Chargeback Reason Codes, Explained

Your 2025 Guide from Dispute.com

When a chargeback hits your account, it comes with a reason code—a short, alphanumeric tag explaining why the dispute happened. But here's the truth: these codes are often more confusing than helpful if you don’t know how to read them.

At Dispute.com, we break it down for you. Let’s decode chargeback reason codes by card network and show you how to actually use them to fight back—and prevent future disputes.

What Is a Chargeback Reason Code?

A chargeback reason code is a 2–4 character code (letters, numbers, or both) attached to a chargeback by the issuing bank. It’s their way of saying, “Here’s why we’re pulling this transaction.”

Each card network—Visa, Mastercard, Amex, Discover—has its own format. But at the end of the day, the reasons usually fall into four main buckets:

Fraud
Authorization issues
Processing errors
Customer disputes

Why it matters: The right reason code helps you decide whether to fight the chargeback, issue a refund, or fix a bigger issue in your checkout or customer experience.

Reason Code Rundown by Card Network

🔵 Visa

Visa groups reason codes in buckets:

10.1: EMV Liability Shift – Counterfeit Fraud
10.4: Fraud – Card-Absent Environment
11.3: No Authorization
12.5: Incorrect Amount
13.1: Merchandise/Service Not Received
13.2: Canceled Recurring Transaction
13.3: Not as Described/Defective Merchandise
13.6: Credit Not Processed

💡 Tip: Visa’s system is logic-based. Know your code, and you’ll know your next move.

🟣 Mastercard

Mastercard keeps things simple with 4-digit reason codes:

4837: No Cardholder Authorization
4841: Canceled Recurring Transaction
4853: Goods/Services Not as Described
4860: Credit Not Processed
4870: Chip Liability Shift
4834: Point-of-Interaction Error
4863: Cardholder Does Not Recognize – Potential Fraud

💡 Tip: Fewer codes = easier to analyze patterns. Use this to spot recurring risks.

🟢 American Express

Amex blends letters and numbers:

F14: Fraud – No Cardmember Authorization
C04: Goods/Services Returned or Refused
C08: Goods/Services Not Received
C31: Goods/Services Not as Described
C02: Credit Not Processed
C28: Canceled Recurring Billing
P01: Duplicate Charge

💡 Tip: Amex disputes often trace back to shipping or service issues. Keep your customer comms tight.

🟠 Discover

Discover uses mostly 2-letter codes:

UA02: Fraud – Card Not Present
UA06: Fraud – Lost/Stolen
DP: Duplicate Processing
RM: Product Not as Described
RG: Merchandise Not Received
RN: Credit Not Processed
CI: Canceled Recurring Transaction

💡 Tip: Discover leans consumer-first. DTC brands—lock down your return and fulfillment strategy.

What Can Reason Codes Teach You?

💡 More than you think. Reason codes are your blueprint for prevention. They reveal:

Recurring fraud? Upgrade with tools like 3DS2, AVS, and velocity checks.
Authorization issues? Revisit your processor settings or talk to your PSP.
Customer complaints? Improve product descriptions, shipping timelines, and refund policies.

Tracking codes monthly helps you see trouble before it costs you.

When Should You Fight a Chargeback?

If the reason code doesn’t match the reality—you’ve got a strong case. Dispute.com helps you:

✅ Match codes with transaction logs ✅ Gather compelling evidence ✅ Submit a professional, timely representment

We handle the full fight. You keep the revenue.

Bottom Line: Know the Code. Defend the Sale.

In 2025, chargeback reason codes aren’t just internal tags—they’re actionable insights. When you know what the banks are saying (and how to clap back), you take control of the narrative.