Reason Code AP – Recurring Payments

Reason Code



Service Dispute


Why did I receive this chargeback?

The cardholder claims you processed a recurring transaction after they requested a cancellation or you processed a recurring transaction after the payment plan was supposed to end.


How long can the issuer wait to file a chargeback?

The maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days.

However, the timeline may be extended if the issuer first submitted a retrieval request. If the retrieval request process finishes after the 120 day deadline, the issuer will have an additional 30 days to file a chargeback.


What compelling evidence is needed to respond?

Examples of compelling evidence that you may submit in response to a chargeback with this reason code include:

  • Proof that the cardholder authorized each of the transactions charged to the account
  • Proof that the cardholder did not attempt to cancel the payment plan or proof that the cancelation attempt wasn’t in accordance with your policy
  • Proof the cardholder did not cancel the payment plan at least 15 days before the disputed transaction
  • Proof that your policies state the cardholder still must pay the amount charged even if the payment plan is cancelled
  • Proof that the chargeback is invalid because it doesn’t adhere to Discover’s requirements
  • Proof you have already refunded the transaction and credited the cardholder’s account


How can I avoid this chargeback in the future?

  • Always respond to retrieval requests on time and with the required information. 
  • Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
  • Send a notification after you’ve cancelled the recurring payment.
  • If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
  • Clearly and concisely communicate your terms and conditions for recurring transactions. 
  • Make it easy for customers to find your cancellation policy. 
  • Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.

Reason Codes by Brand

Ready to Start Preventing
& Fighting


Set up your
demo experience.

analytics-imac@2x analytics-imac

Sign up for
news & updates.

©2023, Equifax Inc., All rights reserved. Equifax and the Equifax marks used herin are trademarks of Equifax Inc. Midigator is a trademark of Equifax Inc. Other product and company names mentioned herin are the property of their respective owners.