Visa Chargeback Reason Code 12.7: Invalid Data

Visa chargeback reason code 12.7, “Invalid Data,” is used when a transaction is disputed due to incorrect or invalid information provided during the processing of the transaction. Here’s a detailed breakdown of the causes, resolution time frame, and preventive measures for this chargeback reason code:

Causes

The “Invalid Data” chargeback can be triggered by various factors, including:

• Incorrect cardholder information entered (e.g., name, address, card number).
• Inaccurate transaction details (e.g., amount, date).
• Authorization request with an invalid MCC
• Invalid or expired card used for the transaction.
• Errors in merchant’s transaction data submission.

Resolution Time Frame

For both consumers and merchants, the chargeback process involves several stages with specific time frames:

• Consumer: Cardholders typically have up to 120 days from the transaction date to initiate a chargeback.
• Merchant: Once the chargeback is received, merchants generally have 30 days to respond and provide evidence to dispute the chargeback.

Preventive Measures

To prevent or mitigate chargebacks under reason code 12.7, consider the following best practices:

1. Data Accuracy:
   • Ensure all transaction data is accurate and complete before processing.
   • Verify cardholder information and transaction details.
2. Card Validation:
   • Use advanced card verification methods like CVV, AVS (Address Verification Service), and 3D Secure to confirm cardholder identity.
   • Ensure the card used is valid and not expired.
3. Clear Communication:
   • Provide clear and accurate billing descriptors that match the merchant name or product/service name recognizable to the cardholder.
   • Inform customers about transaction details, including amount and date, to avoid confusion.
4. Robust Internal Processes:
   • Implement thorough transaction review processes to detect and correct any data inaccuracies before submission.
   • Maintain clear records and documentation for all transactions, including customer communications and authorization logs.
5. Customer Service:
   • Offer excellent customer service to handle any disputes or inquiries promptly before they escalate to chargebacks.
   • Provide easy ways for customers to contact you regarding any issues with their transactions.

Mitigation Steps

If a chargeback for reason code 12.7 is received, take the following steps to mitigate its impact:

1. Gather Evidence:
   • Collect all relevant documentation, such as transaction records, receipts, and communication logs.
   • Ensure the evidence clearly shows the validity and accuracy of the transaction data.
2. Respond Promptly:
   • Submit a timely and comprehensive response to the chargeback, including all gathered evidence, within the specified response period (typically 30 days).
3. Review and Improve Processes:
   • Analyze the chargeback to identify the root cause.
   • Implement improvements in your transaction processing and data verification practices to prevent future occurrences.