Chargeback Reason Codes

Chargeback reason codes are alphanumeric identifiers included in a chargeback notification, explaining the reason behind a dispute. These codes are established by the major card networks, including American Express, Discover, Mastercard, and Visa. Additionally, other payment providers such as Braintree, Stripe, and PayPal have their own classifications of reason codes. However, the issuing bank ultimately determines the dispute category based on the card network that issued the payment card.

Reason codes offer insight into why a particular chargeback has been raised and, more importantly, outline the specific documentation a merchant needs to provide to contest the dispute effectively. To maximise the chances of a successful response, it is essential to submit compelling evidence in line with the guidelines set by the relevant card network.

Each chargeback is typically assigned a reason code, which should be carefully reviewed to understand why a transaction, product, or service has been disputed. By interpreting the reason code correctly, merchants can build a strong case to challenge the chargeback and improve their chances of a successful resolution.