Reason code

Reason code P05 occurs when the cardholder is charged an amount that differs from what they agreed to at the time of purchase. Common causes include data entry errors, incorrect tips, or changes not approved by the cardholder.Merchants should ensure price accuracy and that any changes to the transaction amount are properly communicated and authorized.

If there was no error: 

• Provide supporting documentation, such as screenshots of web pages or signed receipts, that show that the customer agreed to the amount

If you did make a mistake, invest in a chargeback management solution, so you can get pre-chargeback alerts, allowing you to process the refund before it becomes a chargeback.

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The best way to prevent this type of dispute is through communication. Most people are honest, but when they see a charge they do not understand, they are more likely to seek help from their bank rather than a business owner. You can mitigate this by: 

• Training your staff on how to use point-of-sale terminals correctly

• Training your staff on how to obtain proper authorization (e.g., signed invoices)

• Training your staff on how to patiently walk customers through their bills, so they understand all of the charges.

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