Visa Chargeback Reason Code 13.7, “Cancelled Merchandise or Services,” occurs when a cardholder claims that they did not receive the merchandise or services they paid for because the order was canceled by the cardholder or merchant. This chargeback can arise from misunderstandings or disputes regarding the cancellation of the order.
Why Does Chargeback Reason Code 13.7 Happen?
- Failure to Process Cancellation: The merchant failed to process the cancellation request properly.
- Refund Not Issued: The merchant did not issue a refund after the cancellation.
- Miscommunication: There was a miscommunication between the cardholder and the merchant regarding the cancellation.
Resolution Time Frame
- For Cardholders: Cardholders generally have 120 calendar days from the transaction processing date or from the date the merchandise or service was supposed to be provided to file a dispute.
- For Merchants: Merchants typically have up to 30 days to respond to a chargeback with evidence to refute the claim.
Preventing or Mitigating Chargeback Reason Code 13.7
To prevent or mitigate the risk of chargebacks due to canceled merchandise or services, merchants can implement the following practices:
- Clear Cancellation Policy: Have a clear and easily accessible cancellation policy and make sure customers are aware of it.
- Timely Processing of Cancellations: Ensure that cancellation requests are processed promptly and accurately.
- Refund Confirmation: Provide written confirmation to the cardholder when a cancellation is processed and a refund is issued.
- Accurate Record-Keeping: Maintain accurate records of all cancellation requests and refunds.
- Effective Communication: Communicate clearly and promptly with customers regarding the status of their orders and any cancellations or refunds.
- Customer Service Training: Train customer service staff to handle cancellation requests efficiently and to provide clear information to customers.
