This reason code is transitioning from the legacy code 4860. The cardholder claims they expect a credit, but the merchant hasn’t processed the request.
Cause
The merchant:
Didn’t acknowledge a cancellation or return.
Refuses to process a reversal or credit.
Is sticking to the return or cancellation policy which they didn’t clearly explain to the cardholder.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 45 days to respond to the claim in dispute.
Steps to Prevention
Explain the return policy to your customers, including any associated costs. You can disclose this policy on transaction receipts, on the checkout page, or on your store wall.
Process cancellations or refund requests in good time.
Don’t acknowledge the delivery of a return if it’s not according to the return policy.
Explain to the customer why you’ll credit a reduced amount.
