Chargebacks are unpredictable. Until they aren’t. The issuing bank uses chargeback reason codes to label the crime, the parameters, and the proofs that can settle the matter. Once you learn the code, you can fight the urge to ignore it, fight recurring chargebacks, and fight the specific chargeback reasons that defraud you each month.
We’ll explain how chargeback reason codes work, why a single chargeback may appear as several on different card schemes, and how to format your response for a chargeback based on its specific reason.
What Chargeback Reason Codes Actually Tell You
A chargeback reason code is the bank’s shorthand for “why this happened.” It’s a category, a cardholder claim, and a guide to what happens next. More specifically, whether you get to fight it and what to say.
Even though two disputes may mirror one another, the codes vary by card network and by how the issuing bank defines the event. So it’s better to concentrate on the code than argue the story.
How Chargeback Reason Codes Differ By Card Network
Visa, Mastercard, American Express, and Discover use different codes and arbitration rules. Fraud, processing errors, and merchandise not received are chargebacks across all networks, but they have different names and deadlines. Your processor and gateway are probably also translating network codes into their own buckets, which can be confusing if you only trust the names you see on your dashboards.
The takeaway here is simple: anything you see in your portal should always be checked against the network definition. If your response is what the network is looking for, you will save yourself a lot of trouble and thank your lucky stars that you got it right!
The Four Buckets Behind Most Chargeback Reasons
Chargeback reasons fall into four buckets: fraud, authorization, processing errors, and consumer disputes. Fraud usually means that the cardholder claims they did not authorize the transaction. Authorization disputes usually indicate that the merchant did not meet authorization requirements, i.e., received no or a bad approval.
Processing errors usually indicate a merchant issue, such as duplicate charges, incorrect amounts, or delayed processing. Consumer disputes usually occur when the cardholder is unhappy with the outcome of a transaction, such as receiving something other than what was expected or having trouble canceling.
Fraud Chargeback Reasons And What “Unauthorized” Really Means
Fraud chargebacks are part of e-commerce because card-not-present transactions carry a greater risk. A cardholder may be a victim of credential theft or friendly fraud, in which a transaction occurred, but a dispute followed. In either case, you want to establish legitimacy with solid order data, good delivery data, customer history, and clear evidence of buyer involvement.
Fraud is the area of chargebacks where prevention is critical. Strong authentication, device intelligence, and effective post-purchase messaging reduce the risk that “I didn’t do this” becomes the default explanation.
Authorization and Processing Error Chargeback Reason Codes
Authorization disputes usually arise when a transaction fails to fit the square peg of approved parameters, or when a merchant insists on a transaction that the issuer sees as unable to comply in other ways. Processing errors are operational, “we should have caught this” issues, such as double-batching, late presentment, amount mismatch, or failure to properly void a transaction.
These reasons for chargebacks are usually among the easiest to address because they indicate a workflow issue you can address. The win isn’t just overcoming the dispute; it’s preventing the behavior that adds this chargeback reason code to the list over and over.
Chargeback Reasons That Seem “Unfair” But Are Predictable
Consumer disputes cover “not received,” “not as described,” “canceled,” and “credit not processed.” They spike in frequency where shipping times are unclear, return policies are buried, cancellations are hard, and support is slow. Most of them are preventable with prompt support and refund visibility.
If you run a subscription model, pay special attention to this. Clear billing descriptors, simple cancellation, and friendly renewal emails will address most recurring chargebacks.
How To Match Your Evidence To The Chargeback Reason Codes
The fastest way to lose a dispute is to submit the wrong type of evidence. All chargeback reason codes suggest a certain claim, and your evidence has to prove that claim wrong. If it’s code for “duplicate,” send over logs and transaction IDs and demonstrate that one was voided/refunded. If it’s “not received,” send proof of delivery, tracking, or other documentation. Treat your dispute like a flowchart. Code. Claim. Evidence. Prevention so it doesn’t happen again.
Prevention: Reduce Chargeback Reasons Before They Start
Chargebacks are a customer experience issue that has been escalated to a banking issue. The best prevention is setting expectations: recognizable descriptors, clear policies, realistic delivery expectations, and responsive support. The operational “second line of defense”: clean batching, proper amounts, and immediate processing of dups and voids. Finally, think of chargebacks as customer feedback. When you track chargeback reasons by category and product, you’ll quickly find the workflows that lead to repeat chargebacks and address the issue rather than just responding to alerts.
Examples: Six Chargeback Reason Code Scenarios And How To Respond
Unauthorized Card-Not-Present Purchase
This order was apparently not authorized and an issuing bank files the fraud dispute on the customer’s behalf. Your usual best defenses might be against order details, signals from the device or IP, signals from the billing and shipping addresses, and where applicable, delivery confirmation. If the customer has purchase behavior in your store, this may be helpful for context regarding an established usage pattern. If your evidence does not tie the cardholder to the transaction, look to prevent rather than to fight.
Duplicate Charge Or Double-Batched Transaction
The customer sees two of the same charge and disputes one as a duplicate. This is typically a result of double-capture or the transaction not being voided properly. The best case is to demonstrate that there was one sale and the second was accounted as reversed, voided, or refunded in a timely manner. In the future, focus on enhancing the batching & reconciliation process to ensure duplicates are identified before settlement.
Canceled Recurring Payment Still Billed
A subscriber claims they canceled but were billed again, and the dispute is categorized as a cancellation or recurring issue. Your reply shows their cancellation date, what they agreed to, what they could expect to be billed for after cancelation. If your cancellation flow is messy/slow, you’ll see disputes increase even with the right terms. Best defense here is swift cancellation and confirmation.
Goods Or Services Not Received
The product/service was never received, often due to an unrealistic commitment to when something would arrive or be done. Focus on the evidence of completion, messages regarding tracking, and messages to customer reflecting what they were supposed to get versus what came. If deliveries are long, definitely send notifications – otherwise “I never got it” becomes a bank problem. If it was a bad delivery, a timely refund is cheaper than a dispute.
Not As Described Or Defective Product Claim
The buyer claims not as described. These are difficult to win if not fully documented, as you are arbiting the gap in expectation of quality. You will want to focus on product page images, strong product descriptions, acceptance of terms by customers, and anything that shows support gave a resolution. Ideally, you want to limit any ambiguity in product description and make returns easy.
Credit Not Processed After Refund Promise
You promised a refund but the customer did not receive it in a timely manner so they disputed. Evidence will need to include credit transaction, date, amount, and the timeline on which you said it would be processed. Merchants lose these disputes all the time simply because credits were not sent in a timely manner or because the customer was not properly informed. An easy way to avoid this is to send a refund notice that details this information.
FAQs
Q: What are chargeback reason codes, and why do they matter?
A: Chargeback reason codes are the tags from the issuing bank and card network that describe why the chargeback was initiated. They tell you which rules apply, which deadlines matter, and which pieces of evidence are relevant. If you respond to a chargeback without reference to the code, you often submit the wrong proof and lose by default. The code also helps you spot issues that can be fixed to reduce disputes.
Q: Are chargeback reasons the same on Visa, Mastercard, American Express, and Discover?
A: The broad categories of chargeback reasons are similar, but each card network lists and names them differently. A fraud dispute on one network may be categorized or coded differently on another network, even if the story is the same. Processors sometimes layer their own code names on top of this, which can confuse the network about what it really expects. When in doubt, always go with the network’s definition.
Q: What is the most common mistake merchants make with chargeback reason codes?
A: The biggest mistake is to send documents that are too generic and do not address the dispute that is coded into the chargeback. For example, sending an invoice to defeat a “not received” dispute without delivery confirmation will usually fail. Missing a deadline is also common, resulting in a loss, even with substantial evidence. A proper workflow that starts with the code avoids both pitfalls.
Q: When should I refund instead of fighting a chargeback?
A: If the case is weak, the customer is right, or the dispute will repeat, then it can make sense to refund. Not every case should be fought, particularly if the disagreement stems from something else, such as shipping delays, vague policies, or lapses in customer service. The ideal path is to decide based on the code, the strength of evidence, and the future cost of fighting vs. refunding. Reducing repeat disputes is more valuable than winning a borderline case.
Conclusion
Armed with a basic understanding of chargeback reason codes, you can turn disputes from out of control to a manageable process. The reason code gives you the narrative of what the issuer believes happened, the evidence that counts, and what you need to improve to make sure this chargeback reason is not a recurring issue. Respond with the correct proof for the code and operational improvements, and you’ll consider chargebacks a regular, measurable ops challenge.
Sources
- Visa. “Dispute Management Guidelines for Visa Merchants.” Accessed January 2026.
- Mastercard. “Chargeback Guide, Merchant Edition.” Accessed January 2026.
- American Express. “Merchant Regulations.” Accessed January 2026.
- American Express. “US Disputes Reference Guide.” Accessed January 2026.
- Adyen. “Dispute Reason Codes and Defense Requirements.” Accessed January 2026.
- Sift. “Guide to Chargeback Reason Codes.” Accessed January 2026.
