Chargeback Reason Codes: Visa, Mastercard and Amex Explained

A chargeback reason code is the short label a cardholder's bank attaches to a dispute to say why the charge is being challenged. It tells you which evidence to gather, which part of your business to check, and whether the dispute is worth fighting. Each card network uses its own format: Visa uses numbers like 13.7, Mastercard uses four-digit numbers like 4837, and American Express uses alphanumeric codes like C02. This guide shows how each system is organized, what the most common codes mean, and how to turn a code into a response.

TL;DR

• A reason code explains the bank's classification of the dispute, not necessarily the cardholder's real reason. Read the code first, then the full notice.
• Visa codes use a two-digit category, a period and one more digit (10 Fraud, 11 Authorization, 12 Processing errors, 13 Customer disputes).
• Mastercard often uses one base code with modifiers for specific scenarios, so the same four digits can call for different evidence.
• American Express codes are alphanumeric (for example C02 and C28), and the network publishes a guide with required actions for each.
• Match your evidence to the exact code. Generic proof sent against a specific claim is the most common reason a good case fails.

Table of Contents

• What a chargeback reason code actually is
• The four families almost every code belongs to
• Visa chargeback codes
• Mastercard chargeback codes
• American Express chargeback codes
• Discover and other networks
• How to look up a reason code and build a response
• When the reason code is not the real reason
• Using codes to find patterns
• Why chargebacks are a cash flow problem too
• Our perspective
• Keeping cash steady while disputes are open
• FAQ
• Sources

What a chargeback reason code actually is

When a customer disputes a charge, the issuing bank sends the dispute through the card network to your processor. A code travels with it. According to the Sift reason code encyclopedia, reason codes are numeric codes that the customer's bank typically provides in a dispute notification to explain the cause, which helps merchants build a better case to resolve or settle it.

Two points matter in practice.

First, each major card company creates its own codes. Visa, Mastercard, Discover and American Express each maintain a separate list, and the same encyclopedia notes that codes may be changed or abandoned over time. A list you printed three years ago may no longer match the notice in front of you. Treat any third-party table, including this one, as a starting point and confirm against your processor's current documentation.

Second, the code is a classification, not a verdict. A customer who simply forgot a subscription may be coded as unauthorized. A customer who is unhappy with a delivery may be coded as "not as described." The code decides which rules the bank follows and what evidence the network will accept, so you answer the code that was filed, even when the real story is different.

The four families almost every code belongs to

Networks word them differently, but nearly all reason codes fall into the same broad families:

Stripe groups each payment method's dispute codes into eight categories based on the general claim and the evidence needed to challenge it. That is a useful way to think about it even if your processor is different: every code points to a claim, and every claim has a matching type of proof.

One caution from dLocal's documentation: such categories are grouped for informational purposes and are not returned in dispute responses. In other words, the family name may not appear on your notice. The code itself will.

Visa chargeback codes

Visa is the network most small merchants meet first. Its format is simple once you see it. As Solidgate's reason code reference explains, Visa codes have two digits, a period and a third digit, and the first two digits give the category: 10 for Fraud, 11 for Authorization, 12 for Processing errors and 13 for Customer disputes.

So a code that starts with 10 is a fraud claim, and one that starts with 13 is a customer dispute. Before you read a single word of the description, you already know whether you are defending a transaction's legitimacy or the quality of what you delivered.

Visa Claims Resolution and the current code set

In April 2018, Visa introduced changes to the dispute process called Visa Claims Resolution (VCR). According to Kount's summary, VCR came with new reason codes in four categories: Fraud, Authorization, Processing Errors and Consumer Disputes. If you see older five-digit-style or two-digit Visa codes in an old spreadsheet, such as the numeric "53" that shows up in search results, they belong to the pre-VCR system. Use the decimal format for any dispute you receive today.

What Visa reason code 13.7 means

Code 13.7 is a good example of how specific a code can be. It applies when the cardholder's bank receives notice that merchandise was returned or services were cancelled, but the credit has not appeared on the cardholder's Visa statement (Solidgate).

The timing rule matters too. For disputes processed on or after October 16, 2021, Visa's rule clarifications say an issuer must wait 15 calendar days from the date the merchandise was returned or the services were cancelled before starting a 13.7 dispute.

What this means for you:

• If you received the return and issued the refund, send proof of the refund with its date and the amount.
• If the refund was issued less than 15 calendar days before the dispute was initiated, that timing may be part of your response.
• If you never received the return, send tracking data and your return policy as it was shown to the customer at purchase.
• If you did refund but the customer has not seen it, the processor's credit record is your best exhibit.

Other Visa codes you are likely to see

The four families give you a quick read on any Visa code you meet. In the 10 range, expect questions about whether the cardholder made the purchase. In the 11 range, expect authorization problems. In the 12 range, expect something wrong with how the transaction was recorded. In the 13 range, expect a complaint about goods, services or credits. Look up the exact condition in your processor's reference tables before you respond, because the evidence each one accepts is different.

Mastercard chargeback codes

Mastercard uses four-digit numeric codes. Two you will often see are 4837 and 4853. A published reference list describes 4837 as a fraud code where the cardholder says they never authorized, made or benefited from the transaction.

Code 4853 is broader. Sift reports that Mastercard often uses transaction modifiers to specify the exact circumstances of a general dispute code, so one base code like 4853 can cover several specific scenarios. The practical lesson: do not respond to "4853" alone. Read the full notice for the modifier or the description your processor attaches, and answer that.

Mastercard publishes its own Chargeback Guide for merchants. The May 13, 2025 edition has separate chapters for Dual Message System and Single Message System chargebacks and lists supporting-documentation requirements by dispute type. If you accept debit and credit cards from a standard terminal, your processor will tell you which system your transactions run through. Check that first, then use the matching chapter.

American Express chargeback codes

American Express uses alphanumeric codes. Its Disputes Reference Guide for US merchants lists the codes, assigns them categories such as Authorization and Consumer Disputes, and explains what each code means and how to respond. Two of the most common are:

• C02, Credit Not Processed. The cardholder says a refund or credit they were owed never arrived.
• C28, Canceled Recurring Billing/Goods Not as Described/Defective/Damaged. A bundle of complaints about cancelled recurring billing or goods that were not as described, defective or damaged.

The guide also sets out required actions for each code. Keep a copy bookmarked and use it alongside your own processing statements, because Amex disputes are often handled directly with the network rather than through a third-party acquirer, depending on how your account is set up.

Discover and other networks

Discover also publishes its own list, and the same rule applies: the code is specific to the network. If your processor supports regional or alternative payment methods, expect more lists. Adyen's documentation, for example, has reference tables that show, for each scheme, whether a chargeback is defendable and, if so, the time frame from receiving the notification. Whatever processor you use, find the equivalent table and note the response window for each code, since a strong case filed late is as good as no case.

How to look up a reason code and build a response

The lookup itself takes a minute. The response takes preparation. Use this sequence each time a notice arrives.

1. Copy the code and the network. Note whether it is Visa, Mastercard, Amex or Discover. The same digits mean different things on different networks.
2. Find the code in a current reference. Start with your processor's documentation, then the network's own guide. Reach's guidance is plain on this point: evidence should be tailored to the specific reason code provided in the notification.
3. Note the deadline. Your processor's notice carries the due date. Put it on your calendar the day it arrives.
4. Pull the transaction record. Order details, authorization data, receipts, shipping or service records, and every message with the customer.
5. Decide whether to defend. If the claim is accurate, such as a refund you never issued, refunding and accepting the dispute can cost less than a fight you will lose. If it is not accurate, defend.
6. Submit evidence that answers the claim. One clean, organized packet beats a pile of documents.
7. Record the outcome and the cause. The code is a data point. Patterns across codes tell you where your process is leaking.

Evidence by claim

When the reason code is not the real reason

The code the bank files does not always match what happened. Some customers choose "unauthorized" because it feels like the quickest route to a refund, even when they recognize the purchase. Others dispute a charge because they did not recognize the descriptor on their statement, not because anything went wrong.

This matters for two reasons. You must answer the code as filed, since the network evaluates your evidence against that claim. And you should look underneath it for the operational cause. A cluster of credit-not-processed disputes points at your refund process. Repeated fraud-coded disputes on card-present sales point at your terminal setup. Our guide on verifying EMV compliance at your terminals walks through the checks worth running. Repeated disputes from people who do not recognize the charge point at your billing descriptor and your confirmation emails.

For a fuller prevention plan, see our chargeback prevention tips for small business merchants, and the 30/60/90-day plan that starts by fixing billing. If you want to set up alerts and measure the return on dispute work, the article on small business chargeback management covers it.

Using codes to find patterns

Once a month, export your disputes and tally them by code family. A short table is enough:

Then ask three questions:

• Which family is growing? Rising fraud codes suggest a checkout or terminal problem. Rising customer-dispute codes suggest a fulfillment, communication or refund problem.
• Which codes do we lose most often? If you consistently lose one code, your evidence is likely mismatched to it, or the claim is valid and you should fix the cause instead of fighting.
• Which products, locations or staff are involved? Concentrations show you where to train or change policy.

This habit turns a stream of annoying notices into a map of your weakest processes. It also gives you records to show your processor if you ever need to explain your dispute history.

Why chargebacks are a cash flow problem too

A chargeback does not just reverse a sale. You typically lose the sale amount while the dispute is open, and processors commonly charge a fee per dispute, so a handful of cases in a slow month can squeeze a small operation. Contractors, restaurants and retailers who run tight on working capital feel this quickly, particularly when a large order is disputed after the goods have been delivered and the materials already paid for.

Keeping a cash buffer or a standby credit source for these gaps is part of sound dispute management. It lets you defend disputes properly instead of giving in to a refund you don't owe because you need the cash now. Processing costs matter here as well; our guides on what small merchants pay in interchange fees and on cutting credit card processing fees are good places to review your overall card costs.

Our perspective

We work with small business owners in many industries, from contractors and electricians to restaurants and flower shops, and one pattern repeats: owners treat a chargeback as a one-off annoyance, then discover it has become a monthly drain on cash.

Reason codes are the cheapest information a merchant gets. They arrive free with every dispute and say exactly where the process broke. We encourage owners to read them as a diagnostic report, sort them by family, and fix the biggest cause first.

We also believe a business that can absorb a few disputes without panic makes better decisions. When working capital is tight, owners refund claims they could win, or delay paying suppliers. Having flexible funding in place, such as a business line of credit or working capital loan, is designed to give you room to defend legitimate sales and keep operating while a dispute is open.

Our aim is simple: help you stay funded, stay paid and keep growing, even when banks and credit unions say no.

Capital

Keeping cash steady while disputes are open

If disputed funds are holding up payroll, supplier payments or inventory, Capital for Business offers working capital loans and other funding options for small businesses across the US. Working capital loans start from 1.5% per month, and a business line of credit starts from 1.2% per month. We position our funding as faster than a typical bank process, with funding as soon as 24 hours, and as available to a broad range of credit profiles.

If you want a revolving cushion you can draw on only when you need it, see our business line of credit. To explore all options in one place, start from our homepage.

FAQ

What are the most common chargeback reason codes?

The most common ones fall into fraud and customer-dispute families. Examples include Visa 13.7 (credit not processed), Mastercard 4837 (no cardholder authorization) and Amex C02 (credit not processed) or C28 (cancelled recurring billing, goods not as described, defective or damaged). Your own mix depends on your industry and sales channels, so tally your own notices monthly.

Do Visa, Mastercard and Amex use the same codes?

No. Each network creates and maintains its own list, and codes can be changed or retired over time. Visa uses a decimal format like 13.7, Mastercard uses four digits like 4853, and American Express uses alphanumeric codes like C02. Always check which network the dispute belongs to before looking up the code.

Where can I look up a reason code?

Start with your processor's dispute documentation, which usually lists each code, whether it can be defended and the response time frame. Then check the network's own guide: Mastercard publishes a Chargeback Guide for merchants, and American Express publishes a Disputes Reference Guide. Match your evidence to the specific code and any modifier.

Does the reason code always match why the customer disputed the charge?

Not always. The code is the bank's classification, and customers sometimes choose a category that isn't accurate. You still answer the code that was filed, with evidence that fits it, and then look for the real cause in your records so you can prevent repeat disputes.

Sources

• Reason code encyclopedia (Sift)
• Chargeback reason codes (Solidgate documentation)
• Updates and Clarifications to Dispute Rule Language (Visa)
• Visa Claims Resolution (VCR) Codes (Kount)
• Chargeback Guide Merchant Edition (Mastercard)
• Mastercard chargeback reason codes list (Chargeflow)
• How to Manage and Help Prevent Disputes (American Express)
• Dispute reason code categories (Stripe Documentation)
• Dispute reason codes (Adyen documentation)
• Reason codes (Reach documentation)
• Chargeback categories (dLocal documentation)

Recommended

• Chargeback Prevention Tips for Small Business Merchants
• 30/60/90 Chargeback Prevention for Small Businesses: Fix Billing First
• SMB Chargeback Management: 24–72 Hour Alerts, ROI