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Visa 13.2 - Cancelled Recurring Transaction

Overview​

Used when a cardholder claims they cancelled a recurring billing arrangement but continues to be charged.

When This Code Applies​

  • Subscription cancelled but charges continue
  • Free trial ended and charges began without clear consent
  • Recurring billing after account closure
  • Automatic renewal without proper notice
  • Charge after explicit cancellation request

Cardholder Requirements​

Before filing, cardholder must:

  1. Notify merchant of cancellation - Attempt to cancel
  2. Allow reasonable processing time - For cancellation to take effect
  3. Keep proof of cancellation - Confirmation emails, reference numbers
  4. Transaction must be recurring - Not one-time charge

Time Frames​

ScenarioDispute Window
Standard120 days from disputed transaction date
Each chargeCan dispute each recurring transaction separately

Recurring Transaction Requirements​

Valid Recurring Setup​

Visa requires merchants to:

  1. Obtain explicit consent - Clear agreement to recurring charges
  2. Disclose terms - Amount, frequency, duration
  3. Provide confirmation - Written record of agreement
  4. Easy cancellation - Clear process to stop billing
  5. Cancellation confirmation - Acknowledge when stopped

Credential-on-File Indicators​

Proper coding required:

  • Transaction initiated as recurring
  • MIT (Merchant Initiated Transaction) flags
  • Original CIT reference included

Representment Options​

1. Cancellation Was Not Received​

When to use:

  • No record of cancellation request
  • Request went to wrong channel
  • Incomplete cancellation process

Evidence required:

  • Cancellation policy
  • Communication logs (no cancellation found)
  • Account history showing active status

2. Transaction Before Cancellation​

When to use:

  • Charge occurred before cancellation request
  • Final billing cycle per terms
  • Prorated charge after cancellation

Evidence required:

  • Cancellation request date/time
  • Transaction date/time
  • Terms showing billing timing

3. Terms Allow Post-Cancellation Charge​

When to use:

  • Terms disclose final charge after cancellation
  • Annual billing already processed
  • Service period not yet ended

Evidence required:

  • Signed/accepted terms
  • Terms language re: cancellation
  • Billing cycle explanation

4. Cardholder Used Service After "Cancellation"​

When to use:

  • Access logs show continued use
  • Service benefits received
  • Account remained active

Evidence required:

  • Login/access logs
  • Usage records
  • Account activity history

5. Refund Already Issued​

When to use:

  • Credit already processed
  • Pending refund in progress

Evidence required:

  • Refund transaction details
  • Refund confirmation

Required Documentation​

Evidence TypeStrength
No cancellation + usage logsStrong
Accepted terms + policyMedium-Strong
Transaction before cancel requestStrong
Refund already processedStrong

Representment Time Frames​

StageWindow
Response30 days
Pre-arbitration30 days
Arbitration45 days

Prevention Strategies​

  1. Explicit opt-in - No pre-checked boxes
  2. Terms clearly displayed - Before purchase
  3. Amount and frequency - Clearly stated
  4. Cancellation process - Explained upfront
  5. Confirmation email - With all terms

Pre-Billing Notifications​

  1. Reminder emails - 7+ days before charge
  2. Include amount - What will be charged
  3. Include date - When charge will occur
  4. Easy cancellation link - One-click unsubscribe
  5. Contact information - How to reach support

Easy Cancellation​

  1. Same channel as signup - Online signup = online cancel
  2. Self-service option - Account portal cancellation
  3. Quick processing - Honor immediately
  4. Confirmation - Send cancellation receipt
  5. No dark patterns - Don't make it difficult

Documentation​

  1. Log all communications - Emails, calls, chats
  2. Record consent - Timestamp and method
  3. Track cancellation requests - With confirmation
  4. Maintain usage logs - Prove service access

Trial Conversions​

Best Practices​

  1. Clear trial terms - Duration, conversion date
  2. Conversion notice - 7+ days before
  3. Opt-out option - Easy to cancel before charge
  4. Confirmation at conversion - Receipt email
  5. Explicit consent - For conversion to paid

Common Trial Issues​

IssuePrevention
No conversion noticeSend email 7 days before
Surprise chargeClear terms at signup
Hidden billingTransparent pricing
Difficult cancellationEasy self-service

Win Rate Expectations​

ScenarioExpected Win Rate
No cancellation record + usage60-75%
Transaction before cancellation65-80%
Accepted terms clearly shown45-60%
Post-cancellation with notice40-55%
No documentationUnder 20%

Common Mistakes​

  1. No cancellation logs - Can't prove no request received
  2. Difficult cancellation - Drives chargebacks
  3. No pre-billing notice - Surprises cardholders
  4. Poor terms display - Can't prove consent
  5. Ignoring cancellations - Guaranteed chargebacks

Visa's Payment Cancellation Service​

Visa allows cardholders to request stops through their issuer:

  • Merchant receives cancellation notification
  • Must honor within 3 business days
  • Failure to honor = automatic chargeback
  • 13.1 - Not Received
  • 13.6 - Credit Not Processed
  • 13.7 - Cancelled Merchandise

Next Steps​

Got this chargeback?

  1. Check cancellation records → Did you receive a cancellation request?
  2. Check billing dates → Was transaction before or after cancellation?
  3. Pull usage logs → Did customer continue using the service?
  4. Respond within 30 days → Representment Workflow

Prevent future 13.2 chargebacks:

  1. Make cancellation as easy as signup
  2. Send pre-billing reminders 7+ days before charge
  3. Honor Visa's Payment Cancellation Service immediately
  4. Review subscription compliance

See Also​