Visa chargeback reason code 76, known as “Incorrect Currency or Transaction Code,” is used when a transaction is processed using the wrong currency or transaction code. This can lead to discrepancies in the amount charged to the cardholder or in the nature of the transaction as it appears on the cardholder’s statement.
Key Details of Chargeback Reason Code 76: Incorrect Currency or Transaction Code
- Definition: The transaction was processed in an incorrect currency or with an incorrect transaction code, causing issues such as incorrect billing amounts or misclassification of the transaction.
- Examples:
- A transaction intended to be processed in USD was instead processed in EUR.
- A purchase was incorrectly coded as a cash advance or another type of transaction.
Common Causes
- System Configuration Errors: Incorrect setup of the payment processing system leading to wrong currency or transaction code being used.
- Human Errors: Mistakes made by the merchant or staff in selecting the correct currency or transaction code at the point of sale.
- Software Bugs: Errors in the software used for processing transactions, leading to incorrect coding.
Resolution Time Frame
- For Cardholders: Cardholders generally have 120 days from the transaction processing date to dispute a charge due to incorrect currency or transaction code.
- For Merchants: Upon receiving a chargeback, merchants usually have up to 30 days to respond with documentation to refute the chargeback.
Preventing or Mitigating Chargeback Reason Code 76
To prevent or mitigate the risk of chargebacks due to incorrect currency or transaction codes, merchants can adopt the following practices:
- Accurate System Configuration: Ensure that the payment processing system is correctly configured for all supported currencies and transaction codes.
- Employee Training: Train employees on the importance of selecting the correct currency and transaction code during transactions.
- Regular Audits: Conduct regular audits of transactions to ensure they are processed in the correct currency and with the correct transaction codes.
- Clear Customer Communication: Clearly communicate the currency and transaction type to customers before processing the payment.
- Use Reliable Payment Processors: Work with reliable payment processors that have robust systems to handle currency and transaction codes accurately.
- Software Testing: Regularly test and update payment processing software to ensure it functions correctly and handles transactions as expected.
