13.6 – Credit Not Processed

DESCRIPTION

Why did I receive a chargeback with reason code 13.6?

The cardholder has a receipt for a credit or voided transaction, but you haven’t actually processed it yet.

If you operate an ATM, this reason code can also be used if the cardholder disputes the validity of the adjustment because the original transaction was cancelled or reversed.

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CLASSIFICATION

How does Visa classify this dispute?

Visa groups its reason codes into four categories: fraud, authorisation errors, processing errors, and consumer disputes.

Reason codes beginning with 13 are used for consumer disputes.

ISSUER TIME LIMIT

How long can the issuer wait to file a reason code 13.6 chargeback?

Visa recognises that it takes time to credit a cardholder’s account after a refund has been promised. So the issuer must pause the dispute process for 15 days from the date printed on the cardholder’s credit receipt.

But if there isn’t a date printed on the receipt or the funds aren’t deposited into the cardholder’s account within that 15 day window, the issuer can proceed with a chargeback.

Chargebacks must be filed within 120 days of the date listed on the credit transaction receipt or the ATM adjustment date.

NOTE: The issuer does not have to abide by the 15-day waiting period if the delay would exceed the dispute time limit. Also, all chargebacks must be filed within 540 days of the original transaction processing date.

VALIDITY

What would make a 13.6 chargeback invalid?

An issuer is not allowed to use reason code 13.6 in the following situations:

• The transaction used straight-through processing.
• The transaction was a mobile push payment.
• The transaction was initiated at an automated fuel dispenser (AFD).
• The dispute is for the cash-back portion of a transaction.
• The cardholder claims the transaction was fraudulent.

SUPPORTING DOCUMENTS

Can I fight a chargeback with reason code 13.6?

Yes. You can fight a chargeback with reason code 13.6 if you have any of the following supporting documents.

• Evidence that the chargeback is invalid. (Note: Your acquirer’s technology should catch these errors and automatically respond on your behalf. If your acquirer doesn’t automatically respond and you receive a chargeback notice, you can challenge the chargeback yourself.)
• Evidence that you refunded the transaction before the chargeback was filed.
• Evidence that the cardholder no longer disputes the transaction.

WORKFLOW

What workflow do I use to respond to a chargeback with reason code 13.6?

Visa reason code 13.6 is managed with the collaboration workflow.

Prepare a dispute response package with the following items:

• One or more of the required supporting documents listed above.
• A rebuttal letter outlining your case and explaining the provided documents.

Submit your package to your acquirer for review before the response deadline.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

Your acquirer must submit your chargeback response within 30 calendar days of the chargeback filing date.

NOTE: This is the acquirer time limit. The merchant time limit is usually between 3 and 20 days. Your acquirer will use the rest of the time to complete administrative tasks both before sending the chargeback notice and after receiving your response.

Check your chargeback notice for the exact time line.

ADVANCING THE CASE

Can the issuer file pre-arbitration after a 13.6 dispute response?

Yes. An issuer can file pre-arbitration for any collaboration dispute — including disputes with reason code 13.6.

Pre-arbitration allows the issuer to address information or evidence provided in your dispute response.

After receiving a collaboration dispute response, the issuer can make a pre-arbitration attempt for any of the following reasons.

• The issuer can provide new documents or information about the original dispute.
• The issuer changes the reason code because of information or documents provided in the dispute response. (The issuer can only change the reason code if the original chargeback was valid.)
• If your dispute response included a claim that the cardholder no longer wants to dispute the transaction, the issuer must prove that the cardholder does, in fact, want to continue the dispute.
• If you provided the required supporting documents and disputed the cardholder’s claim, the issuer must review the evidence with the cardholder and provide an explanation of why the cardholder continues to dispute the transaction.
• If you refunded the cardholder after the chargeback was filed, but the issuer suffered a financial loss because of the exchange rate, the issuer can advance the case to pre-arbitration.

PREVENT

How can I prevent reason code 13.6 chargebacks?

Here are some things you can do to prevent this type of chargeback in the future.

• Take care not to accidentally process transactions that should be voided or cancelled.
• Adhere to any promises for credits or refunds.
• Fulfill all qualified cancellations or refund requests promptly.
• Include the date on credit receipts and notify cardholders of when the funds will be deposited into their accounts.

Visit our detailed prevention guide to learn more about reducing the risk of chargebacks.