Understanding Discover Chargeback Reason Code RG: Non-Receipt of Goods, Services, or Cash

When a customer pays with a Discover card but says the goods, services, or cash never showed up, the dispute comes through as Reason Code RG. The code covers missing parcels, undelivered digital items, skipped services, or missing cash advances.

Key Takeaways

• What it means: A cardholder claims they paid but never received goods, services, or cash.
• Causes: Shipping errors, service delays, cash-out issues, or friendly fraud.
• How to respond: Gather delivery or fulfilment proof and send it to the acquirer within the set time limit.
• How to prevent: Clear fulfilment processes. Order tracking. Open communication. Chargeback alerts.

What is a Discover Reason Code RG Chargeback?

RG is Discover’s label for “Non-Receipt of Goods, Services, or Cash.” The cardholder tells their bank the promised item, benefit, or money never arrived. Because payment has already been taken, the issuer pulls the funds back and puts them on hold while the claim is investigated. The dispute can apply to a £10 shirt or a £10,000 machine, a one-time purchase or a recurring subscription, an online download or a cash advance at checkout. 

Discover’s rules say the cardholder may only contest the value not received. So, if half an order turns up, only the missing half is in question. To ensure fairness, Discover also expects customers to attempt to resolve the matter with the merchant first. Still, many people jump straight to a chargeback, making RG one of the most common service-related codes. For merchants and acquirers alike, the code signals a delivery or fulfilment breakdown.

Primary Causes for a Code RG Chargeback

Causes behind RG disputes fall into two broad camps: genuine fulfilment failure and friendly fraud. Real errors include shipping the wrong quantity, sending items to an old address, not sending promised digital content, cancelling a service slot without notice, or short-supplying cash at a till. 

System glitches also spark claims when tracking numbers never update or confirmation emails go missing. This leaves customers to assume the worst. On the friendly-fraud side, some cardholders file an RG chargeback even after the product arrives, hoping for a free item. Others react to small delays by disputing rather than contacting support. Airline collapses, lost tickets, or site-to-store pickups with no signed form add more paths to the same result. Finally, theft after delivery can prompt honest but misguided disputes. 

Time Limit for Disputing a Discover Reason Code RG Chargeback

Time limit rules shape every RG case. The cardholder normally has up to 120 days from the agreed delivery date to raise the dispute. If no date was set, the issuer may open an RG case from day 15 up to day 120 after the transaction. Airlines have extra layers: when an RG claim involves an airline that later closes down, the bank must submit the cardholder’s ticket assignment letter within five business days. 

Once the claim reaches the merchant, the clock moves faster. You, through your acquirer, usually get 20 calendar days to answer, although many processors ask for documents sooner so they can review them. Miss the deadline, and the chargeback sticks, even if you could prove the goods arrived. Because timelines are strict, merchants should map out a step-by-step response plan in advance, keeping delivery logs, signed receipts, and refund records in a place that staff can access at a moment’s notice.

What RG Means for Consumers & Issuers

For the consumer, code RG gives them added protection against something going wrong with an order. If their goods never arrive, or a service isn't delivered, they won't be left out of pocket. However, it's a good idea to contact the merchant first, as problems that might otherwise require a chargeback can be quickly fixed in a lot of cases. 

For issuers, RG is part of their service level promise to their customers, so it does carry some risk for them and creates additional work. They have to validate the initial claim and check that it fits the code according to Discover rules. They also have to manage the timelines, review evidence and make the decision on whether to pass liability to the merchant or not. Issuers are under pressure to credit accounts quickly to keep customers happy. However, they also have to be vigilant against fraudulent claims. Strong, clear evidence from merchants helps issuers to close out cases correctly.

What RG Means for Merchants

When a merchant receives an RG notice, it can feel like a double hit. First, they lose the sale amount as well as the dispute fees due. Second, they spend valuable staff time and resources investigating and gathering evidence. However, it's crucial to fight any claim where merchants can prove they are in the right. Allowing too many RG chargebacks to stack up can result in sanctions from the acquirer, including higher reserve requirements, stricter monitoring or account closure.

Merchants can view code RG notices as a warning that something's not right with their internal workflows. It could be weak stock control, patchy courier performance, unclear service windows, or gaps in cash-out procedures. Using each instance as a prompt to review and improve processes and retrain staff will help avoid future occurrences.

How to Respond to a Code RG Chargeback

The aim is to show the issuer that the cardholder did, in fact, receive what they paid for or that you already issued a credit. Provide transaction records signed by the customer, courier delivery scans with date, time and address, photos of handover, or logs showing the download of digital goods. 

For card-not-present sales, add the purchaser’s IP address and email used for electronic delivery. If the dispute carries a “Site to Store” modifier, include the pick-up slip bearing the customer’s signature and a copy of the ID they showed. Airline transactions call for proof that the ticket was flown or that any lost-ticket claim was invalid. Place the evidence in a file and add a brief cover letter summarising why the chargeback should be reversed. Send the pack to your acquirer inside the 20-day window. A strong, well-organised response raises your chance of winning and keeps dispute ratios in check.

Proactive Prevention: The Ultimate Defence

Avoiding RG disputes is easier than fighting them. Make sure your staff are following standard operating procedures to the letter. Review your stock control and shipping procedures to ensure goods aren't getting lost. Audit your shipping and delivery companies to ensure they are obtaining proof of delivery for each order. To stay one step ahead of incoming disputes, try out Chargeback.io to catch potential RG claims the moment they arise.

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