What Does Chargeback Code PM – Paid By Other Mean?
Discover chargeback reason code PM—Paid By Other Means—occurs when a cardholder says they used cash, another card, or a digital wallet instead of the disputed Discover transaction. Merchants must review records, provide receipts or statements confirming alternate payment, and issue a refund if a duplicate charge is verified. These disputes typically take 60–90 days to resolve.
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Common Causes Of Discovers' PM – Paid By Other Means
Chargeback code PM – Paid By Other Means – 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.
Resolution Time Frame for Discover Chargeback Reason Code PM – Paid By Other Means
A Discover PM chargeback starts when the cardholder claims they paid by another method. Merchants get up to 30 days to submit proof (receipts, statements, customer correspondence); Discover then spends 30–45 days reviewing it, so the full cycle runs 60–90 days. If the evidence confirms an alternate payment, the chargeback is reversed; otherwise, the cardholder keeps the funds.
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
To 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.
