Visa Chargeback Reason Code 13.6: Consumer Disputes

chargeback reason code 13.6Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 13.6, which indicates a disputed 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 13.6 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.

What is Visa Chargeback Reason Code 13.6?

Visa chargeback reason code 13.6 falls under the “Consumer Disputes” category. The shorthand description is “Credit Not Processed.” This reason code indicates that the cardholder had reason to believe they were going to receive a refund, but no credit to their account has yet been processed.

This chargeback may follow when there are miscommunications with the customer about returns or refunds, when transaction receipts that are supposed to be voided or cancelled get processed by accident, or when merchants are too slow to process credits that customers have been told to expect.

What Scenarios Might Lead to This Chargeback?

When this chargeback is the result of merchant error, it is usually because the merchant simply forgot or neglected to process a credit transaction that was promised to a customer. It may also occur when the merchant refuses to grant a refund in defiance of their own policies.

This chargeback can also result from friendly fraud. Sometimes customers will mistakenly believe they are entitled to a refund, but in fact they are not because they did not follow the correct return or cancellation policies. Sometimes the merchant processes a credit too late for it to show up on the cardholder’s most recent statement, and they file for this chargeback without realizing that the refund has already been posted to their account.

Other cardholders may deliberately make false claims about being entitled to a refund to trick their issuer into granting them an unwarranted chargeback.

Get the guide, Chargebacks 101: Understanding Chargebacks & Their Root Causes

What are the Important Timeframes?

For this dispute, Visa requires that its cardholders file their claim within 120 calendar days of placing the transaction. The acquirer and/or merchant have 20 calendar days to respond to this chargeback after it is filed.

How Can Merchants Fight this Chargeback Code?

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

  • A transaction receipt or other documents showing that the merchant fully and properly disclosed their return policy to the cardholder at the time of sale, and that per your policy they are not entitled to a credit or refund.
  • Proof that the chargeback is invalid because the disputed amount involves the cash-back portion of the transaction.
  • Proof that the chargeback is invalid because the dispute concerns a transaction made at an automated fuel dispenser.
  • 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 this Chargeback Code? 

Good communication goes a long way toward preventing chargebacks of this nature. Your return and refund policies should be easy to understand and clearly conveyed to your customers. When you agree to grant a refund to a customer because of a product return or some other customer service issue, be transparent and accurate about when they can expect to see a credit to their account, and follow through on your assurances.

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

  • Process all credit vouchers promptly, ideally so that the credit will appear on the cardholder’s next monthly statement.
  • Stick to the promises you make to provide refunds and credits, especially if a specific timeframe is mentioned.
  • Be careful not to erroneously process transactions that should be voided or cancelled.

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 of 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.