Point of Sale

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Amex Reason Code- C32 - Goods or Services you Purchased are Defective

Issuing bank received the complaint from the customer that goods or services he purchased are defective, damaged or not fit the expectation of the customer. Customer claims that policies explained verbally by the merchant during purchase were different and that what he received was different than expected.

Some Causes

Wrong merchandise/goods sent to the cardholder.

During shipment, goods got damaged.

The goods or services were described inaccurately.

The services purchased by the cardholder weren’t canceled on time.

The services did not perform as it was described.

The returned merchandise was not accepted by the merchant.

The returned merchandise accepted but merchant did not issue a credit to the cardholder.

Counterfeit consumer goods.

Necessary Evidence

If goods were returned or services were canceled, the merchant must provide the bank with all the information or evidence of the refund.

If the merchant hasn’t received the returned goods or the cardholder has not canceled the service, inform the bank. The cardholder must make a valid effort to return merchandise or cancel the service. The merchant must ensure that the incoming shipments are recorded to later verify.

If the cardholder’s complaint is legal and the merchant has received the goods, but have not refunded the amount, he must accept the chargeback. Do not process a credit until the chargeback has performed this function.

If the goods were accurate and as described, provide the merchant bank with specific information and invoices to deny the cardholder’s claims.

If merchandise was damaged and it was returned, provide evidence that it was repaired or replaced.

How to do Prevention?

Make sure that the policies regarding the merchandise or services are explained clearly, these should be delivered in the manner they are supposed to be delivered or as mentioned in terms and policies.

Make sure that orders are placed correctly and arrived perfectly. It must be reviewed and checked regularly during the delivery process.

The staff must be trained from time to time on how to accurately file an order.

The buyers must be notified of every cancellation request, credit or refund in order to reduce the possibilities of chargebacks.

Related Example-

Linda bought few beauty products online, however, upon arrival she finds few broken pieces in her kit. She decides to return the kit but the time passes by and she forgets to return it on time. She speaks to the merchant if she would be refunded or allowed to return the product after the dues date. Merchant refuses as the policy doesn’t accept returns after 30 days. Linda finds it difficult to use the product as decides to dispute the transaction in the hope of winning the chargeback under the Reason Code C32: Goods/Services Damaged or Defective

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MasterCard Chargeback Reason Code 4849 - Questionable Merchant Activity

Description

Mastercard has been issued a global liability shift program for ecommerce transactions. A chargeback is filed for this reason when an acquirer bank processed a transaction for a credit card accepted and later recognized in the list of Mastercard violation.

Most Common Causes

The merchant:

The transaction falls under the Global Security Bulletin of Mastercard.

The acquirer name, acquirer ID, merchant name and its location are lister in the Global Security Bulletin under Global Merchant Audit Program (GMAP).

The issue is not resolved within time frame specified in the procedure manual and in security rules.

The issuer did not report the transaction under SAFE within time frame.

The transaction is not processed within the specified period in merchant agreement.

Evidence Required

If the first chargeback was correct and the acquirer bank failed to change the dispute properly, the issuer may continue the chargeback with the same reason code originally processed.

If the acquirer bank lost data file requested submit the form found in the back of the procedure manual and security rules.

If the situation requires any other reason, the issuer must process the arbitration chargeback using the proper reason code.

Prevention

Process all the transactions at hybrid terminals.

If found counterfeit fraud reports it to SAFE product user guide of Mastercard.

Keep a record in a chip transaction and authorization message request should be approved by the issuer.

The time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.

If you’re looking any kind of information Chargeback Reason Code. You’re in the right place. Get more information visit website – Chargeback Reason Code

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Exceeds Floor Limit – Not Authorized and Fraudulent Transaction - RC 4847

Merchant was unable to verify the authorization code of the transaction at the time of purchase. A card-not-present transaction occurs when cardholder files a complaint that he/she neither participated nor authorized a particular charge. A card-not-present transaction occurs on a fictitious account number on which owner’s authorization was not obtained. Telephone sales, mail-order, Internet/online sales, monthly subscriptions, recurring and prepayment transactions are examples of card-not-present transactions. Mostly this situation occurs when someone fraudulently uses someone else’s credit card and processes card-not-present transaction without the consent or permission of the cardholder. Sometimes, cardholder does not recognize a card-not-present transaction on his statement because of the invisible, unclear or confusing merchant or product name.

Most Common Causes

POS device was not authorized for strip-read, online and face-to-face transactions, but only card-read or key-recorded transactions.

The transaction was not approved.

The card provided a service code of X2X (Positive Online Authorization-Only), but the transaction was not approved.

The transaction amount passed the limit from the floor limit that was installed by MasterCard at the time of purchase and was not approved.

The authorization request was denied or the transaction was made by an expired card.

If not authorized by Technical fallback and CVM fallback transactions.

The merchant processed a fictitious account number on which card owner’s authorization was not obtained.

The merchant processed a transaction card owner did not participate in.

The transaction is processed on the invalid card using an account number.

A family member ordered from the primary cardholder’s account without his permission.

It is also caused by the owner of the card not able to recognize purchase on the billing statement.

Evidence Required

The merchant should provide the document that business did not need to authorization.

The merchant may present the document that the cardholder obtained authorization for the transaction amount.

Providing the amount that was authorized, authorization approval code, and the date of the authorization the merchant should document the incomplete authorization

The transaction was below the issued floor limit and there was communicate failure to buyer or failure to POS device at the time of buying, the merchant should present document.

Prevention

Make sure to obtain an authorized approval for all the e-commerce and recurring transactions regardless of the dollar amount. Read back the account number, especially for transactions made via phone. Always verify account number so that there are no errors or misunderstandings. Get more information you can visit the website – www.chargebackexpertz.com

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Chargeback Reason Code - 4831- Account Number Mismatched

The buyer’s bank found incorrect transaction amount or account number mismatched with the posted information with them and the information on the order receipt. The transaction was processed with the incorrect account number, incorrect transaction amount and/or had an error while calculating transaction amount without cardholder’s permission or the merchant altered amount after the order was processed without notifying to the cardholder.

Most Common Causes If the merchant

Entered wrong account number.

Entered wrong transaction amount for that particular transaction.

Altered the amount after getting the signature from the customer.

Made a mistake while calculating the amount.

Exchanged the amount after completing the transaction without taking permission from the cardholder.

Increased the transaction amount without getting any consent from the cardholder.

Evidence Required

Provide documents to the acquirer bank describing the product, the transaction amount and the account number on the order receipt are same as acquired information.

Accept the chargeback, if account number or transaction amount is different from the order receipt and the information posted.

If disputed chargeback for the incorrect transaction amount, the merchant should process a new transaction within 30 days from the original date, however, if chargeback already has performed its function never issue a refund for that particular transaction.

No action needed if the customer dispute chargeback for the incorrect amount.

Prevention

If the business accepts cards, swipe it or manually enter the account number, however, make sure that the account information is used from the face of the card on the order receipt.

Ensure to use a standard printer to print the order receipt.

If the cardholder has signed an order receipt, the merchant should not exchange or alter it.

If chargeback was imposed on an incorrect amount, the merchant must try to communicate with cardholder to adjust the order receipt to show up the correct amount.

Compare the key-entered to make sure that the transaction information typed is accurate.

Common Examples Linda went grocery shopping and swiped her card to make the purchase. She didn’t realize and hit the option “yes” to the question if the amount was correct. Later she tallies her bill and cross-checks the amount to find out that ten more dollars have been added to the bill. She, therefore, goes ahead and disputes the charge with the help of her bank under the Reason Code 4831: Transaction Amount Differs

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MasterCard Chargeback Reason Code - Account Number Not on File

When the charged credit card number doesn’t match to the actual card number used by the buyer bank. If the merchant provides documentation such as the print of the credit card showing accurate credit card number, magnetic stripe reading evidence and authorization or proof of credit issued, the chargeback may be reversed. Carefully recording the card number, properly entering key or swiping the card through the terminal can reduce chargebacks.

Most Common Causes

The transaction was lesser than the applicable limit and authorized offline by the chip. The Cardholder Verification Method (CVM) provides pin signature or doesn’t flash anything if recognized by the card parameters. As revealed by Investigation, if appropriate account number was not entered on Electronic Warning Bulletin as prior to the payment to the merchant. If transaction recognized and authorized as a non-face-to-face sale and primary presentment was submitted using the correct account number. If transaction processed using retired account number and later received an authorization.

Evidence Required

Copy of printed Transaction Information Document. The merchant bank must provide adequate documentation to verify the presence of the card for the transaction that occurred at the point of Interaction (POI) terminal, which was not authorized at the point. If payment was made for an emergency, verify that the transaction was authorized, print authorization screen.

Prevention

Always check the exclusion file before completing transactions below the floor limit. Most point of sell-out terminals automatically verifies the exclusion file when the card is swiped and the amount is entered. Merchant must verify with the acquirer to make sure their transaction-processing system automatically verifies the exclusion file for the under-floor-limit transactions and inform the sales staff to request for an approval if they are ever in suspicion of a transaction. Exclusion File transactions for the floor limit should be zero. All transactions require approval, regardless of the amount.

Common Examples

Linda checks her account once in a while. She does one day to find out a large amount of charge on her account that she doesn’t recognize at all. She calls the merchant through the descriptor and explains the situation. The merchant checks her information to find out that her account was mistakenly charged due to manual error and that she isn’t the person who bought services from them. Linda, therefore, disputes the charge under the Reason Code 4812: Account Number not on File

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MasterCard Chargeback Reason Code 4842 – Late Presentment

Description

MasterCard uses reason code 4842 for late presentment chargebacks if the cardholder’s account is permanently closed and the acquirer presents transaction after one of the predetermined time limits. Such situations arise the sales receipt is not collected from the acquirer within the time limit specified in merchant’s guideline or agreement.

Usually time limit is 180 calendar days from the transaction date.

Action Taken Transactions completed with electronically recorded card information (card-read or key-entered) Applicable Region All U.S. merchants Late Presentment More than 7 calendar days after the transaction date

Processing a credit card transaction involves multiple entities as well as four distinct stages: authorizing, batching, clearing and funding.

Most Common Causes

Limited time reversal rights. Allowed only if credit was issued. If proof can be presented that the sale was processed within the allotted time limit. The transaction amount was deposited on time. If the amount was deposited within the required time limit, provide your processor with a copy of the sales receipt to be represented to the card issuer. The transaction was deposited late and the account was closed. If the transaction was not deposited within the specified time limit and the account was closed, then the merchant should accept the chargeback. Do not issue a credit at this time.

Evidence Required

Transaction acknowledgment deposited within time limit: If the transaction acknowledgment was deposited within the time limit specified by your acquirer bank, ask your acquirer bank to forward a copy of the acknowledgment to the card issuer.

Prevention

Deposit order receipt with your acquirer as soon as possible, preferably on the day of the sale or within the time limit specified in the merchant agreement. Complete payment batches as immediately as possible. Process transactions within 180 days of the original purchase.

What is Merchant Response -

If the sales receipt was deposited the frame, ask your acquirer to forward a copy of the receipt to the card issuer. If the sales receipt was not deposited 180 days of the transaction date and the cardholder account has been closed, accept the chargeback. Get more information about Late Presentment and You ask any question related this blog. For more details go to the site - www.chargebackexpertz.com

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Visa Chargeback Reason Code 81 - Fraudulent Transaction – Card Present Environment

The bank received an order receipt where an important information is missing, which indicates a fraud. The situation where either order receipt does not contain cardholder’s signature or clear print of the face of the credit card. Situation where cardholder neither permits to charge nor participates in the transaction.

Most Common Causes

The merchant did not swipe the card by a magnetic-stripe reader neither inserted the card into a chip terminal.

The merchant did not take a manual print of the account information on the face of the card on order receipt for a key-entered transaction.

The merchant processed the transaction without the approval of both PIN and/or cardholder’s signature.

Completed a card-present transaction without obtaining the cardholder’s name and signature on the order receipt.

Evidence Required

For a card present transaction and one or more key entered a transaction, provide valid imprint and cardholder’s signature or PIN. Provide evidence that all transactions happened during the same stay, period or trip.

If the account information was taken from the card’s magnetic strip, the merchant should send authorization record to the issuer as proof that the card’s magnetic strip was read. Also, provide a copy of the order receipt with cardholder’s signature.

If the account number did not match the magnetic strip or obtained manually, accept the chargeback.

If the account number was manually printed on the order receipt, provide a copy of it with cardholder’s signature in order to reverse the chargeback.

If the cardholder’s signature is not there on order receipt for a card-present transaction, accept the chargeback.

Prevention:

The transaction should meet the criteria for Card Verification Value 2 (CVV2) as an Imprint.

The field sales staff should have manual imprinters or electronic terminals that can read the card’s magnetic strip if merchandise is sent or services delivered to the customer’s place.

If the merchant is receiving a huge volume of chargebacks for this Reason Code, there is a potential for ongoing fraud. Merchant must checkpoint of sale terminals and the staff’s involvement in such activities.

The merchant should always keep records of the credit card account information on the order receipt by swiping the card through the terminal to get the account information from the magnetic strip.

If the merchant uses a manual printer, make sure the information on the face of the credit card is matched with other transaction information to prove the card was present at the time of order.

Get more information visit website – www.chargebackexpertz.com

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Incorrect Transaction Amount or Account Number or Invalid Adjustment - RC -80

The buyer’s bank found incorrect transaction amount or account number mismatched with the posted information with them and the information on order receipt. The transaction was processed with incorrect account number, incorrect transaction amount and/or had an error while calculating transaction amount without cardholder’s permission or the merchant altered amount after the order was processed without notifying to the cardholder.

Most Common Causes If the merchant:

Entered wrong account number.

Entered wrong transaction amount for that particular transaction.

Altered the amount after getting the signature from the customer.

Made a mistake while calculating the amount.

Exchanged the amount after completing the transaction without taking permission from the cardholder.

Increased the transaction amount without getting any consent from the cardholder.

Evidence Required

Provide documents to the acquirer bank describing the product, the transaction amount and the account number on the order receipt are same as acquired information.

Accept the chargeback, if account number or transaction amount are different from the order receipt and the information posted.

If disputed chargeback for incorrect transaction amount, the merchant should process a new transaction within 30 days from the original date, however, if chargeback already has performed its function never issue a refund for that particular transaction.

No action needed if the customer dispute chargeback for incorrect amount.

Prevention

If the business accepts cards, swipe it or manually enter the account number, however, make sure that the account information is used from the face of the card on the order receipt.

Ensure to use a standard printer to print the order receipt.

If the cardholder has signed an order receipt, the merchant should not exchange or alter it.

If chargeback was imposed on an incorrect amount, the merchant must try to communicate with cardholder to adjust the order receipt to show up the correct amount.

Compare the key-entered to make sure that the transaction information typed is accurate.

Common Example

Linda went grocery shopping and swiped her card to make the purchase. She didn’t realize and hit the option “yes” to the question if the amount was correct. Later she tallies her bill and cross-checks the amount to find out that ten more dollars have been added to the bill. She, therefore, goes ahead and disputes the charge with the help of her bank under the Reason Code 80: Incorrect Transaction Amount or Account Number or Invalid Adjustment.

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Visa Chargeback RC - 79 Non-receipt of Sales Draft

The cardholder may ask for specific information regarding the transaction, and further cardholder’s bank goes to the merchant and requests information with an explanation. If the merchant does not respond with a legible copy of the transaction and its authorization proof, then cardholder may file the chargeback.

Most Common Causes

The original receipt is not readable because of light print.

Copy of the order receipt is too small to read or unclear.

If cardholder did not receive credit when he requested for the same.

Merchant did not respond to the issuer on Retrieval Request or Sales Draft.

Evidence Required

The merchant should provide a printout of the credit to the merchant bank. If issued money order or a check; submit a copy of front and back of the canceled receipt.

Ensure that the refund if partially issued then why the full refund was not issued.

Accept the chargeback, if credit was not processed.

Prevention

You should keep a record of all retrieval requests.

Recheck your record for confirmation which you are sending for chargeback requests.

Chargeback with this reason code doesn’t have reversal rights even if the merchant does not react within the time frame on retrieval request.

The merchant should be quick in responding retrieval requests as they occur.

Common Example

Linda was having issues with her laptop for which she asked technical support to assist her with her system. The company successfully fixed the error and Linda’s laptop was alive again. A bill was generated and Linda was asked to pay a certain amount. She requested the merchant to give her a detailed bill with the pricing of each issue that they fixed. The merchant refused to give details. Linda thought that she was overcharged and after not being able to receive full information of the bill from the merchant, she decides to dispute the charge under the Reason Code 79: Non Receipt of Sale Draft Get more information visit website – Chargeback Expertz

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Visa RC-78 - Ineligible Transaction (International only)/ Service Code Violation

Card Issuer complaints authorization code was not accomplished. The Merchant completed a Magnetic-Strip read transaction on a Visa Electron Card or a Visa Card in a registered positive Authorization Code account range and did not obtain Authorization.

Most Common Causes

In Europe Region (Intraregional Transaction), a Card with a Service Code that indicated either the card was invalid for the transaction type or online authorization was required.

Authorization was not accessed on a card in a service code limit.

Evidence Required

Documentation to prove that the Service Code was valid for the Transaction or Authorization was obtained.

Documentation to show that the account was not in a registered positive Authorization account range. This does not apply to a Visa Electron Card Transaction.

Prevention:

If transaction date and the transaction amount is different than the authorization date and authorization amount –

Chargeback Rights and Limitations

1. Minimum Chargeback amount: a. For T&E Transaction, the US $25 or equivalent. b. For Canada Domestic T&E Transaction, CAD $25 c. For all other Canada Domestic Transactions, CAD $10

Chargeback Time Limit 75 calendar days from the Transaction Date.

Re-presentment Time Limit

45 calendar days from the Chargeback Date.

Common Examples: Linda lives in Amsterdam and is visiting her grandmother in Rome. She buys a beautiful necklace for her on the way in Austria. After a few days, the merchant from whom Linda bought the necklace receives a chargeback from her bank under the Reason Code 78: Ineligible Transaction/ Service Code Violation. The merchant gets confused and offers to provide the documentation proving that Linda’s card was a valid card and that authorization was approved at the point of sale. Get more information visit website – www.chargebackexpertz.com

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Visa Chargeback Reason Code 77- Non-Matching Account Number

An account number on which a transaction is processed by merchant is not recognized or matched with any account number on the card issuer master database. Such cases normally arise when the key-entered accounts, account numbers through telephone, emails and online are recorded incorrectly.

Most Common Causes

Incorrect account information recorded in a mail-order, telephone order and/or any other online purchase. Incorrect account information entered manually while processing a transaction.

Evidence Required

If Information from the Documents can be Verified: If the merchant can transfer documents such as a print of the credit card which identifies that the credit card charged has the correct card number.

If Account Number Matches: If the account number on the order receipt matches the account number on the chargeback, and the transaction received an authorization approval, give the charge back to the acquiring bank and request the bank to include the authorization log for this transaction when giving back to the card issuer.

If Account Number Doesn’t Match: If the account number on the order receipt does not match the number on the chargeback, accept the chargeback. In this situation, the merchant can process and submit a new transaction with the correct account number within 30 days of the original transaction and must make sure to request an approval code.

If the Transaction Wasn’t Authorized: If the account number on the order receipt does not match the account number on the chargeback, and the transaction was not authorized by a mail-order or telephone order, the merchant must accept the chargeback.

Prevention

If the electronic machine or the terminal cannot recognize/read the card’s magnetic strip, request authorization by key-entering the account number. Be sure the key-entered account number matches the account number on the card. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.

Suppose the terminal is not working, call the center for authorization approval and mention approval code on the order receipt in the space provided. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.

If the merchant has done payments by phone then he must confirm or verify the account number again to the customer to make sure that the account number is recorded correctly.

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Explanation of Chargeback Reason Code "Incorrect Transaction Code"

This chargeback occurs when a cardholder claims a debit on his credit card for a transaction that was supposed to be credited to his account. Or transaction amount on statement is different than the sales receipt. This chargeback may be reversed if the merchant can provide an affidavit verifying that the amount processed is similar to the amount listed on the sales draft or confirmation/proof that a credit was issued.

Most Common Causes

The merchant issued a credit, but the transaction appears as a sale.

The transaction currency is different than the currency processed through Visa.

Cardholder claims that the goods and services failed to offer them a choice of pay in the merchant’s local currency.

Evidence Required

The Correct Transaction Code Was Posted: Provide your acquirer with authentication of the transaction, showing that it was posted correctly as a credit to the cardholder’s account and a debit to your account.

The Credit card Was Posted as a Debit card: Chargeback was accepted. In this case, the chargeback amount will be duplicating the actual transaction.

The Cardholder must use Correct Transaction Codes: When buyer’s issuing a credit voucher, the merchant must assure to use credit transaction code on point-of-sale terminal.

Prevention

The correct transaction codes used for the refund, when issuing a refund, make sure to use the credit transaction code on your payment processing device. Make sure your staff is properly learned on how to do this.

When issuing a credit voucher, be sure to use the credit transaction code on your POS terminal.

Give the cardholder an option of making the purchase in the local currency.

Deposit receipts in the country where the purchase was made. A Deposit receipt facilitates buying shares in other companies.

Inform cardholders of the use of cash conversion and applicable fees.

Common Examples

Linda wanted to buy few accessories from Turkey, so she decides to look for few online stores for the same. Finally, she makes a purchase in dollar amount, however, when she checks her account she finds out that the amount was deducted in Turkish Lira that also costed her the exchange amount. She gets confused as the merchant presented the products in dollar amount on the website and while processing it changes to another currency. Being disappointed she disputes the charge under the Reason Code 76: Incorrect Transaction Code. If you’re search for more information chargeback reason code. Just go to site –  VISA Chargeback Reason Codes

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Excellent Guidance for Chargeback Visa Reason Code 75

Issuer receives a complaint from the credit cardholder that the charge on his billing statement is not recognized. In other words, the customer is not aware of the particular transaction or the information on the statement does not belong to him, not correct or not recognizable. This reason code is applicable on card present as well as card-not-present orders.

Most Common Causes

If the cardholder’s billing statement is incorrect, i.e. the merchant store name or location is not recognizable or not matching to the information cardholder provided earlier to the merchant.

If the buyer has forgotten the particular order.

The customer is looking for a refund but he or she doesn’t want to go through the regular process.

The cardholder does not recognize the billing descriptor.

If someone else like family member used the card and cardholder is not aware about the transaction.

Evidence Required

The cardholder has provided documentation and information that would help in recognizing the transaction. For example: Purchasing slip, Proof of Delivery or Delivery Note, Detail of trade or service purchased.

An important factor while accepting cards. Ensure the name of the merchant, city and state is correct in the records. Also, mentioning “doing Business as” DBA is critical.

Prevention

If the billing descriptor is set, then the chances are that the merchant won’t face such problem. In case merchant notices that disputes are increasing day by day, then it is better to check transaction procedures and contact processor so that the merchant account reflects the information that the card holder will recognize.

There should be a toll-free customer service number in the billing description. Ensure that the provided billing description is accurate and recognizable to the cardholder.

Contact information should be mentioned clearly. This is the best way to communicate between the merchant and the cardholder. When cardholder does not recognize provided information or finds it difficult to reach the merchant, chances of dispute rises.

Providing full contact information i.e. company name, complete mailing address, email address, and customer service phone number is an essential key to fewer chargebacks.

Common Example

Linda is fond of shopping. She was browsing through a number of online clothing store one day and spontaneously decides to buy few things from a store. Few days later she checks her account and finds out an un-recognizable charge. She tries to reach to the merchant but is unable to due to lack of descriptor, so she decides to put a dispute on the account under the Reason Code 75: Cardholder doesn’t Recognize

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Cardholder can Challenge Transaction Dispute - If Decision is Ruled in Favor of Merchant

This dispute of transaction and asking the money back for any given reason is called Chargeback. For chargeback, if a customer feels that the merchant is cheating for any reason, customer directly contacts to the banks for the refund of the transaction. Though, in many cases, the bank places a conference call between merchant, customer and the cardholder’s bank to see if merchant and customer can resolve the problem.

If the customer is not satisfied with the merchant’s conversation, they ask finally ask for the money back. For this reason, the cardholder’s bank issues the credit for the cardholder’s account. Asks merchant account bank to issue a debit for the merchant account the cardholder’s bank also issues the requirement of document for the merchant, if the merchant likes to fight the chargeback and can prove that customer’s reason for refund is not valid.

Merchant have limited time to respond to fight chargeback and to provide legal documented proofs to the cardholder’s bank. If the proofs examined as valid documents, the credited amount to the customers is take back again and is given to the merchant again. As the decision about chargeback is ruled in favor of merchant, the customer/cardholder has the right to file the second chargeback on the transaction; this is called the “Pre-Arbitration” in VISA’s chargeback process and “Second Chargeback” in MasterCard chargeback process. For this, the merchant have to repeat the same process for fight again for the transaction to be proved as valid.

To fight chargeback, merchant’s need to be active for representment every time the bank issues the request of documents. Delay in representment many times results in loss of charges of the product from the merchant account. This option of repetitive filing of chargeback is the drawback of this internet transaction method. Many people try to take advantage of this clause of repetitive dispute of transaction. As fraudster develop new ways of cheating the merchant, and this repetition of filing chargeback is one of them.

Chargeback is one of the crucial things to be handled in the ecommerce business as it is observed that the most of part of the profit is lost if a merchant fails to fight chargeback with an effective representment of the documents to prove the validity of the transaction. If you get more information you can visit website related on this blog - https://www.chargebackexpertz.com/3-tips-overcome-tricky-credit-card-disputes/

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How to Manage Chargeback Reason Code 73?

Description

A transaction completed with an expired card i.e. unauthorized. Such transactions commonly do not receive an authorization approval from the buyer’s bank so—the merchant must not accept any card after the expiration date.

If the card expires before the transaction date and doesn’t get the authorization.

If the authorization approval was obtained but the card had expired.

Evidence Required

The expiration date should be imprinted in front of the card. If the expiration date on the purchasing receipt shows the card had not expired at the time of the sale, send a copy of the purchasing receipt to your merchant bank. The chargeback is unacceptable neglectful of whether authorization was obtained.

Inform your bank of the transaction date and amount, if the card was swiped or manually imprinted, and authorization approval was acquired. This type of chargeback automatically handles several merchant banks and the merchant never sees it.

You did not get an authorization until the card has expired, accept the chargeback.

A card is valid through the last day of the month shown so—the merchant should check the expiry date on all the cards. (e.g. if the date is 05/20, the card is valid through May 31, 2020 and expires on June 1, 2020.)

Point-of-sale staff to check the expiration date of card before completing transactions regularly and if the card has expired, always get an authorization approval.

Prevention

Merchant must always check the whether the expiration date provided by the cardholder is correct or not, if the transaction was a MO/TO or Internet transaction.

The merchant should always check the expiration date on all cards. A card is valid through the last day of the month as shown.

Always request an authorization for card-not-present transaction.

Common Example

Linda is a merchant who is into electronic business. She has a decent website on which she sells screen guards and protectors for almost all the electronic devices. One fine day, one of her employees received a telephone order for a tablet screen protector. He took all the details but missed that the card with which the customer placed an order was expired. Linda realizes the mistake of her employment when she receives a chargeback from the buyer’s bank under the Reason Code 73: Expired Card. Get more information visit website – www.chargebackexpertz.com

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Visa Chargeback Reason Code 72: No Authorization

The buyer’s bank received a transaction for which the authorization was not obtained. The reasons of such code could be- not obtaining an authorization for a transaction or, for card present or obtaining it after the date of transaction. The buyer’s bank may only put a chargeback for the amount exceeding the transaction date. This chargeback occurs when goods and services did not obtain authorization for the particular transaction exceeding the goods and service’s Floor Limit. This chargeback may be inverted, if the merchant provides sufficient information such as the transaction date, a valid authorization code or a proof that a credit was issued. On the other hand, this chargeback can be avoided by obtaining an authorization code and date for each transaction processed.

The merchant :

The transaction amount does not exceed the amount in the limited Authorization response.

The limited authorization index was present in the Authorization Request.

The goods and services did not obtain an authorization on present card, or a transaction was made after the authorization code and transaction date.

The merchant should request an authorization for the known amount along with the estimated tip. The vendor did not exclude the tip in the authorization amount.

Transaction amount of authorization and Authorization code along with date, if other than the transaction amount and transaction date.

Transaction Was Authorized: If authorization license was accessed , inform the bank of the transaction date and amount.

Transaction Was Not Authorized: If authorization license was not accessed, accept the chargeback..

Obtain an Authorization:Obtain an authorization before finishing the transaction. When the card is swiped and dollar amount is entered, an authorization request is sent. A certificate is then printed if the transaction is accepted; if it is not accepted, the merchant receives a failure message at point of sale.

Prevention

Obtain an authorization confirmation before completing transactions. The authorization request is sent automatically when you swipe the card and enter the amount. An acknowledgment is printed if the transaction is approved and if it’s not, you will receive a Pick Up message, Call Center or decline on your terminal.

Do not include the tip in your authorization application. Make sure that the authorization amount is equal to the check amount and the tip is rejecting. So if the bill before tip is for $70.00, an authorization should be requested for $70.00. Contact your point of sell-out dealer and make sure that your point of sell out terminal has been registered to authorize only for the check amount before the tip is added.

Chargeback Visa Reason Codes more detail here – VISA REASON CODES

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How to Manage Chargebacks Resulting from RC-71 Declined Authorizations

The card issuer received a transaction for which authorization was declined. It happens when efforts are made to depolarize or override a declined authorization by coercively posting several authorization efforts, or an alternative authorization method.

Most Common Causes

Alternative authorization method. If merchant swiped the card at a Point of Sell out terminal, and the authorization was canceled, but the merchant then submitted the transaction by key entering or called in a voice authorization.

If one or more authorization attempts were made, the merchant re-swiped the card multiple times until the transaction was authorized even after an initial authorization decline. If the card issuer’s authorization system times out or becomes unavailable, and the transaction is forwarded to Visa, in this situation, authorization gets lost.

Card forcibly attempt. If the merchant forcibly attempts the transaction without requesting an authorization after a decline response.

Evidence Required

If your first authorization attempt was declined, accept the chargebacks. One or more attempts for authorization may not be accepted as valid evidence to show the approval.

Notify your acquirer bank of the transaction date & amount, if you got an authorization approval code.

Get an authorization before completing transactions. When the card is swiped and the dollar amount is entered then the POS terminal automatically sends an authorization request, generates an acknowledgement and prints the receipt if transaction is approved otherwise transaction is declined.

All sales staff has to know about the installation authorization policy. They should immediately stop the transaction and ask the customer for another Visa card or other form of payment if any transaction shows cancelled or declined.

Prevention

Before completing transactions get an authorization. When the card is swiped and the dollar amount is entered, point of sale (POS) terminal automatically sends an authorization request. If your terminal was able to print the receipt, that means the acknowledgment was received and the transaction was approved. But if the receipt wasn’t printed that means the transaction was cancelled or declined.

If the terminal isn’t working or unable to get an electronic authorization because the magnetic stripe cannot be read, then an alternative method should be applied. Call the bank and as for authorization. If the transaction is approved, note down the approval code on the printed receipt in the appropriate space and ask the customer to sign it.

If transaction is cancelled, instantly stop the transaction, and ask the customer for another Visa card or other form of payment.

Common Examples Linda ordered a laptop and got transaction authorization code. She later changes her mind and cancels her order for which she didn’t receive the code. Hence, she disputes the merchant under the Reason Code 71: Declined Authorization.