Duplicate Processing Chargeback

Duplicate Processing Chargeback

Today, businesses are rapidly improving their working techniques by implementing the technology to their working process. Technologies are being used for reaching customers across globe, keeping track of inventory, selling products and collecting payments via internet, solving queries of customers via mail, telephone or live chats.

With many pros this enhancement in business process have, a few cons of using technology. One of them is repetition of the data. Now, this repetition can be handled or corrected if caught. But, sometimes this error can charge profitable amount business owners. One of the reason for losing money because of this error is “duplicate processing” of transactions performed to collect the payments. That is, applying for the same transaction for a number of times.

This mistake of duplication can be caused by entering the same transaction details to the electronic data inventory of the business, sending the batch of transactions for processing that have been sent earlier, depositing the merchant and bank copy to the merchant bank or unknowingly creating a number of sales receipts for sales done.

The error of duplication can cause transaction dispute, if the merchant is not able to realize or check the mistake and applied for funding to the bank for getting the amount of same sales for a multiple times. The customer can dispute the transaction, by asking the reason behind the transaction to their bank. This request of retrieval of information can cause a chargeback if the merchant fails to prove the validity of the transaction.

This transaction dispute is assigned with a reason code by the card brands networks like VISA, MasterCard which helps merchant to produce appropriate information about the transaction to prove its validity. VISA reason code for this error is Reason Code 82 and MasterCard’s reason code 4834. The remedies that a merchant can perform to resolve the chargeback application:

If the transactions are different, a merchant must provide the appropriate documents like invoices and sales receipts having the sold items specified on it, or can send photocopies of the original sales receipts of the disputed transaction or can send the appropriate documents from the business data inventory that can prove that the transactions that are processed are for two different items or services.

If the transactions processed are the duplicate, and the merchant is failed to process the transactions back into the account of the customer’s account the merchant needs to accept the chargeback. But, if the transactions error was caught by the merchant and they returned the transactions before the transaction dispute application, the merchant must share the appropriate documents that prove that the amount was processed back to the customer’s account before the chargeback was filed.

The prevention measures a merchant can take to avoid this error are to cross check the batch of the transactions before sending it for the processing, the merchant should take care or cross check the transactions before feeding them into the data inventory.

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