Late Presentment

Late Presentment

Late Presentment

Today, use of Card-Not-Present for collecting transactions for the product or services is growing rapidly. This helps business to make their product or services available on the global level. Companies are enjoying this benefit with the integration of internet in the traditional way of doing business.

With the use of the internet for selling goods, there are few reasons that can cause the loss of the business. One of them is being late in presenting the transaction details. This can be called as the merchant-end fault that can be avoided. But first, we need to understand that why card brand or customer’s bank can deny depositing the transaction amount of a valid transaction.

Late Presentment

To understand this, first, we need to understand the lifecycle of the transaction that a merchant performs to get the funding of the transaction. While saying online payment collection, we can imagine that while a buyer initiates the purchase, selects the payment option that opens a new window, where buyer performs the operations according to it card and account type. The process that takes place with the fraction of seconds on the gateway window decides whether the customer’s account and card are authorized to buy the product or not.

This process of transactions authorization basically involves all the financial services that are related to buyer and merchant via internet connectivity that verifies buyer’s card details and debit the required amount from the account. But, one thing merchant needs to keep in mind while collecting the payments through the internet that is the lifecycle of the transaction doesn’t complete by just debiting the amount from the buyer’s account. One thing in this payment cycle that is to be done by merchant’s end is to provide the legitimate transaction proof to the merchant’s bank or card processors to get the money funded into their account. The merchants have to provide the proofs within the time limit as specified by the card brands.

Related Blog

Merchant’s Fault

This is where the chances of merchant’s fault occur. As a website collects a large amount of payment. All the payments go into batches that get send to card brand networks. That sends the request for validation into individual customer’s bank. It is as a proof to get funded. In this process of batching is must timeliness. It should a careful step according to the card brand rules that is. MasterCard has specified 7 to 30-days of time-frame and VISA have specified 10-days after the date of processing of the transaction.

The Reason

The reason behind this time of the timely file of the transaction within the time-frame is an effective move. It helps in the authorization of the cardholder because the transaction will be fresh in the mind of the buyer. This timeliness will also help to avoid the dispute of transaction. As the transaction will be cleared before any fault can occur regarding customer’s account or card.

Even if a merchant faces the chargeback issue due to submitting the processed transaction late. This chargeback reason is Late Presentment, by VISA and MasterCard. Both the card networks have designated reason code of Late Presentment that is 74 for VISA and 4842 for MasterCard. These reason codes have few specified conditions that tell why the merchant faced the Chargeback claim for Late Presentment Reason.

But, there is no remedy to dispute this chargeback; a merchant has to accept it if the merchant doesn’t follow the timeframe of the card brands. The only option is to avoid this error is to take precautions. The precautions are:

Payment Security for Merchant

Email us anytime!

Email customer service 24/7

Payment Security for Merchant

Call us anytime!

Reach customer care 24/7 at +1 (727) 330-3944

  • Follow the time-frame guidelines: Merchants should try to deposit the transaction details to the card brands on the same day or very next day. If possible. But, in the case of Card-not-present transactions, merchants can only deposit the receipt only after the delivery of product or services.
  • Automation of transaction data batching: This can be the preferable option an e-Commerce merchant should follow. A merchant should use the systems/software that automatically generates the list of daily transaction details. This will help merchants to save time and keep themselves updated.

Feel free to get in touch, we’ll be glad to hear from you!

Late Presentment Reason

Leave a Reply

Related Posts

How to Choose the Right Payment Gateway for Drop Shipping
June 20th, 2024

How to Choose the Right Payment Gateway for Drop Shipping

When it comes to running a successful drop shipping business

Read more
Unlocking the Secrets of Successful CBD Payment Processing
June 10th, 2024

Unlocking the Secrets of Successful CBD Payment Processing-2024

The CBD industry has been growing rapidly over the past few

Read more


Accept Credit Card  Adult articles  Barber Shops  Beauty Products  Beauty Salons  Beauty Shops  Boating and marine  BOWLING ALLEYS  Business  Business & Economics  Card Brands  CBD Business  Chargeback Reduction  Chargeback Reduction  Chargebacks  Chargebacks Fraud  Check Processing  collection agencies  considered high risk  Cosmetics & Personal Care  Countries  Courier Services  Credit card processors  Credit card processors  Credit Score  Cruises  Debt  Debt Collection  Dentists  Disputing Chargebacks  Doctor and Telemedicine  Document Preparation  Dry Cleaners  E-commerce  E-commerce  E-Commerce Tips  Echeck Processing  Electronic Payment System  Entrepreneurs  Escort Listing Services  Escort Merchant Account  Florist  furniture  Furniture Merchant  furniture merchant account  furniture store  Gift Shops  Health & Beauty  Healthcare  High Risk Business  High Risk Business Merchant  High Risk Business Merchant  High risk industry  High Risk Merchants  Home Furnishings  Limited Liability Company  Liquor Stores  LLC Businesses  Marine business  Marine Services  Mastercard  Mastercard  MCC / SIC Code  MCC / SIC Code  Medical and Healthcare  Merchant Account  Merchant Account  Merchant Account Requirement  Merchant Account Tips  Merchant Agreement  Merchant Services  Merchant Statistics  Merchant Stronghold  Merchant types  Merchant Underwriting  Merchants USA  Natural Candy Store  NMI  Nutra Merchant Account  Nutra Merchants  Nutraceuticals  Office and commercial furniture  Offline and Online Furniture Retail  Online Business  Online Payment Services  Online Payment Services  Online Processing  Online Processing  Payment Gateway  Payment Gateway  Payment Gateway Integration  payment processing  Payment processors  PCI  PCI Compliance  Personalized Card  Pharmacy  Pharmacy  Point of Sale Software  POS Systems  POS Terminals  Prepaid Cards  Retail Businesses  Retail Merchant Accounts  Retail Merchant Accounts  rich countries and poor countries  Sporting Goods  Successful Companies  Tailoring & Alterations Businesses  Timeshare Merchant Account  top companies  Transaction dispute  Transportation Service  Travel Agencies  Travel Agency  Travel Agency  Travel Agency & Reservations merchant accounts  travel agency merchant account  Underwriting guidelines  VISA  VISA  VX 520  Vеrifоnе VX520 POS