The issuing bank received a claim from the cardholder that merchandise or services ordered were not received or that the order was cancelled due to the delay in the delivery of merchandise or services. The most common causes of this chargeback reason code are when services are not provided, merchandise is not shipped, transaction is billed prior to shipping the merchandise or when merchandise is not sent by the agreed upon delivery date.
Most Common Causes
Did not send the goods/service by the agreed delivery date.
Didn’t clearly mention the expected shipping date and arrival date for the order.
Didn’t deliver the goods or provide the service as per in the agreement.
Billed the cardholder before delivering the merchandise.
Didn’t make goods available for pick-up upon agreement.
- If the merchandise was delivered by the agreed upon delivery date, provide details of delivery or evidence of delivery, such as a delivery receipt signed by the cardholder or delivery confirmation that the merchandise was delivered to the correct address.
- If the merchandise has not been delivered yet, there is a set delivery date, provide a copy of the sales receipt, invoice, or other information showing the expected delivery date.
- If the merchandise was delivered after the agreed upon delivery date, provide the shipment date or expected delivery date or proof of delivery and acceptance by the cardholder at the correct address.
- If services were rendered, provide the date services were completed and evidence that the customer acknowledged receipt (signed sales receipt, invoice, etc.)
If delivery of goods or services are delayed, advise or notify the customer in writing and make available an expected shipping date. Provide the cardholder the option if he wants to continue with the order or cancels it.
For future delivery of Goods or services, clearly mention the expected shipping date and delivery date on the invoice or order receipt.
For services rendered, provide a signed order receipt or invoice showing receipt of services.
For delivered merchandise, no need to provide order receipts until the product has been shipped.
Communicating with the Cardholder:
Clear lines of communication for chargeback reason code between the merchant and the cardholder are a vital component to successful credit card processing. When cardholders do not recognize a charge or have difficulty reaching the merchant with questions, it opens the door to cardholder disputes and chargebacks. Written communications with the cardholder via email or print can be a powerful aid to keeping the lines of communication open and can provide the merchant with additional protection in the event of a chargeback or dispute.
Linda ordered a new dress online. It’s been over the time frame of the merchant’s shipping policy and she didn’t receive the dress yet. Now Linda has two options, either contact the merchant and request the information on her dress, OR contact her bank and start a dispute with Reason Code 30: Services Not provided or Merchandise Not Received.