Visa Chargeback Reason Code 13.6, known as “Credit Not Processed,” is used when a cardholder claims that a merchant has failed to process a refund or credit to their account for returned merchandise or a canceled service.
Key Details of Chargeback Reason Code 13.6: Credit Not Processed
- Definition: This chargeback reason code applies when a cardholder returns merchandise or cancels a service, and the merchant does not process the corresponding credit or refund within the agreed-upon time frame.
- Time Frame: The cardholder typically has up to 120 calendar days from the date the merchandise was returned or the service was canceled to file a chargeback.
Common Causes
- Failure to Process Refunds: The merchant neglects to issue a refund after a return or cancellation.
- Delayed Refunds: The merchant delays processing the refund beyond the time frame promised to the cardholder.
- System Errors: Technical issues in the merchant’s payment processing system prevent the refund from being processed.
- Policy Miscommunication: The merchant’s refund policy is unclear or not communicated properly to the cardholder.
Resolution Time Frame
- For Cardholders: Cardholders have up to 120 calendar days from the date the merchandise was returned or the service was canceled to initiate a chargeback.
- For Merchants: Merchants typically have up to 30 days to respond to the chargeback with evidence that the credit was processed or that the cardholder is not entitled to the refund.
Preventing or Mitigating Chargeback Reason Code 13.6
To prevent or mitigate the risk of chargebacks due to unprocessed credits, merchants can take the following steps:
- Promptly Process Refunds: Ensure that refunds are processed as quickly as possible after receiving returned merchandise or a cancellation request.
- Clear Communication: Clearly communicate the refund policy to customers at the point of sale and in post-sale communications.
- Track Refund Requests: Implement a system to track all refund requests and their statuses to ensure none are missed or delayed.
- Customer Service: Provide excellent customer service to handle refund requests efficiently and address any issues promptly.
- Monitor Payment Systems: Regularly check payment processing systems for any issues that could delay refunds and address them immediately.
- Document Transactions: Keep detailed records of all transactions, including returns and refunds, to provide evidence if a chargeback is disputed.
