Similar 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|
|NA||No Authorization Response|
|SV||No Gift Card Authorization Response|
|UA01||No Authorization Request-- Sale Invalid|
|UA02||Declined Authorization Response|
|Chargeback Category: Processing Error|
|8002||Credit Not Given|
|DP1||ATM Duplicate Changes|
|IN||Invalid Card Number|
|Chargeback Category: Cardmember Dispute|
|AL||Invalid Airline Card Sale|
|AP/4541||Automatic Payments After Expiration/Cancellation|
|AW||Charge Amount Altered|
|CA||Cash Transactions Invalid|
|EX||Charged After Expired|
|N||No Funds Received - ATM|
|P||Location/Amount - Cash Advance|
|RG/4755||Good Not Received|
|RN/4555||No Credit Given|
|TNM||Invalid Cash Advance|
|UA03||Authorized Amount Exceeded|
|Chargeback Category: Fraud|
|RN2||No Credit Given|
|TF||Regulations Not Followed|
|UA05/4866||Counterfeit Chip Card|
|Chargeback Category: Keyed Card|
|UA23||Card Imprint Invalid|
|Chargeback Category: Swiped Card|
|Chargeback Category: Card Not Present|
|UA31||Proof of Delivery Invalid|
|UA32||Failure to Verify Address|
|Chargeback Category: Documentation Requests|
|6005||Documentation of Transaction|
|IS||Illegible Signature on Documentation|
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.