The merchant failed to process the transaction in good time, and now the issuer cannot collect the transaction amount from the cardholder.
Cause
The transaction was delayed because of a problem with the point-of-sale system.
The cardholder account wasn’t in good standing by the time the merchant processed the transaction.
The merchant didn’t process the transaction within the set deadlines.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 30 days to respond to the claim in dispute.
Steps to Prevention
Send authorization requests before processing transactions.
Submit sale data within 30 days of the transaction date if you’re in the car rental, lodging, passenger railway, airline, or other passenger transport industries.
Submit the sales data within 30 days of the transaction date if the sale was in a country different from where the cardholder was issued the card.
All other industries and intra-country transactions should submit these dates within 10 days of the transaction date.
