Visa chargeback reason code 11.1, also known as “Card Recovery Bulletin,” is used when a merchant processes a transaction with a card that was listed in the Card Recovery Bulletin as lost, stolen, or otherwise compromised. Here’s a breakdown of the causes, resolution time frame, and prevention strategies:
Causes
- Card Listed as Lost or Stolen: The card used for the transaction was reported lost or stolen before the transaction took place.
- Fraudulent Activity: The card was involved in fraudulent activity and listed in the Card Recovery Bulletin.
Resolution Time Frame
- For Consumers: Consumers typically have 75 days from the transaction date or the date they became aware of the issue to file a chargeback.
- For Merchants: Merchants have a limited time to respond to a chargeback, usually within 20 days of receiving the chargeback notice.
Steps to Resolve
- Consumer Actions:
- File a chargeback claim with their issuing bank, providing necessary documentation and details about the transaction.
- Cooperate with the bank’s investigation, providing any requested information promptly.
- Merchant Actions:
- Respond promptly to the chargeback notice, providing compelling evidence that the transaction was legitimate if applicable.
- Gather and submit any relevant documentation, such as proof of delivery, customer communication, and transaction records.
Prevention and Mitigation
- Use Updated Technology: Implement EMV chip technology, which is more secure than magnetic stripe transactions.
- Check Card Validity: Always verify the card’s validity by checking for signs of tampering and confirming that it has not expired.
- Follow Card Network Rules: Adhere to card network guidelines for processing transactions, including the requirement to check the Card Recovery Bulletin if applicable.
- Monitor Transactions: Use fraud detection tools and monitor transactions for suspicious activity.
- Educate Staff: Train employees on how to recognize fraudulent cards and the importance of following security protocols.
- Customer Verification: Implement additional verification steps, such as requiring a signature or ID for high-value transactions.
