Merchants who receive a chargeback for a transaction placed with a Visa card may encounter reason code 90, 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 90 may be able to represent the transaction and reverse the chargeback with the right compelling evidence.
What is Visa Chargeback Reason Code 90?
Visa chargeback reason code 90 falls under the “Consumer Disputes” category. The shorthand description is “Non-Receipt of Cash or Load Transaction Value at ATM.” When this reason code is used, it means that the cardholder is claiming that they made a cash withdrawal transaction at an ATM and did not receive the full amount of cash or the load transaction value that they requested and were charged for.
When a cardholder uses a Visa debit card to withdraw cash from their bank account, or uses a Visa credit card to get a cash advance at an ATM, their account is charged for the amount of cash they ask to withdraw.
When there is a discrepancy between the amount charged and the amount dispensed, the cardholder has recourse in the form of this chargeback.
What Scenarios Might Lead to This Chargeback?
When a customer receives an incomplete disbursement at an ATM due mechanical problems or software glitches, it should be considered merchant error. ATMs are designed to accurately dispense cash, and when a cardholder receives a partial amount—or no cash at all—it usually means there is something wrong with the machine that adequate repairs or maintenance would have corrected.
However, it is also quite possible to encounter this reason code as a friendly fraud chargeback. Customers may miscount bills, forget the amount they keyed in, or accidentally leave bills behind in the ATM. When this occurs, they may file a chargeback under the mistaken assumption that the machine did not dispense correctly.
Some cardholders may even try to score some free money by falsely claiming that the ATM didn’t dispense all of the cash they requested.
What are the Important Timeframes?
For most disputes, Visa recommends 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 copy of the ATM Cash Disbursement Transaction record or Load Transaction record showing the cardholder’s account number and the date and time of the transaction.
- An ATM audit log showing that the disputed funds were in fact dispensed to the cardholder.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- The dispute resolution form and letter from the cardholder (applies to Visa’s Europe Region only, when the cardholder is disputing three or more of these transactions that took place within a 15 calendar day timespan).
How Can Merchants Prevent this Chargeback Code?
If you own and operate an ATM, you are subject to the chargebacks occur when your machine has a problem and shortchanges a customer. It is therefore very important that you maintain and service your machines regularly, according to the recommended manufacturer schedule, and promptly investigate any hardware or software issues. Using new, clean bills can prevent jams and other mechanical problems.
The following tips can help you avoid this kind of chargeback:
- Reconcile ATM transactions to cash in a timely manner in order to catch any discrepancies as soon as possible.
- If ATM logs indicate that a cardholder was shorted, notify them and provide an immediate transaction reversal or credit to correct the error.
- Address any errors, outages, balancing issues, hardware problems, or software glitches in your ATMs promptly.
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.