Visa chargeback reason code 13.8, known as “Original Credit Transaction Not Accepted,” is used when a cardholder disputes a transaction because the original credit transaction (OCT) was not accepted by their issuing bank. An OCT is a transaction where funds are sent directly to a cardholder’s account, often used for payouts such as refunds, rebates, or winnings.
Key Details of Chargeback Reason Code 13.8: Original Credit Transaction Not Accepted
- Definition: The cardholder’s issuing bank did not accept the original credit transaction, resulting in the funds not being credited to the cardholder’s account.
- Typical Use Cases: This chargeback reason code is often seen in scenarios where merchants or entities use OCTs for disbursements, such as refunds, insurance payouts, or cashbacks.
Common Causes
- Incorrect Account Information: The OCT was sent to an incorrect or invalid account number.
- Issuing Bank Rejection: The issuing bank rejected the transaction due to internal policies or issues with the cardholder’s account.
- Regulatory Issues: There could be regulatory restrictions or limitations on the type of OCT being processed.
Resolution Time Frame
- For Cardholders: Cardholders generally have up to 120 days from the transaction processing date to dispute the charge.
- For Merchants: Merchants typically have up to 30 days to respond to the chargeback with evidence to refute the claim.
Preventing or Mitigating Chargeback Reason Code 13.8
To prevent or mitigate chargebacks due to an OCT not being accepted, merchants can take the following steps:
- Verify Account Information: Ensure that all account information provided for the OCT is accurate and up-to-date.
- Confirm Bank Acceptance: Check with the cardholder’s issuing bank to confirm that they accept OCTs and understand any specific requirements.
- Communicate with Cardholders: Inform cardholders about the OCT process and what to expect. Provide them with a timeline for when they should see the credit.
- Monitor Transactions: Regularly monitor OCT transactions to detect any issues early and take corrective action.
- Use Reliable Payment Systems: Utilize payment processing systems that have robust validation and verification processes to reduce the likelihood of errors.
- Respond Promptly to Chargebacks: If a chargeback occurs, respond promptly with all relevant evidence to show that the OCT was processed correctly and that any issues were outside of your control.
