# Visa 13.7 - Cancelled Merchandise/Services
Source: https://paymentsandrisk.com/docs/reference/reason-codes/visa/13-7-cancelled-merchandise

Last updated 24 October 2026.

TL;DR

-   The customer cancelled before delivery and was charged anyway, or never refunded
-   Different from 13.2, which covers recurring subscriptions
-   Dispute window is 120 days from the transaction, or 120 days from the cancellation date
-   You'll win by showing the goods or services were already delivered before the cancellation landed

## Got this code?

**Your deadline:** The date on your notice wins. Visa's standard response window is 30 days, and your processor can set an earlier one.

**The claim:** The cardholder **cancelled an order** and the charge stayed. Either it never got reversed, or it shipped after they'd already told you not to.

**Records that answer it:**

1.  Delivery or service completion records dated before the cancellation
2.  Your cancellation policy, its cutoff and the cancellation request timestamp
3.  Any credit already issued, with its ARN

**Next:** [Decide whether it's worth fighting](https://paymentsandrisk.com/docs/chargebacks/your-first-chargeback/#should-you-fight-it), then build the response with the [Representment Workflow](https://paymentsandrisk.com/docs/operations/representment-workflow/).

## Overview

This one lands when a cardholder cancelled before the goods or services arrived and the charge wasn't reversed. It isn't 13.2: that code is for subscriptions, this one is for a single order. If you can't show delivery happened first, you don't have much of a case.

## 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

| Scenario | Likely Outcome |
| --- | --- |
| Cancelled before shipment | Refund expected |
| Cancelled after shipment | May need return first |
| Non-refundable stated | Merchant may win |
| Within cancellation window | Refund expected |

## Time Frames

| Scenario | Dispute Window |
| --- | --- |
| Standard | 120 days from transaction |
| From cancellation | 120 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

## Which defenses hold up

| Defense Type | What the evidence needs to show |
| --- | --- |
| Already delivered | Delivery or completion records predate cancellation |
| Non-refundable (disclosed) | Keep the disclosure and cardholder acknowledgment |
| Cancelled after cutoff | Disclosed cutoff and request timestamp show the timing |
| Refund was issued | Credit and settlement records show the refund |
| No cancellation record | Communication logs show no request received |

Track your own [win rate by reason code](https://paymentsandrisk.com/docs/chargebacks/metrics/).

## Common Mistakes

1.  **Buried cancellation policy** - Not visible
2.  **Slow cancellation processing** - Shipped anyway
3.  **No confirmation** - The customer doesn't know if it worked
4.  **Ignoring cancellation requests** - That's how you end up here
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

## Related Codes

-   [13.1](https://paymentsandrisk.com/docs/reference/reason-codes/visa/13-1-not-received/) - Not Received
-   [13.2](https://paymentsandrisk.com/docs/reference/reason-codes/visa/13-2-cancelled-recurring/) - Cancelled Recurring
-   13.6 - Credit Not Processed

## 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

## See Also

-   [Refund Policy](https://paymentsandrisk.com/docs/chargebacks/refund-policy/)
-   [Refund Strategy](https://paymentsandrisk.com/docs/chargebacks/refund-strategy/)
-   [Checkout Conversion](https://paymentsandrisk.com/docs/payments/checkout-conversion/)