Reason code

This code is used when Discover initiates a Good Faith Investigation (GFI) in response to a cardholder's dispute that falls outside the standard chargeback timeframes. GFIs allow for disputes to be addressed even after the typical deadlines have passed, often up to two years after the original transaction. If the merchant accepts liability during this process, a chargeback is processed under this reason code.

To address a chargeback under reason code 4762/6040:

• Evaluate the Validity of the Dispute: Review the transaction details and any related documentation to determine if the cardholder's claim is valid.​
  
  
• Decide on Liability Acceptance: If you believe the dispute is legitimate, you may choose to accept liability, resulting in the chargeback being processed.​

• ‍Provide Evidence if Contesting: If you believe the transaction was valid and wish to contest the chargeback, submit compelling evidence such as proof of delivery, transaction receipts, or communication with the cardholder demonstrating the legitimacy of the transaction.

To minimize the occurrence of chargebacks under reason code 4762/6040:

• Maintain Detailed Transaction Records: Keep comprehensive records of all transactions, including receipts, invoices, and any correspondence with customers. This ensures that information is readily available if a dispute arises, even long after the transaction date.​

• Implement Robust Customer Verification Processes: Utilize strong customer authentication methods during transactions to reduce the risk of fraudulent activities that may lead to disputes.​

• ‍Monitor Transactions for Unusual Activity: Regularly review transaction patterns to identify and investigate any anomalies that could indicate fraudulent behavior.