Chargeback Reasons
Discover the most common reasons for chargebacks and how to prevent them to protect your business from financial losses and customer disputes.
What are the different chargeback reasons?
All chargebacks fall into 4 categories.
Fraud Used when a customer does not recognize the transaction and believe their card has been compromised.
Authorization Used when proper authorizations weren’t completed prior to settling the transaction.
Processing Error Used when a customer experiences incorrect transaction processing.
Consumer Disputes Used when a customer has an issue with the product or service they purchased.
Each of these categories has their own subcategories called chargeback reason codes and need specific evidence to support the claim that the transaction is legitimate. Below are the most common chargeback reason codes:
- Fraud
- Service Not Provided/Merchandise Not Received
- Canceled Recurring Transactions
- Not as Described or Defective Merchandise
- Refund Not Processed
- Duplicate Transaction
