According to the 17 April 2021 update of the Visa Core Rules and Visa Product and Service Rules, cardholders are generally granted 120 days from the date of a transaction to file a dispute. There are, however, exceptions – specifically for Visa Dispute Condition Codes 13.1: Services Not Provided, or Goods Not Received 13.3: Not as Described or Defective Merchandise, and 13.6: Credit Not Processed.

What is the update?

The update defines the acceptable timeframe for dispute eligibility; the prior wording of this rule had no definitive end time, and which stated:

  • A dispute must be processed no later than 120 calendar days from either:
    • The Credit Transaction Processing Date
    • The date on the Credit Transaction Receipt
  • The update adds language to the above indicating that dispute must be processed:
    • Before 540 calendar days from the processing date of the original sales transaction – this provides a definitive end date for dispute eligibility
    • The update takes effect for disputes processed on or after 16 October 2021
  • Why was the language modified?
    • As initially written, the timeframe presented
    • This update now aligns with other dispute condition codes, like Visa dispute condition code 13.1 and 13.3.
    • To streamline the dispute process

How can sellers avoid this dispute?

Clear customer communication serves as best practice to prevent many disputes, including dispute condition code 13.6. To avoid unnecessary disputes, sellers should:

  • Deliver clear, complete transaction receipts
  • Provide easy access to Terms & Conditions and refund policies
  • Ensure refund policies are not too restrictive and refunds are processed immediately
  • Engage the customer with proactive correspondence when a credit is issued – and set expectations for when funds will be credited in their account

How can sellers contest the dispute?

To contest a dispute condition code 13.6, the acquirer/seller must provide evidence of one of the following:

  • A credit or reversal issued by the seller was not addressed by the issuer
  • The dispute is invalid
  • The cardholder no longer disputes the transaction

As a valued Verifi client, we are committed to providing you the latest updates and announcements to keep you updated of industry changes that may affect your business. Details shared by Visa can be found here.