Reason code · Visa
Visa reason code 12.2: incorrect transaction code
Visa 12.2 is a processing-error dispute: a refund went through as a charge, a charge went through as a refund, or the business sent a refund where it should have reversed the charge. The cardholder’s bank has 120 days to file.
Key takeaways
- A bookkeeping error with real money attached. 12.2 is about the wrong type of transaction, not the wrong price.
- Refunds can trigger it. A refund sent where a reversal belonged can leave a foreign cardholder short after currency conversion.
- 120 days. From processing, or from the refund date in the refund case.
What Visa 12.2 means
Visa’s rule covers three mistakes: a credit (refund) was processed as a debit (charge), a debit was processed as a credit, or a credit refund was processed instead of a reversal or adjustment.
The last one surprises merchants. Visa’s own example: you charge the wrong amount, then fix it with a refund instead of reversing the charge. Because exchange rates moved in between, a cardholder paying in another currency doesn’t get the full amount back.
What the customer told their bank
“My refund showed up as another charge,” or “I was refunded less than I paid.” The bank certifies which mistake happened. For the refund-instead-of-reversal case, it explains why the refund was an error and gives both dates.
The time limit
The cardholder’s bank has 120 calendar days from the date the transaction was processed. When the dispute is about a refund that should have been a reversal, the 120 days run from the date the refund was processed.
Your own deadline is much shorter. Visa gives your bank (the acquirer) 30 calendar days from the dispute to respond. Your processor keeps part of that time, so the due date on your notice is the one that counts.
What kind of proof matters
A receipt or record showing the transaction type was right, or a refund or reversal the bank didn’t take into account. In the refund case, a plain reason why a refund was used instead of a reversal.
One common mistake
Fixing a wrong charge with a refund out of habit. If the charge hasn’t settled yet, ask your processor about voiding or reversing it instead. It’s cleaner for the customer and for you.
Dispute Daddy builds the response from your notice and your own records, ready for you to review, approve and submit. A flat $99 a month. See pricing.
