Visa chargeback reason code 13.4, known as “Counterfeit Merchandise,” is used when a cardholder claims that the merchandise they received is counterfeit. This chargeback reason code helps protect consumers from fraudulent sellers and ensures that they receive genuine products.
Key Details of Chargeback Reason Code 13.4: Counterfeit Merchandise
- Definition: The cardholder asserts that the merchandise received is counterfeit, meaning it is an unauthorized imitation of a genuine product.
- Typical Scenario: This chargeback occurs when a customer purchases an item and, upon receipt, determines that it is not an authentic product.
Common Causes
- Deceptive Sellers: Merchants intentionally or unintentionally sell counterfeit goods.
- Supply Chain Issues: Suppliers or third-party vendors provide counterfeit products to merchants, who then sell them unknowingly.
- Customer Error: In some cases, a customer might mistake an authentic product for a counterfeit one due to unfamiliarity or misunderstanding.
Resolution Time Frame
- For Cardholders: Cardholders typically have 120 calendar days from the transaction date to dispute a charge for counterfeit merchandise.
- For Merchants: Upon receiving a chargeback, merchants usually have up to 30 days to respond with evidence to dispute the chargeback.
Preventing or Mitigating Chargeback Reason Code 13.4
To prevent or mitigate the risk of chargebacks due to counterfeit merchandise, merchants can take the following steps:
- Source Products from Reputable Suppliers: Ensure all products are sourced from legitimate, reputable suppliers. Verify the authenticity of the products before selling them.
- Maintain Detailed Records: Keep detailed records of product sourcing, including supplier information, purchase orders, and receipts.
- Quality Control: Implement strict quality control measures to verify the authenticity of products before they are shipped to customers.
- Clear Product Descriptions: Provide clear and accurate descriptions of products, including information about authenticity and origin.
- Customer Communication: Communicate with customers and address any concerns about product authenticity promptly.
- Return and Refund Policies: Have clear return and refund policies in place to handle disputes related to counterfeit merchandise efficiently.
