Skip to main content

Visa 13.7 - Cancelled Merchandise/Services

Last updated . Copy page as text

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, then build the response with the 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​

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

Which defenses hold up​

Defense TypeWhat the evidence needs to show
Already deliveredDelivery or completion records predate cancellation
Non-refundable (disclosed)Keep the disclosure and cardholder acknowledgment
Cancelled after cutoffDisclosed cutoff and request timestamp show the timing
Refund was issuedCredit and settlement records show the refund
No cancellation recordCommunication logs show no request received

Track your own win rate by reason code.

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
  • 13.1 - Not Received
  • 13.2 - 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​

Something wrong on this page? Email matt at paymentsandrisk.com and say what needs fixing.