Visa chargeback reason code 85, known as “Credit Not Processed,” is used when a cardholder claims that they did not receive a credit for a transaction that was previously refunded by the merchant. This chargeback reason code addresses situations where the merchant has failed to process a promised refund to the cardholder’s account.
Key Details of Chargeback Reason Code 85: Credit Not Processed
- Definition: The cardholder did not receive credit for a returned or canceled transaction.
- Typical Scenario: The cardholder returns merchandise or cancels a service, and the merchant agrees to issue a refund but fails to process it.
Common Causes
- Merchant Oversight: The merchant agreed to issue a refund but forgot or failed to process it.
- Processing Delays: There were delays in the refund process, often due to internal issues or third-party payment processors.
- Communication Errors: Miscommunication between the merchant and the cardholder or between different departments within the merchant’s organization.
Resolution Time Frame
- For Cardholders: Cardholders generally have 120 calendar days from the date they expected the credit to be processed or from the transaction date, whichever is later, to file a dispute.
- For Merchants: Once the chargeback is initiated, merchants usually have 30 days to respond with evidence to refute the claim.
Preventing or Mitigating Chargeback Reason Code 85
To prevent or mitigate chargeback reason code 85, merchants can implement the following practices:
- Timely Processing of Refunds: Ensure that all agreed-upon refunds are processed promptly. Set up automated systems to handle refund processing to avoid delays.
- Clear Communication: Communicate clearly with customers about the refund process, including time frames and any potential delays.
- Accurate Record-Keeping: Maintain accurate and detailed records of all transactions and refunds, including the date the refund was processed.
- Regular Reconciliation: Regularly reconcile accounts to ensure that all promised refunds have been issued and processed correctly.
- Customer Service Training: Train customer service representatives to handle refund requests efficiently and ensure they follow through on processing them.
- Monitor Refund Status: Use tools and systems to monitor the status of refunds and address any issues immediately.
