13.4 – Counterfeit Merchandise

DESCRIPTION

Why did I receive a chargeback with reason code 13.4?

You received this chargeback because it was identified as counterfeit by one or more of the following:

• The owner of the intellectual property or its authorised representative
• A customs agency, law enforcement agency, or other government agency
• A third-party excerpt

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CLASSIFICATION

How does Visa classify this dispute?

Visa reason codes are divided into four categories: fraud, authorisation errors, processing errors, and consumer disputes.

Reason codes that start with 13 are for a consumer dispute.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with reason code 13.4?

A 13.4 chargeback must be filed within 120 days of one of the following events:

• The transaction processing date
• The date the cardholder received the merchandise (but not more than 540 days from the transaction processing date)
• The date the cardholder was notified the merchandise was counterfeit (but not more than 540 days from the transaction processing date)

VALIDITY

What would make a 13.4 chargeback invalid?

An issuer is not allowed to use reason code 13.4 if any of the following characteristics are applicable:

• The transaction used straight-through processing.
• The transaction was initiated at an automated fuel dispenser (AFD).
• The dispute relates to the value-added tax (VAT).
• The dispute is for the cash-back portion of a transaction.

SUPPORTING DOCUMENTS

Can I fight a reason code 13.4 chargeback?

Yes. You can fight a chargeback with this reason code as long as you have the required supporting documents.

• Evidence that the chargeback is invalid. (Note: Your acquirer’s technology should catch these errors and automatically respond on your behalf. If your acquirer doesn’t automatically respond and you receive a chargeback notice, you can challenge the chargeback yourself.)
• Evidence that you refunded the transaction before the chargeback was filed.
• Evidence that the cardholder no longer disputes the transaction.
• Evidence to prove the merchandise was not counterfeit.

WORKFLOW

What process do I use to respond to a chargeback with reason code 13.4?

Visa reason code 13.4 is managed with the collaboration workflow.

Collaboration allows you to submit a chargeback response consisting of the required supporting documents and your rebuttal letter.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

Your acquirer must submit your chargeback response within 30 calendar days of the chargeback filing date.

NOTE: Visa outlines a timeline for acquirers — not necessarily merchants. Your acquirer is the one to determine how quickly you need to act. Because the acquirer needs time to manage both the chargeback notice and chargeback response, the amount of time allotted to your efforts will be much less than the acquirer time limit — usually 3-20 days. Check the expiration date on your chargeback notice so you know how soon you need to respond.

ADVANCING THE CASE

Can the issuer file pre-arbitration for a chargeback with reason code 13.4?

Yes. All collaboration disputes qualify for pre-arbitration — including 13.4.

Pre-arbitration allows the issuer to address information or evidence provided in your dispute response.

A pre-arb attempt can be made for any of the following reasons.

• The issuer can provide new documents or information about the original dispute.
• The issuer changes the reason code because of information or documents provided in the dispute response. (The issuer can only change the reason code if the original chargeback was valid.)
• If your dispute response included a claim that the cardholder no longer wants to dispute the transaction, the issuer must prove that the cardholder does, in fact, want to continue the dispute.
• If you provided the required supporting documents and disputed the cardholder’s claim, the issuer must review the evidence with the cardholder and provide an explanation of why the cardholder continues to dispute the transaction.
• If you refunded the cardholder after the chargeback was filed, but the issuer suffered a financial loss because of the exchange rate, the issuer can advance the case to pre-arbitration.

PREVENT

How can I avoid chargebacks like this in the future?

Here’s how to avoid Visa 13.4 chargebacks in the future.

• Only sell genuine merchandise.
• Make sure all product descriptions are complete, accurate, and not misleading.
• If you sell merchandise that is commonly replicated, provide certified proof of authenticity for each order.

To learn more about preventing chargebacks, visit our detailed guide.