Reason code · Visa
Visa reason code 13.7: cancelled merchandise or services
Visa 13.7 means the customer cancelled a service or reservation, or returned goods, and got no refund, and says your cancellation or return policy wasn’t properly disclosed or applied. The bank usually has 120 days to file.
Key takeaways
- The cancellation-policy code. No-show fees, deposits and returns all land here.
- Disclosure is the whole game. A policy the customer saw and accepted at purchase is your strongest answer.
- Hotels, take note. A no-show billed for more than one day can be disputed here.
What Visa 13.7 means
Visa’s rule: the cardholder cancelled or returned, the merchant didn’t process a refund, and the merchant either didn’t properly disclose a limited cancellation or return policy at the time of purchase, or disclosed one but didn’t follow it.
It also covers guaranteed reservations: a no-show charged after a proper cancellation, a no-show billed for more than one day, or a no-show charged after the customer tried to cancel within 24 hours of getting the confirmation.
What the customer told their bank
“I cancelled and they still charged me,” or “I sent it back and never got a refund.” The cardholder must have tried to resolve it with you, and the bank usually waits 15 days after the cancellation or return before filing.
The time limit
The bank has 120 calendar days from the processing date or from the date the customer received or expected the goods or services, never more than 540 days after processing.
Your own deadline is much shorter. Visa gives your bank (the acquirer) 30 calendar days from the dispute to respond. Your processor keeps part of that time, so the due date on your notice is the one that counts.
What kind of proof matters
Your cancellation or return policy as the customer saw it at purchase, and proof they accepted it. Or proof they received your policy and didn’t cancel according to it.
The sharp part: for online sales, Visa expects the policy during checkout with a click-to-accept or similar acknowledgment. A policy in your website footer usually isn’t enough.
One common mistake
Relying on a policy the customer agreed to once, months ago, when they first created an account. Show the policy at the point of each sale, and keep the record that they accepted it.
Dispute Daddy reads your notice, lines up the reason the customer gave against your own records, and builds the response. You review it, approve it and submit it. See how the Dispute Daddy Method works.
