Skip to main content

​
Overview

Reason codes are used to communicate the outcome of an alert to the card networks. When you receive a CDRN or Ethoca alert, you action it by updating the alert with one of the reason codes below. Selecting the correct reason code ensures accurate reporting and helps prevent future chargebacks.
Every alert arrives with a status (reason_code) of WIP (Work In Progress). This is the default state on receipt and is not a reason code to be used in the update endpoint.

​
Resolved Codes

These are special reason codes that instruct the issuing bank to not move forward with a chargeback. When one of these codes is sent, a standard operating procedure (SOP) is followed at the issuer level which prevents a dispute from being filed.
CodeDescription
ResolvedThe alert has been resolved and a refund will be issued to the cardholder. This is the most common resolution and tells the issuer to stop the chargeback process.
AlreadyRefundedThe transaction was refunded prior to the alert being transmitted. This tells the issuer a refund is already in place, so no chargeback should be filed. This code is eligible for credit.

​
Decline Codes

Decline codes indicate the alert is being declined and no refund will be issued. Declining an alert will result in a chargeback, so use these codes carefully.
CodeDescription
UnmatchedCannotFindTransaction *The specific transaction referenced in the alert cannot be found in your system. Not eligible for credit.
AlreadyChargeback *The transaction has already resulted in a chargeback, so there is no need to refund via the alert. Not eligible for credit.
Ineligible *A generic decline code indicating the alert is not eligible for a refund. The main use case is when you simply do not want to refund the cardholder, but the alert is otherwise valid. Not eligible for credit.
MIDLostThe Merchant ID (processing account) associated with this transaction has been lost or terminated. Not eligible for credit.
TDSTransaction was 3D Secure (3DS) verified. Occasionally you may want to decline fraud-coded alerts on 3DS-authenticated transactions. Not eligible for credit.
EscalateChargebackThe merchant is declining the alert and accepting that it will escalate to a chargeback. Use when you have evidence to fight the dispute. Not eligible for credit.
NotMyDescriptorThe billing descriptor on the alert does not belong to your merchant account. Not eligible for credit. ⚠️ Monitored — If alerts are actioned with this code, the descriptor may be automatically unenrolled. Use with caution; most implementations will not use this code.
* These are the most commonly implemented decline codes.

​
Best Practices

For best results, action alerts as Resolved within 48 hours of receiving them. Some banks escalate alerts to chargebacks as quickly as 48 hours after the alert is created.

​
Notes

  1. Only use decline codes when necessary — Declining alerts will result in chargebacks, which negatively impact your chargeback ratio.
  2. Be careful with decline codes — Once you action an alert, you cannot reliably “re-action” it. Make sure the decline code is correct before submitting.
  3. When in doubt, use Resolved — If you’re issuing a refund, Resolved is almost always the correct choice.
  4. Use AlreadyRefunded when applicable — If the transaction was already refunded before the alert arrived, this code provides better data to card networks and is eligible for credit.