Discover Chargeback Reason Codes Explained

Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. 

Discover is a credit card network and an issuing bank—just like American Express. So the company has more incentive to side with customer during cardholder disputes. 

If you get a chargeback from Discover, you can use this guide as a quick resource to identify the reason. 

Discover Cardholder Dispute Chargeback Reason Codes

AA — Cardholder Does Not Recognize

The consumer files a dispute claiming that they do not recognize the transaction that appears on their credit card statement. It commonly occurs if the buyer forgot about the purchase or did not recognize the billing description. 

AP — Canceled Recurring Transaction

The cardholder says they are still being charged for a recurring transaction that was previously canceled. This is a typical chargeback reason code for subscription businesses. 

AW — Altered Amount

The transaction amount and the authorization amount do not match. This Discover chargeback reason code includes transactions for cash advances. 

CD — Credit Posted as Card Sale

The card was debited instead of credited. This typically happens if the merchant made a mistake when processing a reversal. Instead of refunding the card, it gets charged again. 

DP — Duplicate Processing

One transaction was processed multiple times. It happens when the merchant submits more than one batch at the same or if the transaction has numerous receipts. This also occurs if there are duplicates of the sale in the merchant’s POS system. 

IC — Illegible Sales Data

The customer requested a sales receipt. One was provided; however, it was unreadable. An illegible receipt can be caused by low ink, colored paper, or problems with the printer.

NF — Non-Receipt of Cash From ATM

The cardholder did not receive the full cash amount due when making an ATM withdrawal. Faulty ATMs are the most common cause of this chargeback reason.

PM — Paid by Other Means

The customer was charged for a sale that was ultimately processed using another payment option. This usually happens when the merchant does not void a transaction after the cardholder uses another form of payment.

RG — Non-Receipt of Goods or Services

The cardholder claims that they did not receive the goods or services that were purchased. This usually occurs when there is a shipping or delivery delay.

RM — Quality Discrepancy

The customer files a chargeback claiming that the goods or services provided were damaged, defective, or did not meet the product description. 

RN2 — Credit Not Received

The customer returned merchandise or refused to accept delivery, but the merchant did not process the credit. This usually happens if there is a delay in the returns department, or the merchant has a no-return policy. 

Discover Authorization Chargeback Reason Codes

AT — Authorization Non-Compliance

The merchant processed a transaction without a positive authorization response. This can happen if the merchant processes a card without using electronic authorization or account verification.

DA — Declined Authorization

A declined transaction is sent for processing. This typically occurs if the merchant continues to attempt processing a card that has been declined or does not request authorization. 

EX — Expired Card

The cardholder files a chargeback because the credit card was expired at the time of the transaction. This can happen if the card was actually valid at the transaction time but expired prior to processing. 

NA — No Authorization Request

A Discover card transaction was processed without authorization. It can happen if the merchant fails to request authorization or waits too long before requesting authorization. 

Discover Processing Errors Chargeback Reason Codes

IN — Invalid Card Number

The credit card number used to process the transaction does not match with a valid account or does not match the cardholder. This can happen if the merchant mistypes the card number or processes an expired card from the cardholder’s account.

LP — Late Presentment

This happens if the transaction was not processed in a timely manner. The transaction was processed past the required time constraints. 

NC — Not Classified

The cardholder has claimed an invalid transaction that does not fall under any other Discover chargeback category code classification. 

Discover Fraud Chargeback Reason Codes

UA01 — Fraud/Card Present Environment

The cardholder claims that a fraudulent transaction occurred using their physical credit card. This can happen if someone else used the person’s card or the merchant processed the card present transaction without proper authorization.

UA02 — Fraud/Card-Not-Present Environment

The cardholder files a chargeback saying a fraudulent transaction occurred without the physical card present at the time of transaction. 

UA05 — Fraud/Counterfeit Chip Transaction

The cardholder says they did not participate in a transaction that was processed at an EMV chip terminal. This can happen if an unauthorized user made the transaction or if there was a problem with the terminal. 

UA06 — Fraud/Chip-and-PIN Transaction

The customer claims they did not participate in a transaction that was processed at a chip terminal that was not equipped with a PIN pad. In many cases, the merchant needs to upgrade to an EMV compliant terminal. 

UA10 — Request Transaction Receipt (swiped card)

The cardholder claims a transaction was fraudulent, and the issuing bank requests documentation from the merchant about that transaction. This can happen if the signature on the receipt does not match or other transaction documents can’t be read.

UA11 — Cardholder Claims Fraud (swiped, no signature)

A chargeback was filed by the cardholder because they claim the transaction was fraudulent. It can occur if the cardholder identifies a fraudulent charge when reviewing their statement, or the merchant does not have proper fraud prevention methods in place. 

Final Thoughts

Chargebacks can be a pain for merchants. But unfortunately, these are inevitable for anyone that processes credit card transactions.

If you get a chargeback from Discover, the first thing you need to do is identify the chargeback reason code. So keep this guide somewhere where you can quickly access it. 

Once you figure out what happened, you can take steps to dispute the chargeback or prevent this scenario from happening again.