My Merchant Account Blog

Visa Chargeback Reason Code 75 - Transaction Not Recognized

Thursday, December 01, 2011

The card issuer received a complaint from a cardholder stating that the transaction appearing on the billing statement is not recognized. This reason code applies to both card-present and card-absent transactions.

Most Common Causes

The merchant store name or location reflected on the cardholder’s billing statement was not correct or recognizable to the cardholder.

Preventative Measures

Merchant Name

The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly recognizable to the cardholder. Work with your acquirer to ensure your merchant name, city, and state are properly identified in the clearing record.

The merchant is protected from a Reason Code 75: Transaction Not Recognized chargeback if the transaction has an Electronic Commerce Indicator (ECI) 5 (cardholder is fully authenticated) or ECI 6 (cardholder is not participating in Verified by Visa). The merchant must comply with the ECI process and procedures in order to benefit from this protection.

Similar Posts: What Makes a Good Receipt

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

Visa Chargeback Reason Code 74 - Late Presentment

The transaction was not processed within the required time limits and the account was not in good standing on the processing date, or the transaction was processed more than 180 calendar days from the transaction date.

Most Common Causes

The merchant or service establishment did not deposit the sales receipt with its acquirer within the time frame specified in its merchant agreement.

Possible Remedies

Sales Receipt Deposited on Time

If the sales receipt was deposited within the time frame specified by your acquirer, ask your acquirer to forward a copy of the receipt to the card issuer.

No Remedies

Sales Receipt Deposited Late—Account Closed

If the sales receipt was not deposited within 10 to 180 days of the transaction date and the cardholder account has been closed, the chargeback is valid.

For multi-location, centrally accumulated merchants (e.g., travel and entertainment, service stations), if the sales receipt was not deposited within 20 to 180 days of the transaction date and the cardholder account has been closed, the chargeback is valid.

Sales Receipt Older than 181 Days

If the sales receipt was deposited more than 181 days after the transaction date, accept the chargeback. (In this situation, the cardholder’s account status is not a factor.)

Preventative Measures

Deposit Timing Guidelines

Deposit sales receipts with your acquirer as soon as possible, preferably on the day of the sale or within the time frame specified in your merchant agreement.

Manual Deposit of Paper Sales Receipts

If you deposit paper sales receipts, ensure that your staff deposits them on a regular schedule within the time frame required by your acquirer.

Transaction Data Capture Terminals

Transaction data capture sales terminals allow you to electronically deposit your sales transactions after you have balanced them each day. If you currently process deposits manually, consider the costs and benefits of a transaction data capture system at the point of sale. Electronic cash registers are another option. They can be set up so that your transactions are automatically deposited in batches or on a real-time basis.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

Visa Chargeback Reason Code 73 - Expired Card

The card issuer received a transaction that was completed with an expired card and was not authorized.

Most Common Causes

The merchant accepted a card after its expiration or “Good Thru” date and did not obtain an authorization approval from the card issuer.

Possible Remedies

Card Not Expired—Key-Entered Transaction

For key-entered transactions, the expiration date should be on the manually imprinted copy of the front of the card. If the expiration date on the sales receipt shows the card had not expired at the time of the sale, send a copy of the receipt to your acquirer. The chargeback is invalid regardless of whether authorization was obtained.

Card Expired, Authorization Obtained

If the card was swiped or a manual imprint made, and authorization approval was obtained as required, inform your acquirer of the transaction date and amount. Many acquirers automatically handle this type of chargeback so you never see it.

Card-Absent, Authorization Obtained

If the card was swiped or a manual imprint made, and authorization approval was obtained as required, inform your acquirer of the transaction date and amount. Many acquirers automatically handle this type of chargeback so you never see it.

Card-Absent, Authorization Obtained

If the transaction was a MO/TO or Internet transaction, and authorization approval was obtained/required, inform your acquirer of the transaction amount and date. Many acquirers automatically handle this type of chargeback, so you really never see it.

No Remedy

Card Expired, No Authorization Obtained

If the card has expired and you did not obtain an authorization, accept the chargeback.

Preventative Measures

Check Expiration Date

Check the expiration or “Good Thru” date on all cards. A card is valid through the last day of the month shown, (e.g., if the Good Thru date is 03/12, the card is valid through March 31, 2012 and expires on April 1, 2012.)

Check Card Expiration Date

Periodically remind point-of-sale staff to check the card’s expiration date before completing transactions and to always obtain an authorization approval if the card has expired.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

Visa Chargeback Reason Code 72 - No Authorization

The card issuer received a transaction for which authorization was not obtained or authorization was obtained using invalid or incorrect transaction data. For Automated Fuel Dispenser (AFD) transactions, the card issuer may only chargeback the amount exceeding one of the following:

• Amount authorized by the issuer
• For an EMV PIN transaction, US $100, or local currency equivalent, if a Status Check Authorization was obtained
• For all other transactions, US $75 or local currency equivalent, if a Status Check Authorization was obtained
• For a U.S. Domestic Visa Fleet Card transaction, US $150, if a Status Check Authorization was obtained/

Most Common Causes

• The merchant did not obtain an authorization for a transaction or, for cardpresent transactions, obtained it after the transaction date.
• The merchant did not exclude the tip in the authorization amount. The merchant should request an authorization for the known amount, not the transaction amount plus estimated tip.

Possible Remedy

Transaction Was Authorized

If you obtained an authorization approval code, inform your acquirer of the transaction date and amount.

No Remedy

Transaction Was Not Authorized

Accept the chargeback.

Preventative Measures

Obtain Authorization

Obtain an authorization before completing transactions. The authorization request is sent automatically when you swipe the card through a magnetic card reader or insert the card into a chip-reading device*, then enter the dollar amount. A receipt is printed if the transaction is approved; if it is not approved, you will receive a “Decline” (or “Call Center” or “Pick-Up”) message on your point-of-sale terminal.

Make sure the authorization amount is equal to the check amount. Do not include the tip in your authorization request. For example, if the check before tip is US $37.42, the authorization should be for US $37.42.

Alternatives if Terminal Cannot Read Chip Card

If the terminal is unable to read a chip card, you can attempt to swipe or key-enter the transaction given that proper fallback indicators are provided to the issuer for approval.

Point-of-Sale Terminal Programming

Find out from your point-of-sale provider if your authorization system has been properly programmed to authorize only for the check amount before the tip is added.

Magnetic-Stripe Reader Down or Card’s Magnetic Stripe Damaged

If you are unable to get an electronic authorization because your terminal isn’t working or because the card’s magnetic stripe cannot be read, you can request an authorization either by key-entering the transaction or calling your voice authorization center. If the transaction is approved, be sure the approval code is on the sales receipt in the appropriate space; in the case of a voice authorization, you will need to write it on the receipt. You should also imprint the embossed account information from the front of the card on a sales receipt or manual sales receipt form, which the customer should sign.

Terminal Cannot Read the Chip

If the chip-reading device cannot read the chip on the card, it means the card and chip-reading device have no applications in common. In this case, you should follow “fallback” requirements and accept the chip card via standard magnetic stripe transaction processing as prompted on the terminal screen.

Floor Limits

Floor limits are zero for all card-absent transactions with the exception of prestigious lodging merchants. This means they always require authorization regardless of the dollar amount of the transaction.

Staff Awareness of Authorization Policy

Ensure that all sales staff know your authorization policy.

Staff Training

Instruct staff to authorize only for the check amount. Emphasize that the authorization amount should equal the check amount and exclude any tip percentage.

Make sure your staff is properly trained in chip-capable terminal operation and fallback transaction processing.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

Visa Chargeback Reason Code 71 - Declined Authorization

The card issuer received a transaction for which authorization had been declined.

Most Common Causes

The merchant or service establishment attempted to circumvent or override a declined authorization using one of the following methods:

• Forced posting. After a decline or card pickup response, the merchant forced the transaction through without attempting another authorization request.
• Multiple authorization attempts. After an initial authorization decline, the merchant re-swiped the card one or more times until the transaction was authorized. In this situation, authorization might occur if the card issuer’s authorization system times out or becomes unavailable, and the transaction is forwarded to Visa.
• Alternative authorization method. The merchant swiped or dipped the card at a point-of-sale terminal, and the authorization was declined. The merchant then resubmitted the transaction by key entry or called in a voice authorization and received an approval.

Possible Remedy

Transaction Was Authorized

If you obtained an authorization approval code, inform your acquirer of the transaction date and amount.

No Remedy

Transaction Was Counterfeit

If the transaction was counterfeit, accept the chargeback.

Preventative Measures

Obtain Authorization

Obtain an authorization before completing transactions. With most point of sale terminals, an authorization request is sent automatically when the card is swiped or dipped and the dollar amount entered. If your terminal also has a printer, a receipt is printed if the transaction is approved and not printed if the transaction is declined.

Alternatives if Terminal Cannot Read Chip Card

If the terminal is unable to read a chip card, you can attempt to swipe or key-enter the transaction given that proper fallback indicators are provided to the issuer for approval.

Staff Awareness of Authorization Policy

Ensure that all sales staff knows your establishment’s authorization policy. Inform staff that in the event of a declined transaction, they should immediately stop the transaction and ask the customer for another Visa card or other form of payment.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.