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Reason Code 13.2 - Cancelled Recurring Transaction

Chargeback Reason Codes / Visa / 13.2 - Cancelled Recurring Transaction

Description

Why did I receive this chargeback?

The cardholder claims you processed a recurring transaction after they requested a cancellation or you processed a recurring transaction on an account that had been closed.


Time Limit

How long can the issuer wait to file a chargeback?

The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 120 calendar days.


Fight

What compelling evidence is needed to respond?

  • If you fulfilled the cancellation request but services were used before the cancellation, provide documentation that proves the charge covers services used after the last billing cycle but before cancellation.
  • If the dispute is invalid, provide documentation that proves the reasoning: the transaction was part of an installment payment plan or the transaction wasn’t a recurring transaction.
  • If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
  • If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.

Prevent

How can I avoid this chargeback in the future?

  • Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
  • Send a notification after you’ve cancelled the recurring payment.
  • If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
  • Clearly and concisely communicate your cancellation policy and make it easy for customers to find the information.
  • Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.
  • Use Visa Account Updater to replace outdated cardholder information with new data before you process the next recurring transaction.

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