Merchants must keep in mind that instant push to card transactions follow a good funds model, and originating institutions are not permitted to pull the funds back from the receiving institution, who may no longer have the funds. Merchants must ensure that they follow appropriate measures to eliminate sender errors (double entry, confirmation screens, etc.) and perform extensive testing to prevent system errors. It is not possible to reverse disbursements due to clerical errors, and end users should be advised that the transaction is final before initiating.
Mastercard does not support reversals of disbursements under any circumstances.
In cases where the recipient reports that they did not receive the funds and the issuer confirms non-receipt through Visa's Proof of Posting process, Visa supports a good faith adjustment process, which requires issuer approval. Visa rules do not permit adjustments of disbursements under any other circumstances.
|Exception Scenario||Description||Best Practices to Mitigate Liability or Handle Error||Are adjustments permitted?|
|Sender or recipient enters incorrect card information.||At the time of enrollment or while adding card details, the sender or recipient enters incorrect card information.||- At the time of enrollment and transaction initiation, validate that the payment credential is accurate by utilizing mechanisms such as Mod-10 verification, AVS, etc.|
- Sender must be prompted to confirm the Recipient and amount prior to funds transfer, and must be told that the transfer is final.
|Account takeover/fraud||Sender reports that his or her account was compromised and that funds were sent to a beneficiary that the customer does not recognize.||- Customers should protect PINs and passwords; disclose user liability involved with safekeeping of PINs and passwords as a precondition for use of the merchant's service.|
- Merchants should leverage Two-Factor Authentication (2FA)
- Merchants must monitor and log information associated with user sessions, and prompt users to enter additional verification information or complete 2FA when IP address/device ID is not recognized and/or when payment credential information changes.
|Sender error||The sender realizes that he or she sent the incorrect amount to the recipient or sent the funds to the incorrect recipient (selects incorrect contact/email address) or sends a duplicate fund request||- Before authorizing the transaction, add a confirmation screen that allows the sender to confirm/verify the details of the transaction before submission.|
- Disclose sender liability for transaction error as a precondition for submission/authorization of transaction.
|Recipient does not receive funds due to non-posting||Sender or recipient relays that recipient has not received the funds.||Visa: Supports manual Proof of Posting process.||For Visa transactions: 1) within 20 days of the original transaction, the merchant must e-mail [email protected] with Subject Line: Client Name_Visa Proof of Posting Request and include the TabaPay Transaction ID, Network ID, and the date of the transaction. The merchant must confirm whether an adjustment is requested if the issuer confirms non-posting 2) the issuer has 5 days to confirm whether the disbursement posted to the recipient 3) an adjustment is permitted if the issuer confirms that the recipient did not receive the funds.|
- regardless of issuer response to the request for Proof of Posting, adjustments are not permitted after 30 days from the date of the original transaction.
|Recipient (customer) refuses receipt.||Recipient contacts the recipient issuer and relays that he or she does not want to accept the funds.||Visa: Recipient issuer is required to dispute the OCT (as credit is not processed, recipient refuses credit).||Merchant will receive returned funds in the form of a credit chargeback with reason code 13.8 - Original Credit Transaction Not Accepted.|
|Recipient account does not exist or is closed.||The funds leave the sender’s account and the recipient issuer approves the transaction, however cannot post the funds as the recipient account is closed or does not exist.||Visa: Recipient issuer is required to dispute the OCT (as Recipient’s account is closed or Recipient’s account is not on file).||Merchant will receive returned funds in the form of a credit chargeback with reason code 12.4 – Incorrect Account Number.|
Updated about 2 hours ago