Reason code
P03 Credit Processed as Charge
Details
This reason code is used when a cardholder expects a credit for a return or refund but instead receives a charge. This typically results from an accidental reversal of transaction types at the point of sale.To prevent this issue, merchants should carefully verify the transaction type before processing. It’s important to confirm refund transactions are entered correctly as credits and not mistaken for charges.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
If you processed this transaction correctly:
- Provide supporting documentation that proves the transaction was valid
If you did not process this transaction correctly, invest in a chargeback management solution that will alert you, so you can return the customer’s money before it becomes an official chargeback.
How to prevent?
This kind of issue usually comes down to a training matter. Ensure that your staff is trained on correct transaction handling.
A customer may also use this as a way to get a refund, what’s known as “friendly fraud.” In this case, it’s a good idea to have a copy of the terms and conditions to which the customer agreed and to include this as part of your representment package.