Chargeback Reason Code 57: Fraudulent Multiple Transactions
Each chargeback is accompanied by a numeric reason code. MasterCard and Visa chargeback reason codes very, but each credit card network maintains a list to help merchants understand what caused the disputed.
A Visa chargeback reason code 57 is issued when customers identify suspicious activity on their credit card statement.
Visa Chargeback Reason Code 57
Visa chargeback reason code 57 is titled fraudulent multiple transactions. The customer admits to participating in at least one transaction with the merchant, but disputes additional charges.
For this reason code to be used, the customer must have possession of the card at the time of the disputed transactions. If the customer didn’t have possession of the card, a different (fraud-related) code would be used.
Also, this reason code can only be used in brick-and-mortar establishments for card-present transactions. Online sales or other card-not-present situations would not use Visa chargeback reason code 57.
Understanding the Causes
A merchant should review each and every chargeback received very carefully; this is especially true of chargebacks dubbed fraudulent multiple transactions.
The causes of other chargebacks are pretty narrow in focus. For example, Visa chargeback reason code 71 (declined authorization) is almost certainly caused exclusively by merchant error. A Visa chargeback reason code 57, however, can result from many things.
The most common causes of Visa chargeback reason code 57 are:
- The merchant failed to void multiple transactions (error)
- The merchant tried to fraudulently process multiple transactions (merchant fraud)
- The consumer authorized the transactions, but later recanted (friendly fraud)
Disputing Reason Code 57 Chargebacks
Whenever a business receives a chargeback, the merchant always has the option of disputing the case. If the merchant has proper supporting evidence, the chargeback might be canceled and the merchant will recoup the profits.
Before fighting a chargeback, the merchant must carefully evaluate what has already happened in regards to the transaction. Past events will dictate future actions.
- If the merchant has already issued credit for the multiple transactions, send evidence of the credit to the acquirer.
- If credit hasn’t been issued yet, accept the chargeback. Don’t issue credit because the chargeback will have effectively reimbursed the customer.
- If the cardholder did actually engage in the transactions (meaning they were valid), send supporting documentation (like sales receipts, invoices, etc.) to the acquirer. These cases might mimic recurring payment chargebacks.
Chargeback Prevention Techniques
There are more than 20 different chargeback reason codes and each code is the result of different merchant/cardholder interactions. That means chargeback prevention must be extensive.
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Here are some things a merchant will need to do to keep Visa chargeback reason code 57 disputes to a minimum.
- Make sure all sales staff are properly trained. They need to know how to operate the point-of-sale terminals and void transactions. Offer POS refresher courses at least once a year.
- Share your policies with customers. Let them know exactly what they are purchasing. Request customers sign the policies in addition to the final transaction receipt.
- Hire only honest and respectable employees. Conduct background checks to ensure fraud isn’t a habit with your employees.
If, after reviewing the potentially fraudulent transactions, you find real merchant fraud is taking place, you’ll need to contact the authorities. The situation could turn into a criminal offense.
With today’s fickle customers, friendly fraud runs rampant. However, legitimate fraud and merchant error could be causing a fair amount of profit losses too.
If your business is experiencing chargebacks on a regular basis, you’ll probably need some professional help. Chargebacks911™ has identified several preventative steps you must take to keep chargebacks at a minimum. And letting us help dispute chargebacks means you can regain profits that would have otherwise been lost.
Contact us today and we’ll tell you exactly how much you could save by implementing a proactive chargeback management solution.