Visa Chargeback Reason Code 76

Chargeback Reason Code 76: Incorrect Currency or Transaction Code, or Domestic Transaction Processing Violation

Chargebacks that result from processing errors are costly and unnecessary. Visa chargeback reason code 76 is just such an example: a merchant doesn’t communicate properly or makes a simple processing mistake.

Chargeback Reason Code 76: Incorrect Currency or Transaction Code, or Domestic Transaction Processing Violation

This chargeback reason code can result from various merchant-consumer interactions:

  • The merchant used the wrong transaction code or currency code.
  • The merchant issued a credit voucher, but the transaction was posted as a sale.
  • The merchant didn’t deposit the sales receipt in the same country as the transaction.
  • The transaction currency isn’t the same currency that was processed.
  • The cardholder was not given the choice to pay in the merchant’s currency.
  • The cardholder was not told that Dynamic Currency Conversion would be used and an additional fee would be added to the transaction.

Understanding the Dynamic Currency Conversion

DCC_receipt

The Dynamic Currency Conversion, or Cardholder Preferred Currency, is a credit card processing service to help facilitate international transactions. Merchants who use DCC software give international customers the choice of paying in their local currency or the merchant’s currency.

DCC is compatible with Visa and MasterCard transactions and is available for both card-present and card-not-present merchants.

Of course, merchants don’t have to use DCC. Without DCC, transactions will always be settled in the merchant’s currency. However, many customers feel more comfortable doing business in their own currency. Even though the customer ends up paying more if they opt for their own currency through the use of DCC, they usually feel more secure in that option.

Tips for Managing Visa Chargeback Reason Code 76

If the merchant legitimately made the errors the cardholder claimed, there isn’t much opportunity for recourse.

  • If a credit was processed as a sale, accept the chargeback (it will be twice the price of the original sale amount to compensate for the double charge).
  • If two different currencies were used for the sale and the processing, accept the chargeback.
  • If the customer was given the opportunity to pay in the cardholder’s currency but wasn’t informed of additional DCC charges, accept the chargeback.
  • If the customer was not given the opportunity to pay in the merchant’s currency, accept the chargeback.

However, if the cardholder is simply engaging in friendly fraud and the merchant has the necessary documentation to back up the claim, there are ways to fight the chargeback.

  • If the customer was given the opportunity to pay in the merchant’s currency but declined the option and was informed of additional DCC charges, send documentation of the customer’s authorization to the acquirer.
  • If the correct transaction code was used, send documentation to the acquirer.

Many merchants believe chargeback myths, that disputing a cardholder’s claim is impossible. But if a customer is engaging in friendly fraud because of the sticker shock associated with a DCC situation, fight back!


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Tips for Preventing Visa Chargeback Reason Code 76

Chargebacks with this reason code usually result from one of two situations: merchant error or friendly fraud. A merchant’s prevention strategies should address both possible causes.

  • Always follow best payment processing practices.
  • Communicate openly and honestly. Withholding information, intentionally or unintentionally, will lead to chargebacks.
  • Write user-friendly, easy-to-understand policies. Make sure the customer reads and understands these before completing the transaction.
  • Ask the cardholder to confirm their payment currency choice with a signature. The customer’s signature should confirm that they were given the option to pay in the merchant’s currency, a DCC payment is optional, and additional fees will accompany a DCC transaction. This signature should be in addition to confirming the cardholder’s identity.
  • Train staff to properly comply with DCC requirements. Card-present sales staff need to understand the use of DCC is optional. Customers aren’t required to use the service.
  • Tell customers exactly how much they’ll have to pay with each option. Disclose all costs and fees associated with DCC.
  • Take language barriers into consideration. Someone who is prompted to use DCC probably speaks a different language. Offer the detailed information in the cardholder’s native tongue.

Safely Expanding into the Global Market

The global marketplace offers an abundance of profitable opportunities. However, merchants must advance cautiously.

Excessive chargeback levels are detrimental for any merchant, and one who operates internationally is at a higher risk. If you’d like help establishing an effective chargeback management program as part of your global expansion, let us know.


Prevent Chargebacks.

Fight Fraud.

Recover Revenue.

Mar 11, 2015   1611      Reason Codes    
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