3.5 - Winning & Preventing Credit Card Chargebacks in E-commerce (Difficulty: Advanced | Path: Scale)

Understanding Chargeback Reason Codes

What is it?

When a customer files a chargeback, their bank assigns a 'reason code' that explains the claim. This is the official 'accusation' against you. You cannot win a chargeback unless you understand what you're being accused of.

Why is it important?

Your evidence *must* directly refute the specific reason code. Sending the wrong evidence is an automatic loss. For example, if the claim is 'Product Not Received', your proof of delivery is the key. But if the claim is 'Product Unacceptable', your proof of delivery is useless; you need to show your product page and return policy.

The Most Common Reason Codes for E-commerce

Reason Code	What It Means	Your Key Evidence to Win
Fraudulent	'I don't recognize this charge; I never made it.'	Proof of delivery to the customer's *billing address*, AVS/CVV match data, IP address match.
Product Not Received	'I paid, but the item never arrived.'	Proof of Delivery. The tracking number showing 'Delivered' to the customer's address.
Product Unacceptable	'The item was defective, not as described, or I tried to return it.'	Screenshots of the product page, a clear link to your return policy, and any emails with the customer.
Unrecognized	'I don't know what this charge is for.'	Your clear billing descriptor (e.g., 'SP * YOUR BRAND') and proof of delivery.

Always identify the reason code first. It's the key that unlocks your entire defense strategy.