Visa Chargeback Reason Code 83 Understanding
Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor authorized it, and approval wasn’t obtained at the time of the transaction. Card no present transaction can be applied to internet healthcare transactions, mail orders, advance payments, telephone orders, and more. The main reasons for this chargeback are:
Merchant charged an account which was used fraudulently
Cardholder wasn’t able to recognized name of merchant on the billing statement
Visa Chargeback Code 83 Reasons
A common cause of card, not present transactions hackers who use fraudulent account numbers, which means processing card not present transaction without an authorized request. It is also caused by the owner of the card not able to recognized purchase on the billing statement.Merchant’s name may not be displayed properly, and the customer thinks it as a fraudulent transaction.
Preventing Chargeback code 83
If you want to prevent it, following practices should be implemented:
- Make sure to obtain an authorized approval for all the e-commerce and recurring transactions regardless of the dollar amount.
- Read back account number, especially for transactions done via phone. Always verify account number so that there are no errors or misunderstandings.
- Identify the type of transaction, such as card-not-present, and use appropriate codes for identifying transactions as e-commerce, telephone order, and Mail order during settlement process and authorization. Usually, this will automatically be done by the processing system, or by indicator button.
- Make sure to use security codes and AVS. These services are designed to help prevent card not the present type of frauds.
- Set your billing descriptor correctly, you can manage the way business name appears on the customer billing statement with the help of a tool known as billing descriptor. It is usually set up so that you can display you are “Doing Business As “(DBA) name, but some processors may use the legal name as per default settings. You can work with your processor to ensure the descriptor is set that will be familiar to future customers. You have to ensure all the information such as internet address, state, city, and phone number are displayed so that customer can identify it.
- Ensure you are protected from Reason code 83 if the transaction has electronic commerce indicator, which indicates a verified by visa transaction. Make sure all transactions are easily identified, and the information is displayed so that customer doesn't have difficulty recognizing it.
It is nearly impossible to prevent all the transactions leading to Chargeback code 83 because criminals often have information that helps them to complete card not present transaction, even if all the procedures are followed accurately. There are some practices that can help minimize the risk, most criminals don’t give much thought to details, nor do they have full information. This type of fraud can easily be prevented if taken certain measures. A successful system will help prevent reason code 83 chargebacks.
