Visa chargeback reason code 12.4, “Incorrect Account Number,” is used when a transaction is processed to an incorrect account number, such as an invalid, closed, or nonexistent account. This can happen due to various reasons such as data entry errors, system glitches, or fraudulent activity. Here’s a detailed overview:
Causes of Chargeback Code 12.4
- Data Entry Errors: Manual entry of incorrect account numbers during the transaction process.
- System Errors: Technical issues or glitches in the payment processing system that lead to incorrect account numbers being recorded.
- Fraudulent Activity: Deliberate use of incorrect account numbers to carry out unauthorized transactions.
Resolution Time Frame
- Consumers: Cardholders generally have up to 120 calendar days from the transaction date to dispute a charge under this reason code.
- Merchants: Merchants have 20 days to respond to the chargeback once it has been initiated.
Resolution Process
- For Consumers:
- Report the Error: Contact the issuing bank to report the incorrect account number transaction.
- Provide Evidence: Supply any supporting documentation or evidence showing the correct account details and the nature of the error.
- For Merchants:
- Review the Transaction: Examine transaction records to verify the error.
- Correct the Account Number: If a mistake is found, process the transaction with the correct account number.
- Provide Evidence: Submit documentation to prove the correct account details and resolve the chargeback.
Prevention and Mitigation
- Accurate Data Entry:
- Ensure that all account numbers are entered correctly during the transaction process.
- Double-check the account number before finalizing the transaction.
- System Checks:
- Implement validation checks in the payment processing system to detect and prevent invalid account numbers.
- Regularly update and maintain the payment processing system to avoid glitches.
- Employee Training:
- Train staff on the importance of accurate data entry and the potential consequences of errors.
- Establish clear protocols for handling and verifying account information.
- Fraud Detection:
- Use fraud detection tools and services to identify and prevent fraudulent transactions.
- Monitor transactions for unusual activity that may indicate fraud.
- Communication with Customers:
- Encourage customers to review their transaction details and report any discrepancies promptly.
- Provide a clear and easy way for customers to contact support if they notice any errors.
