Visa chargeback reason code 12.2 refers to “Incorrect Transaction Code.” This chargeback is initiated when a transaction is processed with incorrect or invalid transaction data. Here are the details:
Causes
- Wrong transaction code: The transaction was processed with an incorrect transaction code.
- Incorrect merchant category code (MCC): The MCC used does not match the type of transaction.
- Mistaken transaction processing: The transaction was categorized incorrectly, leading to the use of an improper transaction code.
Resolution Time Frame
- Cardholders: They must file a chargeback within 120 calendar days from the transaction processing date.
- Merchants: They have 30 days to respond to the chargeback once it has been filed.
Prevention and Mitigation
- Ensure accurate coding: Double-check that transaction codes and MCCs are accurate and appropriate for each transaction.
- Regular training: Train staff regularly on the importance of proper transaction coding and the consequences of errors.
- System checks: Implement automated checks within your payment processing system to flag or correct incorrect transaction codes.
- Clear documentation: Maintain detailed records of each transaction, including the correct codes and any changes made.
- Prompt response: If a chargeback occurs, respond promptly and provide all necessary documentation to dispute the chargeback if it is incorrect.
