Reason Code

What a reason code is

A reason code is an identifier attached to a payment event. It gives you a specific explanation, such as a card transaction being declined or a cardholder disputing a charge. The organization or system handling that event defines what each code means.

There is no single code list that applies to every payment. A code used in a card transaction response does not necessarily mean the same thing in a card dispute or an ACH return. Treat the code and its accompanying description as a pair.

A reason code only makes sense in the payment system that assigned it.

The code depends on the payment context

For a card dispute, the code identifies the cardholder's claim. For example, Visa 13.6 means Credit Not Processed, 12.6.1 means Duplicate Processing, and 10.4 means Other Fraud, Card Absent Environment. Mastercard uses its own codes, including 4860 for Credit Not Processed and 4834 for Duplicate Processing. A chargeback reason code is this specific dispute category, not every kind of reason code.

A transaction response code explains a processing result instead. In one response-code system, 100 means successful, 110 means partial approval, and 234 indicates a configuration error. These examples are system-specific, so do not assume a number has the same meaning across processors. An ACH return code belongs to a separate code set for returned bank payments.

How to use a reason code

Start by identifying whether the code refers to a dispute, a transaction response, or an ACH return. Then read the full message and check the transaction record. For a dispute, match your evidence to the claim: a Credit Not Processed claim calls for refund and credit records, while a goods-not-received claim calls for delivery or fulfillment records.

For a response code, follow the action tied to that outcome. A partial approval, such as code 110 in the example system, means the approved amount is less than the requested amount. Before resending after a timeout or uncertain result, verify the transaction status so you do not create a duplicate charge.

What a reason code means for your business

A reason code is not itself a processing fee or a rate. Its financial effect comes from the event it describes: a decline blocks that attempted sale, a partial approval leaves part of the requested amount unpaid, and a dispute can put the sale proceeds at risk.

For a chargeback, the code helps you identify the claim and prepare a response, but the cardholder's bank decides the dispute. Keep receipts, refund records, customer messages, delivery confirmation, and service or usage logs so you can support the facts behind the transaction.

What you can actually change

You cannot change the code assigned by a card network or payment system. You can improve how quickly your team identifies the payment context, checks transaction status, and responds with evidence that addresses the stated reason.

• Record the code, its full description, and the payment context in your transaction notes.
• Check transaction status before retrying an uncertain payment to avoid duplicate charges.
• Keep receipts, refund records, customer communications, and fulfillment or service records together.
• For disputes, organize evidence around the specific claim named by the chargeback reason code.

1. 01
   Identify the context. Label each code as a dispute, transaction response, or ACH return before choosing a response.
2. 02
   Verify the transaction. Check the payment record before retrying a declined, timed-out, or partially approved transaction.
3. 03
   Save supporting records. Store refund, fulfillment, and customer records where your team can retrieve them for a dispute.

Frequently asked questions