Visa · Chargeback reason codes
Visa 13.7 chargeback: Cancelled Merchandise/Services explained
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Visa reason code 13.7, Cancelled Merchandise/Services, means the cardholder cancelled or returned the purchase and no credit was processed, and your return or cancellation policy was not disclosed or not applied. The bank waits 15 days, then has 120 days from processing or expected receipt to file. Win it by proving your limited return or cancellation policy was properly disclosed at purchase and the cardholder did not follow it.
- Category
- Consumer dispute
- Time limit for the bank to file
- 120 days from processing or expected receipt, max 540 days; after a 15-day wait
- Time limit to respond
- Your processor's deadline (on Stripe usually 7–21 days); under Visa rules the acquirer files a Dispute Response within 30 days of the dispute processing date
- Typical evidence
- Return or cancellation policy shown at checkout and proof it was not followed
- Can it be prevented?
- Yes: show the policy at checkout and apply it consistently
- Who usually wins
- The merchant who proves the policy was disclosed and not followed
What PlatformDTC does
For a "refund not received" dispute, PlatformDTC reads the refund history from Stripe: if the money was already returned it sends each refund's amount, date and acquirer reference number (ARN) and asks the bank not to pay twice; if not, it quotes the store's published refund policy. With "Answer a chargeback automatically" switched on, it sends the response to the bank for you before the deadline.
What it means
The cardholder says they cancelled or sent the goods back, and you did not refund. Visa has special rules for timeshares (14-day cancellation), guaranteed reservations, and Europe's 14-day right to cancel distance contracts.
Why customers file it
A return arrived but no refund was issued, a refund was refused under a policy the customer never saw, or the customer did not follow the return steps.
Evidence that wins
Under Visa rules every response can also show that you already refunded and the bank ignored it, that the dispute is invalid, or that the cardholder withdrew it.
- Proof your limited return or cancellation policy was disclosed at purchase
- Proof the cardholder received the policy and did not cancel or return according to it
- For in-person sales: certification the cardholder received the service or took the goods
How to prevent it
- Show the return and cancellation policy at checkout
- Apply the policy consistently and refund promptly when it allows
For developers
On Stripe the dispute object arrives with reason "credit_not_processed" and the card network's own code in payment_method_details.card.network_reason_code; listen for charge.dispute.created and read evidence_details.due_by for the deadline.
Consumer Dispute (category 13) disputes have a Dispute Response stage: the acquirer answers within 30 days, then the issuer may pre-arbitrate within 30 days of that response.
Frequently asked questions
- How is 13.7 different from 13.6?
- 13.6 is a credit you promised (a credit receipt) that never posted. 13.7 is a cancellation or return where no credit was given at all.
- What wins a 13.7?
- Proof that a limited return or cancellation policy was properly disclosed at purchase and that the cardholder did not follow it.
Sources
Related
- 13.6 — The cardholder has a refund receipt, but the refund never reached their card.
- 13.2 — The cardholder says a subscription billed them after they cancelled or withdrew permission.
- 13.8 — A pushed credit (Original Credit Transaction) was refused by the recipient or not allowed by law.
- 13.9 — An ATM dispensed no cash or only part of it. Applies to ATM operators only.
- 10.1 — A counterfeit chip card was used in person at a terminal that did not read the chip.
- 10.2 — A lost or stolen PIN chip card was used in person without the PIN being checked.
- 10.3 — The cardholder denies an in-person purchase where the card number was typed in, not read.
- 10.4 — The cardholder says they did not make an online, phone or mail order purchase.