Visa chargeback Reason code 85 is applied when issuing bank gets a notice from card owner that merchandise was return, but merchant hasn’t refunded, and credit hasn’t appeared on bank statement. It is caused by not issuing credit, or issuing it but not depositing on time and it didn’t appear on bank statement. It can also be caused by not returning credit because merchant don’t accept return, and it was not properly mention in policies.
Visa Chargeback Reason Code 85 Causes
It is generated when card brand receives a request that merchandise was returned or service was cancelled, and merchant didn’t refund. There are some causes that are associated with merchant:
- Business or merchant didn’t returned credit
- Has issued the credit, but couldn’t process on time so that it appears on the monthly billing statement of cardholder.
- Didn’t apply limited return, wasn’t properly disclose, or cancellation policy wasn’t applied after request from the client.
- Business don’t accept returns and that is why credit wasn’t returned. In this case merchant has to mention in policies, but if it is not then fault lies on merchant’s end.
Preventing Visa Chargeback reason code 85
- Consider adding return policy, including for gift receipts.
- Make sure to issue credit on time for all the goods which were returned. In order to ensure that card owner don’t take merchant’s intentions negatively, communicate with customers and tell them that it will take several days for credit to appear.
- Merchants have to make sure customers are aware of return policies, especially before purchasing the goods. Return policies should clearly be mentioned near cash register. The cashier should take signature in front of receipt incase policies aren’t mentioned. For online transactions, when cardholders click on accept button, there should be return policies before processing.
- There are some merchants who don’t accept returns, or accept only for certain items. For merchandise which can’t be returned, this fact should clearly be stated on transaction receipt near signature.
Keeping simple business tactics in consideration can help prevent chargebacks, but merchants also need to be aware of frauds. Cardholder may take return policy to their advantage, setting time limit can help.
Cardholders can find loopholes in chargeback process, including illegal use of reason code 85 to their advantage. Take necessary steps to ensure business is fraud free, and follow strict procedures.
Implementing fraud preventing practices and going for illegal chargebacks is best way to keep the business safe. It can be a challenging task, but with right policies and proper communication, these things can be resolved.
Most important thing that business should do is keep their policies up to date when advertising. All the print medium such as catalog order forms, electronic screen, and others should have clear instructions. If a customer wants to order by phone, then make sure the policies are explained prior to transaction.
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