13.2 – Cancelled Recurring Transaction

By September 18, 2018Reason Code, Visa

Dispute Condition Code

13.2

Category

Consumer Disputes

Workflow

Why did I get this dispute?

The cardholder claims you processed a recurring transaction after they requested a cancellation or you processed a recurring transaction on an account that had been closed.

How long can the issuer wait to file this dispute?

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 this dispute?

  • If you fulfilled the cancellation request but services were used before the cancellation, provide documentation that proves the charge covers services used after the last billing cycle but before cancellation.
  • If the dispute is invalid, provide documentation that proves the reasoning: the transaction was part of an installment payment plan or the transaction wasn’t a recurring transaction.
  • 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 this dispute in the future?

  • Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
  • Send a notification after you’ve cancelled the recurring payment.
  • If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
  • Clearly and concisely communicate your cancellation policy and make it easy for customers to find the information.
  • Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.
  • Use Visa Account Updater to replace outdated cardholder information with new data before you process the next recurring transaction.

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