Fraud
10.1 EMV Liabilty Shift Counterfeit Fraud
Description
EMV Liabilty Shift Counterfeit FraudTime Limit (Issuer/Cardholder)
120 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder has a chip card and someone made a counterfeit copy of it. You processed a transaction with the counterfeit card on a terminal that wasn’t EMV-compliant rather than using a chip reading device that would have detected the fraud. Now, the cardholder claims the purchase was unauthorized.Prevention Steps
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Create an electronic or manual imprint for every card-present transaction.
10.2 EMV Liabilty Shift Non-Counterfeit Fraud
Description
EMV Liabilty Shift Non-Counterfeit FraudTime Limit (Issuer/Cardholder)
120 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder has a PIN-preferring chip card, but you didn’t use a chip-reading device to process the transaction or used a chip-reading device that wasn’t PIN compliant. Now, the cardholder claims the purchase was unauthorized.Prevention Steps
- Only use EMV-compliant terminals.
- Always use the correct cardholder verification method—signature, PIN, etc.
- Create an electronic or manual imprint for every card-present transaction.
10.3 Other Fraud: Card-Present Environment/Condition
Description
Other Fraud: Card-Present Environment/ConditionTime Limit (Issuer/Cardholder)
120 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder claims the transaction was unauthorized and it was either a key-entered or unattended transaction.Prevention Steps
- Use fallback options—like manually entering transaction data—as a last resort.
- If you do perform a key-entered transaction, make a manual imprint of the card.
- Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet phone, or mail orders.
10.4 Other Fraud - Card- Absent Environment
Description
Other Fraud - Card- Absent EnvironmentTime Limit (Issuer/Cardholder)
120 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder claims a card-not-present transaction was unauthorized.Prevention Steps
- Consider using all the tools available to you—including Visa Secure, card security code (CVV2), and Address Verification Service (AVS).
- Use pre-sale fraud detection service providers that can help verify the cardholder’s identity, detect potential criminal activity, and reduce the risk of accepting unauthorized transaction.
- Use a billing descriptor that is easily recognized by the cardholder.
- Always submit an authorization request, no matter the transaction amount.
- Make sure you differentiate between card-absent and card-present transactions during clearing by noting internet, phone, or mail orders.
10.5 Visa Fraud Monitoring Program
Description
Visa Fraud Monitoring ProgramTime Limit (Issuer/Cardholder)
120 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
Your business is enrolled in the Visa Fraud Monitoring Program and the issuer was allowed to dispute the fraudulent transaction.Prevention Steps
Monitor your fraud-to-transaction ratio and take necessary steps to prevent breaching thresholds established by Visa.Authorization
11.1 Card Recovery Bulletin
Description
Card Recovery BulletinTime Limit (Issuer/Cardholder)
75 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The transaction was above your floor limit, but you didn’t request authorization. Since the authorization process wasn’t used, you didn’t realize the account number was listed in the Card Recovery Bulletin and the transaction should have been terminated.Prevention Steps
- Always send an authorization request before processing a transaction if the amount is above your floor limit.
- Check the Card Recovery Bulletin if the transaction is below your floor limit.
- If you process transactions with multiple authorizations, make sure you fully understand Visa’s rules and regulations.
Learn More about Visa Chargeback Reason Code 11.1: Authorization
11.2 Declined Authorization
Description
Declined AuthorizationTime Limit (Issuer/Cardholder)
75 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
You received a Decline or Pickup authorization response, but chose to complete the transaction anyway.Prevention Steps
- If you receive a Decline or Pickup authorization response, either terminate the transaction or submit a second authorization request. Never proceed without authorization.
- If you process transactions with multiple authorizations, make sure you fully understand Visa’s rules and regulations.
Learn More about Visa Chargeback Reason Code 11.2: Authorization
11.3 No Authorization
Description
No AuthorizationTime Limit (Issuer/Cardholder)
75 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The transaction was processed without any attempt to gain authorization, or authorization was requested after the fact or for a different amount.Prevention Steps
- Always send an authorization request before processing a transaction if the amount is above your floor limit.
- If you process transactions with multiple authorizations, make sure you fully understand Visa’s rules and regulations.
Learn More about Visa Chargeback Reason Code 11.3: Authorization
Processing Errors
12.1 Late Presentment
Description
Late PresentmentTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant does not process a transaction in a timely manner; the account was no longer in good standing at the time of processing.Prevention Steps
Make sure you send completed transactions to your payment processor within the timeframe specified in your merchant agreement. A good practice is to submit transactions on the day of the sale or as soon as possible.Learn More about Visa Chargeback Reason Code 12.1: Processing Errors
12.2 Incorrect Transaction Code
Description
Incorrect Transaction CodeTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant processed a debit instead of a credit, processed a credit instead of processing a reversal, or in some other way processed a transaction that differed from the obtained authorization.Prevention Steps
Hold regular staff training sessions to ensure everyone on your team knows how to correctly process transactions, refunds, and adjustments.Learn More about Visa Chargeback Reason Code 12.2: Processing Errors
12.3 Incorrect Currency
Description
Incorrect CurrencyTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The transaction currency differs from the currency transmitted through Visa; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.Prevention Steps
- Don’t automatically apply Dynamic Currency Conversion (DCC) to to transactions. Give customers the option to select the service if they are interested, but don’t require its use.
- Have systems in place to manage multiple currencies. Make sure staff are trained on procedures.
Learn More about Visa Chargeback Reason Code 12.3: Processing Errors
12.4 Incorrect Account Number
Description
Incorrect Account NumberTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The transaction was processed to an incorrect account number; the adjustment was processed more than 45 days from transaction date; an adjustment was posted to a "closed" or "non-sufficient funds" account more than 10 days after the transaction date; an adjustment was processed more than once for the same transaction; the cardholder disputes the validity of the adjustment.Prevention Steps
- Always request authorization before completing a transaction.
- If an authorization request is denied, stop the transaction and ask for an alternate form of payment.
- Always swipe or dip a card—only use fall-back options in emergency situations.
Learn More about Visa Chargeback Reason Code 12.4: Processing Errors
12.5 Incorrect Amount
Description
Incorrect AmountTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder claims the transaction amount is incorrect. - An error was made entering numbers manually; the amount of the transaction was changed without the cardholder's consent.Prevention Steps
- Unless authorized, never change the amount of a completed transaction without the cardholder’s consent.
- Use caution when entering handwritten transaction information.
- Always swipe or dip a card—only use fall-back options in emergency situations.
Learn More about Visa Chargeback Reason Code 12.5: Processing Errors
12.6 Duplicate Processing/Paid By Other Means
Description
Duplicate Processing/Paid By Other MeansTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant's system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.Prevention Steps
- If you notice a duplicate transaction, issue a credit as soon as possible.
- Double check all transaction receipts before they are deposited.
- Only send batches one time.
- If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.
Learn More about Visa Chargeback Reason Code 12.6: Processing Errors
12.6.1 Duplicate Processing
Description
Duplicate ProcessingTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant's system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.Prevention Steps
- If you notice a duplicate transaction, issue a credit as soon as possible.
- Double check all transaction receipts before they are deposited.
- Only send batches one time.
- If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.
Learn More about Visa Chargeback Reason Code 12.6.1: Processing Errors
12.6.2 Paid By Other Means
Description
Paid By Other MeansTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant tries to submit multiple batches at one time; the transaction has multiple receipts; the transaction is duplicated in the merchant's system; the transaction was processed but the cardholder paid for the same merchandise or service by other means.Prevention Steps
- If you notice a duplicate transaction, issue a credit as soon as possible.
- Double check all transaction receipts before they are deposited.
- Only send batches one time.
- If the customer wants to change to a different form of payment after initially offering the payment card, be sure to void the charge.
Learn More about Visa Chargeback Reason Code 12.6.2: Processing Errors
12.7 Invalid Data
Description
Invalid DataTime Limit (Issuer/Cardholder)
75 daysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant submits an authorization request containing an incorrect transaction date, MCC, merchant or transaction type indicator, country or state code, or other required field.Prevention Steps
- Supply all necessary information with each authorization request, including transaction date, MCC, transaction type indicator, country code, and state code.
- Make sure your correct MCC is used in the authorization request and it matches what will be sent with transaction clearing.
Learn More about Visa Chargeback Reason Code 12.7: Processing Errors
Card Member Disputes
Inquiry/Miscellaneous
Not Classified
Expired
Services
Dispute Compliance
Point-of-Interaction Error
Cardholder Disputes
Consumer Disputes
13.1 Merchandise/Services Not Received
Description
Merchandise/Services Not ReceivedTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The customer claims you didn’t provide the goods or services as promised. The merchant delays delivery; the merchant charges the cardholder prior to shipping or delivery; the merchant ships on time or has the product available for pick-up but does not inform the customer; the cardholder fraudulently claims the goods or service did not arrive.Prevention Steps
- Abide by the delivery date you promised.
- Have merchandise ready for pickup at the time you specified it would be available.
- Make sure you accurately describe the services that will be provided.
- Don’t charge the card until the merchandise has been shipped.
- Notify the customer as soon as possible if merchandise is out of stock or the delivery will be delayed.
Learn More about Visa Chargeback Reason Code 13.1: Consumer Disputes
13.2 Cancelled Recurring Transaction
Description
Cancelled Recurring TransactionTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder claims you processed a recurring transaction after they requested a cancellation or you processed a recurring transaction on an account that had been closed. The cardholder withdraws permission to charge the account or cancels payment for subscription; cardholder or issuing bank cancels the account; merchant neglects to cancel a recurring transaction; merchant processes a transaction after being notified the cardholder's account was closed.Prevention Steps
- Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
- Send a notification after you’ve cancelled the recurring payment.
- If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
- Clearly and concisely communicate your cancellation policy and make it easy for customers to find the information.
- Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.
- Use Visa Account Updater to replace outdated cardholder information with new data before you process the next recurring transaction.
Learn More about Visa Chargeback Reason Code 13.2: Consumer Disputes
13.3 Not As Described Or Defective Merchandise/Services
Description
Not As Described Or Defective Merchandise/ServicesTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
- The cardholder claims goods or services provided didn’t match the description listed or verbally provided at the time of purchase, were defective or damaged, or the quality wasn’t what was expected.
- The merchandise was damaged in transit; the merchandise does not match the merchant's description; the cardholder disputes the quality of the product; the cardholder fraudulently claims the merchandise is damaged. (Note: Merchant may not direct the customer to the manufacturer for resolution. Also, this reason code supersedes merchants' return policy.)
Prevention Steps
- Make sure all service and merchandise descriptions are complete, accurate, and not misleading.
- Use the correct size boxes and sufficient packing material so items won’t break in transit.
- Make sure your fulfillment department is familiar with your merchandise, has a complete understanding of what has been purchased, and knows what to ship.
- Resolve the issue yourself. Don’t refer the cardholder to the manufacturer instead.
Learn More about Visa Chargeback Reason Code 13.3: Consumer Disputes
13.4 Counterfeit Merchandise
Description
Counterfeit MerchandiseTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant is unaware of the counterfeit merchandise; the customer fraudulently claims the goods are not genuine. (Note: This reason code supersedes merchants' return policy.)Prevention Steps
- Only sell genuine merchandise.
- Make sure all product descriptions are complete, accurate, and not misleading.
Learn More about Visa Chargeback Reason Code 13.4: Consumer Disputes
13.5 Misrepresentation
Description
MisrepresentationTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant's product descriptions are vague, inaccurate, or insufficient. Examples of typical merchant types for this dispute include: timeshare reseller, debt consolidation, credit repair, foreclosure relief services, investment products, and the like. (Note: This reason code supersedes merchants' return policy.)Prevention Steps
- Make sure all descriptions of the services or merchandise are complete, accurate, and not misleading.
- Clearly and concisely communicate your terms of service and make it easy for customers to find the information.
- Fully comply with all of Visa’s requirements for free trials, introductory offers, and upsells.
Learn More about Visa Chargeback Reason Code 13.5: Consumer Disputes
13.6 Credit Not Processed
Description
Credit Not ProcessedTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The merchant didn't credit the account; the merchant issued the credit but not in time to be posted to the customer's most recent statement; the customer misunderstood the return policy; the merchant processed a transaction receipt that should have been voided.Prevention Steps
- Take care not to accidentally process transactions that should be voided or cancelled.
- Adhere to any promises for credits or refunds.
- Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.
Learn More about Visa Chargeback Reason Code 13.6: Consumer Disputes
13.7 Cancelled Merchandise / Services
Description
Cancelled Merchandise / ServicesTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
- The cardholder claims to have returned merchandise or cancelled a service, but credit hasn’t been applied to the cardholder’s statement yet.
- The merchant has not yet issued a due credit; issued the credit but it hasn't posted to the customer's account yet; the merchant the customer misunderstood or was never clear on the return policy.
Prevention Steps
- If you never received returned merchandise from the cardholder, provide documentation that proves inaction on the cardholder’s part.
- If you received returned merchandise but didn’t accept it because it violated your return policy, provide documentation that proves you refused delivery for the merchandise and why. Share your return policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase.
- If the cardholder didn’t abide by your cancellation policy, provide documentation that proves why you didn’t fulfill the cancellation requisition. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase.
- If you fulfilled the cancellation request but the cardholder continued to use the services, provide documentation that proves the charge covers services used after the cancellation.
- If the dispute is invalid, provide documentation that proves the reasoning: the dispute is based solely on claims related to the quality of purchased items, or the dispute amount includes the cash-back portion of the transaction, or the merchandise cleared the merchant’s customs but is being held by the customer’s customs agency.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
Learn More about Visa Chargeback Reason Code 13.7: Consumer Disputes
13.8 Original Credit Transaction Not Accepted
Description
Original Credit Transaction Not AcceptedTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder did not accept the credit or local laws prohibit the issuer from allowing original credit transactions (OCTs).Prevention Steps
- Maintain accurate records
- Familiarize yourself with usage laws for areas you serve
Learn More about Visa Chargeback Reason Code 13.8: Consumer Disputes
13.9 Non-Receipt of Cash or Load Transaction Value
Description
Non-Receipt of Cash or Load Transaction ValueTime Limit (Issuer/Cardholder)
120 DaysTime Limit (Acquirer/Merchant)
30 days (cut to 20 days in 2019)Typical Causes
The cardholder claims not to have received cash or only received a partial amount from an ATM withdrawal. Or, the cardholder did not receive the correct load transaction value.Prevention Steps
- Reconcile ATMs promptly.
- Adjust out-of-balance ATMs.
- Process a credit as soon as possible if you notice a discrepancy.
Learn More about Visa Chargeback Reason Code 13.9: Consumer Disputes
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