Discover Chargeback Reason Codes

Discover Chargeback Reason Codes

When Discover receives a complaint from a cardholder about a billing error or the quality of products or services purchased with one of their cards, Discover may return the sale to the merchant for repayment. These returned charges are called “chargebacks.” Discover can charge back transactions to merchants within 180 days of the processing date.

Immediate chargebacks. Certain transactions can be immediately charged back by Discover. Following is a list of these immediate chargebacks:





The full contents of magnetic stripe were not included in the authorization. The transaction was processed with a counterfeit card with an altered magnetic stripe and the full contents of the magnetic stripe, including the Card Verification Value, were not present in the authorization request.


Declined Authorization The purchase was completed after the merchant received a declined authorization message.


Expired Card The card transaction was processed using an expired card.


Requested Item Illegible Copy The sales receipt provided in response to a ticket retrieval request is not legible.


Late Presentation Transaction The time from the transaction date to the date of processing exceeds the 60-day limit allowed by Discover, and the transaction cannot be promptly collected from the cardholder.


Non-Receipt of Requested Item The sales data was not provided within 20 business days in response to ticket retrieval request.


Split Sale A transaction requiring authorization was split into two or more sales to avoid authorization, and had the transaction been submitted for authorization, it would have been declined.


Service Establishment Adjustment The merchant violated general operating procedures not covered by other codes. A detailed explanation will be provided by Discover.

Pending chargebacks. In some cases, Discover notifies merchants of pending chargebacks. Merchants have 20 business days from the notice date to respond to such a notice, before Discover processes a chargeback. The 20-day notice period is given to merchants to try to resolve the dispute with their customer and avoid the chargeback. Following is a list of the reason codes for pending chargeback notices:





Altered Amount The cardholder claims that the purchase amount that was agreed on was altered after the cardholder signed the sales receipt and without the cardholder’s consent or direction. Only the difference is charged back.


Credit Posted as Sale The cardholder charged a sale rather than a credit.


Duplicate Processing The cardholder was charged more than one time for a single transaction.


Transaction Exceeds Floor Limit The transactions are at or above the merchant’s assigned floor limit, for which a required authorization was not obtained and which cannot, for whatever reason, be promptly collected from the cardholder.


Missing Signature The sales receipt is missing the cardholder’s signature and the cardholder does not recognize the sale.


Non-Receipt of Goods The cardholder was charged for goods or services, but never received the goods or services or canceled the transaction.


Cardmember Disputes Merchandise / Service The cardholder disputes the quality of merchandise purchased or service rendered or any portion of it.


Non-Receipt of Credit The cardholder claims that a credit issued by the merchant never posted to the card account.


No Imprint on Sales Slip The sales receipt is not imprinted with the card account number: the cardholder does not recognize the card sale.


Unauthorized Purchase Neither the cardholder, nor any party authorized by the cardholder, participated in the transaction and the cardholder has no knowledge of such a transaction.

Reversal of chargebacks. If the merchant is unable to resolve a customer dispute within 90 days from the date of the chargeback, the merchant can request a chargeback reversal. Provided that applicable laws allow Discover to re-bill its cardholder, reversals can only be processed if the merchant provides new information about the transaction at issue that was not available at the time of the original chargeback.

Image credit:

Add Comment

Read more:
Mobile Payments Volume Set to Quadruple by 2014
Mobile Payments Volume Set to Quadruple by 2014