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Visa Reason Code 85

Visa Chargeback Reason Code 85: Credit Not Processed


Visa chargeback reason code 85 is applied when issuing bank gets a notice from the cardholder that merchandise was returned, but merchant hasn’t refunded, or credit hasn’t appeared on the bank statement. It is caused by not issuing credit, or issuing it but not depositing on time. It can also be caused when the merchant doesn’t refund because he didn’t accept the return.

Most Common Causes

There are some causes that are associated with the merchant:

  • Business or merchant didn’t return the credit.
  • Has issued the credit, but couldn’t process on time.
  • Didn’t apply limited return, policies weren’t properly disclosed, or cancellation policy wasn’t applied after the request from the client or at the time of sale.
  • Business doesn’t accept returns and hence no refund. In this case merchant has to mention it in the policies, but if it is not mentioned, the fault lies on merchant’s end.
  • The chargeback must not be filed on the amount larger than the original transaction amount. It should be under the value of the part of the cancelled or returned service(s).
Evidence Required
  • In case when product/merchandise is not received yet and merchant did not hear for cancellation from the cardholder the merchant must inform the bank, no cancellation proof required from the card owner.
  • In case when cardholder returned the merchandise or cancelled the services according to the merchant’s return and cancellation policy, provide documents that shows that customer was aware of such policies at the time of purchase. The merchant can submit order receipt with cardholder’s signature on it.
  • In case when cardholder returned merchandise or cancelled the services according to the merchant’s return and cancellation policy and also have been issued a refund, just provide proof of refund issued with the refund date on it.

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  • Consider adding return policy, including the ones for gift receipts.
  • Make sure to issue credit on time for all the goods that were returned. In order to ensure that card owner doesn’t take merchant’s intentions negatively, communicate with customers and tell them that it will take several days, generally 5 working days for credit to appear on their statement.
  • 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, the policies related to it should clearly be stated on transaction receipt near signature.
  • Keeping simple business tactics 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.
Common Examples
  1. Linda purchases a watch online but when it arrives she changes her mind and decides to return it. She contacts the merchant and asks for a refund upon returning the product. The merchant agrees and explains that the refund would appear in 3-5 days on her bank statement. Linda returns the product and waits for the refund that never arrived. She then decides to put a dispute through her bank under the Reason Code 85: Credit Not Processed.
  2. George buys few cosmetics for her wife through an online merchant. He gifts them to his wife, but the cosmetics are not liked by his wife so she asks him to return them. However, the merchant denies to take the return as per their return policies that George completely missed while buying the product. George therefore, decides to dispute the charge hoping for a refund/credit from the merchant under the Reason Code 85: Credit Not Processed.

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