Visa Reason Code 74

Visa Chargeback Reason Code 74: Late Presentment

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Description

The buyer’s bank received a transaction after the time limit and by the time the buyer’s account is either blocked or closed. Such situations arise the sales receipt is not collected from the the acquirer within the time limit specified in merchant’s guideline or agreement.
Usually time limit is 180 calendar days from the transaction date.

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Most Common Causes

• Limited time reversal rights. Allowed only if credit was issued. If proof can be presented that the sale was processed within the allotted time limit.
• The transaction amount was deposited on time. If the amount was deposited within the required time limit, provide your processor with a copy of the sales receipt to be re-presented to the card issuer.
• The transaction was deposited late and the account was closed. If the transaction was not deposited within the specified time limit and the account was closed, then the merchant should accept the chargeback. Do not issue a credit at this time.
• The transaction was deposited after 181 days. If the transaction was deposited more than 181 days after the transaction date, even if the account is open, there is no reversal and the merchant should accept the chargeback.

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Evidence Required

• Transaction acknowledgment deposited within time limit: If the transaction acknowledgment was deposited within the time limit specified by your acquirer bank, ask your acquirer bank to forward a copy of the acknowledgment to the card issuer.
• Transaction Receipt Deposited Late —Account Blocked: If the transaction receipt was not deposited between 6 to 180 days of the transaction date and the cardholder account has been blocked, the chargeback is valid.
• Transaction acknowledgment after 181 Days: The transaction receipts were deposited more than 181 days after the transaction date, then accept the chargeback. The cardholder’s account status here is not a factor.
• Deposit Timing: Deposit transaction acknowledgment with your acquirer bank as soon as possible, especially on the day of the sale or within the time limit specified in the merchant agreement.

Common Examples

1. Linda’s birthday was on the way and she was looking forward to her birthday party. She quickly opens her laptop and orders few dressed. Everything goes well and is forgotten. After 7 months, she sees an exuberant amount of charge on her account. She is unable to recall anything, so she calls the merchant on which he reminds her of the purchase. Linda is surprised and confused on how would she manage her monthly budget, and therefore files a dispute with her bank under the Reason Code 74: Late Presentment. The merchant requests the deposit after 181 days, therefore cannot deny the chargeback.
2. George purchased a TV and paid for the product online. After a month, he loses his card with which he made the payment and eventually closed the account. After a while, his bank receives a notice of due amount from the merchant for whom he bought the TV. Since, the merchant requested the amount after 180 days and the account of the customer was closed down, the bank can put a chargeback on the merchant under the Reason Code 74: Late Presentment.

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