finding loopholes to exploit the system and file illegitimate chargebacks. Members turn to Discover to dispute the transaction, rather than contacting the merchant for a refund.

Because friendly fraud and family fraud are cleverly hidden within erroneous reason codes, merchants find themselves wasting valuable resources to dispute and prevent the wrong issues. They blindly accept cardmember arguments supported by Discover, instead of determining the true cause behind the reason code.

Friendly fraud and family fraud need to be exposed by merchants. Then an effective management strategy must be implemented. Chargebacks911® uses Intelligent Source Detection™ technology to precisely determine the exact chargeback triggers. Let us know if you’d like to learn more about how Intelligent Source Detection can assist you with recouping and retaining more revenue.

Merchants’ broad spectrum prevention and representational tactics need to incorporate reason code analysis. With the help of the dedicated professionals at Chargebacks911, merchants can successfully manage chargebacks in line with Discover’s reason codes and guidelines.

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