Discover's refund-failure code, decided on the merchant's refund records and the policy that governed the original sale.
Discover CD is the refund-failure code in the Discover network. The cardholder acknowledges the original sale, acknowledges that a refund was agreed, and says the credit never arrived. The dispute sits in the same family as Visa 13.6 and Amex C02: the case is built from refund records, not delivery evidence.
How the dispute actually arrives
The merchant has 20 days from receipt of the notification to respond. CD cases are usually resolved at network level if the merchant can produce a matching refund transaction. The harder cases are the ones where the refund was processed to a different account, a different method, or for a different amount than the cardholder expected.
What the issuer is looking for
The refund transaction record is the centrepiece. If the credit posted to the cardholder's Discover account in the expected amount and within a reasonable window, the dispute typically clears. Where the refund did not post, or posted in a different form, the policy the cardholder agreed to at checkout is the framing document.
Discover, like the other networks, treats refund disputes as documentary cases. The merchant either has the records or does not. A merchant who routinely issues store credit, gift cards, or partial refunds in lieu of the original payment method should make that policy visible at checkout, because the alternative arrangement is only defensible if the cardholder agreed to it.
Common scenarios merchants see
A physical-goods return where the merchant received the product but did not process the credit. The return receipt and the shipping carrier's confirmation of inbound delivery are the supporting records, but the absence of a matching refund transaction is usually fatal.
A cancelled service or subscription where the merchant promised a refund in writing but never issued it. The written promise sets the terms, and the case turns on whether the merchant honoured them.
A partial refund the cardholder disputes as incomplete. The calculation is the case: original transaction, agreed deduction, refund issued, and the cardholder's signed or written acknowledgement of the deduction.
What this code is not
CD is not a non-receipt code, a not-as-described code, or a cancellation-policy code. If the cardholder never received the goods, the dispute will arrive as Discover RG. If the goods were defective, a separate Discover dispute condition applies. Submitting delivery proof to a CD case is the most common loss pattern.
Where this fits in our service
Discover CD letters are built from the refund records and the policy in force at the time of sale. If the refund was simply missed, the honest path is to issue it; if the records support a partial or alternative refund, the letter explains the calculation. If you have just received one, you can start with a free first letter.
Official source: Discover rules. Last reviewed 2026-05-14.