Understanding Discover Chargeback Reason Code LP: Late Presentation

Unexpected lags between authorisation and settlement can trigger Reason Code LP. This page explains what the code means, why it happens, how long each party has to act, and the best steps to fight or avoid these disputes. Use the guidance below to protect revenue and maintain good relationships with customers and issuers.

Key Takeaways

• What it means: A transaction reached Discover after the permitted processing window had closed.
• Causes: Merchant delay. System outages. Cardholder’s account changing status before settlement.
• How to respond: Show proof that processing met network deadlines or that the cardholder agreed to the delay.
• How to prevent: Submit sales promptly. Update terminals. Use authorisation holds. Try out Chargeback alerts for early warning.

What is a Discover Reason Code LP Chargeback?

Reason Code LP sits in Discover’s “Processing Errors” group. It applies when a sale is completed but the clearing data arrives too late. Every card payment follows two distinct steps: authorisation and presentment. Authorisation checks that the card account is active, has funds, and has not been reported lost. Presentment is the moment the transaction value posts to the customer’s account. 

Discover sets strict limits on the time that can pass between the two. If a merchant sends the presentment file after that limit, the issuer may be unable to collect funds, so they debit the merchant instead. At that point, Discover labels the dispute as LP: Late Presentation. The code does not suggest fraud; it highlights timing failure. For low-risk businesses, the limit is usually ten calendar days, while travel or cross-border trades may have up to thirty days. Any settlement submitted beyond those figures exposes the merchant to an LP chargeback.

Primary Causes for a Code LP Chargeback

Delayed processing is the root problem, but several situations can create that delay. The most common is a simple oversight: the till operator obtains authorisation yet forgets to close the batch until days later. Another frequent cause is a point-of-sale system outage. If the network drops, the terminal stores transactions offline and uploads them once service returns. If that happens outside the defined window, chargebacks may follow. 

Merchants sometimes delay presentment until they have stock on hand or until a shipment leaves the warehouse. While that practice seems customer-friendly, it risks missing network deadlines. A customer may also ask the seller to hold the payment until payday. Agreeing can backfire if the account status changes or the time limit passes. Finally, staff confusion over Discover’s industry-specific rules can cause timing flaws. The transport, lodging, and car-hire sectors operate on different windows from retail. Any of these scenarios can prompt a code LP dispute once the cardholder or issuer notices the late posting.

Time Limit for Disputing a Discover Reason Code LP Chargeback

Discover allows issuers up to 120 calendar days from the transaction processing date to file an LP dispute. That broad window means a timing error today could return months later, long after goods or services have been consumed. Upon receipt of the chargeback, the acquirer forwards it to the seller, who then has 30 days to submit evidence.

Missing that 30-day response window almost always means the dispute stands. Meanwhile, merchants should remember the earlier settlement windows that drive the code in the first place. This is generally ten days for standard retail or in-country sales and 30 days for travel or cross-border activity.

What LP Means for Consumers & Issuers

For cardholders, LP usually shows up as an unexpected debit days or weeks after they left the shop or completed an online order. The late post can cause budgeting headaches or even insufficient-funds fees. 

From the issuer’s perspective, the account may no longer be in good standing by the time the late charge arrives. The card might be expired, suspended for non-payment, or reported lost. When that occurs, the issuer cannot transfer funds to settle the sale, so they raise a dispute to safeguard the cardholder. Issuers also rely on the code to keep merchants accountable for timely processing and to minimise operational risk.

What LP Means for Merchants

An LP chargeback signals a breakdown in internal processes. Even though the sale was genuine, the revenue is now at stake because settlement rules were missed. The merchant loses the transaction amount, pays a chargeback fee, and risks higher dispute ratios. Frequent LP errors may prompt the acquirer to raise processing costs or place the merchant on a monitoring programme. 

Customer trust can also erode when debits appear long after purchase. Delayed batches also obscure the visibility of daily takings, making reconciliation more challenging. Code LP is a warning that batching routines, terminal updates, or staff training require attention. 

How to Respond to a Code LP Chargeback

Fighting an LP dispute starts with confirming whether the presentment really was late. Pull terminal logs, gateway reports, and acquirer timestamps. If the settlement reached Discover within the relevant window, compile that data as proof. Include the authorisation code, date, and time, plus the clearing record date. 

If the customer explicitly requested a hold, locate the signed work order, email, or chat record confirming consent. Where applicable, show that you already issued a refund. Package the evidence in a concise rebuttal letter and forward it to your acquirer inside the 30-day limit. If the logs confirm that presentment exceeded Discover’s deadline and no cardholder approval is available, accept the chargeback promptly. This allows you to avoid extra fees and focus your efforts on fixing the underlying issues.

Proactive Prevention: The Ultimate Defence

The simplest way to avoid LP disputes is to transmit sales as soon as goods or services are locked in. Shorten batching cycles from weekly to daily, or enable auto-capture at shipment. Keep terminals and payment gateways patched so they do not queue transactions offline. 

Use authorisation holds to ring-fence funds when fulfilment will occur later. Provide staff with an easy-to-read chart of Discover’s industry timeframes. Modern monitoring tools can help too. Try out chargeback alerts to receive early notice whenever an LP claim is raised. This gives you time to locate evidence or issue a voluntary refund before costs escalate.