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What Is The Discover Chargeback Reason Code PM – Paid By Other Means?
Discover chargeback reason code PM – Paid By Other Means is used when a cardholder disputes a transaction because they claim they paid for the purchase using a different method, like cash, another credit card, or an online payment service. If you're a merchant and receive this chargeback, you'll need to check your records to confirm if the customer did indeed pay another way. Gather and submit all relevant documentation, like receipts or bank statements, to prove the alternate payment. If an error is found, promptly issue a refund for the duplicate charge. The whole process typically takes about 60 to 90 days to resolve.
Common Causes Of Discovers' PM – Paid By Other Means
Discover chargeback reason code PM – Paid By Other Means is used when a cardholder disputes a transaction because they claim to have paid for the goods or services through a different method. This can happen in various situations:
- Alternative Payment Methods: The cardholder might have used cash, another credit card, a check, or an online payment service instead of the Discover card for the same transaction.
- Duplicate Payments: The cardholder believes they were charged twice for the same purchase—once on the Discover card and once through another payment method.
Example Scenario of PM – Paid By Other Means
Imagine a customer buys a product from your store and initially pays with cash. Later, they see a charge on their Discover card for the same amount and dispute it under reason code PM – Paid By Other Means, claiming they already paid with cash.
To handle this, you would review your transaction records and find the cash receipt. Gather this receipt, along with any other relevant documentation, and submit it to Discover. If it turns out the card was charged by mistake, you would process a refund for the card charge and provide proof of this correction.
Discover chargeback reason code PM – Paid By Other Means is about ensuring that customers are not charged multiple times for the same purchase. By maintaining clear and accurate payment records and promptly addressing any disputes, you can help prevent and resolve these issues effectively.
Resolution Time Frame for Discover Chargeback Reason Code PM – Paid By Other Means
The resolution time frame for Discover chargeback code PM – Paid By Other Means generally follows a structured process, involving several steps. Here’s an outline of the typical timeline:
- Chargeback Filing: When a cardholder disputes a charge claiming it was paid by other means, Discover initiates the chargeback process. This typically occurs shortly after the cardholder reports the issue.
- Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. Discover usually allows merchants up to 30 days to gather and submit evidence to support their case. This evidence may include receipts, invoices, bank statements, and any communication with the customer confirming the alternative payment method.
- Review and Decision: After the merchant submits their evidence, Discover reviews the information provided. This review period typically 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.
- 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 transaction was indeed paid by another means, the chargeback may be reversed. If the evidence supports the cardholder’s claim, the chargeback stands, and the cardholder keeps the funds.
How to Avoid Chargeback Reason Code PM – Paid By Other Means
o minimize these disputes, consider these proactive measures:
Clear Payment Records: Ensure all payment records are clear and accurately reflect the method used by the customer.
Communication: Clearly communicate with customers about the payment methods accepted and confirm the payment method at the time of purchase.
Duplicate Payment Checks: Regularly check for and address any duplicate payments in your records to catch and correct errors early.
How to Fix Chargeback Reason Code PM – Paid By Other Means
If you receive a chargeback under code PM, here’s what you should do:
Review the Transaction: Verify your records to see if the transaction was indeed paid by another means. Look for alternative payment receipts, bank statements, or transaction logs that might confirm this.
Gather Documentation: Collect all relevant documents that show the original payment method, including receipts, invoices, and any communication with the cardholder that confirms the alternate payment method.
Submit Evidence: Provide this evidence to Discover promptly. Clearly explain the situation and provide documentation showing that the cardholder used a different payment method for the transaction in question.
Correct Errors: If you discover that the cardholder was indeed charged twice, process a refund for the duplicate charge and provide proof of the refund to Discover.
