Understanding Visa Chargeback Reason Code 13.6: Credit Not Processed
Reason Code 13.6 is used by Visa for cases where a consumer was due to receive a refund or a voided transaction, but this did not take place. It is usually raised by issuers when cardholders report that a promised refund never hit their account. The main causes are processing delays, clerical errors or friendly fraud. Understanding the implications and taking action quickly is the best way to protect revenue.
Key Takeaways
- What it means: A refund, reversal or void was expected but never posted.
- Causes: Late or missing credits, processing the wrong transaction type, or friendly fraud.
- How to respond: Supply proof of an already-issued credit. Or, prove the cardholder was never due one.
- How to prevent: Issue credits promptly. Use clear descriptors. Subscribe to chargeback alerts to spot disputes early.
What is a Visa Reason Code 13.6 Chargeback?
Reason Code 13.6, labelled “Credit Not Processed”, is related to refunds. It covers cases where the cardholder can show a refund or void should have reached their account but did not. This code replaced the legacy code 85 under Visa Claims Resolution. The issuer raises the dispute because they believe the merchant failed to complete an agreed credit. This dispute also covers cases where the merchant submitted the wrong message type or let a voided transaction settle.
Code 13.6 is also a favourite vehicle for friendly fraudsters who hope the merchant cannot supply paperwork in time. Clarifying policies at the point of sale and processing refunds before the next statement cycle are the first lines of defence.
Primary Causes for a Code 13.6 Chargeback
Most disputes spring from operational slip-ups. The merchant may promise a refund but forget to send the credit batch to the acquirer. Employees might run a sale instead of a credit, flipping the transaction type and triggering a complaint. Another common cause involves voided receipts. If the void message misses the settlement window, the debit still posts, prompting the cardholder to call the bank.
Over-billing corrections can create the same outcome when the adjustment drags on for weeks. Finally, friendly fraud appears when a shopper overlooks or ignores a posted credit and asks the issuer for a refund anyway. Although the stated cause is “credit not processed”, the real cause is a mismatch between expectation and ledger. Either the money is late, mislabelled, or the cardholder is not entitled to it.
Time Limit for Disputing a Visa Reason Code 13.6 Chargeback
Issuers have 120 calendar days to raise a 13.6 dispute. This is counted from the processing date of the original transaction or the date on the credit slip, whichever is later. If merchandise was returned or services cancelled in line with the merchant’s rules, this delays filing. The issuer must wait at least fifteen days after the return date before claiming.
This gives the merchant a short grace period to post the credit. Once the acquirer passes the chargeback to the merchant, they have 30 calendar days to respond. Missing that window means acceptance of liability becomes automatic. Tracking inbound cases and reacting quickly is therefore essential. Using alert tools or integrating dispute feeds into your back-office system can help.
What 13.6 Means for Consumers & Issuers
For consumers, the code acts as a safety net. They are not forced to chase merchants endlessly for a refund. Instead, the issuer can reclaim the funds on their behalf. That protection, however, brings responsibility. Cardholders should be encouraged to double-check statements. They should review merchant descriptors and retain proof of any agreed credit before lodging a dispute. Issuers, for their part, must review the claim and inspect documentation. They then need to confirm the time limits before pushing the chargeback downstream.
Visa guidelines direct issuers to verify that a credit is genuinely missing and that the cardholder followed any disclosed return policy. Still, high dispute volumes mean many banks fast-track cases, so merchants should not rely on the issuer to spot errors. The consumer’s satisfaction and the issuer’s compliance both rely on accurate, prompt credit processing.
What 13.6 Means for Merchants
Every 13.6 dispute carries direct costs: the reversal of the original sale, non-refundable interchange, and additional chargeback fees. Repeated incidents push up dispute ratios and may lead to monitoring programmes. Even when the merchant ultimately wins, gathering evidence demands time and staff. The good news is that 13.6 is one of the easiest codes to beat when the credit was, in fact, processed. A batch report, processing log or bank letter showing the amount and posting date usually suffices.
The greater risk lies in operational weaknesses. For example, forgetting to transmit credits, mixing up transaction codes or using unfamiliar descriptors that confuse customers. Tight internal controls and clear customer communication reduce chargebacks. More importantly, they also protect revenue by avoiding unnecessary refunds.
How to Respond to a Code 13.6 Chargeback
Start by reviewing the cardholder’s claim. If a credit was never due—perhaps the return violated policy—compile the signed receipt, the displayed policy and any correspondence showing the cardholder’s agreement at the time of sale. Highlight clauses proving no refund was promised. If the credit was due and already processed, include processor batch details, daily settlement reports or acquirer letters confirming the posting date prior to the chargeback. That single document often wins the case.
When an incorrect transaction code caused the problem, show that a correcting credit or reversal has now been issued. If the cardholder has since withdrawn the dispute, attach their email or signed statement. Provide the package to your acquirer within the 30-day time limit. Label each item so the reviewer can match evidence to Visa’s requirements. Professional, factual replies maximise recovery rates.
Proactive Prevention: The Ultimate Defence
Rapid dispute response is helpful, but stopping complaints before they arise is better. Transmit refunds the same day they are promised. Double-check that the message type is “credit”, and monitor batch reports for rejects.
Use plain-language descriptors that match your storefront name, so consumers recognise incoming credits. Inform customers of expected posting timeframes and follow up with an email confirmation. Staff training on void procedures and regular audits of pending refunds helps plug process gaps.
For additional protection, try out Chargeback.io. When a cardholder contacts their bank, you’ll see the notice instantly. You can then refund or resolve the issue before a chargeback is formalised.
