Visa Chargeback Reason Code 12.6.2: Processing Errors

Table of Contents

1. What is Visa chargeback reason code 12.6.2?
2. What causes code 12.6.2 chargebacks?
3. What's the time limit to respond to code 12.6.2 chargebacks?
4. How can merchants fight code 12.6.2 chargebacks?
5. How can merchants prevent code 12.6.2 chargebacks?
6. About Visa chargeback reason codes

Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 12.6, which indicates an improperly processed transaction that the cardholder does not believe they should be responsible for paying. The actual underlying cause of this chargeback is usually either friendly fraud or merchant error. Merchants who believe they have received an invalid chargeback under reason code 12.6 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.

What is Visa chargeback reason code 12.6.2?

Visa chargeback reason code 12.6.2 falls under the “Processing Errors” category. The shorthand description is “Paid by Other Means.” This reason code indicates that the cardholder is disputing the credit card transaction because they provided payment via some other method, such as cash, check, digital wallet, or a different payment card.

Although the disputed transaction may have been properly authorized and processed without error, it can still be considered invalid—and subject to chargebacks—if the merchant had already been paid and there no longer existed any legitimate basis for the charge at the time it was processed.

What causes code 12.6.2 chargebacks?

This chargeback scenario can occur whenever a merchant has access to more than one form of payment form a customer. Sometimes, a merchant may start a transaction on a payment card, but the cardholder changes their mind about their payment method midway through. If the merchant doesn’t completely void the transaction in progress, it’s possible to submit it as a duplicate. This can also happen when a cardholder makes a one-time payment on a recurring billing that is set up for automatic payments, and the merchant doesn’t stop the automatic payment from being processed.

When multiple individuals are involved in a single purchase it’s possible for miscommunications to result in more than one payment being processed by the merchant.

This reason code can also be used in friendly fraud. Cardholders may dispute a purchase by falsely claiming that they had already paid for it with cash or some other hard-to-disprove method.

What's the time limit to respond to code 12.6.2 chargebacks?

The acquirer or merchant has 30 days to respond to a chargeback filed under reason code 12.6.2.

How can merchants fight code 12.6.2 chargebacks?

Merchants can fight this chargeback if the cardholder’s claims are false. Your chargeback response should include the following:

• Individual and separate transaction receipts, or other documents, that prove that the disputed transaction was for a different and separate purchase.
• Proof that you did not receive any other form of payment for the goods or services purchased in the disputed transaction.
• If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
• If you have resolved the issue directly with the cardholder, provide proof, such as written correspondence, that proves they no longer wish to dispute the charge.

How can merchants prevent code 12.6.2 chargebacks?

These chargebacks typically result from extraordinary situations and can be avoided by proceeding slowly and taking precautions when there are multiple payment methods and checkout locations in play. If you find yourself getting hit with this chargeback on a regular basis, perform an immediate and thorough review of your billing procedures.

Take care when processing transactions and be sure to completely void out in-progress transactions when the customer decides to make a significant change, like switching to a different payment method. You can also protect yourself in the event of later friendly fraud disputes by keeping detailed transaction records, such as legible receipt copies.

The following tips can help you avoid this kind of chargeback:

• Review your transaction receipts before depositing.
• Double check all price calculations, transaction amounts, and payment types before finalizing a transaction.
• If a customer wants to change to a different form of payment after initially offering a payment card, be sure to void the card transaction immediately.
• If you notice a duplicate payment, issue a credit or process a transaction reversal immediately.

About Visa chargeback reason codes

Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid.

When a cardholder contacts their issuing bank to dispute a transaction and receive a chargeback, the dispute is assigned a reason code that most closely matches the substance of the cardholder’s claims. The reason code provides the merchant and other stakeholders in the dispute with a concise explanation for why a chargeback has been granted.

Each card network—Visa, Mastercard, American Express, and Discover—defines and maintains their own unique set of reason codes, which are applied to disputes by the banks that issue credit and debit cards under their brands.

Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction Error, Consumer Disputes, and Processing Errors. Visa uses a numeric scheme for its chargeback reason codes.

Understanding chargeback reason codes is one of the most essential parts of effective chargeback management. Identifying the chargeback reason code and the evidence required to fight it is the first step in chargeback representment, and analyzing your chargeback reason codes can provide you with insights into what types of disputes are causing you the most trouble. With this information, you can determine the root causes of your chargebacks and take action to prevent them from reoccurring.

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