Discover Updates Chargeback Rules



Discover has announced that it will no longer allow merchants to use a card imprint as a defense against a chargeback. Merchants have the choice to accept a key-entered transaction or request a different form of payment.

As a result of this change, Discover has also updated its Dispute Rules:

  • Issuers can longer use UA02 – Card Not Present Fraud on In-App tokenized card sales when an “authentication successful” CAVV result was received.
  • CAVV results, when present in authorization, must be submitted in settlement to avoid loss of dispute protection.

Merchants will benefit from added protection during In-App card sales when fully authenticated, and should be aware of increased liability for key-entered transactions and make decisions accordingly.


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