12.6 – Duplicate Processing/Paid by Other Means

DESCRIPTION

Why did I receive a chargeback with reason code 12.6?

You received this chargeback because one of three things happened.

Either you processed a single transaction more than once using the same account on the same date for the same amount. Or, the cardholder paid for the item with a different payment method. Or, you debited an account more than once for a single ATM transaction.

NOTE

If the issuer is using reason code 12.6, the cardholder must have participated in one of the transactions. If the cardholder wasn’t involved in either purchase, then the issuer should use a fraud reason code instead.

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CLASSIFICATION

How does Visa classify this type of dispute?

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

Reason codes that start with 12 are for chargebacks caused by processing errors.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with reason code 12.6?

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 12.6 chargeback invalid?

An issuer is not allowed to use reason code 12.6 if payment for a service was made to two different merchants. The only exception to this rule is if there is evidence that the payment was passed from one merchant to another — for example, payment to a travel agent is passed to an airline.

SUPPORTING DOCUMENTS

Can I fight a chargeback with reason code 12.6?

Yes. You can fight a chargeback with this reason code as long as you have at least one of the following documents to support your case:

• 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 one of the transactions before the chargeback was filed.
• Evidence that the cardholder no longer disputes the transaction.
• Two separate receipts that prove the transactions purchased different merchandise or services.
• Evidence that you did not receive payment by other means for the same merchandise or service.
• A copy of the ATM record containing the payment credential, transaction time or sequence number used to identify individual transactions, and an indicator to confirm that the ATM transaction was successful.

WORKFLOW

What process do I use to respond to a chargeback with reason code 12.6?

Visa reason code 12.6 is managed with the collaboration workflow.

Collect the supporting documents outlined above and create a chargeback rebuttal letter to explain your case. Submit your entire package to your processor or acquirer for review.

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 much shorter. The acquirer has administrative tasks to complete before sending you the notice and after receiving your response, all of which eats up a chunk of time. Merchant time limits are usually about 3-20 days. Check your chargeback notice carefully so you know exactly when your response is due.

ADVANCING THE CASE

Can the issuer file pre-arbitration after a 12.6 dispute response?

Yes. An issuer can file pre-arbitration for any collaboration dispute — including disputes with reason code 12.6.

During pre-arbitration, the issuer addresses the information or evidence you provided in your chargeback response. A pre-arbitration attempt can be made for any of the following reasons.

• The issuer can provide new documents or information about the original dispute.
• The issuer changes the reason code in response to the information or documents you provided. (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 12.6 chargebacks in the future?

Here’s how to prevent chargebacks with reason code 12.6.

• If you notice a duplicate transaction and the transaction hasn’t been settled yet, void the duplicate. If the transaction has been settled, issue a credit and let the customer know you are fixing the mistake.
• Double check all transaction receipts before they are settled.
• Only send batches one time.
• If the customer wants to change to a different form of payment after initially offering the payment card, be sure to cancel or void the initial charge.

Visit our detailed guide to learn more about chargeback prevention.