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Discover Chargeback Reason Code LP – Late Presentment

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What Is The Discover Chargeback Reason Code LP – Late Presentment

Discover chargeback reason code LP – Late Presentment is used when a cardholder disputes a transaction because the merchant submitted it for processing too late, beyond the allowed timeframe. This can happen due to delays in processing or technical issues, and the cardholder may not recognize or accept the delayed charge. If you're a merchant facing this chargeback, you'll need to review the transaction dates, gather evidence explaining the delay, and submit it to Discover. The resolution process typically takes about 60 to 90 days, allowing for a thorough review and fair decision.

Common Causes Of Discovers' LP – Late Presentment

  • Delayed Processing: The merchant might have delayed submitting the transaction for processing, either due to oversight or a backlog in their transaction processing system.

  • Technical Issues: Technical problems with the payment processing system can cause delays in submitting transactions within the required timeframe.

  • Batch Processing Delays: Merchants using batch processing may experience delays if they do not submit batches in a timely manner.

Example Scenario of LP – Late Presentment

Imagine you run a restaurant, and a customer pays for their meal with a credit card. Due to a busy weekend and some technical issues, the transaction is not submitted for processing until several days later. The customer, not recognizing the delayed charge, disputes it under reason code LP – Late Presentment.

To handle this, you would review the transaction details, gather internal records showing when the transaction occurred and when it was submitted, and submit this evidence to Discover. Additionally, you would review your transaction processing procedures to prevent future delays.

Resolution Time Frame for Discover Chargeback Reason Code LP – Late Presentment

The resolution time frame for Discover chargeback code LP – Late Presentment typically follows a structured process. Here’s an outline of the typical timeline:

  1. Chargeback Filing: When a cardholder disputes a transaction due to late presentment, Discover initiates the chargeback process. This usually happens shortly after the cardholder reports the issue.

  2. Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. Discover generally allows merchants up to 30 days to gather and submit evidence to support their case. This evidence might include transaction logs, internal records, and any communication with the cardholder.

  3. Review and Decision: After the merchant submits their evidence, Discover reviews the information provided. This review period usually takes around 30-45 days. During this time, Discover assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.

  4. Final Resolution: The entire process, from the initial dispute to the final decision, can take anywhere from 60 to 90 days. If the merchant’s evidence shows that the delay was justified or minimal, the chargeback may be reversed. If the evidence supports the cardholder’s claim of late presentment, the chargeback stands, and the cardholder keeps the funds.

How to Avoid Chargeback Reason Code LP – Late Presentment

To minimize these disputes, consider these proactive measures:

  1. Timely Submission: Ensure that all transactions are submitted for processing as soon as possible, ideally on the same day or within the next business day.

  2. Automate Processes: Use automated systems for transaction processing to reduce the risk of delays due to manual errors or oversight.

  3. Regular Audits: Conduct regular audits of your transaction processing system to identify and address any potential delays.

How to Fix Chargeback Reason Code LP – Late Presentment

If you receive a chargeback under code LP, here’s what you should do:

  1. Review Transaction Details: Verify the details of the disputed transaction, including the date of the transaction and the date it was submitted for processing.

  2. Gather Documentation: Collect all relevant documents that can help explain the delay. This might include transaction logs, internal records, and any communication with the cardholder.

  3. Submit Evidence: Provide this evidence to Discover promptly. Clearly explain the reason for the delay and provide documentation showing the transaction details and submission dates.

  4. Address the Issue: Review your transaction processing procedures to ensure timely submission in the future. Identify any technical or operational issues that caused the delay and take corrective action.

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