Explanation of Visa Chargeback Reason Codes 57 | debit card chargeback

Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time.

The issuing bank received a claim from the cardholder, acknowledging that he or she participated in at least one transaction at the merchant side but disputing participation in the remaining transactions which was held in short period of time. The Customer also states the card was in his or her possession at the time of the disputed transactions.

What are the Causes of Reason Code 57?

Causes for Reason Code 57 are:

• Merchant fails to void multiple transactions of a single Credit Card account.
• Merchant tried to process multiple transactions fraudulently.
• Cardholder authorized the transaction earlier, but later denied.

Prevention Techniques:

• Merchant should void the transactions in that Customer not participate.
• Merchant process Credit immediately if Multiple transactions held from a single credit card account of same product..
• Merchant should share all Policies with Customers and let them know about the Orders and offers.
• Always request to Cardholder to sign the policies in addition to the final transaction receipt..
• Trained employees to operate point-of-sale terminals and void transaction..

Disputing Reason Code 57 Chargebacks

Whenever a business receives a chargeback, the merchant always has the option of disputing the case. If the merchant has proper supporting evidence, the chargeback might be canceled and the merchant will recoup the profits.
Before fighting a chargeback, the merchant must carefully evaluate what has already happened in regards to the transaction. Past events will dictate future actions.

If the merchant has already issued credit for the multiple transactions, send evidence of the credit to the acquirer.
If credit hasn’t been issued yet, accept the chargeback. Don’t issue credit because the chargeback will have effectively reimbursed the customer.
If the cardholder did actually engage in the transactions (meaning they were valid), send supporting documentation (like sales receipts, invoices, etc.) to the acquirer. These cases might mimic recurring payment chargebacks.

How to Respond Chargeback?

Tips to Respond Chargeback are:

• If the proper Credit has been processed to the Cardholder’s account on all disputed transactions, send all the regarding evidence to acquirer.
• If cardholder participate more than one transaction, provide proper evidence such as sale receipt, invoices of particular transaction and proof of delivery.
• If refund provided to Customer, provide refund evidence to acquirer.
• If merchant void the transactions, inform the acquirer to avoid Chargeback.