12.5 – Incorrect Amount

DESCRIPTION

Why did I receive a chargeback with reason code 12.5?

You received this chargeback because the cardholder claims the transaction amount is incorrect.

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CLASSIFICATION

How does Visa classify this dispute?

A Visa reason code falls into one of four categories: fraud, authorisation errors, processing errors, and consumer disputes.

Reason codes that start with 12 are considered processing errors.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with reason code 12.5?

The chargeback must be filed within 120 days of either the transaction processing date or the date of the ATM deposit adjustment.

VALIDITY

What would make a 12.5 chargeback invalid?

An issuer is not allowed to use reason code 12.5 if any of the following characteristics are applicable:

• The transaction was an ATM cash disbursement.
• The transaction used straight-through processing.
• The transaction was a mobile push payment.
• The transaction was for a no-show fee.
• The transaction was an advance payment.
• The amount you quoted for a travel and entertainment (T&E) transaction was different from the amount you charged.
• You had the right to alter the transaction amount without the cardholder’s consent.

SUPPORTING DOCUMENTS

Can I fight a reason code 12.5 chargeback?

Yes. You can fight a chargeback with this reason code as long as you have one of the following:

• 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 issued a refund or reversal before the chargeback was filed.
• Evidence that proves the cardholder no longer wishes to dispute the transaction.
• A transaction receipt or another document to prove the transaction amount was correct.

WORKFLOW

What process do I use to respond to a chargeback with reason code 12.5?

Visa reason code 12.5 is managed with the collaboration workflow.

If you want to respond to a chargeback with this reason code, submit a dispute response package that contains your supporting documents and a chargeback rebuttal letter.

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 amount of time you, the merchant, have to prepare and submit your response will be much less. Usually, merchant time limits are about 3-20 days. Make sure you know how much time your acquirer allows.

ADVANCING THE CASE

Can the issuer file pre-arbitration after a 12.5 dispute response?

Yes. All collaboration disputes are subject to pre-arbitration — including disputes with reason code 12.5.

A pre-arbitration filing allows the issuer to address information or evidence provided in your dispute response. It can be initiated 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 avoid chargebacks like this in the future?

Here are steps you can take to avoid reason code 12.5 in the future.

• Unless authorised, never change the amount of a completed transaction without the cardholder’s consent.
• Use caution when entering handwritten transaction information.
• Always tap or dip a card — only use fall-back options in emergency situations.

To learn more about building a chargeback prevention strategy, visit our detailed guide.