Table of Contents
- What is Discover chargeback reason code DP?
- What causes code DP chargebacks?
- What's the time limit to respond to code DP chargebacks?
- How can merchants fight code DP chargebacks?
- How can merchants prevent code DP chargebacks?
- About Discover chargeback reason codes
Merchants who receive a chargeback for a transaction placed with a Discover card may encounter reason code DP, which indicates an improperly authorized transaction that the cardholder does not believe they should be responsible for paying. The actual underlying cause of this chargeback is usually either friendly fraud or merchant error. Merchants who believe they have received an invalid chargeback under reason code DP may be able to represent the transaction and reverse the chargeback with the right compelling evidence.
What is Discover chargeback reason code DP?
Discover chargeback reason code DP falls under the “Services” category. The shorthand description is “Duplicate Processing.” This reason code is used when a merchant submits a single transaction more than once, creating duplicate charges on the cardholder’s account.
What causes code DP chargebacks?
Code DP chargebacks are usually caused by some mistake in transaction processing. If the mistake was on the part of the payment processor, they will take responsibility for the chargeback. More often, however, the mistake is on the merchant's end.
A merchant may erroneously key in an identical transaction twice, or they may submit a batch repeatedly because they aren’t sure that it went through the first time.
Sometimes a cardholder will change their mind about their payment method and provide cash or a different card, but the merchant mistakenly goes ahead with the transaction on the card originally provided as well.
In some cases, code DP chargebacks can be the result of friendly fraud. Cardholders who see two similar charges on the same statement may jump to the conclusion that they’ve been double-billed, when in fact they are looking at two legitimate installment payments or recurring billing transactions.
What's the time limit to respond to code DP chargebacks?
The acquirer or merchant has 30 days to respond to a chargeback filed under reason code DP.
How can merchants fight code DP chargebacks?
Merchants can fight code DP chargebacks if they have evidence proving that the two charges were legitimate, separate purchases.
Your chargeback response should include one of the following items:
- Separate transaction receipts, authorized by the cardholder (and signed, if applicable), for the amount of each transaction.
- Proof that the transactions were separate and valid recurring charges that the cardholder agreed to pay.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
How can merchants prevent code DP chargebacks?
If you find yourself accidentally processing duplicate transactions, it is important to stop and review your procedures to determine why such errors are occurring. It may simply be a matter of needing clearer procedures, more extensive staff training, or better payment processing systems.
Friendly fraud is a more difficult problem to solve—if any of your customers are trying to mitigate their binge shopping habits by filing fraudulent chargebacks, block them and don’t look back.
The following tips can help you avoid these chargebacks:
- Review your transaction receipts before depositing.
- Submit batches one at a time. If you’re not sure whether a batch needs to be resubmitted, ask your payment processor.
- Send customers advance notice of recurring or installment payments that might look identical to previous transactions.
- When customers want to switch payment methods on a transaction in progress, void it and start over.
- If you accidentally process a duplicate transaction, reverse it or process a credit immediately.
- Train staff on the proper procedures for processing payments and credits.
About Discover chargeback reason codes
Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid.
When a cardholder contacts their issuing bank to dispute a transaction and receive a chargeback, the dispute is assigned a reason code that most closely matches the substance of the cardholder’s claims. The reason code provides the merchant and other stakeholders in the dispute with a concise explanation for why a chargeback has been granted.
Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands.
As both a card network and an issuer, Discover specifies 26 reason codes under the categories of Fraud, Not Classified, Authorization, Expired, Processing Errors, Services, and Dispute Compliance. Most of Discover’s reason codes are a two-letter abbreviation of the dispute description.
Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. With this information, you can determine the root causes of your chargebacks and take action to prevent them from reoccurring.