Reason code

Visa reason code 12.2 is issued when a transaction is processed with the wrong transaction code—such as submitting a refund as a sale or a reversal as a purchase. This kind of error creates confusion on the cardholder’s statement and can lead to chargebacks, even if the underlying transaction was valid.

These disputes usually stem from manual processing errors, software misconfigurations, or misunderstandings of how to code transaction types correctly. Even small input mistakes can result in financial loss if not corrected promptly.

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If the transaction code was correct or the issue has been resolved, submit documentation to clarify the situation:

• Provide the original authorization and settlement data showing the correct transaction type
  
  
• Include records showing any refunds, reversals, or corrections already issued
  
  

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Minimize these disputes by using automation and regularly reviewing transaction data:

• Ensure your POS and gateway systems are configured correctly for transaction types
  
  
• Train staff to understand the difference between sales, refunds, and reversals
  
  

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