Guide of Preventing Visa Chargeback Reason Code 85

Posted by Apoorv Joshi on December 15th, 2017

Visa Chargeback Reason code 85 is applied when issuing bank gets a notice from card owner that merchandise was return, but the merchant hasn’t refunded, and credit hasn’t appeared on the bank statement. It is caused by not issuing credit, or issuing it but not deposited on time and it didn’t appear on the bank statement. It can also be caused by not returning credit because merchant doesn’t accept a return, and it was not properly mentioned in policies.

Visa Chargeback Reason Code 85 Causes
It is generated when card brand receives a request that merchandise was returned or service was canceled, and merchant didn’t refund. There are some causes that are associated with a merchant:

  • Business or merchant didn’t return credit
  • Has issued the credit, but couldn’t process on time so that it appears on the monthly billing statement of the cardholder.
  • Didn’t apply limited return, wasn’t properly disclose, or cancellation policy wasn’t applied after a request from the client.
  • Business doesn’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 faulted 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 doesn’t take merchant’s intentions negatively, communicate with customers and tell them that it will take several days for the 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 the cash register.
  • The cashier should take signature in front of receipt of case 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. The cardholder may take return policy to their advantage, the setting time limit can help.

Author Section:

This article is written by Chargeback Expertz, provide knowledge for chargebacks and how to fight or reduce chargebacks. Chargeback Expertz is a Detailed Risk Management Company helping Retail and Online Merchants. Chargeback Expertz’s system is designed to defend the eCommerce Business against all types of Fraud and Threats.

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Apoorv Joshi

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Apoorv Joshi
Joined: December 1st, 2017
Articles Posted: 43

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