Chargeback Reason Code List: How to Read Each One
A chargeback reason code is the label an issuer puts on a dispute. Here is how Visa, Mastercard and Amex sort their codes, and what the common ones mean.
A dispute notice lands on your desk. Somewhere on it sits a short label like 10.4, 4837 or F29. That label is the chargeback reason code, and it is the first thing to read before you answer. This page explains what the codes are, how each network sorts them, and what the common ones mean.
What a chargeback reason code is
When a cardholder asks their bank to take money back, the bank has to say why. The issuer attaches a code to the dispute to state the reason the cardholder gave.
Reading it right is the first step in responding. The code tells you what the cardholder claims happened. It points to the kind of evidence that answers that claim.
The code is not the whole story, though. It is the issuer's label for the cardholder's claim. Your job is to match the code to what the cardholder says, then show your records for that exact claim.
How each network labels its codes
The three major networks do not share one system. Each has its own codes and its own way of grouping them.
Visa uses numbered dispute conditions grouped into categories. The categories include Authorization, Processing Errors and Consumer Disputes. A Visa code has two parts. The first number names the category. The second names the condition inside it. So 10.4 sits in category 10, and 12.5 sits in category 12.
Mastercard uses four-digit codes. Mastercard reason code 4837 is No Cardholder Authorization. Mastercard reason code 4849 is Questionable Merchant Activity. Mastercard lists both of these among its fraud-related chargebacks.
American Express uses letter-number codes. Reason code F29 is Card Not Present, and it sits in the Fraud group. Reason code C31 covers goods and services not as described. Reason code P08 covers duplicate charges. Reason code R03 is Insufficient reply.
This is why the same dispute type carries different codes on different networks. Visa 10.4, Mastercard 4837 and Amex F29 each deal with a fraud claim, in each network's own words. The label changes with the network.
Fraud reason codes
Visa dispute condition 10.4 is Other Fraud: Card-Absent Environment. Under 10.4, the cardholder says they did not make or allow an online, mail order or phone order purchase. For a closer look at that one condition, see the page on chargeback reason code 10.4.
Mastercard reason code 4837 is No Cardholder Authorization. Mastercard groups it with its fraud-related chargebacks. The claim behind it is that the cardholder never agreed to the charge.
Amex reason code F29 is Card Not Present, and it is in the Fraud group. F29 means the Card Member denies taking part in a charge, or denies receiving or benefiting from it.
Authorization and processing error codes
The codes below are about how the sale was processed.
Visa dispute condition 11.2 is Declined Authorization. It belongs to Dispute Category 11, which is Authorization. Under 11.2, the merchant finished a sale after the authorization request got a decline or pickup response. In plain terms, the system said no, and the sale went through anyway.
Visa dispute condition 12.5 is Incorrect Amount. It belongs to Dispute Category 12, which is Processing Errors. Under 12.5, the charged amount is wrong, or an adding or digit swap error happened. The cardholder is not disputing the purchase. They are disputing the number.
Amex reason code P08 is Duplicate charge. P08 means the same charge was submitted more than once. A cardholder who paid once and sees the same line twice on a statement will raise this one.
Consumer dispute codes
The codes below are about the goods or services themselves.
Visa dispute condition 13.1 is Merchandise/Services Not Received. It belongs to Dispute Category 13, which is Consumer Disputes. Under 13.1, the cardholder made the purchase but never got the goods or services from the merchant.
Amex reason code C31 is Goods/services not as described. C31 means the Card Member says the goods or services differ from the written description given at purchase. Here the fight is over what was promised against what arrived.
Inquiry and response codes
Not every code names a cardholder complaint. Some name a failure on the merchant side of the process.
Amex reason code R03 is Insufficient reply. R03 means the merchant did not provide complete support or documents as requested. The cardholder's claim may have been answerable. The dispute was lost because the answer itself fell short.
R03 is a warning for any merchant building a response. An inquiry asks for specific documents. Sending some of them, or sending the wrong ones, can cost the dispute even when the sale was clean. Read what the notice asks for, and send all of it.
What to do when a code lands on your desk
Start with the code itself. Write down what it says the cardholder claims. Then gather the evidence that claim calls for.
An inquiry response code asks for the complete set of documents the notice requested.
Match the code to the claim before you write anything. A delivery receipt answers a 13.1 claim. It does nothing for a 10.4 claim, because the cardholder in a 10.4 dispute never said the goods failed to arrive. They said the order was never theirs.
For the background on why a dispute starts at all, see the page on chargeback reason.
Where to go next
This page covers the system. The site has deeper pages for codes merchants see often.
See also this code page and this Mastercard code page. For the Visa card-absent fraud condition, see chargeback reason code 10.4.
The next time a dispute notice arrives, start with the code. It tells you what the cardholder says happened. Everything you send back should answer that claim and nothing else.