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Settlements

Chargebacks decoded: the 6 codes that eat your check

Chargebacks decoded: the 6 codes that eat your check

What each deduction code actually means, and which ones are worth a dispute.

Marcus Delgado

tortilla route, Fresno CA

9 min read

Every deduction on a settlement carries a code, and most distributors never learn what they mean. That’s a mistake — a handful of codes account for the vast majority of money pulled back from your check.

Which codes are worth the fight

Learn the six or seven your company uses most, keep a note of what each one should look like, and question anything unfamiliar. Miscoded chargebacks are the most disputed line on any settlement, and the most often won.

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