Visa Reason Code 13.6: Credit Not Processed
For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. Each of these causes has a designated “reason code,” and banks assign the appropriate code to each case to show the given reason for the chargeback.
That sounds simple enough, but the reality is, the given reason for a chargeback may or may not be the true reason. Plus, each card network has its own set of reason codes which, while nearly the same in function, nevertheless differ from one another. Keeping track of all these codes, along with the best ways to either fight or prevent each one, is challenging.
With that in mind, let’s take a look at Visa Reason Code 13.6: Credit Not Processed.
What is Visa Reason Code 13.6?
Chargeback reason code 13.6 is an updated version of legacy reason code 85, which was phased out under the Visa Claims Resolution initiative. 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.
This can be the result of innocent merchant error, intentional merchant fraud, or—most likely—friendly fraud.
Merchant Errors, Rights & Limitations
Chargebacks of any kind are nothing be trouble for merchants…yet many chargebacks are the direct result of preventable merchant missteps. It’s crucial for businesses to recognize the common merchant errors that might trigger chargebacks with a “credit not processed” reason code:
- The merchant failed to process a credit.
- The merchant issued the credit but did not deposit it in time for it to appear on the cardholder’s next statement.
- The merchant processed a transaction that was cancelled or voided.
Taking care to avoid these mistakes can prevent disputes before they happen. But those aren’t the only causes of reason code 13.6 chargebacks. As mentioned earlier, the given reason for a chargeback may be far different from the actual reason. The cardholder who knowingly tries to file a chargeback under false pretenses commits friendly fraud.
While banks try to investigate all claims thoroughly before processing a dispute, the meteoric rise in chargeback cases has made this extremely difficult. In many cases, it’s more efficient to simply take the customer’s claim at face value.
Fortunately for merchants, there are at least some time limitations placed on chargebacks filed under reason code 13.6:
- 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.
- 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.
Reason Code 13.6 Claims: Prevention & Response
No matter how faithfully merchants follow the rules, there will always be people who attempt to take advantage of the system. 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:
- Be sure to follow through with all credit/refund transactions.
- Process credits/refunds in a timely manner; if applicable, advise customers when a credit may appear on the account statement.
- Take care not to accidentally process transactions that have been voided or cancelled.
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Disputing Reason Code 13.6 Chargebacks
While preventative measures can significantly lower overall dispute volume, some illegitimate chargebacks will slip through the cracks. Merchants who have evidence that refutes a cardholder’s claim should definitely challenge the chargeback through Visa’s dispute process. Here are some steps merchants can take to make the representment process more successful:
|The sale is legitimate and no credit is due…||…provide documentation to refute the validity of the claim to the cardholder’s bank.|
|The credit is due but has not been processed…||…you must accept the dispute.|
|You have already processed a reversal, or issued a credit for the transaction...||…provide evidence of the credit or reversal,
including the amount and the date it was processed.
|The cardholder no longer disputes the transaction…||…provide a signed letter or statement from the cardholder which states they no longer dispute the transaction.|
Take a Wider View
Invalid chargebacks from Visa Reason Code 13.6 can be disputed, but it’s much more efficient to take a proactive stance. The same is true of the other chargeback reason codes, as well. A truly effective chargeback management strategy must encompass prevention as well as disputing cases of friendly fraud.
Chargebacks911® can help your business manage all aspects of chargeback reason codes, with proprietary technologies and experience-based expertise. Contact us today for a free ROI analysis to learn how much more you could save.