My Merchant Account Blog

Visa Chargeback Reason Code 30 - Services Not Provided or Merchandise Not Received

Wednesday, November 30, 2011

The card issuer received a claim from a cardholder that merchandise or services ordered were not received or that the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date (or merchandise was unavailable for pick-up).

Most Common Causes

The merchant:

• Did not provide the services
• Did not send the merchandise
• Billed for the transaction before shipping the merchandise
• Did not send the merchandise by the agreed-upon delivery date
• Did not make merchandise available for pick-up

Possible Remedies

Merchandise Was Delivered

If the merchandise was delivered by the agreed-upon delivery date, contact your acquirer with details of the delivery or send your acquirer evidence of the delivery, such as a delivery receipt signed by the cardholder or a carrier’s confirmation that the merchandise was delivered to the correct address. If the merchandise was software that was downloaded via the Internet, provide evidence to your acquirer that the software was downloaded to or received by the cardholder.

Less Than 15 Days Since Transaction and No Delivery Date Set

If no delivery date has been specified, and the card issuer charged back the transaction less than 15 days from the transaction date, send a copy of the sales receipt to your acquirer pointing out that 15 days have not yet elapsed.  You should also state the expected delivery date.

Specified Delivery Date Has Not Yet Passed

If the specified delivery date has not yet passed, return the chargeback to your acquirer with a copy of the documentation showing the expected delivery date.  In general, you should not deposit sales receipts until merchandise has been shipped.  For custom-made merchandise, you may deposit the entire transaction amount before shipping, provided you notify the cardholder at the time of the transaction.

Merchandise Shipped After Specified Delivery Date

If the merchandise was shipped after the specified delivery date, provide your acquirer with the shipment date and expected arrival date, or proof of delivery and acceptance by the cardholder.

Services Were Rendered

If the contracted services were rendered, provide your acquirer with the date the services were completed and any evidence indicating that the customer acknowledged receipt.

Merchandise Was Available for Pick-Up

If you received a chargeback for merchandise that was to be picked up by the cardholder, consider the following and provide this information to your acquirer:

1. The merchandise was available for the cardholder to pick up
2. The chargeback was processed less than 15 days from the transaction date and no pick-up date was specified, and
3. The specified pick-up date had not yet passed as noted on any internal documentation (e.g., invoice, bill of sale)

Preventative Measures

Delayed Delivery

If delivery of merchandise is to be delayed, notify the customer in writing of the delay and the expected delivery date. As a service to your customer, give the customer the option of proceeding with the transaction or cancelling it (depending on your customer service policy).

Expected Delivery

For any transaction where delivery occurs after the sale, the expected delivery date should be clearly indicated on the sales receipt or invoice.

Proof of Delivery / Proof of Pick-Up

If you are shipping merchandise without requesting proof of delivery, consider the costs and benefits of doing so compared to the value of the merchandise you ship. Proof of delivery or pick-up, such as certified mail or a carrier’s certification that the merchandise was delivered to the correct address or picked up and signed for by the cardholder, will allow you to return the chargeback if the customer claims the merchandise was not received.

Software Downloaded via Internet

If you sell software that can be downloaded via the Internet, Visa suggests that you design your website to enable you to provide evidence to your acquirer that the software was successfully downloaded and received by the cardholder.

Source: Chargeback Management Guidelines for Visa Merchants

For More Information, please see our archived documents.

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