You can prevent most chargebacks resulting from criminal fraud or merchant error, but you can’t really prevent those resulting from friendly fraud. The practice of filing invalid chargeback requests-known as friendly fraud-may be responsible for more than 60% of all chargebacks filed this year. Unfortunately, the system is increasingly used as a loophole to commit fraud, rather than prevent it. The chargeback system was designed to be used as a “last resort” to protect consumers from criminals or dishonest merchants.
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Contact us today for a free ROI analysis to learn how much more you could save.Whether initiated by the bank or by a customer, we can help you stop chargebacks before they happen. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud.Ĭhargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience-based expertise. The same is true of the other chargeback reason codes, as well.
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Invalid chargebacks from Visa Reason Code 13.6 can be disputed, but it’s much more efficient to take a proactive stance. …provide a signed letter or statement from the cardholder which states they no longer dispute the transaction. The cardholder no longer disputes the transaction… Including the amount and the date it was processed. …provide evidence of the credit or reversal, You have already processed a reversal, or issued a credit for the transaction. The credit is due but has not been processed… …provide documentation to refute the validity of the claim to the cardholder’s bank. The sale is legitimate and no credit is due… Here are some steps merchants can take to make the representment process more successful: If… Merchants who have evidence that refutes a cardholder’s claim should definitely challenge the chargeback through Visa’s dispute process.
While preventative measures can significantly lower overall dispute volume, some illegitimate chargebacks will slip through the cracks. Take care not to accidentally process transactions that have been voided or cancelled.Process credits/refunds in a timely manner if applicable, advise customers when a credit may appear on the account statement.Be sure to follow through with all credit/refund transactions.That said, credit not processed reason code chargebacks are preventable, and there are certain steps merchants can take to mitigate the risk of credit not processed chargebacks: No matter how faithfully merchants follow the rules, there will always be people who attempt to take advantage of the system. Reason Code 13.6 Claims: Prevention & Response If the customer returned merchandise or cancelled services according to merchant policies, the issuer cannot file a dispute until at least 15 calendar days have passed after the original processing date.The dispute processing time limit is 120 calendar days from either the day the transaction was processed, or the date on the credit transaction receipt.In many cases, it’s more efficient to simply take the customer’s claim at face value.įortunately for merchants, there are at least some time limitations placed on chargebacks filed under reason code 13.6: While banks try to investigate all claims thoroughly before processing a dispute, the meteoric rise in chargeback cases has made this extremely difficult. The cardholder who knowingly tries to file a chargeback under false pretenses commits friendly fraud. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. But those aren’t the only causes of reason code 13.6 chargebacks. Taking care to avoid these mistakes can prevent disputes before they happen. The merchant processed a transaction that was cancelled or voided.The merchant issued the credit but did not deposit it in time for it to appear on the cardholder’s next statement.
The merchant failed to process a credit.It’s crucial for businesses to recognize the common merchant errors that might trigger chargebacks with a “credit not processed” reason code: Merchant Errors, Rights & LimitationsĬhargebacks of any kind are nothing be trouble for merchants…yet many chargebacks are the direct result of preventable merchant missteps. This can be the result of innocent merchant error, intentional merchant fraud, or-most likely-friendly fraud. This code applies when customers claim to have a receipt from either a voided transaction or a credit, but the transaction hasn’t been processed. What is Visa Reason Code 13.6?Ĭhargeback reason code 13.6 is an updated version of legacy reason code 85, which was phased out under the Visa Claims Resolution initiative.
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