Reason Code 13.7Canceled Merchandise/Services

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Card Issuer


Reason Code



Customer Dispute


The cardholder claims they canceled a service or returned merchandise but didn’t receive a refund.


The merchant didn’t:

  • Issue a refund for canceled or returned merchandise.
  • Issue a refund because they don’t accept returns, but they failed to communicate this policy to the customer clearly.
  • Process a canceled guaranteed reservation properly.
  • Cancel a timeshare within 12 days of the receipt or contract date.


Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.

Merchants have 20 days to respond to the claim in dispute.

Steps to Prevention

  • Disclose your return policy to the customer on the transaction receipt or other documentation.
  • If you don’t accept returns or have a limited return policy, use words that make this clear (i.e. No Returns) on every agreement and transaction receipt.
  • For online transactions, require the cardholder to agree to the terms of the return policy by clicking on a button or checkbox.
Visa Merchant Official Documentation
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