Visa Chargeback Time Limits – Updated August 2019

Emily VuittonChargeback Basics9 Comments

Chargeback Time Limits - Visa
Updated: August 2019

Chargeback time limits inform all parties involved in the dispute process when actions must be completed. This includes when merchants need to have the dispute response submitted by, how long after a transaction the cardholder has to dispute a charge, how long issuers must wait before issuing the dispute, and more. The goal of time limits is to settle transaction disagreements in a timely manner for merchants and cardholders.

Visa Chargeback Time Limits

The following are Visa chargeback time limits for the parties issuing the disputes and the parties responding to the dispute.

Visa Reason Code

Reason Code Description

Time Limit

(Cardholder / Issuing Bank)

Time Limit

(Acquirer / Merchant)

10.1

EMV Liability Shift Counterfeit Fraud

120

30

10.2

EMV Liability Shift Non-Counterfeit Fraud

120

30

10.3

Other Fraud — Card Present Environment

120

30

10.4

Other Fraud — Card Absent Environment

120

30

10.5

Visa Fraud Monitoring Program

120

30

11.1

Card Recover Bulletin or Exception File

75

30

11.2

Declined Authorization

75

30

11.3

No Authorization

75

30

12.1

Late Presentment

120

30

12.2

Incorrect Transaction Code

120

30

12.3

Incorrect Currency

120

30

12.4

Incorrect Transaction Account Number

120

30

12.5

Incorrect Transaction Amount

120

30

12.6

Duplicate Processing or Paid By Other Means

120

30

12.7

Invalid Data

75

30

13.1

Services Not Provided or Merchandise Not Received

120*

30

13.2

Canceled Recurring Transaction

120

30

13.3

Not as Described or Defective Merchandise

120*

30

13.4

Counterfeit Merchandise

120*

30

13.5

Misrepresentation of the purchased good and/or service 

120*

30

13.6

Credit Not Processed

120*

30

13.7

Canceled Merchandises/Services

120*

30

13.8

Original Credit Transaction Not Accepted

120

30

13.9

Non-Receipt of Cash or Load Transaction Value at ATM

120

30


Visa Time Limit Changes - VCR

Visa’s time limits and reason codes went through significant changes when Visa released its new global dispute resolution process: Visa Claims Resolution (VCR). This new process was created to shorten the time it took to reach a dispute resolution, simplify the reason codes, and prevent invalid disputes from being filed.

To make the dispute process streamlined, Visa created two workflows: Allocation and Collaboration. Fraud and authorization disputes go through the allocation workflow. When fraud or authorization disputes come in, Visa performs automated checks, which include:

  • Was the fraud dispute a 3D secure authorized transaction?
  • Did the cardholder dispute the purchase after the allotted time frame?
  • Did the cardholder already receive a refund from the disputed charge?

If Visa detects any of those conditions, the dispute will be prevented from being issued.

The collaboration workflow is mainly assigned for processing error and consumer disputes. This process primarily stayed the same as the old dispute process, just with better communication between the parties involved.

The VCR workflows cut down on the overall number of disputes merchant receive, made it easier to communicate between the involved parties, and overall simplified the dispute process. Because of these changes, Visa shortened the amount of time merchants had to respond to a dispute. Merchants previously had 45 days to respond to a Visa chargeback. Now that VCR is in effect, merchants have 30 days to submit a response.

Time Limit Modifiers

While the majority of reason codes have the same associated time frames, a handful of reason codes have conditions that can modify the time allotments. Reason codes with these modifiers are noted in the time limit table with an asterisk (*) and described below.

VCR Dispute Reason Code 13.1 Time Limit Modifiers

Chargeback time limits associated with VCR 13.1 can change if the merchandise or services were expected to be provided after the transaction processing date. For example, the purchase could be for plane tickets that would be used months after the initial transaction. Which means the dispute may be issued:

  • 120 calendar days from the last date the cardholder expected to receive merchandise or services.
  • 120 calendar days from the date the cardholder was told that the merchandise or services won’t be provided.

The dispute cannot exceed 540 calendar days from the transaction processing date.

VCR Dispute Reason Code 13.3 Time Limit Modifiers

A chargeback categorized under VCR 13.3 can have two different time limits for when disputes must be processed in:

  • 120 calendar days of either the transaction processing date or the date the cardholder received the goods or services.
  • 60 calendar days of when the issuer received the cardholders disputes if:
    • There is evidence of previous ongoing negotiations between the cardholder and the merchant
    • The negotiations occurred within 120 days of the transaction processing date

The dispute cannot exceed 540 calendar days from the transaction processing date.

VCR Dispute Reason Code 13.4 Time Limit Modifiers

A chargeback categorized under VCR 13.4 still has a 120-day time limit, but the start day can be one of the following:

  • The transaction processing date
  • The date the cardholder received the merchandise (Not exceeding 540 calendar days from the transaction date)
  • The date on which the cardholder was notified that the merchandise was counterfeit (Not exceeding 540 calendar days from the transaction date)
VCR Dispute Reason Code 13.5 Time Limit Modifiers

A chargeback categorized under VCR 13.5 can have two different time limits for when disputes must be processed in:

  • 120 calendar days of either the transaction processing date or the date the cardholder received the goods or services.
  • 60 calendar days of when the issuer received the cardholders disputes if:
    • There is evidence of previous ongoing negotiations between the cardholder and the merchant
    • The negotiations occurred within 120 days of the transaction processing date
VCR Dispute Reason Code 13.6 Time Limit Modifiers

A chargeback categorized under VCR 13.6 still has a 120-day time limit, but the start day can be one of the following:

  • The transaction processing date
  • The date on the credit transaction receipt
VCR Dispute Reason Code 13.7 Time Limit Modifiers

A chargeback categorized under VCR 13.7 still has a 120-day time limit, but the start day can be one of the following:

  • The transaction processing date
  • The date the cardholder received or expected to receive the merchandise or services, (Not exceeding 540 calendar days from the transaction processing date)

Chargeback Time Limits Leaving Your Head Spinning?

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