Visa 13.7 — Cancelled Merchandise / Services: What It Is and How to Respond

Visa 13.7 is filed when a cardholder cancelled an order or service — either before fulfilment or at the point of delivery — and was still charged. This is different from Visa 13.2 (Cancelled Recurring Transaction), which covers ongoing subscription billing. Visa 13.7 applies to one-time orders, single-service transactions, and non-recurring purchases where a cancellation was requested before or at delivery.

The most common 13.7 scenarios are: (1) a cardholder cancelled an order after placing it but before it shipped, and you charged anyway; (2) a cardholder refused delivery of a physical shipment and was still charged; (3) a cardholder cancelled a service appointment and was billed anyway. In each case, the dispute hinges on whether a valid cancellation was received before your fulfilment commitment.

Common reasons you received this dispute

1Customer cancelled the order after placing it but before the cancellation deadline — and you processed the charge anyway
2Customer refused delivery of the physical shipment and was still charged
3Customer cancelled a service appointment within the policy window but was billed a cancellation fee they didn't agree to
4Shipment arrived significantly late and customer cancelled before receiving, but you charged for the delivery
5Customer cancelled via a channel you didn't monitor (email to a secondary address, social media) and the cancellation wasn't processed

Can you win this dispute?

Fight this dispute if...

✓Cancellation was received after your clearly communicated cancellation deadline (and the policy was communicated at purchase)
✓The merchandise was already in transit when cancellation was requested (show tracking)
✓Cardholder cancelled and then re-ordered — the charge is for the new order
✓For no-show/cancellation fees: the cardholder agreed to the fee policy at booking

Accept this chargeback if...

✗Cancellation was received before shipment and you charged anyway
✗You billed a cancellation fee the customer never agreed to
✗The shipment was significantly delayed and the customer's cancellation predates delivery

Evidence checklist

✅ Required
Your cancellation policy communicated at the time of purchase (screenshot of checkout page or order confirmation)
✅ Required
If merchandise was shipped: tracking record showing item was in transit before cancellation was received
⭐ Strongly recommended
Any communication with the customer about their cancellation request and your response
⭐ Strongly recommended
For cancellation fees: the signed or accepted booking terms showing the fee was disclosed
○ If available
The timeline showing when cancellation was received vs. when fulfilment was committed

How to write your response

“We are writing to dispute chargeback [reference] under Visa reason code 13.7. Our cancellation policy, presented to the cardholder at checkout (Exhibit A), states that orders may be cancelled without charge only before [deadline/shipping trigger]. The cardholder's cancellation request was received on [date], at which point [order had already shipped / deadline had already passed / item was in production]. Exhibit B shows [shipping confirmation / fulfilment timestamp]. The charge was valid under the terms agreed at purchase. We respectfully request reversal of this chargeback.”

Key deadlines

Response window: 30 calendar days from the notification date.

How to prevent this chargeback

1
State your cancellation policy explicitly at checkout and include it in the order confirmation email — “orders can be cancelled within 1 hour of placement” is clear; no policy at all leaves you defenceless
2
For services with cancellation fees, require explicit acceptance of the fee terms at booking (not just buried in T&Cs)
3
Monitor all customer contact channels for cancellation requests — emails to secondary addresses, contact form submissions, and live chat must all be actioned promptly
4
Send a cancellation confirmation immediately when a cancellation is processed, so there's a definitive record of what was cancelled and when

Frequently asked questions

What is Visa 13.7?

Visa 13.7 covers cancelled orders and services — one-time transactions where the cardholder cancelled before or at fulfilment and was still charged. It's different from Visa 13.2 (cancelled recurring billing) — 13.7 applies to single transactions, not subscriptions.

Can I charge a cancellation fee and still win a 13.7?

Yes, if the cancellation fee was clearly disclosed at booking and the cardholder agreed to it before the transaction was completed. A buried cancellation policy in terms and conditions is weak evidence. A specific, highlighted disclosure at booking that the customer accepted is strong evidence.

What if the merchandise was already shipped when the cancellation came in?

You can fight the chargeback if you can show the item was in transit before the cancellation was received. Provide the shipping confirmation timestamp and the tracking record. If your policy states cancellations must be received before dispatch, this should be cited alongside the shipping evidence.

How is Visa 13.7 different from Visa 13.2?

Visa 13.2 is specifically for cancelled recurring billing arrangements — subscriptions, memberships, and SaaS products. Visa 13.7 covers one-time orders and services. The key difference is that 13.2 focuses on whether a cancellation of an ongoing arrangement was properly processed, while 13.7 focuses on whether a single-transaction cancellation was honoured.

Related reason codes

Visa 13.2

Cancelled Recurring

Visa 13.6

Credit Not Processed

Amex C05

Goods/Services Cancelled

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