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Visa 13.5 - Misrepresentation

Cardholder claims the transaction was misrepresented in terms of product, service, or terms of sale.

Overview​

Misrepresentation goes beyond "not as described" to allege the merchant intentionally or materially misled the cardholder about the nature of the transaction.

When This Code Applies​

  • False advertising claims
  • Hidden terms or conditions
  • Bait-and-switch allegations
  • Material omissions in description
  • Misleading pricing
  • Terms changed after agreement

Conditions for Valid Dispute​

Cardholder Must​

  1. Show representation was materially false
  2. Demonstrate reliance on representation
  3. Show harm from misrepresentation

Types of Misrepresentation​

TypeExample
Product"New" was actually refurbished
Service"24/7 support" but no support available
PricingHidden fees not disclosed
Terms"Free trial" auto-converts to paid
Origin"Made in USA" was imported

Time Frames​

ScenarioDispute Window
Standard120 days from transaction
From discovery120 days from discovering misrepresentation

Representment Options​

1. No Misrepresentation Occurred​

Evidence required:

  • Original listing/advertisement
  • Terms clearly stated
  • All information accurate
  • No hidden conditions

2. Information Was Disclosed​

Evidence required:

  • Terms visible at checkout
  • Disclosure before purchase
  • Cardholder acknowledgment
  • Email confirmations with terms

3. Cardholder Continued Use​

Evidence required:

  • Used service after learning "truth"
  • Didn't cancel when could have
  • Accepted product/service
  • Usage logs

4. Terms Were Clear​

Evidence required:

  • Plain language terms
  • Conspicuous placement
  • Pre-purchase visibility
  • Confirmation of acceptance

Prevention Strategies​

Pricing Transparency​

  1. All-in pricing - Show total including fees
  2. No hidden charges - Disclose everything
  3. Clear currency - State which currency
  4. Tax disclosure - Before checkout

Terms and Conditions​

  1. Plain language - No legal jargon
  2. Visible placement - Not buried
  3. Checkbox acknowledgment - Proof of acceptance
  4. Summary of key terms - Highlight important items

Product/Service Accuracy​

  1. True descriptions - Factual, not puffery
  2. Condition stated - New, refurbished, used
  3. Origin disclosed - Where made/from
  4. Limitations noted - What it won't do

Free Trials/Subscriptions​

  1. Clear conversion terms - When billing starts
  2. Reminder before charge - Email before conversion
  3. Easy cancellation - Simple process
  4. No dark patterns - Honest UX

Win Rate Expectations​

Defense TypeExpected Win Rate
Terms clearly disclosed65-80%
Cardholder acknowledged60-75%
No misrepresentation (with proof)55-70%
Vague terms or hiddenUnder 25%

Common Mistakes​

  1. Buried terms - Hiding important conditions
  2. Bait pricing - Showing low price, charging more
  3. Dark patterns - Deceptive UX design
  4. Automatic renewals - Without clear disclosure
  5. Changed terms - After cardholder agreed

Misrepresentation can involve:

  • Consumer protection law
  • FTC regulations
  • State consumer statutes
  • False advertising claims

Chargebacks may be the least of concerns if practices are truly misleading.

  • 13.3 - Not as Described
  • 13.4 - Counterfeit Merchandise
  • 13.6 - Credit Not Processed
  • 13.2 - Cancelled Recurring

See Also​