Visa Chargeback Time Limits

Emily VuittonChargeback Basics5 Comments

Chargeback Time Limits - Visa

Don’t go just yet! We need to know Visa’s new chargeback time limits. The world’s largest card network has different time limits for cardholders, issuing banks, acquirers. And that has changed since April 2018!

But these’s new chargeback time limits are not set in stone. Reason codes with certain conditions can adjust certain timeframes. The circumstances can vary. And its details can be found in the tables below.

The clock is ticking for your dispute response. Let’s see which parties are affected under which conditions.

Visa Chargeback Time Limits

Visa’s time limits are outlined by its reason codes. And the Visa Core Rules and Visa Product and Service Rules further influence the workflow. You can learn more about the Allocation and Collaboration workflow right here.

Chargeback time limits are when chargebacks must be processed (and resolved) within the specified time frame. The time limits begin on the calendar day following the transaction processing date. After that, you’ll need to write a compelling response to the issuer. You’ll also need to provide proof of innocence if the issuer favors the cardholder. This is a good time to review how to write the best chargeback response).

What is the VCR?

The Visa Claims Resolution (VCR) initiative shrunk Visa's time frame and streamlined its dispute process.

Tell Me More.

This table shows chargeback time limits for cardholders, issuers, acquirers, and merchants. But please note:

  • The chargeback time limits had changed because of the Visa Claims Resolution (VCR). These new time limits apply to Visa’s new VCR dispute reason codes. You can learn more about the VCR right here.
  • Most chargeback time limits for merchants are set for 30 days. That means they’ll need to respond within 30 in order to challenge the dispute. Visa plans to have disputes resolved within 31 days. Here are come of Visa’s new dispute reason codes. It was created in part of the VCR. And it will be moderated by Visa Resolve Online (VROL).
  • The chargeback time limits for cardholders will vary from one issuer to another. The time limits shown in their column is what was shown in Visa Core Rules and Visa Product and Service Rules. Merchants must know that their time limits has shrunk from 45 days to 30 days
  • You can click on each reason code in the left column to learn to assemble your response.

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

120

30

13.1

Services Not Provided or Merchandise Not Received

120*

30

13.2

Cancelled 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

Cancelled 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

Acquirers must process a dispute response within 30 calendar days of the processing date. And there’s another rule that Visa placed in the new VCR process. Issuers and cardholders will be given 30 days to respond to your rebuttal. This stage is called pre-arbitration

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 above with an asterisk (*) and described below.

Keep in mind that the following information was extracted from the 2017 version of Visa Core Rules and Visa Product and Service Rules. The 2018 version is not yet available. But we connected the dots to show which modifiers match with the new VCR dispute reason codes. 

VCR Dispute Reason Code 13.1 Time Limit Modifiers

This formerly belonged to Reason Code 30

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. But an issuer’s time limit to chargeback cannot exceed 540 calendar days from the transaction processing date. A resolution will be available within 31 days. But you can expect a chargeback to occur within these two time limits:

  • 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.

VCR Dispute Reason Code 13.3 Time Limit Modifiers

This formerly belonged to Reason Code 53

A chargeback categorized under VCR 13.3 can use different dates that begin the 120 calendar day time limit. This is in addition to the standard transaction processing date. This means there are (at least) three other scenarios when Visa starts the 120 calendar day time limit:

  • This time limit can start at the date the cardholder received the merchandise or services. This happens when the merchandise or services was purchased on or before the transaction processing date. 
  • It can also start at the processing date of the balance portion of the transaction. But that happens when there was a delay in the delivery. 
  • This time limit can start at the date the cardholder received the merchandise or services. And that happens when the merchandise or services were provided after the transaction processing date. 
CB Reason Code Encyclopedia

Related

Want to be knowledge about the card networks’ reason codes? Download the Chargeback Reason Code Encyclopedia. You’ll learn about the transaction modifiers that affect each code. We also added an extensive brief on Visa’s new dispute process. Here’s your copy.

VCR Dispute Reason Code 13.3 Chargebacks under Condition 1, 3, or 4 in All Regions:
This formerly belonged to Reason Code 53

The start dates are not the only thing you should worry about with VCR 13.3. There are more chargeback conditions that impact the time limits. VCR 13.3 chargebacks under conditions 1, 3, or 4 require the issuer to wait 15 calendar days when the cardholder returned or attempted to return the merchandise or cancel the services.

Condition 1: Merchandise or services did not match what was described on the Transaction Receipt or other documentation presented at the time of purchase

Condition 3: The merchandise received by the Cardholder was damaged or defective

Condition 4: The Cardholder disputes the quality of the merchandise or services

VCR Dispute Reason Code 13.3 Chargebacks under Condition 2 in US Domestic, Canada Domestic, or Canada/US Interregional:

Condition 2 offers a unique twist for VCR 13.3 chargebacks. The issuer needs to wait 15 calendar days from the date the cardholder returned or attempted to return the merchandise or cancel the services. This chargeback must be processed no later than 60 calendar days from the date the issuer received the first notification of the dispute from the cardholder. All of following must have occurred before processing goes into effect:

  • There is evidence in the notification of previous ongoing negotiations between the cardholder and the merchant to resolve the dispute
  • The negotiations occurred within 120 days of the transaction processing date
  • The chargeback processing date is no later than 540 calendar days from the transaction processing date

Condition 2: This is for Card-Absent Environment transactions. The Merchant’s verbal description or other documentation presented at the time of purchase did not match the merchandise or services received.

VCR Dispute Reason Code 13.3 Chargebacks under Condition 4 in All Regions:
This formerly belonged to Reason Code 53

Condition 4 offers something a little different. VCR 13.3 chargebacks must be processed no later than 60 calendar days from the date the issuer received the first notification from the cardholder regarding the dispute. This occurs if all of the following apply:

  • There is evidence in the notification of previous ongoing negotiations between the cardholder and the merchant to resolve the dispute.
  • The negotiations occurred within 120 days of the transaction processing date.
  • The chargeback processing date is no later than 540 calendar days from the transaction processing date.

Condition 4: The Cardholder disputes the quality of the merchandise or services.

VCR Dispute Reason Code 13.3 Chargebacks under Condition 5 in All Regions:
This formerly belonged to Reason Code 53

A chargeback must be processed no later than 120 calendar days from the date the cardholder received the merchandise. It could also be processed 120 calendar days from the date on which the cardholder was notified that the merchandise was counterfeit. The chargeback processing date cannot exceed 540 calendar days from the transaction processing date.

Condition 5: The merchandise was identified as counterfeit by either: the owner of the intellectual property or its authorized representative; a customs agency, law enforcement agency, or other governmental agency; or a neutral bona fide expert.

VCR Dispute Reason Code 13.3 Chargebacks under Condition 6 in All Regions:
This formerly belonged to Reason Code 53

A chargeback must be processed no later than 60 calendar days from the date the issuer received the first cardholder notification of the dispute. It can only be processed if all the following rules apply:

  • There is evidence in the notification of previous ongoing negotiations between cardholder and merchant to resolve the dispute.
  • The negotiations occurred within 120 days of the transaction processing date.
  • The chargeback processing date is not later than 540 calendar days from the transaction processing date.

Condition 6: The cardholder claims that the terms of sale were misrepresented by the merchant.

Visa Dispute Reason Code 13.6 Time Limit Modifiers

This formerly belonged to Reason Code 85
VCR Dispute Reason Code 13.6 under Condition 1 in Interregional including VE:
This formerly belonged to Reason Code 85

An issuer must wait 15 calendar days from the date on the credit transaction receipt. This does not apply if the Credit Transaction Receipt is undated. A chargeback must be processed no later than 120 calendar days from any of the following:

  • The transaction processing date.
  • The date on the credit transaction receipt.
  • The date of the cardholder letter, if the credit transaction receipt is undated.
  • The date the issuer received the cardholder letter, if both the credit transaction receipt and the cardholder letter are undated.

Condition 1: The cardholder received a credit or voided transaction receipt that was not processed.

VCR Dispute Reason Code 13.6 under Condition 2 in All Regions:
This formerly belonged to Reason Code 85

An issuer must wait 15 calendar days from the date the merchandise was returned. A chargeback must be processed no later than 120 calendar days from either:

  • The transaction processing date,
  • The date the cardholder received or expected to receive the merchandise or services.

Condition 2: The cardholder returned merchandise, cancelled merchandise, or cancelled services; the merchant did not process a credit or voided transaction receipt; the merchant did not process a credit; and the merchant did not properly disclose or did disclose, but did not apply, a limited return or cancellation policy at the time of the transaction.

VCR Dispute Reason Code 13.6 under Condition 5 in All Regions excluding US Domestic:
This formerly belonged to Reason Code 85

A chargeback filed under VCR 13.6 and that represents condition 5 must be processed within 120 calendar days from one of the following:

  • The transaction processing date
  • The date on which the cardholder properly cancelled the advance deposit transaction, if the merchant did not process a credit
  • The scheduled arrival date, if either:
    • The merchant provided alternate accommodations but did not process a credit
    • The hotel or cruise line merchant did not inform the cardholder of its cancellation policy

Condition 5: An advance deposit transaction where one of the following is present: the cardholder properly cancelled the advance deposit transaction but the merchant did not process a credit; the merchant provided alternate accommodations but did not process a credit; the hotel or cruise line did not inform the cardholder of its cancellation policy; or in a US domestic transaction, the merchant provided alternate accommodations or an alternate vehicle but did not process a credit.

VCR Dispute Reason Code 13.6 under Condition 5 in US Domestic:
This formerly belonged to Reason Code 85

Condition 5 applies in the US Domestic Region. VCR 13.6 chargebacks must be processed within 120 calendar days from one of the following:

  • The transaction processing date
  • The date on which the cardholder properly cancelled the advance deposit transaction, if the merchant did not process a credit
  • The scheduled arrival date, if either:
    • The merchant provided alternate accommodations or an alternate vehicle but did not process a credit
    • The hotel or cruise line merchant did not inform the cardholder of its cancellation policy
VCR Dispute Reason Code 13.6 under Condition 6 in All Regions:
This formerly belonged to Reason Code 85

VCR 13.6 chargebacks filed under condition 6 must be filed within 120 calendar days from the transaction processing date.

Condition 6: An original credit transaction, including a money transfer original credit transaction, was not accepted because either: the recipient refused the original credit transaction or the original credit transactions are prohibited by applicable laws or regulations

VCR Dispute Reason Code 13.6 under Condition 7 in US Domestic:
This formerly belonged to Reason Code 85

Chargebacks filed under VCR 13.6 must be processed within 120 calendar days from the date on which the cardholder cancelled the transaction.

Condition 7: The cardholder properly cancelled an advance payment service transaction but the merchant did not process a credit.

VCR Dispute Reason Code 10.5 Time Limit Modifiers

This formerly belonged to Reason Code 93

VCR 10.5 chargebacks under general conditions, in all regions except US domestic, must be processed within 120 calendar days. It has to be processed from the date of the identification by the Merchant Fraud Performance Program.

Let the Chargeback App Improve Your Win Rate

There have been a lot of changes with Visa’s dispute process. That’s why you should consider automated dispute management and real-time resolution. Our new SaaS software is ready improve your win rate while lowering your chargeback ratio. That the Chargeback App can also integrate with your ecommerce platforms and payment technologies. It’s greatest feature is its dispute response generator. That means a response template will be generated whenever you receive an Alert. It’ll extract the information needed to create a compelling response. You’ll still have the option to edit it and add more information.

Feel free to contact us to learn more about the Chargeback App. Or you can request a demo see for yourself how you’ll effectively handle dispute management. Also, feel free to bookmark the most resourceful articles from our blog.


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