Visa Chargeback Reason Code 13.2: Cancelled Recurring Transaction

Visa Chargeback Reason Code 13.2, “Cancelled Recurring Transaction,” is used when a cardholder disputes a transaction that is part of a recurring billing plan, claiming it was charged after the recurring agreement was canceled. This reason code addresses disputes where the cardholder asserts that they had properly canceled the recurring service, but the merchant continued to charge their account.

Key Details of Chargeback Reason Code 13.2: Cancelled Recurring Transaction

• Definition: The cardholder claims they were charged for a recurring transaction after they had canceled the service or subscription according to the terms agreed upon with the merchant.
• Typical Scenario: This occurs when a customer cancels a subscription or service but continues to be billed for it.

Common Causes

1. Failure to Process Cancellation: The merchant did not process the cancellation request in a timely manner.
2. Miscommunication: There was a misunderstanding or miscommunication between the cardholder and the merchant regarding the cancellation.
3. Technical Issues: System errors or technical issues prevented the cancellation from being processed correctly.
4. Unclear Cancellation Policy: The merchant’s cancellation policy was not clear or easy for the cardholder to follow.

Resolution Time Frame

• For Cardholders: Cardholders typically have 120 calendar days from the transaction date or from when they became aware of the issue to file a chargeback.
• For Merchants: Once a chargeback is received, merchants usually have up to 30 days to respond with evidence to refute the chargeback.

Preventing or Mitigating Chargeback Reason Code 13.2

To prevent or mitigate chargebacks due to canceled recurring transactions, merchants can take the following steps:

1. Clear Cancellation Policy: Ensure that the cancellation policy is clear, easy to understand, and readily available to customers.
2. Promptly Process Cancellations: Process cancellation requests immediately and confirm the cancellation with the customer in writing.
3. Provide Clear Instructions: Provide customers with clear instructions on how to cancel their subscription or service.
4. Maintain Records: Keep detailed records of all cancellation requests and confirmations.
5. Customer Communication: Communicate with customers to resolve any issues or misunderstandings regarding cancellations.
6. Regular Audits: Conduct regular audits of recurring billing processes to ensure compliance with cancellation requests.

Evidence for Representment

If a chargeback is received under reason code 13.2, the merchant can respond by providing evidence that the cancellation request was not received or that the transaction was processed before the cancellation was requested. This evidence might include:

• Proof of the date and method the cardholder used to cancel the service.
• Confirmation of the cancellation sent to the cardholder.
• Terms and conditions of the recurring agreement showing the cancellation policy.