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Visa 13.4 - Counterfeit Merchandise

Cardholder claims merchandise received was counterfeit or not genuine.

Overview​

Counterfeit disputes allege the product is fake, not authentic, or illegitimately branded. These can be serious allegations with legal implications beyond just the chargeback.

When This Code Applies​

  • Product is alleged to be counterfeit
  • Item lacks authenticity markers
  • Brand claims item is fake
  • Product fails authenticity verification
  • Unauthorized reproduction of branded goods

Conditions for Valid Dispute​

Cardholder Must​

  1. Claim merchandise is counterfeit
  2. Attempt to resolve with merchant (usually)
  3. May need to return merchandise

Evidence of Counterfeit​

  • Missing authenticity tags/certificates
  • Quality differs from genuine
  • Brand verification fails
  • Packaging discrepancies
  • Serial number issues

Time Frames​

ScenarioDispute Window
Standard120 days from transaction
From delivery120 days from delivery date

Representment Options​

1. Merchandise Is Genuine​

Evidence required:

  • Authenticity certificate
  • Proof of authorized distribution
  • Brand letter confirming authenticity
  • Purchase from manufacturer documentation
  • Serial number verification

2. Never Claimed to Be Branded​

Evidence required:

  • Product listing (no brand claims)
  • Generic description used
  • No trademark usage
  • Clear non-branded marketing

3. Licensed/Authorized Product​

Evidence required:

  • License agreement
  • Authorization letter from brand
  • Authorized dealer documentation
  • Supply chain proof

4. Cardholder Did Not Return​

Evidence required:

  • Return instructions provided
  • No return received
  • Cardholder kept merchandise

Prevention Strategies​

Supply Chain​

  1. Authorized sources only - Buy from licensed distributors
  2. Document chain of custody - Track from manufacturer
  3. Authenticity verification - Check before listing
  4. Supplier vetting - Verify supplier legitimacy

Product Documentation​

  1. Keep certificates - Authenticity documentation
  2. Serial number records - Track each item
  3. Photos before shipping - Document authenticity markers
  4. Invoice from supplier - Prove legitimate source

Listings​

  1. Don't claim brands you can't prove - Risk not worth it
  2. Use "inspired by" carefully - Legal minefield
  3. Clear descriptions - State exactly what it is
  4. No trademark infringement - Legal compliance

Fulfillment​

  1. Verify authenticity before shipping - Quality control
  2. Include certificates - Ship with documentation
  3. Branded packaging - If authorized
  4. Serial number records - For tracking

Win Rate Expectations​

Defense TypeExpected Win Rate
Authenticity certificate70-85%
Authorized dealer proof65-80%
Never claimed branded60-75%
No documentationUnder 20%

Common Mistakes​

  1. Selling grey market goods - Authenticity questionable
  2. No supply chain documentation - Can't prove source
  3. Buying from unknown suppliers - Risk of fakes
  4. Brand claims without proof - Liability exposure

Counterfeit allegations may have implications beyond chargebacks:

  • Trademark infringement claims
  • Customs seizures
  • Legal action from brands
  • Account termination

If you're selling genuine branded goods: Get authorization documentation.

If receiving counterfeit claims on genuine goods: Consider contacting the brand for verification support.

  • 13.3 - Not as Described
  • 13.5 - Misrepresentation
  • 13.1 - Not Received

See Also​