Why did I get a dispute with Visa reason code 13.7?
The cardholder claims to have returned merchandise or cancelled a service, but credit hasn’t been applied to the cardholder’s statement yet.
How long can the issuer wait to file a dispute with Visa reason code 13.7?
The dispute timeline can be based on one of two start dates. Either the dispute must be processed within 120 calendar days of:
- the transaction processing date, or
- the date the customer received the merchandise or services (but not to exceed 540 days of the original transaction processing date)
What do I need to fight a dispute with Visa reason code 13.7?
- If you never received returned merchandise from the cardholder, provide documentation that proves inaction on the cardholder’s part.
- If you received returned merchandise but didn’t accept it because it violated your return policy, provide documentation that proves you refused delivery for the merchandise and why. Share your return policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase.
- If the cardholder didn’t abide by your cancellation policy, provide documentation that proves why you didn’t fulfill the cancellation requisition. Share your cancellation policy, note that it was displayed prominently, and show that the cardholder agreed to the terms at the time of the purchase.
- If you fulfilled the cancellation request but the cardholder continued to use the services, provide documentation that proves the charge covers services used after the cancellation.
- If the dispute is invalid, provide documentation that proves the reasoning: the dispute is based solely on claims related to the quality of purchased items, or the dispute amount includes the cash-back portion of the transaction, or the merchandise cleared the merchant’s customs but is being held by the customer’s customs agency.
- 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 a dispute with Visa reason code 13.7 in the future?
- For card-present transactions, clearly disclose the cancellation or return policy on the transaction receipt. If the policy is on the front of the receipt, it should be near the customer signature line. If it is printed on the back, the cardholder must sign the front and initial the back near the policy disclosure.
- For card-present transactions, print the words “no returns” on all copies of the transaction receipt if you do not allow returns or have a limited return policy.
- For online transactions, clearly disclose the cancellation or return policy, either on the checkout page that contains the final purchase amount or on the checkout page near the submit button. Require customers to select a “click to accept” box or acknowledge the policy in some other way before completing the purchase.Don’t accept delivery of returned merchandise if it doesn’t comply with your policy.
- Fulfill all qualified cancellations or refund requests promptly so the credit will appear on the cardholder’s next statement.