Chargeback Management Services - Dispute Response Oct/ 12/ 2025 | 0
Chargebacks are a constant threat to businesses in 2025, but understanding the most common chargeback reason codes and knowing how to deal with them can significantly minimize their impact. Let’s dive into the major chargeback reason codes and how to effectively address them to protect your revenue and reputation.
What are Chargeback Reason Codes?
Chargeback reason codes are standardized codes used by card networks (Visa, MasterCard, American Express, etc.) to categorize the reasons for chargebacks. Each code represents a particular issue that leads to a chargeback. For businesses, understanding these codes is crucial for preventing and resolving chargebacks swiftly.
Most Common Chargeback Reason Codes & Solutions
Here are some of the most common chargeback reason codes businesses encounter and the steps to resolve them:
1. Fraudulent Transaction (Reason Code 10)
- Cause: The cardholder claims they did not authorize the transaction.
- Solution: Use advanced fraud detection tools, ensure clear billing descriptors, and provide proactive customer support. Additionally, verify the cardholder’s identity during high-risk transactions.
2. Unauthorized Transaction (Reason Code 11)
- Cause: The customer denies making the purchase or claims it was a mistake.
- Solution: Keep detailed transaction records, such as IP addresses, device information, and authorization logs, to dispute these claims effectively.
3. Goods/Services Not Received (Reason Code 13)
- Cause: Customers claim they did not receive the purchased goods or services.
- Solution: Provide clear shipping and delivery confirmations, including tracking numbers and time-stamped delivery receipts. For services, offer documented proof of service completion.
4. Cancelled Recurring Billing (Reason Code 10.2)
- Cause: Customers initiate chargebacks after canceling a subscription but continue to be charged.
- Solution: Ensure clear communication with customers about subscription cancellations and offer easy ways for them to manage their subscriptions.
5. Duplicate Charge (Reason Code 14)
- Cause: A customer is charged twice for the same transaction.
- Solution: Double-check transactions to ensure no duplicate charges occur. Implement systems to catch duplicates before the transaction is processed.
6. Credit Not Processed (Reason Code 15)
- Cause: A customer claims they were promised a credit or refund but never received it.
- Solution: Maintain a clear process for issuing refunds, and provide customers with proof of credit processing.
How to Prevent Chargebacks in the Future
While dealing with chargebacks is important, preventing them in the first place should be your priority. Here are a few strategies to reduce the occurrence of chargebacks:
- Strengthen Fraud Prevention Measures: Use advanced fraud detection tools to identify suspicious transactions early.
- Offer Clear Billing Descriptors: Make sure your billing descriptors match what customers will recognize.
- Enhance Customer Service: Ensure your customers have easy access to support and are satisfied with their purchases.
- Keep Detailed Records: Always retain records of transactions, communications, and deliveries, which can help you during chargeback disputes.
Email us anytime!
Email customer service 24/7
Call us anytime!
Reach customer care 24/7 at +1 (888) 927-5152
Conclusion
Chargebacks are an unavoidable part of doing business in 2025, but understanding and effectively dealing with common chargeback reason codes can help reduce their frequency. By staying proactive, improving communication with customers, and investing in fraud prevention tools, you can protect your revenue and maintain your business’s reputation.
