New Chargeback Rules

For Visa sales, new chargeback rules will take effect on April 15 2018. The highlights of these changes are as follows:

• The timeframe for merchants to respond to a chargeback is being reduced from 45 to 30 days.
• The Reason Code 75, titled “Transaction code not recognized” is being retired.
• The current 22 Reason Codes are being consolidated from 22 to three Reason Codes: (1) Fraud, (2) Authorization Processing Errors, and (3) Consumer Disputes.
• Merchants will be limited to one “Pre-Arbitration” response.