The Consumer Dispute’s Tale

Backspace Tech
4 min readJul 5, 2024


Card Networks like Visa, Mastercard, etc have classified disputes into 4 categories such as:

Fraud Related

Processing Error Related

Authorization Related and

Consumer Related Dispute

But Wait!

Did your heart skip a beat at the sight of this?

Take a deep breath, we’ll simplify it for you!

Wondering what is the objective of this blog?

To simplify Consumer Dispute, no matter the Network.

Before we get into the specifics, let’s look at the different terms used for consumer dispute across the network.

Consumer Dispute name across Networks

Nicknames conquered!

Now, let’s tackle the big picture!

Forget wrestling with different card network specifications for consumer disputes!

We’ve got a clear, 11-category framework that simplifies consumer disputes across the board.

Consumer Dispute Framework


1. Goods/Services Not Received

This category applies when a cardholder pays for something (goods or services) but doesn’t get it entirely, on time, or at all. This includes situations where the item never arrives, arrives late, or the service is incomplete (e.g., missing items, or unfinished work).

Different names across card networks:

  • Merchandise/Services not received (Visa)
  • Goods/Services not provided (Mastercard)
  • Non-receipt of goods/services (Discover)
  • Goods/Services not received or only partially received (Amex)
  • Goods or services not provided/not received — Services were not provided or goods not received by the cardholder (Rupay)

2. Canceled Recurring Transaction

Canceled Recurring Transaction covers situations where a cardholder is charged for a subscription or service they already cancelled, or for which they never explicitly authorized recurring payments. This includes both cases where the cardholder actively canceled and situations where the merchant keeps billing without clear permission for ongoing charges.

Different names across card networks:

  • Canceled recurring transaction (Visa)
  • Cardholder dispute of a recurring transaction (Mastercard)
  • Canceled Recurring Transaction (Discover)
  • Canceled Recurring Billing (Amex)

3. Goods/Services Not as Described/Defective

This category applies when a cardholder receives something significantly different from what was advertised or promised. It includes situations where the item is defective, malfunctions, or doesn’t meet the seller’s description (e.g., wrong size, damaged, missing features).

Different names across card networks:

  • Not as described/defective merchandise/services (Visa)
  • Goods/ services not as described/defective (Mastercard)
  • Quality discrepancy (Discover)
  • Goods/Services not as described, and Goods/services damaged or defective (Amex)
  • Goods and services not as described, or cardholder received defective goods or services (RuPay)

4. Counterfeit Merchandise

Counterfeit Merchandise refers to situations where a cardholder believes they received a fake or imitation product instead of the genuine item they purchased. This can involve replica brand names, logos, materials, etc.

Different names across card networks:

  • Counterfeit merchandise (Visa)
  • Counterfeit goods (Mastercard)

5. Misrepresentation

This arises when a cardholder feels misled about a product or service. They claim the advertising or description contained false information, causing them to purchase something different than expected. Misrepresentation is exclusive only to the Visa network.

6. Credit Not Processed/Received

Credit Not Processed/Received involves situations where a cardholder asserts, they were owed a credit that was not issued by the merchant. This includes cases where the cardholder did not receive an expected refund for returned items or refused delivery of goods/services.

Different names across card networks:

  • Credit not processed (Visa)
  • Credit not processed (MasterCard)
  • Credit not received (Discover)
  • Credit not processed (Amex)
  • Credit not processed for canceled or returned goods and services (RuPay)

7. Cancelled Goods/Services

Credit Not Processed/Received covers situations where a cardholder canceled an order or returned merchandise, but the merchant failed to issue a refund or cancel the transaction. This includes canceled orders and returns where the merchant didn’t process the credit.

Different names across card networks:

  • Cancelled merchandise/service (Visa)
  • Credit not received (Discover)
  • Goods/services Cancelled (Amex)
  • Credit not processed for canceled or returned goods and services (RuPay)

8. Original Credit Transaction (OCT) Not Accepted

This dispute happens despite a cardholder’s attempt to cancel or void a transaction and receiving a receipt confirming the cancellation, the cancellation was not properly processed. OCT not accepted applies to Europe and inter-regional areas only and this is exclusive to the Visa network.

9. No Show Charge

No-show charge applies to situations where a cardholder booked a hotel participating in a guaranteed reservation program, canceled properly, but still got charged. It also covers disputes about missing refunds for deposits (CARDeposits) related to lodging reservations.

Different names across card networks:

  • No-show hotel charge (Mastercard)
  • No show or CARDeposit canceled (Amex)

10. Addendum Dispute

When an extra charge is added to a legitimate transaction without the cardholder’s approval, an addendum dispute happens. This could be intentional fraud or an honest mistake by the merchant and it is exclusive to the Mastercard network.

11. Vehicle Rental

This involves disputes related to charges incurred during vehicle rentals. It includes claims where a cardholder alleges incorrect billing for capital damages to a rented vehicle or disputes charges for theft or loss of use of the vehicle. This is exclusive to the Amex network.


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Backspace Tech

Backspace Tech offers Fintech-as-a-Service to automate,simplify, and disrupt the payment industry by handling chargeback requests through a plug-and-play model.