What Does Visa Chargeback Reason Code 70 Mean?
Reason code 70 is issued when a merchant completes a transaction even though the card number or account status appeared on Visa’s Card Recovery Bulletin (CRB) or Exception File at the time of authorization. The chargeback asserts that the merchant should not have accepted the card because it had already been reported as lost, stolen, canceled, or otherwise invalid.
Causes of Chargeback Reason Code 70
Transaction processed below the merchant’s floor‑limit without an authorization check, so the Card Recovery Bulletin/Exception File was never consulted.
The card’s account number was actively listed in Visa’s Card Recovery Bulletin or electronic Exception File (lost, stolen, or otherwise compromised) on the transaction date, yet the merchant completed the sale.
Time Frame for Resolution
The time frame for resolving chargeback reason code 70 varies by region and specific Visa rules, but typically:
- The issuer must file the chargeback within 120 calendar days from the transaction processing date.
Prevention and Mitigation
To prevent and mitigate this type of chargeback, merchants can take the following steps:
- Regularly Check for Updates:
- Ensure your point-of-sale (POS) system regularly updates the Card Recovery Bulletin and Exception File.
- Implement automated checks to verify card status against these lists before completing a transaction.
- Train Staff:
- Educate employees about the importance of checking cards against the CRB and Exception File.
- Train staff to handle transactions where the card is flagged as compromised.
- Use EMV Chip Technology:
- Encourage the use of EMV chip technology, which provides better security than magnetic stripe transactions.
- EMV transactions are less likely to result in this type of chargeback because the chip provides dynamic authentication data.
- Implement Fraud Detection Tools:
- Utilize fraud detection and prevention tools that can identify and block potentially fraudulent transactions.
- Monitor transactions for suspicious activity and follow up on any alerts.
- Communicate with Your Payment Processor:
- Work closely with your payment processor to ensure you have the latest fraud prevention tools and updates.
- Understand the specific steps and tools your processor offers to help prevent chargebacks.
- Review Transactions Manually:
- For high-value transactions, consider additional manual review processes.
- Verify the cardholder’s identity through additional authentication methods if necessary.
