Visa chargeback reason code 78: Service Code Violation, occurs when a transaction violates the service code encoded on the magnetic stripe or chip of the card. The service code defines the conditions under which the card can be used, such as geographic limitations, requirements for online PIN verification, or restrictions to specific types of transactions.
Causes of Chargeback Reason Code 78:
- Geographic Restrictions: The card is used outside the permitted geographic region.
- PIN Verification Requirements: The card requires PIN verification, but the transaction was processed without it.
- Transaction Type Restrictions: The card is restricted to certain transaction types, and the transaction violated these restrictions.
- Card Present Requirements: The card was required to be present for the transaction, but the transaction was processed as card-not-present.
Preventing Chargeback Reason Code 78:
- Adhere to Service Code Requirements: Ensure your payment processing systems are set up to adhere to the service codes on cards. This includes geographic restrictions, PIN requirements, and transaction type limitations.
- Regular Training: Train your staff regularly on handling transactions according to Visa’s guidelines and service code requirements.
- Update Payment Systems: Keep your payment processing equipment and software up-to-date to ensure they comply with the latest Visa requirements.
- Verify Transactions: Use the appropriate verification methods (e.g., PIN, signature) as specified by the card’s service code.
- Monitor Transactions: Regularly monitor transactions for compliance with Visa’s service codes and promptly address any violations.
Mitigating Chargeback Reason Code 78:
- Provide Evidence: If you believe the chargeback is incorrect, gather and submit evidence to demonstrate that the transaction did not violate the service code. This might include transaction logs, receipts, and any communication with the cardholder.
- Communicate with Issuer: Engage with the issuing bank to understand the details of the chargeback and provide any necessary documentation to support your case.
- Implement Best Practices: Review and implement best practices for transaction processing to prevent future chargebacks. This may involve updating internal policies, procedures, and training programs.
