Reason code

This code is used when a cardholder claims that a credit or refund they were expecting was instead processed as a debit or purchase, resulting in an additional charge to their account. This can occur due to clerical errors, miscommunication, or system processing issues.

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To address a chargeback under Reason Code 4860, provide evidence that the transaction in question was correctly processed as a credit. This may include:​

• Transaction Records: Detailed records showing that a credit was issued to the cardholder's account for the correct amount.​
  
  
• Correspondence: Any communication with the cardholder confirming the processing of the credit or refund.​
  
  
• System Logs: Internal records from your payment processing system indicating that the transaction was submitted as a credit.

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To minimize the risk of chargebacks under reason code 4860:

• Verify Transaction Entries: Double-check all refund transactions to ensure they are entered as credits, not debits.​
  
  
• Regularly Reconcile Accounts: Perform routine reconciliations to catch and correct any discrepancies between expected credits and posted transactions.​
  
  
• Train Staff Thoroughly: Educate employees on the correct procedures for processing refunds and credits to prevent clerical errors.​
  
  
• Implement System Checks: Utilize software features that flag or require confirmation for transactions that appear inconsistent with standard refund procedures.