Discover Chargeback Reason Code UA10: Fraud
Table of Contents
- What is Discover chargeback reason code UA10?
- What causes code UA10 chargebacks?
- What's the time limit to respond to code UA10 chargebacks?
- How can merchants fight code UA10 chargebacks?
- How can merchants prevent code UA10 chargebacks?
- About Discover chargeback reason codes
Merchants who receive a chargeback for a transaction placed with a Discover card may encounter reason code UA10, 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 may be true fraud, friendly fraud, or merchant error. Merchants who believe they have received an invalid chargeback under reason code UA10 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.
What is Discover chargeback reason code UA10?
Discover chargeback reason code UA10 falls under the “Fraud” category. The shorthand description is “Request Transaction Receipt (Swiped Card Transactions).” This reason code means that Discover is requesting documentation of a transaction.
This might indicate that the transaction signature isn't present or doesn't match the card signature, the merchant didn't obtain proper authorization, the card imprint is not legible or does not include the required security features, or the receipt or other transaction documents are illegible.
Issuers like Discover sometimes send retrieval requests in response to customer disputes, seeking to obtain additional information that can help them determine whether or not a chargeback is appropriate.
What causes code UA10 chargebacks?
In the most common scenario for code UA10 chargebacks, a cardholder reports an unauthorized card-present charge and Discover submits a retrieval request to the merchant. If the documents the merchant sends back bear evidence suggesting fraud or improper authorization, the issuer will file this chargeback.
Code UA10 chargebacks can also be caused by friendly fraud when the basis of the dispute is false. Some fraudsters may deliberately sign a receipt with the “wrong” signature to make it appear that an unauthorized third party made the transaction and forged their signature.
Merchant error can also contribute to this chargeback if documentation is not kept and maintained properly, the correct authorization procedures are not followed, or incomplete or incorrect documents are sent in response to a retrieval request.
What's the time limit to respond to code UA10 chargebacks?
The acquirer or merchant has 30 days to respond to a chargeback filed under reason code UA10.
How can merchants fight code UA10 chargebacks?
- Transaction documentation that includes a full and legible imprint of all security features required to be embossed on the card.
- A receipt showing a valid and legible signature from the cardholder or an authorized card user.
How can merchants prevent code UA10 chargebacks?
The best way to prevent code UA10 chargebacks is to respond promptly to retrieval requests with accurate, legible, and relevant documentation. To be able to do this, you must collect and maintain detailed records of every transaction.
The following best practices can help you avoid this kind of chargeback:
- Merchants and their acquirers must always send documentation within the time frame required by Discover.
- Always obtain proper authorization before processing a transaction.
- Make sure all card-present transactions are processed using an EMV chip reader. Manual keying should only be used in an emergency.
- Always obtain a card imprint or perform additional validation, such as PIN entry.
- Always obtain a legible signed transaction receipt, and provide the customer with a copy.
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.
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