Why did I get a dispute with Visa reason code 12.3?
You mismanaged dynamic currency conversion—you either applied DCC after the cardholder declined it or you didn’t give the cardholder the chance to opt-out. Or, the currency you used to process the transaction doesn’t match what you sent through VisaNet.
How long can the issuer wait to file a dispute with Visa reason code 12.3?
The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 120 calendar days.
What do I need to fight a dispute with Visa reason code 12.3?
- If a dynamic currency conversion transaction was processed correctly, provide documentation that proves either the cardholder actively chose DCC or that DCC wasn’t applied to the transaction.
- If you processed the transaction in the correct currency, provide documentation that proves the transaction currency.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
How can I avoid a dispute with Visa reason code 12.3 in the future?
- Don’t automatically apply DCC to transactions. Give customers the option to select the service if they are interested, but don’t require its use.
- Have systems in place to manage multiple currencies. Make sure staff are trained on procedures.