Discover Chargeback Reason Code DP: Duplicate Processing

What is Discover Chargeback Reason Code DP?

The Discover chargeback reason code DP indicates chargebacks on duplicate transactions. These are transactions that involve the exact amount paid for the same reason. An example is when a cardholder purchases an item from you but is billed twice for the same product.

Processing terminals and banks have safeguards to prevent duplicate transactions. If a merchant tries submitting the payment the second time, it will return a duplicate error. Also, the authorization from the cardholder only holds for the first transaction.

That said, duplicate transactions can still occur, often due to a merchant error. It could be processing the same payment twice or more. Upon seeing them in their account statements, cardholders will report the duplicates to their issuers.

Sometimes, cardholders may contact you to sort out the issue. That lets you clear the air on the duplicates or process refunds where necessary. If that didn’t happen, the customers went directly to their issuing banks.

With sufficient evidence, the issuing banks will process chargebacks to balance the accounts. You’ll find more details on the chargeback in the message or on the Discover Network Dispute System. The platform allows you to track disputes and respond with documents or images.

Chargebacks involving duplicate transactions should be dealt with immediately. Receiving them often can place your business at risk of sanctions or undue attention. You may be viewed as fraudulent, attempting to rip off customers who provide only one authorization for a purchase.

If you have loopholes, as seen in the next section, now is the time to close them. Otherwise, proceed with disputing the chargebacks with appropriate evidence.

We’ll go through the possible causes of this chargeback. Note that the message might not pinpoint the exact cause. Always ask for more clarification before preparing documents for your defence.

Why Did It Happen?

Chargebacks with reason code DP occur when a cardholder reports a duplicate transaction to their issuing bank. Once the bank confirms that the transaction is duplicated (with the same amount and authorization), it will process a chargeback. That might happen with or without your knowledge.

Discover will contact you for more information if the cardholder’s reasons are inconclusive. That may not happen if the cardholder has enough evidence to prove the duplicate charge.

Most times, chargebacks involving duplicate processing occur for the following reasons:

• Multiple processing of a single transaction on a POS machine: This occurs in offline sales where the card is present. Sometimes, the first payment may have resulted in a timeout, prompting you to try again. Both transactions may go through, leaving a duplicate charge on the cardholder’s account.
• Submitting the same batch twice: You may submit the same batch of transactions more than once if you have doubts about the first one. It could be that the first processing did not occur as expected, prompting you to submit again to your acquirer. This will result in a duplicate charge if both are processed.
• Submitting two copies of an order receipt: The error of submitting the acquirer and merchant copies of an order receipt can cause multiple processes. It is rare, as payment networks require only one authorization per transaction. Nevertheless, it is still a valid reason.
• Depositing an order receipt to multiple acquiring banks for the same transaction

Besides the above reasons, friendly fraud can be behind chargebacks with reason code DP. A cardholder might forget that the second payment is part of an installment payment structure or recurring billing. Hence, they might dispute it with their bank, resulting in a chargeback.

Once you’ve discovered the reason behind the chargeback, you can dispute it effectively.

How to Fight Discover Chargeback Reason Code DP: Duplicate Processing

Disputing a chargeback successfully depends on how convincing your evidence is. You’ll have 30 days to gather evidence and respond to the chargeback. Otherwise, the chargeback will hold and become irreversible.

Your response should be any of the following:

• Proof that the order receipts are not duplicates but independently signed by the cardholder for different transactions. Even if the receipts have identical amounts, you can prove that the payments differ and that the cardholder was aware. Furthermore, the items could be similar but bought separately.
• Proof that the transactions are part of recurring billing or installment payments. You will also have to prove that the cardholder was aware of the nature of the transaction when giving authorization.
• Submit evidence of refunding the cardholder. That should contain the amount to show that it aligns with the disputed charge.

Besides the points mentioned above, you should study the chargeback message thoroughly. The issues raised may require specific documents to dispute the claims.

Ensure you sort out any unclear sections. Contact the card network for clarity and address all points carefully.

Inform the card network if you’ll need more than 30 days to present your evidence. Nevertheless, ensure it is a valid reason, as flimsy excuses will not be entertained.

How to Prevent Discover Chargeback Reason Code DP: Duplicate Processing

Merchant errors are often the cause of chargebacks with reason code DP. Hence, improving your operations should keep them at bay. Take precautions to prevent fraudulent transactions.

With that in mind, here are things you can do to prevent chargebacks with reason code DP:

• Review all transaction receipts before depositing. Doing this will help you spot duplicates quickly and issue a refund.
• Submit transaction batches one after the other. If you need clarification on the processing status of one batch, verify with your payment processor before resubmitting.
• Inform customers before the date of a recurring billing or installment transaction.
• Void all transactions if the cardholder wishes to switch to a different payment method. Inform the customer if payment has already been processed.
• Avoid forcing failed transactions, especially in card-present payments. Ask the cardholder for an alternative payment method.
• Process refunds immediately if you notice duplicate transactions
• Respond quickly to customer queries to sort out issues before they escalate to chargebacks
• Use proper fraud prevention tools on your payment terminals

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