Visa Chargeback Reason Code 12.5: Incorrect Amount

Visa chargeback reason code 12.5: Incorrect Amount is used when a cardholder claims that the transaction amount charged by the merchant is incorrect. This discrepancy can arise from various situations, such as:

• The transaction amount was altered after the cardholder approved it.
• The cardholder was charged the wrong amount due to an error at the point of sale.
• Additional fees were added without the cardholder’s consent.

Causes

1. Clerical Errors: Mistakes in data entry or processing.
2. Unauthorized Charges: Adding extra charges without cardholder approval.
3. Currency Conversion Issues: Errors in currency conversion leading to incorrect amounts.

Resolution Time Frame

For both consumers and merchants, the resolution time frame for chargeback reason code 12.5 is typically within 120 calendar days from the transaction processing date. However, this may vary slightly depending on the specific circumstances and the issuing bank’s policies.

Steps to Prevent or Mitigate

For Merchants:

1. Accurate Data Entry:
   • Ensure all transaction details are accurate before processing.
   • Double-check the amount before completing the transaction.
2. Clear Communication:
   • Inform customers about any additional fees upfront.
   • Provide a detailed receipt showing the transaction amount and any extra charges.
3. Employee Training:
   • Train staff to handle transactions correctly and confirm amounts with customers.
4. Secure Processing Systems:
   • Use reliable and secure payment processing systems to avoid errors.
5. Prompt Issue Resolution:
   • Address any billing disputes or errors quickly and directly with the customer to avoid escalation to a chargeback.

For Consumers:

1. Review Statements Regularly:
   • Check your bank or credit card statements frequently to spot any discrepancies early.
2. Keep Receipts:
   • Retain receipts of transactions for comparison with statements.
3. Report Issues Promptly:
   • If you notice an incorrect amount, contact the merchant immediately to resolve the issue.

Handling Chargebacks

Merchants:

1. Provide Documentation:
   • Submit evidence showing the correct transaction amount, such as receipts, invoices, and communication records with the cardholder.
2. Communicate with the Cardholder:
   • Try to resolve the issue directly with the cardholder before the chargeback is processed.
3. Respond Promptly:
   • Adhere to the deadlines for responding to the chargeback to avoid automatic liability.