Visa chargeback reason code 74, known as “Late Presentment,” is used when a merchant submits a transaction after the allowable time frame specified by Visa. This typically occurs when there is a delay between the date the transaction was conducted and the date the merchant submitted it for processing. Could also be that the consumer no longer has the funds available to cover the transaction or the account was closed.
Key Details of Chargeback Reason Code 74: Late Presentment
- Definition: The transaction was not presented (submitted for processing) within the specified time frame set by Visa.
- Time Frame: The typical time frame for submitting a transaction is within 7 calendar days from the transaction date. However, this period can vary based on the type of transaction and agreements with the acquiring bank.
Common Causes of Code 74: Late Presentment
- Operational Delays: Delays in batching and submitting transactions due to operational inefficiencies.
- Technical Issues: System or network failures that prevent timely submission.
- Manual Errors: Human errors in processing or submitting transactions on time.
Resolution Time Frame for Code 74: Late Presentment
- For Cardholders: Cardholders generally have 120 calendar days from the transaction processing date to file a dispute.
- For Merchants: Upon receiving a chargeback, merchants typically have up to 30 days to respond with evidence to refute the chargeback.
Preventing or Mitigating Chargeback Reason Code 74
To avoid or mitigate the risk of chargebacks due to late presentment, merchants can adopt the following practices:
- Prompt Transaction Submission: Ensure all transactions are submitted within the specified time frame. Automate this process where possible.
- Monitor Processing Systems: Regularly monitor payment processing systems to detect and address any delays or failures promptly.
- Employee Training: Train employees on the importance of timely transaction submission and the procedures to ensure compliance.
- Use Reliable Payment Processors: Choose reliable payment processing services that can handle transactions efficiently and on time.
- Regular Reconciliation: Conduct regular reconciliation of transactions to ensure all have been submitted within the required time frame.
- Maintain Communication with Acquirers: Stay in touch with acquiring banks to understand specific requirements and ensure adherence to agreed-upon time frames.
