Reason code

This code is used when Discover believes your transaction violated one or more of its operating rules. That could be due to improper authorization, prohibited business practices, or ignoring required processing guidelines. It’s often used in edge cases where something about the transaction doesn’t follow Discover’s rules, even if the cardholder participated in the purchase.

To address a chargeback under reason code 4757, check the chargeback notice carefully: it should give some indication of what rule may have been violated. From there:

• Review how the transaction was processed (authorization, settlement, delivery, etc.).
  
  
• If you followed Discover's rules, submit the supporting documents that show you handled it correctly—like transaction logs, policy disclosures, or confirmation that your MCC is permitted.
  
  
• If you find a mistake on your side, accept liability or issue a refund to resolve it.

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To minimize the occurrence of chargebacks under reason code 4757:

• Know what’s allowed: If you're in a high-risk category or operate under special conditions, make sure your business is approved and your MCC is accurate.
  
  
• Stay up to date: Discover may revise its rules without much fanfare. Check for updates regularly or subscribe to rule change alerts through your processor.
  
  
• Follow through on requirements: If Discover requires certain things (like AVS checks, extra terms at checkout, or specific refund timelines), follow them.

• Document internal compliance: Keep records of policy changes, rule confirmations, and staff training logs so you can show you were following the rules if asked.