Visa 13.2 — Cancelled Recurring Transaction: What It Is and How to Respond

Visa 13.2 is filed when a cardholder claims they cancelled a recurring billing agreement — a subscription, membership, SaaS product, or any other recurring charge — and were charged anyway. This is the highest-risk chargeback code for subscription businesses, SaaS products, and membership services. It's rated “Hard” to win not because the rules are complex, but because the most common reason merchants lose is simply that the customer did cancel and the charge shouldn't have been made.

There are two fundamentally different 13.2 situations: one where the customer genuinely cancelled and you kept charging (which you cannot win and should not contest), and one where the customer claims they cancelled but your records show no such request was received (which you can and should fight). The key is honest record-keeping — your subscription cancellation log is your primary evidence.

Common reasons you received this dispute

1. 1The customer submitted a cancellation but your system failed to process it or you never acknowledged it
2. 2The customer cancelled through a third-party platform (app store, PayPal recurring) but your internal system wasn't updated
3. 3Your cancellation process required multiple steps or a phone call, and the customer believes they completed it
4. 4You charged for a billing period after the customer contacted your support team to cancel
5. 5The subscription renewed automatically after a free trial without sufficiently clear notice at the original signup
6. 6The customer cancelled through your online portal, but a data sync issue resulted in a further charge

Can you win this dispute?

Evidence checklist

1. ✅ Required

   Your subscription agreement at time of signup: The terms the customer agreed to at signup, including the billing schedule, renewal terms, and cancellation policy. This establishes what was agreed.

2. ✅ Required

   Complete cancellation request log: A full export from your subscription system showing every cancellation request ever received for this customer — including the dates and whether they were processed. If no request exists, the log showing its absence is your primary evidence.

3. ✅ Required

   Billing history for this subscription: The complete billing record showing every charge made, when, and for which period. This demonstrates the disputed charge was within the active subscription period.

4. ⭐ Strongly recommended

   Customer account activity log: Login history, usage records, or feature access logs showing the customer was actively using the service after the date they claim they cancelled.

5. ⭐ Strongly recommended

   Email or support ticket history: Any customer communications about this subscription, especially anything that references cancellation (or the absence of any such reference).

6. ⭐ Strongly recommended

   Cancellation confirmation you sent (if you sent one): If you have a cancellation confirmation email for a different, later cancellation, include it — and note its date relative to the disputed charge.

7. ○ If available

   Your renewal reminder email: If you sent an advance notice of renewal (required for trial-to-paid conversions under Visa rules), include this.

8. ○ If available

   Third-party cancellation records: If cancellations come through an app store or PayPal, include their records confirming no cancellation was logged before the disputed charge.

Visa's rules on subscription compliance

Visa has specific requirements for merchants who offer recurring billing:

• Advance notice of renewal: For trial-to-paid conversions, you must notify the cardholder of the upcoming charge at least 7 days before it's made. For annual subscriptions, a reminder is required.

• Clear cancellation mechanism: Cardholders must be able to cancel through the same channel they signed up through. If signups happen online, an online cancellation option must exist.

• Immediate cancellation confirmation: When a customer cancels, send a confirmation immediately. This creates a definitive record of the cancellation date.

• Honour cancellations from all channels: If a customer cancels via your website, app, email, or support ticket, it must be processed. "I only accept cancellations through the portal" is not a valid defence for a charge made after an email cancellation request.

How to write your response

Key deadlines

How to prevent this chargeback

1. 1

   Log every cancellation request immediately, regardless of channel: If a customer emails, calls, uses your portal, or contacts you on social media to cancel, log it in your system with a timestamp and send an immediate confirmation. The absence of a logged cancellation is your primary defence — protect it by logging everything.

2. 2

   Send advance renewal reminders: For annual subscriptions, send a reminder email 14–30 days before renewal. For trial-to-paid conversions, send a reminder at 7 days. These emails reduce disputes from customers who “forgot they were still subscribed” and create a documented record of notice.

3. 3

   Make cancellation as easy as signup: A single online cancellation button, always accessible, eliminates the “I couldn't figure out how to cancel” defence. Complex cancellation processes generate disputes and increasingly attract regulatory attention.

4. 4

   Send an immediate cancellation confirmation email: The moment a cancellation is processed, send a confirmation to the customer's email address. This creates a definitive, timestamped record of when the subscription ended — and eliminates the “I cancelled last month” dispute when the cancellation confirmation clearly shows a different date.

5. 5

   Audit your third-party integrations monthly: If customers can subscribe or cancel through an app store, PayPal, or a third-party marketplace, sync those records with your internal system daily. Cancellations made through these channels that don't reach your system are a common source of 13.2 disputes.

Frequently asked questions

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