Chargeback Reason Codes Explained (for Shopify Merchants)

🪄Ashwin, Founder of ChargebackWiz·July 6, 2026

Every chargeback arrives with a reason code. It's the single most important thing on the dispute.

And most merchants never look at it.

They open the dispute email, see the amount, get angry, and start writing a response about how unfair this is. The reason code sits right there at the top, telling them exactly what evidence would win. Ignored.

So this post is the breakdown I wish existed when I started reading merchant chargeback responses. What each code means, what the bank actually checks for it, and what to send.

What a reason code actually is

When a customer disputes a charge, their bank has to file the dispute under a category. Visa, Mastercard, Amex and Discover each have their own numbering systems for this. Visa 10.4 is card-absent fraud. Mastercard 4853 is a cardholder dispute. There are dozens of them.

You don't need to memorize any of that.

Shopify Payments translates the network codes into plain-English reasons before you see them. So instead of "Visa 13.1" you see "Product not received." Same dispute, readable label.

The part that matters: the reason code decides your evidence checklist. A bank reviewer picks up your case, looks at the code, and checks whether your evidence answers that specific claim. Not whether you sound right. Whether the checklist is satisfied.

Different code, different checklist. Here's each one.

Fraudulent

The claim: the cardholder says they never made this purchase. Stolen card, compromised number.

This is the most common code on Shopify — and the one most likely to be friendly fraud: a real customer who forgot the purchase, didn't recognize your billing descriptor, or wants the item free.

The reviewer is checking one thing: is there a credible link between the cardholder and this order?

Evidence that wins

✓AVS and CVV match results — the person who ordered knew the billing address and the code on the back of the card.

✓Customer history — previous undisputed orders from the same account, email, or device.

✓Delivery to the cardholder's own address — shipping address matches billing address.

✓Usage after purchase — logins, downloads, or a second order after the disputed one.

If shipping and billing addresses match and AVS passed, say so in the first line. That combination alone wins a large share of friendly-fraud disputes.

Product not received

The claim: the customer paid, but says the order never arrived.

The reviewer wants proof of delivery — not proof of shipment. A label scan means nothing; a delivery scan to the right address means everything.

Evidence that wins

✓Tracking number with a "delivered" scan — from a recognized carrier.

✓Delivery address matching the order — spell it out explicitly in your response.

✓Signature confirmation — if you have it, this is close to decisive.

✓For digital goods: download logs, access timestamps, IP address at time of use.

Watch the timing: if the customer disputed before your stated delivery window even closed, point that out. Banks side with merchants when the claim was filed prematurely.

Product unacceptable / not as described

The claim: the item arrived, but it was damaged, defective, or materially different from what was advertised.

This is the code where your product page from the purchase date decides the outcome. The reviewer compares what you promised with what the customer says they got.

Evidence that wins

✓The product page as it appeared at purchase — description, photos, specs, sizing charts.

✓Your return policy — and proof it was visible at checkout.

✓Customer correspondence — especially if they never contacted you before disputing, or refused a replacement.

✓Quality-control records — photos of the item before shipping, if you have them.

Key argument: most networks expect the customer to attempt a return first. If they skipped straight to the bank, say so.

Subscription canceled

The claim: the customer says they canceled a recurring charge but was billed anyway.

Evidence that wins

✓Cancellation logs — showing no cancellation happened before the charge, or that it happened after the billing date.

✓Your cancellation policy — and proof the customer agreed to it at signup.

✓Usage during the billed period — logins or orders after the alleged cancellation.

Credit not processed

The claim: the customer returned the item or was promised a refund, and it never arrived.

If the refund genuinely wasn't issued and should have been, refund it — don't fight it. Fight when the claim doesn't match your records:

Evidence that wins

✓Proof the refund was already issued — with date and amount.

✓Proof no return ever arrived — no return tracking, no receipt at your warehouse.

✓Your refund policy — and evidence the request fell outside it.

Duplicate / unrecognized

The claim: the customer was charged twice, or doesn't recognize the charge at all.

For duplicates: show the two charges are for two separate orders — different order numbers, items, or timestamps. If it genuinely was a double charge, refund one immediately.

"Unrecognized" is usually a billing-descriptor problem. Respond like a fraud dispute (link the cardholder to the order), and fix your descriptor so it matches your store name.

The takeaway

Winning a chargeback isn't about writing a passionate defense. It's about reading one field — the reason code — and answering its checklist, line by line, before the deadline.

That's mechanical work. Which is exactly why it should be automated.

Fight every reason code automatically

ChargebackWiz reads the code, assembles the matching evidence packet, and submits it before your deadline. You only pay when we win.

Install free on Shopify