What Is The Visa Chargeback Code 12.6.2?
Description: This chargeback reason code occurs when a cardholder claims that they paid for a transaction using a different payment method but were still charged on their Visa card. This could happen due to a variety of reasons, including clerical errors, processing delays, or misunderstandings at the point of sale.
Causes of 12.6.2 “Paid by Other Means” Chargeback Code:
- The cardholder used a different payment method (cash, check, another card, etc.) for the transaction.
- The merchant accidentally processed the payment on the cardholder’s Visa card despite being paid by another means.
- Technical issues or human errors during the payment processing.
Resolution Time Frame for Paid by Other Means Chargeback:
- Cardholder: The cardholder must file the chargeback within 120 calendar days from the transaction processing date.
- Merchant: The merchant has 30 days to respond to the chargeback once it has been initiated.
Prevention and Mitigation:
- Clear Communication: Ensure that both the merchant and cardholder clearly understand the payment method used at the time of transaction. This includes verbal confirmation and clear indications on receipts.
- Accurate Record-Keeping: Maintain accurate and detailed records of all transactions and payment methods. This includes keeping copies of receipts, invoices, and any other relevant documentation.
- Employee Training: Train employees on proper transaction processing procedures and how to handle multiple payment methods to avoid clerical errors.
- Double-Check Transactions: Implement a double-check system for transactions, especially in situations where multiple payment methods are accepted.
- Prompt Reconciliation: Regularly reconcile transactions to identify and correct any discrepancies as soon as possible.
- Customer Receipts: Always provide customers with a receipt and encourage them to check their payment method before leaving the point of sale.
- Clear Refund Policies: Have a clear and accessible refund policy in case of errors. Ensure that customers know how to report discrepancies and resolve them promptly.
Response to Chargebacks:
- Documentation: Provide evidence that the cardholder was informed of the payment method, such as receipts, signed invoices, and transaction logs.
- Proof of Alternate Payment: Submit proof that the transaction was paid by another means (e.g., a receipt showing payment by cash or another card).
- Communicate with Cardholder: If possible, contact the cardholder to clarify the situation and resolve it without the need for a formal chargeback.
