Reason code

This code is used when a transaction intended to be a credit (refund) is mistakenly processed as a debit (sale), resulting in the cardholder being charged instead of receiving a refund. ​

How to address a chargeback under reason code 4550:

• Review Transaction Records: Examine your records to confirm whether a credit was incorrectly processed as a debit.​

• Provide Documentation: If the transaction was processed correctly, supply documentation such as receipts, invoices, or communication with the cardholder to demonstrate the legitimacy of the transaction.​

• Correct the Error: If an error is identified, promptly process the correct credit to the cardholder's account and provide evidence of this action.

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To minimize the occurrence of chargebacks under reason code 4550:

• Implement Clear Processing Procedures: Establish and enforce protocols to ensure that credits and debits are processed correctly.

• Utilize System Checks: Employ software or systems that prompt verification before finalizing transactions, reducing the likelihood of processing errors.​

• Regularly Audit Transactions: Conduct periodic reviews of transactions to identify and correct any discrepancies proactively.

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