Discover Chargeback Reason Code LP: Late Presentation

What is Discover Network Chargeback Reason Code LP?

The Discover Network chargeback reason code LP represents processing errors that involve transactions that were completed outside the deadline. Modern payment systems are automated, but merchants must initiate them. That human factor opens the transaction to errors, especially delays.

Card-present and card-not-present payments involve several steps. They often begin when you send an authorization approval request to the issuer. The latter will approve the authorization once it finds the account in good standing to complete the transaction.

Accounts in good standing must have the following qualities:

• Have enough money to complete the transaction
• Currently active
• The card is not reported stolen or missing

Delays can be due to several reasons. It could be that you need time to verify other details, like the availability of the order for shipment. Other times, the cardholder might request a delay before completing the transaction.

We strongly advise against heeding a customer's request for a delay in processing. Do that only with trusted buyers. Even so, do that sparingly and avoid it when feasible.

Quick and timely transactions often take a minute or two. You'll have nothing to worry about with this chargeback reason code if your transactions fall within a minute.

A cardholder will likely complain to the issuer if the payment occurred at a later date or time than expected. Discover Network will use this chargeback reason code if their findings reveal a late presentation. There's little you can do if you processed the transaction outside the deadline.

Point-of-sale systems can cause errors that lead to late presentations. They may return timeouts but complete the transaction later, outside the applicable processing window. Cardholders will likely complain to their issuers or contact you for a refund since the transaction occurred after they left.

Except where the cardholder initiated the delay, merchant error is often the cause of chargebacks with this reason code. Disputing them will require proof of adherence to the transaction time or the cardholder's request for a delay. Even the latter must also fall within the applicable processing time.

We'll put you through the possible causes of chargebacks under this reason code. Then, you'll appreciate our approach to disputing them better.

Why Did It Happen?

The primary reason for chargebacks with reason code LP is processing payments outside the applicable timeframe. That could be hours or days, depending on the transaction type.

Here are the causes in more detail:

• Processing outside the applicable time: We can consider an oversight or unawareness of the allocated time. Delays are common when unsure of a few transaction details. However, such delays should not exceed the applicable time frame for the transaction type.
• The account is no longer in good standing: Accounts may be closed or deactivated during delayed payment processing. Similarly, a cardholder may report the card stolen, deactivating it. These make the cardholder's account ineligible to process payments.
• Point-of-sale systems: The above two reasons can occur in card-present and card-not-present situations. You can encounter issues with point-of-sale systems, to no fault of yours. Such interruptions can delay the transaction's completion until the applicable window has elapsed.

We recommend asking for more details if you are unsure of the disputed transaction. That will help you provide appropriate evidence to reverse the chargeback.

While uncommon, some cardholders may have buyer's remorse and dispute the delayed transaction. That often happens if they request a delay pending the availability of the product or merchandise. The right thing to do would've been to return the product under your business policies, but we won't always count on that happening.

Contact the cardholder where possible to know the bone of contention. Sometimes, that can smooth things over, allowing you to reverse the chargeback quickly. Remember that actual fraud can still occur.

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How to Fight Discover Network Chargeback Reason Code LP: Late Presentation

You have 30 days to gather as much information about the disputed transaction as possible and present your argument. Discover Network will review your submission and reverse the chargeback where necessary.

Here's how you should dispute chargebacks with reason code LP:

• If you complied with the transaction time requirements: Submit evidence to show that the payment occurred within the applicable timeframe. Show when you requested authorization approval and when you completed the transaction. The time difference must match the applicable window, whether in hours or days.
• For shipments: Prove that you received the authorization approval within the applicable timeframe for the shipping or delivery dates. The same thing applies to processing attempts.
• If the cardholder requested the delay: Prove that the cardholder approved the processing delay. Even so, the timeframe should not exceed Discover Network's applicable time for payment processing.
• If you reached an agreement with the cardholder: Since this chargeback code often comes from cardholder disputes, an alternative agreement with the cardholder should reverse it. Submit duly signed evidence of the agreement.
• If your system processed a refund: Submit evidence of the refund and the cardholder's satisfaction with the credit if possible.

Anything outside the above approaches will mean accepting the chargeback. It shows that you delayed the transaction beyond the applicable window without justifiable reason.

How to Prevent Discover Network Chargeback Reason Code LP: Late Presentation

Chargebacks under this reason code are easy to prevent. The primary thing to do is to learn about the applicable transaction times to avoid exceeding them. Other preventive measures include the following:

• Update your point-of-sale systems to resolve errors that may cause processing delays
• Finalize the transaction as soon as possible. That can mean reducing your batch processing to a few times a week instead of once a week.
• Update your payment terminals.
• Know the rules for delaying processing.
• Use authorization holds to ensure the account has enough cash to complete the transaction.
• Cancel any interrupted transactions and start over.
• Re-run the payment credentials for interrupted transactions if the cardholder is still available.
• Remind the cardholder of the impending debit transaction if the payment was delayed at their request.
• Avoid customer requests for delays, where possible.

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