Visa Chargeback Reason Code 86, known as “Paid by Other Means,” occurs when a cardholder claims they paid for the transaction using an alternative payment method and not the Visa card that was charged. This could happen due to various reasons, such as the merchant processing the same transaction twice or the cardholder paying with cash or another card.
Key Details of Chargeback Reason Code 86: Paid by Other Means
- Definition: The cardholder asserts that they paid for the transaction using a different payment method, not the Visa card that was charged.
- Typical Scenarios:
- The cardholder paid with cash, check, another credit card, or a debit card, but the merchant mistakenly charged their Visa card.
- The transaction was accidentally processed multiple times by the merchant, once on the Visa card and once on another payment method.
Resolution Time Frame
- For Cardholders: Cardholders generally have 120 calendar days from the transaction date to dispute the charge.
- For Merchants: Once a chargeback is issued, merchants usually have up to 30 days to respond by providing evidence to counter the claim.
Preventing or Mitigating Chargeback Reason Code 86
To prevent or mitigate the risk of chargebacks due to being paid by other means, merchants can adopt the following practices:
- Accurate Transaction Processing: Ensure all transactions are processed accurately and only once. Verify the payment method used by the customer before processing.
- Issue Receipts: Always provide receipts to customers, indicating the payment method used.
- Reconcile Transactions: Regularly reconcile transaction records to identify and correct any discrepancies promptly.
- Employee Training: Train employees on proper transaction handling and the importance of verifying payment methods.
- Clear Communication: Communicate clearly with customers regarding the payment method used at the time of purchase.
- Maintain Detailed Records: Keep detailed records of all transactions, including the payment methods used, to provide evidence in case of a dispute.
Responding to Chargeback Reason Code 86
If a chargeback for reason code 86 is received, merchants should:
- Gather Evidence: Collect evidence proving the transaction was processed correctly and that the Visa card was used. This can include receipts, transaction records, and any communication with the cardholder.
- Provide Proof of Alternative Payment: If the cardholder paid by another method, provide evidence of that payment method, such as receipts or transaction logs showing the alternative payment.
- Submit a Rebuttal: Respond to the chargeback by submitting the gathered evidence to the acquiring bank within the specified time frame.
