How to Manage ‘Incorrect Transaction Amount or Account Number’ Chargebacks

Visa uses chargeback Reason Code 80 to designate chargebacks resulting from processing transactions where either the account number or the transaction amount posted with the card issuer does not match the one shown on the sales receipt. MasterCard does not have a reason code that exactly matches Visa’s 80.

What causes these chargebacks? Reason Code 80 chargebacks are typically associated with key-entered transactions and are usually triggered by an incorrect data entry by the merchant.

How to manage such chargebacks? The time frame to respond to a chargeback Reason Code 80 is 120 days for both U.S. and international transactions.?áYour response to Reason Code 80 chargebacks will depend on the particular transaction circumstances and the actions you have taken (or not) so far.

• The transaction amount and account number is the same on the sales receipt and payment documents. If the transaction information was entered correctly, you will need to provide a copy of the sales receipt to your processing bank to be used in the re-presentment as supporting evidence.
• Either the transaction amount or account number differs. If the transaction data was entered incorrectly, there is no remedy and you should accept the chargeback. In a case of an incorrect account number, process a new transaction but do not issue a credit, as the chargeback has done that already. In a case of an incorrect amount, no action is needed, as the charged-back amount is the difference between the transaction amount and the correct one.

How to prevent chargeback Reason Codes 80? Preventing this type of?áchargebacks is entirely within your control and you should implement the following best practices:

• Card-present transactions. Reason Code 80 is typically issued for transactions processed in a card-present environment, where the card’s magnetic stripe has not been read, either because the point-of-sale (POS) terminal was not operational or the card was unreadable. Best card acceptance practices require you to take a manual imprint of the card on the front of the sales receipt. Your sales staff needs to be trained on when and how to do that and a manual imprinter needs to be readily available. Staff should also be trained to verify that the keyed and imprinted numbers are the same.
• MO / TO transactions. Reason Code 80 can also be issued for mail order or telephone order (MO / TO) transactions, where information is also key-entered, typically through virtual terminals. To minimize errors when orders are accepted over the telephone, sales staff should read the provided information back to the cardholder to ensure it is accurate.

Adequate training on best card acceptance practices is your best tool for preventing Reason Code 80 chargebacks. These are very simple procedures and there is absolutely no reason why they should not be followed. You can use our “Payment Card Acceptance Guide” as a training manual.

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