Oops — The Processing Error Dispute Chronicle
Ever tried baking a cake and ended up with a pancake?
But today, we’re not talking about kitchen blunders; it’s about the “Oops” moment in the payment dispute category!
That’s right, the blunder we’re about to explore is the “Processing Error”!
Processing Error
The Processing Error Dispute happens when there’s a mistake during the transaction handling. This can include errors like charging the wrong amount, using incorrect data or processing a payment multiple times. Essentially, it occurs when something goes wrong with the transaction that wasn’t the cardholder’s fault.
Alternative Terms for Processing Error Across the Networks
Alright!
Now that we’ve set the stage with the “Oops” moment of payment dispute,
But this isn’t just about scratching the surface; it’s about mastering the nuances.
While major card networks like Visa, MasterCard, and RuPay have their own description for this dispute, we’re bringing you our expert take!
The One-Stop Guide where we have categorized and clarified Processing Error Dispute, under one roof!
The One-Stop Guide
**Though we have simplified the processing error dispute in one frame, each card networks have their own specification**
1. Incorrect Transaction Code
Reason for the Dispute:
When
- A debit is accidentally processed as a credit, or vice versa.
- A mistake made during the transaction process that results in the wrong code being assigned.
Different Names Across Networks:
- Visa- Incorrect transaction code
- Mastercard- Credit posted as a purchase (placed under cardholder dispute)
- RuPay- Credit posted as debit
- Amex- Credit processed as charge and charge processed as credit
- Discover- Credit posted as card sale (placed under cardholder dispute)
2. Incorrect Currency
Reason for the Dispute:
When the merchant,
- Made errors regarding the transaction currency.
- Did not provide sufficient currency details or failed to process a credit correctly.
Different Names Across Networks:
- Visa- Incorrect currency
- Mastercard- Point of interaction currency conversion
- RuPay- Not Applicable
- Amex- Currency discrepancy
- Discover- Not Applicable
3. Incorrect Account/Card number
Reason for the Dispute:
When,
- The account number used for authorization doesn’t align with the one used for the actual transaction.
- The card number is invalid, not associated with a valid account, or doesn’t belong to the cardholder.
Different Names Across Networks:
- Visa- Incorrect account number
- MC- Not Applicable
- RuPay- Transaction details incorrect
- Amex- Unassigned card number and Non-matching card number
- Discover- Invalid card number
4. Incorrect Amount
Reason for the Dispute:
When,
- The amount authorized for the transaction doesn’t match the final amount charged or credited.
Different Names Across Networks:
- Visa- Incorrect amount
- Mastercard- Transaction amount differs
- RuPay- Not Applicable
- Amex- Incorrect charge amount
- Discover- Altered amount (placed under cardholder dispute)
5. Late Presentment
Reason for the Dispute:
When,
- Transactions aren’t sent to the card network within the required timeframe, leading to delays in processing.
Different Names Across Networks:
- Visa- No Authorization/Late presentment (placed under authorization category) — effective from October 2024.
- Mastercard- Late presentment
- RuPay- Transaction not settled within the specified timeframes
- Amex- Late submission
- Discover- Late presentment
6. Duplicate Processing
Reason for the Dispute:
When,
- The same transaction was processed more than once
Different Names Across Networks:
- Visa- Duplicate processing
- Mastercard- Duplication/Paid by other means
- RuPay — Duplicate processing
- Amex- Duplicate charge
- Discover — Duplicate processing
7. Paid By Other Means
Reason for the Dispute:
When,
- The cardholder was charged for a transaction that had already been paid using a different payment method.
Different Names Across Networks:
- Visa- Paid by other means
- Mastercard- Duplication/Paid by other means
- RuPay — Paid by alternate means
- Amex- Paid by other means (comes under cardmember dispute)
- Discover — Paid by other means
8. Invalid Data
Reason for the Dispute:
When,
- Authorization was obtained using invalid or incorrect data.
- The account/card number used for the transaction is either not linked to a valid account or is not assigned to the cardholder.
Different Names Across Networks:
- Visa- Invalid data
- Mastercard- Not Applicable
- RuPay — Transaction details incorrect
- Amex- Unassigned card number and Non-matching card number
- Discover — Not Applicable
9. ATM Disputes
Reason for the Dispute:
When,
- A cardholder receives a cash withdrawal amount that is less than the requested amount.
- The cardholder’s account is debited multiple times for a single ATM transaction.
Different Names Across Networks:
- Visa- Non-receipt of cash or load transaction value (placed under customer dispute)
- Mastercard - ATM disputes
- RuPay — Not Applicable
- Amex- Not Applicable
- Discover — Non-receipt of cash from ATM (placed under cardholder dispute)
Categories Exclusive Only to Mastercard
10. Transaction Did Not Complete
(placed under cardholder dispute)
Reason for the Dispute:
When,
- A cardholder believes a transaction was not processed successfully, despite being charged.
11. Digital Goods $25 or Less
(placed under cardholder dispute)
Reason for the Dispute:
When,
- The cardholder claims that the card data used to create the digital purchase account did not include the necessary purchase controls.
12. Loss, Theft, or Damage
Reason for the Dispute:
When,
- The cardholder claims that a charge for damages was incorrectly processed as part of the original transaction (typically for lodging or hospitality services).
