What Does My Chargeback Reason Code Mean?

The short answer: a reason code is the label the customer's bank puts on the dispute to say what the customer claims: that they did not authorize the payment, did not receive the order, cancelled, and so on. It tells you which claim you have to answer. It does not tell you whether the claim is true.

Key points

• Each card network has its own codes. Your processor groups them into plainer categories.
• The code decides what kind of proof is relevant.
• Answer the claim that was made, not the one you think the customer meant.
• The code is a claim, not a verdict.

Where do I find the code?

On the dispute itself. On Stripe, "you can see the corresponding category or reason in your Dashboard", and the network's own code "is available on the dispute object". Other processors show it on the dispute notice or the dispute's page.

You will usually see two things: a category in plain words, and the network's code behind it. Stripe's categories page maps one to the other, and the tables below are taken from it.

What does an "unauthorized" code mean?

A hypothetical claim: a cardholder sees a $75 online order on their statement and tells the bank, "I did not make this purchase."

Stripe's category is Fraudulent: "This is the most common reason for a dispute and happens when a cardholder claims that they didn't authorize the payment." A close relative is Unrecognized, which Stripe calls "effectively indistinguishable from the Fraudulent reason."

What is relevant: records that tie the purchase to the real cardholder. Stripe's list includes address and card-code verification results, the purchase IP address, and for physical goods a shipping address that matches a verified billing address. Stripe also lists "evidence of one or more non-disputed payments on the same card".

What to know: Stripe says "this is a difficult dispute type to win because in many cases the reason for the dispute is correct." If the card really was stolen, there is nothing to prove.

What does a "not received" code mean?

A hypothetical claim: a customer orders a $60 lamp and tells the bank, "It never arrived."

Stripe's category is Product not received: "The customer claims they did not receive the products or services purchased."

What is relevant: for goods, proof that the order was delivered to the address the customer gave. For a service, Visa's rule asks for evidence that "the Cardholder or an authorized person received services at the agreed location or by the agreed date/time". Our guide to fighting a chargeback for services covers the case with no tracking number.

What to know: proof that you shipped is not proof that it arrived. The claim is about receipt.

What does a "cancelled subscription" code mean?

A hypothetical claim: a customer is charged $29 for a monthly plan and tells the bank, "I cancelled this last month."

Visa's own rules title the condition "Dispute Condition 13.2: Cancelled Recurring Transaction". Stripe's category is Subscription canceled: "The customer claims that you continued to charge them after a subscription was canceled."

What is relevant: Stripe says the way to overturn it is to show that "the subscription was still active and that the customer was aware of, and did not follow, your cancellation procedure." It asks for your cancellation policy "as shown to the customer", how and when it was shown before purchase, and any renewal notice you sent.

What to know: if the customer did cancel and was charged anyway, the claim is correct. Refunding is the honest answer.

Is the code always right?

No. It records what the cardholder told the bank, in the bank's categories. A customer who did not recognize your name on the statement may be filed as fraud. A customer who is unhappy with the product may say it never came.

Answer the claim that was filed, because that is the one the bank will judge. Use what you know about the real story to decide whether to fight at all.

What should I do once I know the code?

1. Read the category and the network code on the dispute.
2. Check your own records for what happened.
3. If the customer is right, accept it.
4. If they are not, gather the kind of record that claim calls for, and respond before the date on the dispute. On Stripe, "you've only one opportunity to submit your response."

Where does ChargePilot fit?

ChargePilot reads the reason on each dispute and builds the response from your own records, with a person on our team reviewing it. It works with any payment processor. There is no monthly fee to fight disputes: you pay 15% of what we recover, only when we win. Every price is on one page, and more answers are on the questions page.

Questions and answers