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Visa 13.7 - Cancelled Merchandise/Services

Cardholder cancelled an order for merchandise or services but was still charged or not refunded.

Overview​

This dispute applies when a cardholder cancelled a transaction before receiving goods/services but the charge was not reversed. Different from 13.2 (recurring) which covers subscription cancellations.

When This Code Applies​

  • Order cancelled before shipment
  • Service cancelled before delivery
  • Event/booking cancelled
  • Cancellation acknowledged but charged anyway
  • Deposit not refunded after cancellation

Conditions for Valid Dispute​

Cardholder Must​

  1. Have cancelled the transaction
  2. Cancelled before receiving goods/services
  3. Not received refund for cancellation

Timing Matters​

ScenarioLikely Outcome
Cancelled before shipmentRefund expected
Cancelled after shipmentMay need return first
Non-refundable statedMerchant may win
Within cancellation windowRefund expected

Time Frames​

ScenarioDispute Window
Standard120 days from transaction
From cancellation120 days from cancellation date

Representment Options​

1. Services/Goods Already Delivered​

Evidence required:

  • Delivery confirmation
  • Service completion proof
  • Cancellation was after delivery
  • Tracking showing receipt

2. Cancellation Was After Cutoff​

Evidence required:

  • Cancellation policy
  • Cutoff timing
  • Cancellation request timestamp
  • Policy was disclosed

3. Non-Refundable Purchase​

Evidence required:

  • Clear non-refundable disclosure
  • Cardholder acknowledgment
  • Terms at checkout
  • Confirmation email with terms

4. Refund Was Issued​

Evidence required:

  • Credit transaction record
  • Settlement confirmation
  • ARN for cardholder to trace

5. No Cancellation Received​

Evidence required:

  • Communication logs
  • No cancellation request on file
  • System records
  • Email history

Prevention Strategies​

Cancellation Policy​

  1. Clear policy - Visible before purchase
  2. Cutoff disclosed - When cancellation is free
  3. Non-refundable items - Clearly marked
  4. Acknowledgment required - Checkbox or similar

Cancellation Processing​

  1. Confirm receipt - Acknowledge cancellation request
  2. Process promptly - Same day if possible
  3. Document everything - Keep records
  4. Notify of outcome - Confirm refund or denial

Order Status​

  1. Real-time updates - Customer knows status
  2. Cancellation window - Allow before shipment
  3. Easy cancellation - Simple process
  4. Confirmation emails - At each stage

Non-Refundable Items​

  1. Prominent disclosure - Not hidden
  2. Multiple confirmations - Checkout + email
  3. Valid reasons - Custom, perishable, etc.
  4. Consider exceptions - Good customer service

Win Rate Expectations​

Defense TypeExpected Win Rate
Already delivered70-85%
Non-refundable (disclosed)60-75%
Cancelled after cutoff55-70%
Refund was issued85-95%
No cancellation record50-65%

Common Mistakes​

  1. Buried cancellation policy - Not visible
  2. Slow cancellation processing - Shipped anyway
  3. No confirmation - Customer unsure if cancelled
  4. Ignoring cancellation requests - Creates disputes
  5. Non-refundable hidden - Disclosed too late

Special Cases​

Events/Tickets​

  • Often non-refundable
  • Must disclose clearly
  • Consider transfer options
  • Force majeure policies

Travel/Hospitality​

  • Cancellation windows vary
  • Deposits may be non-refundable
  • Clear policy required
  • Consider flexibility for loyalty

Custom/Made-to-Order​

  • Non-refundable often valid
  • Disclose before production
  • Offer modifications instead
  • Document customization
  • 13.1 - Not Received
  • 13.2 - Cancelled Recurring
  • 13.6 - Credit Not Processed

See Also​