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Discover Chargeback Reason Code RN2 – Credit Not Processed

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What Is The Discover Chargeback Reason Code RN2 – Credit Not Processed?

Discover chargeback reason code RN2 – Credit Not Processed is used when a cardholder disputes a transaction because they didn't receive a promised credit or refund. This can happen if a refund for a returned item or canceled service wasn't issued, was only partially issued, or took too long to appear on their statement. If you're a merchant facing this chargeback, you'll need to review your records, gather proof of the credit or refund, and submit it to Discover. If the credit wasn't processed, issue it immediately and provide proof. The whole resolution process usually takes about 60 to 90 days.

Common Causes Of Discovers' RN2 – Credit Not Processed

Discover chargeback reason code RN2 is used when a cardholder disputes a transaction because they believe a credit they were promised was not processed to their account. This situation can arise for several reasons:

  1. Refunds Not Issued: The cardholder was supposed to receive a refund for returned goods or canceled services, but the credit never appeared on their statement.

  2. Partial Refunds: The cardholder received only a partial refund when a full refund was expected.

  3. Delayed Credits: The credit was processed, but it took so long that the cardholder initiated a dispute before the credit appeared on their statement.

Example Scenario of RN2 – Credit Not Processed

Imagine you run an online clothing store, and a customer returns a dress and is promised a refund. However, due to a processing error, the refund is not issued. The customer contacts Discover and disputes the charge under reason code RN2 – Credit Not Processed.

To handle this, you would review your transaction records and find that the refund was not processed. You would then issue the refund immediately, gather the proof of the refund transaction, and submit this evidence to Discover to resolve the dispute.

Resolution Time Frame for Discover Chargeback Reason Code RN2 – Credit Not Processed

The resolution time frame for Discover chargeback code RN2 – Credit Not Processed generally follows a structured process. Here’s an outline of the typical timeline:

  1. Chargeback Filing: When a cardholder disputes a transaction because a credit was not processed, 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 refund transaction logs, credit memos, bank statements, and any communication with the customer.

  3. 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.

  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 credit was processed correctly or has since been issued, the chargeback may be reversed. If the evidence supports the cardholder’s claim that the credit was not processed, the chargeback stands, and the cardholder keeps the funds.

How to Avoid Chargeback Reason Code RN2 – Credit Not Processed

To minimize these disputes, consider these proactive measures:

  1. Timely Refunds: Ensure all refunds and credits are processed promptly, within the timeframe promised to the customer.

  2. Clear Communication: Clearly communicate with customers about the status of their refunds or credits, including expected timeframes for the credit to appear on their statement.

  3. Accurate Records: Maintain accurate records of all transactions and refunds to quickly verify and resolve any disputes.

How to Fix Chargeback Reason Code RN2 – Credit Not Processed

If you receive a chargeback under code RN2, here’s what you should do:

  1. Review the Transaction: Verify your records to confirm whether the credit was processed. Check for refund transaction logs, bank statements, and any related documentation.

  2. Gather Documentation: Collect all relevant documents that prove the credit was issued. This might include refund receipts, credit memos, transaction records, and communication with the customer confirming the credit.

  3. Submit Evidence: Provide this evidence to Discover promptly. Clearly explain the situation and provide documentation showing that the credit was processed or, if there was an error, explain how it is being resolved.

  4. Issue the Credit: If you find that the credit was not processed or was processed incorrectly, issue the correct credit immediately and provide proof of this action to Discover and the customer.

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