Discover Reason Code IN: Invalid Card Number

What Discover reason code IN means

IN is a processing-error code raised by the issuer, not usually by the cardholder. The transaction arrived with a card number the issuer can’t match to a valid account. The issuer has no account to post it to, so it sends the transaction back.

For most ecommerce merchants, IN is uncommon. A card number entered at an online checkout is validated during real-time authorization, and an invalid number simply declines. IN shows up when something bypassed that check, or when the number changed between authorization and settlement.

Common causes

• A card number keyed incorrectly on a phone or mail order
• Offline or stand-in transactions submitted without real-time authorization
• A transaction forced through after an authorization failed
• A settlement record carrying a different card number from the one authorized, for example after a token or card-on-file error

Evidence that wins an IN dispute

1. Authorization approval: the approval code, masked card number, amount and date for the exact transaction.
2. Matching settlement record: proof the card number on the settled transaction matches the one that was authorized.
3. Order record: the order showing the card details as captured at checkout, if they differ from what the issuer received.

If the approval and settlement records match, the transaction was valid when processed and the IN claim doesn’t hold.

How to prevent IN chargebacks

• Authorize every transaction in real time, and never force a sale through after a decline or failed authorization.
• For phone orders, read the card number back to the customer before submitting.
• Use your processor’s tokenization for card-on-file payments rather than storing and re-keying numbers.
• Review offline or stand-in transactions daily so problems surface before they become chargebacks.

Should you fight or accept?

Fight when you hold a valid authorization approval for the same card number, amount and date.

Accept when the transaction was never authorized or was keyed wrong. There’s no valid account behind it, so there’s nothing to defend. If the customer still owes you, contact them for a correct payment method.