Chargeback Reason Code

Discover Chargeback Reason Code CP: Not Classified

General Information about Reason Codes

In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Claims Resolution. Prior to this, Mastercardā€™s list of reason codes was long, convoluted, and confusing; now there are fewer than ten different reason codes relevant to most merchants. All the old reasons are still there, but theyā€™ve been grouped under more comprehensive ā€œumbrellaā€ codes.

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Discover Chargeback Reason Code CP: Not Classified

What is Discover Chargeback Reason Code CP?

The Discover chargeback reason code CP is used for chargebacks where the underlying cause cannot be classified under other reason codes. That means the cardholderā€™s claims cannot be categorized under a specific reason code. Chargebacks under this code can be confusing, mainly if the cardholder does not elaborate further for your understanding.

The Discover Network tries its best to categorize chargebacks with reason codes. It saves you time to review the message, trying to figure out what went wrong and the cardholderā€™s claims. Then, you can prepare your defense with appropriate evidence and a response to reverse the chargeback.

Sometimes, the dispute process can be long and tiresome, with back-and-forth movements by the cardholder. However, the cardholder can establish the invalidity of the transaction. The main reason remains vague, even to Discover.

Youā€™ll likely receive retrieval requests as Discover attempts to understand the disputed transaction better. Discover may have to process a chargeback under reason code CP as things get complicated. Hence, the code is reserved for complex, unprecedented, and unusual claims to an invalid transaction.

We prefer that you not receive chargebacks under this reason code, as it can be challenging to dispute them. Also, the cardholder might offer you little assistance to help you pinpoint the actual cause. You can still fight chargebacks under this reason code, but the process requires more care than other known reason codes.

Chargebacks under reason code CP can apply to online, telephone, offline, and mail orders. Similarly, they can occur for product sales or services. The disputed transaction can be any amount.

You can track the dispute through your Discover Network Dispute System. However, you might end up with little information on the cardholderā€™s claims. Feel free to request more details from Discover Network before responding.

Fighting chargebacks under reason code CP requires clarity. Hence, get as much information as you can. We will explain as much as possible why such chargebacks can occur.

Why Did It Happen?

Chargebacks under reason code CP occur when cardholders dispute transactions, but Discover Network cannot place them under other reason codes. In other words, the nature of the disputes differs from the reasons offered in other codes. However, the complaints are enough for Discover Network to escalate them to a chargeback.

We believe that chargebacks under this reason code will likely have the following causes:

  • Actual fraud: The nature of the fraud and how it occurred may be unclear enough to categorize them under fraud-related reason codes. However, Discover Network believes the transaction should be invalid. That will reflect as a chargeback against your business account.
  • Friendly fraud: Cardholders may file claims that are untrue and unclear. However, they can get away with winning a chargeback since the burden of proof is on you. Discover may process chargebacks even when the cardholder is attempting friendly fraud, knowingly or unknowingly.

We see friendly fraud in cyber-shoplifting. Here, the shoplifters will pay for your product or service and receive it but dispute the transaction afterward.

  • Merchant error: The cause of the chargeback might be an error on your end. However, Discover will classify the chargeback under the reason code CP if it cannot be placed under other categories.

The categories for chargebacks in the Discover Network include cardholder disputes, authorization, processing errors, and fraud. Other card networks have their preset categories.

Chargebacks under reason code CP can occur several months beyond the statutory 120 days allocated for disputes. Discover allows for 365 days. However, the dispute must begin within 120 days of the transaction.

Your next step should be to obtain as much information as possible. Good record-keeping can save you where you need to refer to transactions or communication in the past. You can contact the cardholder for more details.

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How to Fight Discover Chargeback Reason Code CP: Not Classified

It can be challenging to fight chargebacks under reason code CP. That is because there is no telling what the clear cause is. Discover Network boxes all transactions not qualifying for other categories into the ā€œnot classifiedā€ category.

We recommend addressing all points in the chargeback message. Provide evidence for each issue to counter the cardholderā€™s claim.

If that proves difficult, then you can approach the case by proving the validity of the disputed transaction. Hereā€™s what we recommend you do:

  • Submit evidence that the cardholder signed and received the products purchased. The signed receipt should include a description of the products, the date, and the transaction amount.
  • For services, submit evidence that the cardholder used the service after purchasing it.
  • Submit proof that proper verification was done on an EMV-enabled terminal when the cardholder purchased items at your store.
  • Submit proof that you conducted a CVV and AVS match for the disputed transaction. This is essential for online transactions.
  • Submit proof that the cardholder agreed to the charge when they purchased items or services from you. That could be a non-refundable security deposit. Provide a signed receipt indicating that the cardholder acknowledged the terms and conditions.
  • Submit proof of refunding the customer the disputed transaction amount. Your evidence should include the amount and transaction date.
  • Submit proof that you reached an alternative agreement with the cardholder regarding the disputed transaction.

How to Prevent Discover Chargeback Reason Code CP: Not Classified

As in the previous section, we will cover a generalized approach to preventing chargebacks. Since their underlying reasons are unclear, your preventive measures should be as comprehensive as possible.

The first thing to avoid is lengthy disputes. Try to resolve them as quickly as possible. Such disputes often result in chargebacks under this reason code as they become more complicated.

Other preventive measures you can use include the following:

  • Provide and collect delivery information for all your products
  • Provide excellent customer service and respond quickly to customer complaints
  • Keep records of all communication you have with the cardholder.
  • Ensure you have a flexible return policy and a straightforward approach.
  • Avoid customers who drag disputes out for lengthy periods.

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