Chargeback Reason Code

Discover Chargeback Reason Code NR: Not as Described or Defective Merchandise

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, Mastercard’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 they’ve been grouped under more comprehensive “umbrella” codes.

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Discover Network Chargeback Reason Code NR: Not as Described or Defective Merchandise

What is Discover Network Chargeback Reason Code NR?

Cardholders will always compare the merchandise delivered with what they saw at the store or the e-commerce site. The Discover Network chargeback reason code NR will apply when a cardholder disputes the merchandise as damaged or not matching the description. You will receive a chargeback message with that code, indicating a service dispute.

This chargeback reason code can occur in online orders and in-shop purchases. Online orders are particularly crucial, as the cardholder can easily submit pictures of the product description and what was delivered. Discover Network will escalate the dispute to a chargeback with reason code NR if it finds many differences.

We’ve seen buyers receive items that do not match what the merchant promised on the checkout page. Hence, most cardholders remain skeptical of their orders until they arrive.

The best approach would be to contact you and complain about the disparity. Color differences can cause a buyer to return the merchandise or report it as “not as described.” The other side of these returns will be delivering defective merchandise.

You may not be in control of your merchandise once it leaves your warehouse or storage unit. Goods can get damaged in transit. Hence, prepare to deal with customer complaints.

While we expect customers to report any damaged products to you, some contact their issuers directly. Also, failure to attend to their requests for a replacement or a refund can cause them to contact their issuers.

Chargebacks with this reason code often arise from merchant error. That includes any third-party delivery service that may cause damage to the products in transit, knowing or unknowingly. Nonetheless, some cardholders may capitalize on Discover Network’s policies to receive the merchandise while getting their money back.

Disputes of this nature require a thorough investigation. It is up to you to determine if the products were damaged before they arrived at the cardholder’s pickup point. Similarly, it is up to you to determine if the delivered product differed significantly from the product description.

There’s no reason to fret when you receive chargebacks under this code. The worst-case scenario is to accept the chargeback and move on with your business. Nevertheless, we’ll show you how to dispute the chargeback and prevent it from happening.

Why Did It Happen?

Chargebacks with reason code NR occur when a cardholder complains about receiving a different or defective product. They are unique and should be taken seriously. Delivering a different product than what you described on your website can be akin to fraud.

That aside, here are the plausible reasons that will prompt Discover Network to escalate disputes to chargebacks under this reason code:

  • Delivered merchandise differed from description: The product page is the cardholder’s primary way of identifying the delivered product. That includes color, dimensions, brand, model, and other items included in the packaging. Missing items can also warrant disputes that result in chargebacks under this reason code.

This category extends to telephone orders where you gave verbal descriptions. Again, the cardholder will compare the delivered product with what you said over the phone.

  • Defective merchandise: Broken handles, deformed parts, and broken pieces fall into this category. Any damage that reduces the product’s ability to perform its purpose qualifies as a defect. Hence, expect returns and chargebacks if this happens to the cardholder’s orders.

Situations involving defective merchandise can be tricky. We say that because you may have done quality control before sending it out. Products can get damaged in transit while shipping or making the final road trip to the cardholder’s pickup point.

Poor-quality products can also qualify for chargebacks under this reason code. That will happen if the quality differences come because of differences from what you described on your product page. We understand that quality can be subjective.

Buyer’s remorse is a thing, and some cardholders may experience it. They may opt for chargeback claims since they do not qualify for a return under your policy.

Cyber-shoplifters can cause chargebacks under this reason code. These individuals do this purposefully to enjoy your item without paying for it.

How to Fight Discover Network Chargeback Reason Code NR: Not as Described or Defective Merchandise

You might need to contact the cardholder to be clear on the cause of the chargeback. That is if Discover Network doesn’t offer a satisfactory response. Either way, your response should be within 30 days to have any chance of reversing the chargeback.

There’s no way out if you send a different product from the one described on your page. The best approach is to accept it and restore the relationship with your buyer. Outside of that, follow our recommendations below:

  • If the merchandise matches your description: Submit a copy of your checkout page or the transaction receipt along with the product’s description. Match that with the product’s pictures to show their physical comparison.
  • For quality disputes: Provide a copy of your quality certification before the product leaves your warehouse. Compliment that with the cardholder’s acknowledgement of your quality level.
  • If you have yet to receive the merchandise: Submit evidence to show that you have yet to take delivery of the returned product. Attach your return policy to show that you only issue refunds after receiving and inspecting the merchandise. This approach will help you deal with cyber-shoplifters.
  • If you sent a replacement: Prove that you sent a replacement for the item. The proof should also include the cardholder’s acknowledgement of the replacement.

You can still dispute chargebacks under this code if you issue a credit refund or reach an alternative agreement with the cardholder. Submit evidence of these transactions, including the date and amount.

How to Prevent Discover Network Chargeback Reason Code NR: Not as Described or Defective Merchandise

Here are some things you can do to prevent chargebacks under reason code NR:

  • Monitor your shipped products to ensure they arrive safely.
  • Have insurance policies against damaged goods in transit.
  • Test all products for defects before shipping them.
  • Compare all products with their online descriptions before shipping them.
  • Update your product pages to match new stocks.


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