Visa uses Reason Code 30 to designate chargebacks initiated when an issuer is notified by one of its cardholders that goods or services ordered were not received or that the order was cancelled by the cardholder in result of not receiving the goods or services by the expected delivery date (or the former were unavailable for pick-up).
In this article I will review the reasons, conditions, limitations and processing requirements applicable to chargeback Reason Code 30 and will offer possible remedial actions you can take in response.
What Causes Reason Code 30
Typically, Reason Code 30 is initiated when the merchant did not:
- Provide the services,
- Send the merchandise,
- Ship the product before billing for the transaction,
- Send the goods by the agreed-upon date or
- Make the merchandise available for pick-up.
Reason Code 30 Rights and Limitations
All of the following conditions apply:
- The chargeback amount is limited to the amount of services or goods not received and may include:
- Shipping and handling fee charged for an item that was not received.
- Any convenience fee or surcharge charged in connection with the disputed transaction.
- The cardholder must state to the issuer that he or she attempted to resolve the dispute with the merchant, before Reason Code 30 can be initiated.
- For disputes involving merchandise:
- If the item was received after the agreed-upon delivery date, the cardholder is required to attempt to return it, before a chargeback can be initiated.
- If the item was returned due to late delivery, the issuer is required to wait at least 10 calendar days from the date of return (or attempted return) before initiating a chargeback.
- A chargeback is invalid for the cash-back portion of a cash-back transaction.
Reason Code 30 Processing Requirements
The time limit for Reason Code 30 is 120 calendar days from one of the following dates:
- When the transaction was posted.
- The specified delivery date, if the merchant agreed to provide services or merchandise after the transaction was posted.
- 30 calendar days from the posting date, if no delivery date was specified.
- When the cardholder actually received the item, if it was not delivered by the agreed-upon time.
How to Respond to Reason Code 30
Your actions to prevent or respond to a Reason Code 30 chargeback will depend on the particular circumstances, as follows:
|The merchandise was delivered by the agreed-upon delivery date.||Send evidence of the delivery to your processor, such as a delivery receipt signed by the cardholder or a carrier’s delivery confirmation. If the merchandise was downloadable software, provide evidence that it was downloaded to or received by the cardholder.|
|No delivery date was specified and the issuer initiated a chargeback less than 15 days from the transaction date.||Send a copy of the transaction receipt to your processor showing that 15 days have not yet elapsed. Make it a point of stating the expected delivery date to avoid such issues in the first place.|
|The specified delivery date has not yet passed.||Return the chargeback to your processor with a copy of the documentation showing the expected delivery date. Do not deposit sales receipts until the product is shipped, except for custom-made merchandise where you can do so, provided you notify the cardholder at the time of the transaction.|
|The item was shipped after the specified delivery date.||Provide your processor with the dates of shipment and expected arrival, or with proof of delivery.|
|The contracted services were rendered.||Provide your processor with the date the services were completed and any evidence available indicating that the customer acknowledged receipt.|
|The merchandise was available for pick-up.||Provide the following information to your processor, as applicable:
|Delivery of the item will be delayed.||Notify your customer in writing of the delay and the expected new delivery date. Give the customer the option of proceeding with the transaction or cancelling it.|
|You are shipping an item without requesting proof of delivery.||Consider the costs and benefits of doing so, compared to the value of the item you ship. Proof of delivery or pick-up will allow you to return the chargeback if the customer claims the product was not received.|
There will always be customers who will try to game the system by claiming to have not received a product that was actually delivered to them. There is nothing you can do to change that. What you can and should do is follow the above recommendations, so that when a chargeback reason Code 30 is sent your way, you can respond quickly and help your processor resolve the dispute, whether it was filed in good faith or not.
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