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Visa 12.1 - Late Presentment

Transaction was presented for clearing past the allowed timeframe after authorization.

Overview​

Visa requires transactions to be presented within specific timeframes. Late presentment creates liability for the merchant regardless of transaction validity.

When This Code Applies​

  • Transaction cleared too long after authorization
  • Delayed batching or settlement
  • System failure causing delayed clearing
  • Manual processing delays

Time Frame Limits​

Standard Presentment Windows​

Transaction TypePresentment Window
Standard card-present2 days
Card-not-present1 day
T&E (hotels, car rental)15-31 days
Cruise lines60 days
Delayed deliveryVaries by industry

Counting Days​

  • Day 0 = Authorization date
  • Business days or calendar days (varies)
  • Extensions require specific MCC codes

Conditions for Valid Dispute​

Issuer Must Verify​

  1. Transaction presented late
  2. Authorization was obtained
  3. Presentment window exceeded

Merchant Liability​

Late presentment is automatic liability unless valid exception applies.

Representment Options​

1. Within Presentment Window​

Evidence required:

  • Transaction date/time
  • Clearing date/time
  • Proof within allowed window

2. Valid Exception Applies​

Evidence required:

  • Industry exception documentation
  • MCC code showing exception eligibility
  • Delayed delivery proof (if applicable)

3. Cardholder Authorized Delay​

Evidence required:

  • Pre-authorization agreement
  • Cardholder acknowledgment of delayed charge
  • Booking/reservation records

Special Industry Rules​

Hospitality (Hotels)​

  • Pre-auth at check-in
  • Final charge at checkout
  • Extended window for final charges
  • Incidentals must be charged promptly

Car Rental​

  • Pre-auth at pickup
  • Final charge at return
  • Extended window for damage discovery
  • Fuel charges may have extended window

Airlines​

  • Auth at booking
  • Extended window for travel dates
  • Ancillary charges follow standard rules

Prevention Strategies​

System Configuration​

  1. Auto-batch daily - Never accumulate transactions
  2. Settlement monitoring - Track pending transactions
  3. Alert on delays - Know before window closes
  4. Capture immediately - Don't delay capture

Process Controls​

  1. Daily reconciliation - Identify unbatched items
  2. Pending transaction review - Clear before deadline
  3. System health monitoring - Catch processing issues
  4. Backup procedures - Manual clearing if needed

Technical Requirements​

  1. Real-time capture - Capture at fulfillment
  2. Auth expiration tracking - Know when auths expire
  3. Retry logic - Handle failed settlements
  4. Logging - Track all timing

Win Rate Expectations​

Defense TypeExpected Win Rate
Within window (with proof)85-95%
Valid industry exception70-85%
Late presentment confirmedUnder 5%

Common Mistakes​

  1. Weekly batching - Must be daily or more frequent
  2. Ignoring failed settlements - Retry immediately
  3. Wrong MCC code - Missing extended window eligibility
  4. No timestamp logs - Can't prove timing
  • 11.2 - Declined Authorization
  • 11.3 - No Authorization
  • 12.5 - Incorrect Amount

Next Steps​

Got this chargeback?

  1. Check transaction timestamp vs. settlement date → How late?
  2. Verify your MCC → Some categories have extended windows
  3. If clearly late → Accept the chargeback (limited defense)

Prevent future 12.1 chargebacks:

  1. Settle batches daily (or more frequently)
  2. Monitor for failed settlements → Retry immediately
  3. Automate batch closing → Don't rely on manual process
  4. Review settlement process

See Also​