Visa Chargeback Time Limits

Emily VuittonChargeback Basics4 Comments

Chargeback Time Limits - Visa

Don’t go just yet! We need to inform you on the chargeback time limits set by Visa. The largest card network in the world has set different time limits for cardholders, issuing banks, acquirers—and they will soon change in 2018! What’s more concerning is that certain reason codes with conditions can adjust certain timeframes. The circumstances can vary, and they are detailed after the table below. The clock is ticking. Let’s see which parties are affected under which conditions.

 

Visa Time Limits are Changing in 2018!
Find out how and when the new Visa Claims Resolution (VCR) initiative goes into effect.

 

Visa Chargeback Time Limits

In Visa Core Rules and Visa Product and Service Rules, time limits are outlined by reason code. According to Visa, a chargeback must be processed according to the time limit specified. The chargeback time limit begins on the calendar day following the transaction processing date. After that, you will need to write a compelling response and provide proof of innocence if the issuing bank favors the cardholder (This is also a good time to review on how to write the best chargeback response).

The table below details time limits for cardholders, issuing banks, acquirers, and merchants regarding chargebacks.

  • The time limit for cardholders/issuing banks detailed in the third column is represented in calendar days from the transaction processing date.
  • The time limit for acquirers to process a chargeback and for merchants to submit documentation, detailed in the fourth column, is given in calendar days following the chargeback processing date.
Visa Reason Code Reason Code Description Time Limit
(Cardholder / Issuing Bank)
Time Limit
(Acquirer / Merchant)
30 Services Not Provided or Merchandise Not Received 120* 45
41 Cancelled Recurring Transaction 120 45
53 Not as Described or Defective Merchandise 120* 45
57 Fraudulent Multiple Transactions 120 45
62 Counterfeit Transaction 120 45
70 Card Recover Bulletin or Exception File 75 45
71 Declined Authorization 75 45
72 No Authorization 75 45
73 Expired Card 75 45
74 Late Presentment 120 45
75 Transaction Not Recognized 120 45
76 Incorrect Currency or Transaction Code or Domestic Transaction Processing Violation 120 45
77 Non-Matching Account Number 75 45
78 Service Code Violation 75 45
80 Incorrect Transaction Amount or Account Number 120 45
81 Fraud – Card-Present Environment 120 45
82 Duplicate Processing 120 45
83 Fraud – Card-Absent Environment 120 45
85 Credit Not Processed 120* 45
86 Paid by Other Means 120 45
90 Non-Receipt of Cash or Load Transaction Value at ATM or Load Device 120 45
93 Merchant Fraud Performance Program 120* 45

As you can see, the acquirer must process a representment within 45 calendar days of the chargeback processing date. If applicable, the acquirer must allow 5 calendar days from the chargeback processing date for receipt of documentation from the issuer. (Visa Product and Service Rules 11.1.7.2)

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.

Visa Chargeback Reason Code 30 Time Limit Modifiers

Time limits associated with Visa chargeback reason code 30 can change if the merchandise or services were expected to be provided after the transaction processing date. However, the time limit a cardholder or issuer has to chargeback cannot exceed 540 calendar days from the date of transaction processing.

  • 120 calendar days from the last date the cardholder expected to receive merchandise or services
  • 120 calendar days from the date the cardholder was first made aware that the merchandise or services would not be provided

Visa Chargeback Reason Code 53 Time Limit Modifiers

A chargeback categorized under Visa reason code 53 can utilize different dates that begin the 120 calendar day time limit in addition to the standard transaction processing date:

  • For merchandise or services purchased on or before the transaction processing date, the date the cardholder received the merchandise or services
  • For a delayed delivery transaction, the processing date of the balance portion of the transaction
  • For merchandise or services provided after the transaction processing date, the date the cardholder received the merchandise or services

Reason Code 53 Chargebacks under Condition 1, 3, or 4 in All Regions:

In addition to varying start dates, the chargeback condition under which reason code 53 falls can impact the time limits. Reason code 53 chargebacks under conditions 1, 3, or 4 require the issuer to wait 15 calendar days from the date 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

Reason Code 53 Chargebacks under Condition 2 in US Domestic, Canada Domestic, or Canada/US Interregional:

For reason code 53 chargebacks that fall under condition 2, the issuer needs to wait 15 calendar days from the date the cardholder returned or attempted to return the merchandise or cancel the services. In addition, a 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, as long as all of the following are present:

  • 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: For a Card-Absent Environment Transaction, the Merchant’s verbal description or other documentation presented at the time of purchase did not match the merchandise or services received

Reason Code 53 Chargebacks under Condition 4 in All Regions:

Under condition 4, a chargeback 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

Reason Code 53 Chargebacks under Condition 5 in All Regions:

A chargeback must be processed no later than 120 calendar days from the date the cardholder received the merchandise or the date on which the cardholder was notified that the merchandise was counterfeit, not to 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.

Reason Code 53 Chargebacks under Condition 6 in All Regions:

A chargeback must be processed no later than 60 calendar days from the date the issuer received the first cardholder notification of the dispute, 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 Chargeback Reason Code 85 Time Limit Modifiers

Reason Code 85 under Condition 1 in Interregional including VE:

Before initiating a chargeback, 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

Reason Code 85 under Condition 2 in All Regions:

Before initiating a chargeback, 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.

Reason Code 85 under Condition 5 in All Regions excluding US Domestic:

A chargeback filed under reason code 85 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.

Reason Code 85 under Condition 5 in US Domestic:

For chargebacks filed under reason code 85 and that represents condition 5 in US domestic regions 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

Reason Code 85 under Condition 6 in All Regions:

In all regions, chargebacks filed under Visa reason code 85 that represent 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

Reason Code 85 under Condition 7 in US Domestic:

In US domestic regions, chargebacks filed under Visa reason code 85 that represent condition 7 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

Visa Chargeback Reason Code 93 Time Limit Modifiers

Visa reason code 93 chargebacks under general conditions, in all regions except US domestic, must be processed within 120 calendar days from the date of the identification by the Merchant Fraud Performance Program.

Let the Chargeback App Improve Your Response Rate

Our new SaaS software is ready to automate dispute management and enable real-time dispute resolution for your internal team. We understand how challenging, and time-consuming, it is to rely on a third-party processors that may not fully understand your customers. That is why the Chargeback App was built to integrate with your proceedings, so that you are better equipped to handle chargebacks that uniquely affect your bottom line.

Our free Alerts are always expanding and includes all participating banks as well as fraud alerts directly from the card networks. And with real-time dispute resolution, you’ll be able to take action to stop chargebacks from ever occurring. Whether you want to initiate refunds or reroute shipments, you’ll be able to do it all within one place: the Chargeback App.

The Chargeback App also offers an expert DIY-guide that explains what should be included in accordance to each reason code. You’ll be free to add all the necessary evidence need to win your case and any additional evidence that increases your chances of winning. For example, using social media as evidence can be great secondary evidence. And you can learn more about that right here.

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 chargeback management.


Download the Encyclopedia of Reason Codes