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. It is typically 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.
Visa may support a good faith adjustment process to reverse disbursements under narrow circumstances.
|Exception Scenario||Description||Best Practices to Mitigate Liability or Handle Error|
|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.
Visa: TabaPay may be able to initiate a good faith collaboration request on behalf of the merchant. If the issuer accepts the good faith collaboration request, TabaPay can initiate an adjustment. If the issuer does not respond or declines the adjustment, then an adjustment cannot be processed.
- please e-mail [email protected] with Subject Line: Client Name_Visa OCT good faith collaboration request and include the Transaction ID and the reason for the reversal request. Note: this process might take 5-7 business days.
|Recipient does not receive funds due to non/late posting||Sender or recipient relays that recipient has not received the funds.||Visa: Where Fast Funds is required, recipient issuer is required to make the funds available in 30 minutes or less. If the issuer does not participate in Fast Funds, issuer is required to post within 2 business days of receiving the financial message. If the recipient delays the posting, merchants can contact [email protected] to request Proof of Posting from the issuer. Merchants must submit requests for Proof of Posting within 20 days of the transaction date.If 1) the issuer confirms that the funds did not post or 2) fails to respond to the request for proof of posting within 5 days, then TabaPay can initiate an adjustment.|
- please e-mail [email protected] with Subject Line: Client Name_Visa Proof of Posting Reversal Request and include Transaction ID and the date of the 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 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 chargeback with reason code 12.4 – Incorrect Account Number.|
Updated 20 days ago